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1.

Introduction

Qatar
Qatar, officially state of Qatar is a country of Middle East occupying the Qatar
peninsula (Land projecting into the water) on the larger Arab peninsula.
It got Independence from United Kingdom in 1971. The boundaries of Qatar
are attaching with Sudia Arabia in south and with the Persian Gulf countries.
The total area of Qatar is approximately is 11,610 km. The most area of
Qatar is desert. The Qatar is absolute Monarchy (Hierarchy) state, which is
control by chief of state called Amir or Sheikh and the head of government is
Prime Minister.
The Qatars economy is mixed (High-Income economy) which provide a
variety of private freedom, combined with centralized economic planning
and government policies, rules and regulations. The economy of Qatar is
depends on hydrocarbons; the country possesses the biggest natural gas
field in the world. The Qatar got 31/187 HDI (World Rank). The HDI Stand
for Human Development Index, which includes several data such as Life
Expectancy, Educations level, Careers, Cultures access etc. The Literacy
rate of Qatar is 89%.
The Doha is the capital city of Qatar. The total population of Qatar is
approximately 2,168,673 with the natural increase 5.6% pa. The 99.1% of
Qatars population is urban and .9% is rural (40% Arab, 18% Pakistani, 18%
Indian, 10% Iranian and 14 % others). Islam is main religion of Qatar which is

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about 77.5% of total population. The remaining religions are 8.5% Christian
and other is 14%. The official language of Qatar is Arabic and business
language is English.
The Qatars culture means music art dressing etc is similar to other Arab
countries (Persian Gulf) culture. Sharia law is uses as the basis of
government in Qatar. The National of Qatar mostly follow Hanbali Madhab
which means one of the four schools of Fiqh or religious law within Sunni
Islam.
In Qatar woman have full right to take her role in society and also take part
in the development of country. The Qatari women have proved their ability
that they do work for the development of their country alongside their fellow
man in all fields. Qatar is the first Gulf country how allows women to
participate in municipal elections in 1999. That is why, the percentage of
women who take part in the municipal elections in 1999 reached 47%. The
Qatari government allows women to drive legally. Under the leadership of
Emir Hamad, Qatar has experienced of sociopolitical liberalization, including
the approval of womens liberation
The national currency of Qatar is Qatari Rial (QAR).
1 QAR = 0.2747 USD and 1 USD = 3.6410 QAR
1 QAR = .2441 EUR and 1 EUR = 4.0971 QAR
1 QAR = 27.97 PKR and 1 PKR = 0.03575 QAR

The Gross Domestic Product (GDP) of Qatar is 203.235 million US Dollars and
its rank is 51 according to World Bank and increase in GDP is 6.3% in 2014.

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The per capita GDP of Qatar is 102,700 US Dollars. The GDP of Qatar
according to sector is following:
Industry contribute 79.1%
Services contribute 20.9%

GDP Contribution (Qatar)


90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Industry

Service

Agriculture
A

griculture contribute 0%
(Qatars GDP Contribution Graph)

The inflation rate of Qatar is 2.8% and Unemployment rate is 0.4%

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Qatar is the major producer of natural gas and also petroleum items. That is
Why, Qatar imports their product for the purpose of foreign exchange and
also imports product which it cannot produce.

Master Tiles LTD (Master Group of Industries)

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Form of Business:
4 Public Limited Companies and 6 Pvt Ltd Companies
Companies
The Companies which are include in Master Group, such as Master Sanitary fittings industries
Limited, Master plastic industries Limited, Master tiles & Ceramic Industries Limited, Z & J
Hygienic Products Pvt Limited, Master Ballpoint Pen Industries Pvt Limited, Baby Master
Diapers, Master Poly Propylene Industries, Master Multi Products, Master PPRC Industry and
Master City Pvt Limited
Directors
The Directors of Master Group of Industries are seven which are Mr. Sheikh Javid Iqbal, Mr.
Sheikh Pervaiz Iqbal, Mr. Sheikh Mahmood Iqbal, Mr. Sheikh Nasir Iqbal, Mr. Sheikh Maqsood
Iqbal, Mr. Sheikh Muhammad Akbar and Mr. Sheikh Muhammad Asghar
Name of Business
Company name on which we are focusing is MASTER TILES AND CERAMICS LTD is a
subsidiary of MASTER GROUP OF INDUSTRIES
Starting of Business
Master sanitary fittings were starting by Sheikh Muhammad Javid Iqbal in 1982, which is the
very 1st business of Master Group. In 1995 its begin the production of tiles with the name of
Master tiles and Ceramics Industries Limited and in 2003 it introduced granite tiles in Pakistani
market.
Timing: (For Master tiles LTD)
The timing of Master Tiles is Full time, 24 hours a day and 3 shifts of Labor (8 hours/ shift)

Location

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Head office
G.T. Road Gujranwala, Pakistan
Production Site (For Granite Tiles)
G.T. Road Kamoke, Gujranwala, Pakistan
Production Capacity
30000 Sq. Meter
Contact Information
Ph#

092-055-111-300-400

Fax#

055-272127, 272721

Email

info@mastertiles.com

Web Address

http://www.mastertiles.com

Business Advisors
Master Tiles is a big business unit so for better performance in the market. It needs some advisor
which is a Legal Advisor Firm, Chartered Accountant Firm, Advertising Agency, Ahmad Rauf
Associates, Illyas Saleem Company Lahore, Creative Consultants

2. Firm Analysis

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Master tiles was Formed by Sheikh Mahmood Iqbal in 1995. It is located in Gujranwala near
Kamoke. Master Tiles is one of the best tiles producer/manufacturers in Pakistan. Master Tiles
provides opportunities to upgrade or improve the standard of living or life style by introducing
the Granite Tiles for the 1 st time in Pakistan with best and latest Italian technology. The Master
Tiles import their Granite Tiles manufacturing plant from Italy in 2002. For the better result and
Quality production they hire the engineers from Italy which operates that plant. The Hiring of
Engineers from Italy is made because there is no engineer available in Pakistan which operates
that plant. They have also hired some foreign employees like Italians &Mexicans who had been
working there for more than 13 years. They have hired quality, skilled and well educated staff.
Master Tiles plant has a capacity to produce more than 30000 Sq/meter tiles per day. The
Company also Exports the tiles to UK, Afghanistan, Italy and UAE.
The Professional team in the departments such as Marketing, Finance, Production, Quality
Control, Research & Development, Customer Care Department
Master tiles have a computerized system in the organization. Computer network is used to share
the information between departments. Master Tiles have quality, skilled and qualified employees.
Master Tiles manufactures/produce tiles in different designs and colors. Master Tiles are
planning to build another new manufacturing plant to meet the demand which are about to be
increase in future. The key product of Master Tiles is Granite Tile. The Granite Tile is
manufactured by the Granite stone. Granite is the most durable building stone because it is
porous quality stone. Granite is easier to maintain then marble because it is very hard material.
Granite is formed/made under the surface of earth at extreme highly temperatures. In KPK and
Baluchistan and in different Northern Areas Granite stone is easily available. Granite is the one
of the largest extracted mineral.

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Therefore, we decided that we also exports tiles to Qatar. Because lots of construction projects
are start in Qatar Like hotels, restaurants, Football Stadiums Buildings Shopping malls and
others. The reasons of starting of construction projects is that the Qatar host the FIFA World
Cup 2022 and Asia Football Cup in 2018 and also World Fencing Championship 2017. Due
to hosting of FIFA world Cup and other major sports events many foreigners(Different
Countries National) comes to Qatar for watching and enjoying the football match (World
Cup)and other sports events. So that it is a great opportunities for businesses to establish their
business in Qatar because it is a very good road to enter in international trade and make their
products and company as a multinational product and company because football is a world
famous game and people like football more than other sports. That is why, we decided to take
this opportunity and export their tiles to Qatar for the purpose of making their product and
company a multinational product and company.
The other reasons are the Qatari government allows foreigners to invest their money for
incensement of their business and also income. They Give benefits to foreigners for investment
in Qatar such Tax free for a specified period of time and also provide help for starting and
operating their businesses
Mission
The ceramic tiles industry is a major force for the improvement of quality of life across the
world. Master aims to be the leading manufacturer of best quality ceramic tiles and pledges to
prove its customers with latest designs, varieties and innovative products in line with the
internationally changing trends. Through achievement of our aim we will enhance the wealth and
well being of our stakeholders, employees and communities, whom we serve and in which we
operate.

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Vision
Masters vision is to lead the market with innovations in product development to improve the
quality of life and lifestyle of its customers. With timely adoptions to rapidly developing
technologies and meaningful investment in human resource training, Master will serve to
maintain the differentiation edge through provision of unmatched products and services to its
customers at a competitive price.
Quality Policy
At Master, Quality Management System (QMS) is aimed, planned, developed and implemented
to bring excellence in our products and services. We believe that quality adds value and we are
determined to serve our valuable customers with highest quality products in order to provide best
value for their money. Compliance with related legislation, regulations and code of conduct are
central to our quality policy.

Certifications

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ISO 9001: 2000 (UKAS Quality Management)

Award (Brand of the year Award in 2009 in Ceramics tiles category)

Domestic & International Markets


Master Tiles have a rewarded that it is a quality leader in the production of
tiles in Pakistan. So Master is taking the exports markets and makes Pakistan
Proud.
When it comes to quality in a global context, Master has got a dual
advantage as compared to any other producer in the world. Master operates
the worlds latest Italian plant and equipment under the supervision of
leading Italian professionals. The real edge/advantage comes from the
availability of unique quality of raw materials, are unmatched in the world.
This exclusive combination results in a product, make it good. That is why,
customers all across the globe having access to our products choose them as
their 1st preference. The trust which is given to Masters products by
Pakistani people, that rapidly increases beyond the borders.

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Currently, Master is exporting its products to United Kingdom and


Afghanistan directly and indirectly to many European, Middle East, Asian and
African markets. This time Master is decided to exports their products to
Qatar because of starting of construction projects and FIFA world Cup 2022
for the awareness of their products throughout the world.

SWOT Analysis
Strengths
The main strength of Master Tiles is their newest technological and hi-tech imported
plant which is extremely computerized.
The strength of Master Tiles is their vastly professionals and skilled/expert foreign
personnel who are working there for more than thirteen years.
One of the strength of Master Tiles is its production ability or capacity. It can produce
more that 30000 Sq/meter per day which is the upper most as compared to the local
competitors. Master Tiles has the ability to meet the vast demand.
They have a computerized structure through which communication between different
departments can be done quicker.
They have their own Research and Development sector and they always seek to find the
new opportunities to improve the quality and create new innovations.
They have a large distribution channel all over the Pakistan. They have good and long
term associations with their dealers.
They can construct squander range of designs, styles and colors which is one of the
foremost strength of Master Tiles.
Weaknesses:
The main weakness of Master Tiles is the maintenance and repairing of its Italian
manufacturing plant. Once there is a problem in plant then it requires a full day for

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repairing and again become in operational positions so it could be a further weakness of


Master tiles.
A further weakness of Master tiles is that networking system because there whole internal
communication based on networking so if there could be any problem in key server so
their whole communication will stop.
As company divides whole Pakistan into diverse region sop if there is miss
communication between each region and company and if it affects their supply chain
process than it could be a further weakness of the company.
Opportunities
Qatar has one of the highest GDP per head in the world and the per capita income is
$93714. SO, the purchasing power of residence of Qatar is high to purchase our products.
The Budget of Qatar is in surplus which is 22.3 Billion Qatari Rail. It represent that there
is much capacity in its budget to import because according to economist, the balance
between the exports and imports is suitable for any country.
We are going to export our products in Qatar. So, we have to deal with letter of credit and
bill of lading and in case of urgent need of money we can receive/withdraw the money
from the importer at any time but the condition with great credit worthiness and by
delivering the ordered products.
There is no restrictions in investing in Qatar and withdrawing the investment from Qatar
and free from restriction of capital outflow and inflow.
The currency of Qatar is almost stable but the Pakistani currency is fluctuating time to
time. It means in case of depreciation of Pakistani currency we will receive the high
transfer receipts.

Threats

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Brand Recognition-Master tiles will newly launch in Qatar. So it will be faced brand
recognition challenges among existing brand which have well brand recognition in Qatar
Financial Stability of Retailer-Master Tiles will not have its own distribution
channel or outlet in Qatar. So, Master Tiles will face the problem of
seeking out the financially strong retailer, which he exports its
products.
Acceptability-Master Tiles will be newly export to Qatar. So, it will
face another challenge of customer acceptability of its product
because it is very much difficult for newly launched product to gain
customer acceptability for its goods/products.
International Competition-There is international suppliers in Qatar
who provides tiles to people for construction purposes. So, it will be
another challenge foe Master Tiles to compete in with those
international

competitors

for

getting

reasonable

market

shares

because these competitors are old in the Qatari tiles market and they
are well established.
Meet International Standards-It also another challenge for Master
Tiles to maintain international quality standard because of competing
with international brands which is known by people of Qatar and also
people of world.

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3.

Political Environment

Political System
The Qatar is absolute Monarchy (Hierarchy) state, which is control by chief
of state called Amir or Sheikh and the head of government is Prime Minister.
Ruler
Muhammad
Qasim
Ahmad
Abdullah
Ali
Ahmed
Khalifa
Hamad

1868-1878
1878-1913
1893-1906
1913-1949
1949-1960
1960-1972
1972-1995
1995-

Executive Branch
In Qatar, Al Thani family holds power, since getting independence in 1971
from United Kingdom. The head of state/country called Emir and the head of
Government Called Prime Minister. Politically Qatar is involving from a
traditional society into a modern welfare state. Government department
have been established to meet the requirement of social and economic
progress. The basic law of Qatar is Sharia (Islamic law), granting the Emir
preeminent power. The Emirs role is influenced by continuing traditions of
consultation, rule by consensus and the citizens have a right to appeal
personally to Emir. The Emir, while directly accountable to no one, cannot break the
Sharia (Islamic law) and, in practice, Emir must consider the particularly important phenomenon
and the religious establishment. In the Advisory Council their position was institutionalized, an

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appointed body that help Emir in formulating policy. Qatar has no electoral system. Qatari
government banned Political parties.
Tamim bin Hamad Al Thani became the Emir of Qatar on 25 June 2015 after his father Hamad
bin Khalifa Al Thani handed over power to him in a televised speech.
Office
Emir
Prime

Name
Tamim bin Hamad Al Thani
Abdullah bin Nasser bin Khalifa Al Thani

Party

Since
25 June 2013
25 June 2013

Minister

Main Office holders

Ministries
The ministries of Qatar is the ministry of Foreign Affairs, Defense, Interior, Public Health,
Energy and Industry, Municipal and Urban Planning, Finance, Culture Arts and Heritage, Labor
and Social Affairs, Education and Higher Education, Endowments and Islamic Affairs, Amiri
Diwan - Sheikh Abdullah bin Khalifa Al Thani (Prime Minister), Department of Investment
Promotion, Council for Family Affairs (Supreme), Judiciary Council(Supreme), Public
Prosecution, Qatar News Agency (Minister of Information)
Consultative Assembly
The Consultative Assembly (Majlis as-Shura) has appointed 35 members with only consultative
tasks. In 2003, Qatars Constitution calls for a 45 member elected Legislature, which include 30
elected representatives and 15 appointed by the Emir. Prime Minister Al Thani in 2006 & then
the Deputy Prime Minister announced that elections would be held in 2007 but only lawmaking
council evaluation the subject was created that year. The elections have been delayed three

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times; most recently in June 2010, when the Emir Hamad bin Khalifa Al Thani unlimited the
tenure of Consultative Assembly till 2013.
Political Parties
No Party in Qatar because Qatar is absolute Monarchy (Hierarchy) state, which is
control by chief of state, called Amir or Sheikh and the head of government is
Prime Minister.
Administrative Divisions
There are 7 municipalities of Qatar: Ad Dawah, Al Daayen, Al Rayyan, Al
Khor, Al Wakrah Al Rayyan, Madinat ash Shamal and Umm Sala
Political Risk
Qatar's has short-term political risk profile because it politically stable in the region. Regardless
of enjoying little in the way of democratic liberty, Qataris benefit from huge hydrocarbon wealth
which is increase liberally across the country's local population and enjoy the highest per capita
GDP in the world. A tiny population - and one without much leaning to gripe against the
government - will keep the country insulated from large-scale public turbulence in the instant
term.

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4.

Legal Environment

Legal System in Qatar


Legal system is found in two classical sources. One it is Islamic law and seconds it is founded
principle of Napoleonic civil code .In 1961, legislation process start in Qatar country when no
law in Qatar country in this year as well as it is issue in official gazette.
Constitution Legal System in Qatar
The constitution of Qatar is based on promoting international and security in respect Of
International Trade. The law explains basic and human rights .condition in legal agreement that
all citizens are equal rights and duties. All people are equal and there is no gender discrimination
on the basis of language and religion the law provides the administrative framework for
governance the state is base on separation of authorities.
Judicial System
The judicial system is established by the three judicial law in 2003.litigation is divided in to three
stages .all court is declared result in Arabic. decision of lower court is not final .we are appeal the
supreme court before decision .The supreme court shall have technical decision and have extra
duties of this court described in legal principal.
Commercial Law

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The commercial law deal in commercial actives, commercial agencies and commercial contract
of the buyer and sell. This is also regulating in banking transaction, such as bill of exchange
promissory note.
Commercial Companys Law
The law provides that any company establish in Qatar must be classified in to two categories one
is limited liability and second is shareholding company. Limited liability mean the liability of
partners are limited up to capital. Under this system investor register our company under limited
liability with 2 minimum and 50 maximum shareholders with authorized share capital 200000.
Public shareholding company must have 5 minimum shareholder with a capital not les n ordinary
working hour and trade. The share of Shareholding Company is trade on stock exchange market.
Foreign Investor
The law regulate about the foreign investor is that he can invest in every field except commercial
agencies and real estate trading. The general rule is that 51% property of business venture is
owned by Qatar citizen. Foreign investor can owned ownership 49% to 100% by the decision
Minister of business and trade under certain conditions.
Tax Law
Tax is levied on foreign investor on the income arising the activates carry on in Qatar .The
activities under subject to taxation professional services, speculation business, contract work or
any other work under for the purpose of profits.
Customs Law

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Any company import goods in to Qatar for the purpose of sale must have import number. This
number is provided by foreign Minister .The standard rate of customs duties is 5% of imported
goods value. If the imported goods from the main land of Qatar then no taxation.

Labor Law
The relationship between the employer and employee is called labor law. Regular working hours
are 8 hours in a day. In Ramzan, normal working hour are not more than 6 in a day.
Environment Legislation
The environment in Qatar is protected. The Protected environment provides a plate form for
work peacefully. The person who is not maintains the safe environment then responsible of fine
and imprisonment.
Qatar Financial Centre
Qatar financial centre is established in 2005.the main object of Qatar financial centre is to
provide international banking service and insurance. Qatar financial centre is to provide
environmental investment in various ways.
Intellectual property
Intellectual property rights are according to the territory which means they give protection
against the companys product or service only in the region or country in which they are
registered. When a firm is going to trade internationally then that company has to register its
intellectual property in the exports markets.

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So for the registration of intellectual property in the Qatar the companies have to visit in the
Qatar trade mark office. It also includes inventive designs or industrial models.
Qatar copy rights protect original literary work and artistic works. It also includes the registration
of the computer programs and databases which are very important in their subject matter or we
can say that materials must be registered in the Qatar copyright office for their protection. It is
also to be noted that foreign copy rights, patents and inventions must be registered in the Qatar
patent office.
Legal issues in international business
The train departing from platform 1 is the 2012 train to multi-billion infrastructure project in the
Middle East, which is going to connect to Qatar, UAE, Oman, Kuwait, Bahrain and Saudi Arabia
due to host the FIFA world cup 2012.
Thousands of legal issues arise in Qatar by doing businesses there. The Qatar government is
expecting from foreign businesses that they should avoid these business mistakes in future.
These mistakes arise in the areas of the company laws, foreign investment laws, tax, and
employment, Immigration, tendering and engineering laws. Mostly these happen in the business
set up. Certain mandatory laws of Qatar will apply other issues in the contract. Due to western
standards Qatar construction laws are difficult for the constructors because of on demand work,
no extension in the payment and certification periods and requirement of high performance from
the project. However the agreement between the contracting parties can be amended and can also
be revoked only with the consent of the contracting parties.
In Qatar liability is considered a liability cap which means there liability is unlimited happens
due to the fraud or mistakes. Another is the decennial liability which means strict liability under

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which the contractors and designers jointly guarantees that the project and other legal provisions
will be completed within 10 years. Pre agreeing damages does not fix any liability but have to
give insurance by consulting with their lawyers. This may be difficult for a contractor to prove
that no serious damages will happen. If the liquidated damages have been happen then it can
only be reduced by consulting with the court of Qatar. Otherwise all the agreement to the
contrary is void.
The above liability does not apply on the employers. If the losses are greater than anticipated he
cannot claim more than the agreed amount.
Legal Risk
Qatar has fair legal system. The quality of the legal system is high and the country's legal code is
well developed. Contracts can be enforced. There is low Risk of Expropriation. There is a low
threat from terrorism. Due to lack of corruption and restrictions Qatar becomes more attractive
country for exports and Qatari government allow foreigner to invest in their country freely.

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5. Economic Environment
Economic system
Qatar has a mix economic system. Which provide a variety of private freedom,
combined with centralized economic planning and government policies, rules
and regulations? The economy of Qatar is depends on hydrocarbons; the
country possesses the biggest natural gas field in the world. The Qatari economy
will continue to get bigger at a rapid pace over the next few years, supported by accommodative
fiscal policy - Particularly infrastructure spending - and strong population increments. The nonhydrocarbons economy will force growth, with construction action and the services sector set to
remain the foremost performers.
Main products and services
More than 70% revenue of Qatar is earned by petroleum and natural liquefied gas. And GDP of
Qatar is dependent on petroleum and natural liquefied gas more than 60% and roughly 85% of
the earnings from export is earned by same products.
The economy of Qatar having the reserves of proved oil reserves more than 15 billion barrels,
and Qatar is providing the same level of production for 23 years as compare to current level. The
per capita GDP of Qatar is highest all over the world due to oil. Qatar is having proved reserves
of gas more than 5% of the whole world and thirdly in the countries which having highest
reserves in natural gas. It is important to increase the production and export of natural gas.

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The long term goals of Qatar is to off shore petroleum and diversify to their economy.

Industries
Crude Oil Production, Fertilizers, Petrochemicals and Refining Ammonia and Reinforcing
Cement, Bars, Commercial Ship Repairs
Economic Risk
Qatar was the 1st fastest growing economy of the world over 2008-2012 with the highest GDP
growth rate of 12% as compared to china (second faster) 9 %. In2013 growth rate was 6.5% and
in 2014 was estimated 6.8%. IMF was anticipating that the world growth for 2014 will be at
3.6%. The Qatar has the 3rd largest economy in GCC, after Saudi Arabia and UAE. IMF forecast
that the Qatar will have the highest growth rate over next five years. Qatar is ranked in 16 th WEF
Global competitiveness report 2015.
National vision of Qatar 2030 is based on social, economic, environmental, human capital
expansion. Qatar has equal to US$220bn of investments planned to deliver the National Vision
2030 and Football World Cup in 2022, including $182bn of projects to be implemented in the
next five years (excluding oil and gas and private sector projects). Qatar having planned to spent
$60bn expenditure of 2014-2015 highly focusing on infrastructure education and health. This is
one of the most ambitious investments in the world.
Large scale infrastructure includes Doha metro system, new port and road projects.

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Rapid growth rate of population is expected to generate demand for accommodation both
residential and commercial, education & medical services. Qatar growth has built on exploiting
gas on third after Russia and Iran. Qatar was the 4 th largest gas producer in the world and largest
LNG exporter since 2006 and its the worlds

largest exporter of helium. Qatar is also an oil

exporter and member of OPEC. Qatar is very important to UK energy supplies through its export
of LNG.
Oil and gas accounted for 58% of economy but only 6% people were employed in this sector.
Services accounted for 29% of nominal GDP with 47% workforce. The non-oil companies
(manufacturing, utilities & construction) accounted for 14% of nominal GDP with 46% of total
workforce. Agriculture accounted for only 0.1% of GDP. Safeguarding and maximizing oil and
gas but its desire to diversify its economy to different fields.
The UK and Qatar are key trading partners. Qatar is the 3 rd largest exporter market in the Middle
East and North Africa region. An export from British to Qatar has been increased significantly
from 353 million pound to 1.53 billion pound.
Exports integrated industrial machinery, plant & equipment, electrical machinery, vehicles,
luxury products, power generation and foodstuffs equipment. The most recent available figures
for the value of the UKs export of services as well as legal, consultancy & financial services
were 525m in 2012. In June 2009, Qatar and United Kingdom signed a Double Taxation
Agreement. In October2009, United Kingdom and Qatar also signed an Investment Promotion &
Protection Agreement, while this has yet to be ratified. In 2011, the United Kingdom was the 4 th
largest exporter of products to Qatar. The other major trading partners were the United State of

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America, United Arab Emirates, Saudi Arabia, Japan, India, Germany, Italy, France and South
Korea.

6. Monetary Environment
Currency System
In the beginning currency of Qatar was Indian rupee. Qatar adopted Saudi Rial in 1966 when
India devalues its currency. After that Qatar introduced its own currency named Qatari Rial. In
1973 the Qatar Central bank was established. All notes and coins became the property of the
bank but continue to circulate for several years.
In 2001 the Qatari Rial was pegged with US dollars at a fixed exchange rate of USD 1 = 3.64
QAR and this agreement was signed by the Hamad Bin Khalifa Al Thani Emir of Qatar. This
system explains the upper and lower limit of sale and purchase of US dollar by Qatar Central
Bank with banks operating in Qatar. This was done to make ensure the stability of the Qatari Rial
and to reduce the price volatility (change rapidly).

Currency Risk
The Qatari Rial will remain pegged with the US dollar and revaluation is not expected in 20152016. This peg may create hurdles in monetary policy of Qatar and the Qatar Central Bank will
have to do some extra work to adopt more flexible tools to address rising inflation and

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persistently high liquidity in the banking sector. There is one advantage to Qatar central Bank is
that it holds large foreign reserves which can be deployed to defend the peg if the need arise.

7. Trade Environment
Major exports
The major exports of Qatar include the liquefied natural gas (LNG) and petroleum. 70% of the
government revenue is generated through these exports and more than 60% of gross domestic
product is also based on it in the markets of East Asia and Middle East. Qatars oil reserves of 15
billion barrels will continually make contribution in its exports for next 23 years. Production and
export of natural gas are becoming increasingly important.
Top five major exports of Qatar are:
The exports of Qatar are Natural Gas (47%), Crude Petroleum (39%), Refined
Petroleum (7.1%), Ethylene Polymers (2.1%) and Nitrogenous Fertilizers
(1.3%)

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(Qatars Top Five Exports Graph)

Top Five Exports of Qatar (%)


50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Major imports
The major imports of the Qatar are machinery and transport equipment. Some imports are also
comprised of agriculture, steels and chemical products.

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Main trading partners


The main export partners for the Qatar are these countries Japan, India, Singapore, Republic of
Korea and Thailand. In the Middle East the UAE is the main target of Qatars exports while
Africa, Egypt, United States and United Kingdom are also the main markets for Qatar exports.
Similarly the import partners for Qatar are the United Kingdom, United States, Japan, China and
some European countries like Italy.
In short the main trading partners of the Qatar are Saudi Arabia, United Arab Emirates and
United Kingdom.
Top Five Exporters Countries of Qatar

Top Five Exporters Countries of Qatar


40%
30%
20%
10%
0%
Japan

South Korea

India

Singapore

China

T
he top five importers of Qatar are Japan (31%), South Korea (22%), India (15%), Singapore
(6.6%) and China (6.4%)
(Top Five Exporter)

Regional Economic Integration

P a g e | 29

Both countries Pakistan and Qatar are blessed with deep rooted historical multidimensional
relations based on cultural attractions, shared traditions and values, geographical closeness and
uniqueness of interest. Both these countries provide support to each other and also the people of
these countries so that there can be built an excellent bilateral relations among them and further
economic integration in future. Pakistan has high importance to the regional and strategic
position of Qatar in the Middle East and in the Muslim world today. Pakistan keens to further
enhance the regional and economic integration in all fields. Qatar assures that it will help
Pakistan in achieving Free Trade Agreement with the Gulf Corporation Council (GCC) countries.
On the other hand Government of Qatar has recently constructed a model village, schools,
shopping malls and masjids in RahimYaar Khan District. Pakistan and Qatar joint ministerial
commission provides an excellent opportunity to enhance economic and trade relations between
these two countries in the various fields. Pakistan provides an ample opportunity to Qatari
business men and investors in the sectors of national economy like power sectors, health,
education and infrastructure.
Tariff and Trade Barriers
Qatar has promoted an open investment and trade policy in recent years to diversify its economy
and from being heavily dependent on energy sector exports. Qatar national vision of 2030 is to
promote competition, trade and investment by reducing barriers to entry and strengthening the
competition. Qatar is reviewing its trade policy of urging foreign investments and reducing
restrictions by opening more sectors that currently have restrictions.
Qatar has become a contracting party to GATT 1994 in which he bound on all tariffs of goods
and services.

P a g e | 30

Qatars tariff schedule is not published or available to the public but it is based on the unified
custom tariffs of the Gulf Cooperation Council. The tariff schedule has one rate of duty
applicable to each tariff line, weather supplied by WTO member countries or not. But the Qatars
applied tariff rates remained low and relatively constant over the period. In 2007 tariffs averaged
5% and remained at this same average level in 2013. The agriculture tariffs are approximately
high than industrial goods. Qatar maintains a simple tariff system that is 0%, 5%, 20%, 100%.
Applicability of these duties depends upon the nature of the product. The vast majority of tariffs
are at 5%.
Internationally Qatar maintains various trade barriers to discourage foreign investors like import
of religiously and government sensitive items but do not impose any duty on products like rice,
wheat, powdered milk etc. investment in beverages and other alcoholic products, armed, military
and ammunition products in Qatar required permission and license from the Qatar government
and may impose hundred percent duty on such products including tobacco.
Government Incentives for Conducting Business in Qatar
The goal of the Qatar government is to diversify its economy away from heavy dependence on
the sector of energy. It has various incentives for the foreign direct investors so that government
can urge them to invest in other sectors. The incentives includes subsidized gas prices, tax
holidays, land at no-market rents, favorable electricity rates, exemption of taxes on exports, loans
at competitive rates and dont apply any import duties on the import of machinery, equipment,
and spare parts for the industrial projects.

8.

Cultural Analysis

P a g e | 31

Culture
Culture is a set of beliefs, values and traditions in any society which are
socially shared, communicated and accepted in a society.
The Quality in a person or society that comes from a concern for what is
regarded as excellent in arts, letters, manners, scholarly pursuits, etc
Culture of every country is different and it is important for a company to
understand the culture of the host country before launching the product in
that country. It is also important to understand that how people perceive our
product in that country. A company should determine the dimensions of the
host country and also the norms of that country. Dimensions and norms play
a key role in the development of the culture of that country.
Culture is traditional country experiencing rapid social changing. It is
important to Qatar to maintain its heritage and the modern appearance may
mislead people into forgetting that it is still a traditional society with
consequential social confusions.
We by choosing the master tiles company have analysis the culture of our
host country Qatar and determine the culture by relating this to a model of
Trompenaars

and

Hampden-Turner.

This

model

explains

the

seven

dimensions of the culture and helps us to completely analyze the culture of


Qatar. First we are going to explain the seven dimensions of the culture with
the help of this model.

P a g e | 32

Determinants of Culture
The determinants which can affect the nature of work in the Qatar primarily are religion, political
philosophy, education, language and social structure. When a new firm or a foreign firm comes
in this country it has to consider these crucial factors or determinants. These determinants can
become the cause of success or failure in the Qatar. How these determinants affect the working
of a firm in Qatar are briefly explained below.
Religion
The religion of the country Qatar is Islam and the dominant version of Islam in Qatar is the
Wahhabi or Sunni Islam. Although the local population of Qatar is made up Islam yet there are
high number of other workers belongs to other countries. When a firm will launch a product here
it has to follow the Islamic philosophy otherwise the product will totally flop in Qatar.
Political Philosophy
The Qatar is the country based on the absolutely monarchy system in which all the matters are
solved by the king or emir of the country and he does not allow the others to interrupt with the
matters of the government. The Sharia system of legislation is implemented in the country. So for
a firm to be successful there is necessary for him to refrain from taking part in the politics.
Education
In Qatar to fulfill the mission 2030 education has become very important for the development of
the Qatari people. There are too many campuses of foreign universities and operate under the

P a g e | 33

Supreme Education Council. Most of the universities provide free education to the children of
government employees. Qatar universities provide education based on science and technology
and also the curriculum of business. So education is the determinant due to which people come
to know that what firms are going to operate in their country and how much ethics are being
followed by them.
Language
This determinant also plays a key role in the success of the firm in a host country. When a firm
launches a product or export in host country it has to understand their needs and demand about
the product and also understand that at what price people can buy this product. All this can be
done with the complete understanding of the language of that country. For us as exporting master
tiles and sanitary there it is an opportunity that our national language Urdu is also speaks
somehow. Language is the main source of communication in every part of the world and every
country has its own language.

P a g e | 34

Culture Dimensions
This model explains that peoples are not only different with one another they
also differ in every definite, even expectable ways. This is because each
culture has its own way of thinking, its own preferences and also has its own
beliefs and values.
These dimensions consist of the following main features.

Rules versus Relationship


Peoples of the Qatar place a too much importance to the rules, laws, values,
obligations and regulations. These people give time to each other to make
decision and provide clear instructions, processes and procedures so that
people can help and understand each other. Qatari peoples never give
importance to their relationships over the rules of their country. It is also to
note that these peoples do not build relationships with each other so early.
Individual versus Group
On the basis of individual feature these Qatari people love to reward their
performance, love to work with freedom and use their initiative. These
peoples also love to work with group and praise and reward group
performance. When they work in group they dont praise their individual

P a g e | 35

performance. Qatari people allow involving others in decision making and


avoiding favoritism.

How Far People Get Involved


Peoples of Qatar do not get involved with the personal lives of other and that
is why they do not give much importance to the relationships. They just
focus on their objectives. But these people also spend time outside work
hours with colleagues and clients. On the sense of business these peoples
have personal discussions at work.
How People Express Emotions
People make a great effort to control their emotions they do not get influence
unless their actions and thinking deal with them. Mostly peoples do not get
involved with the situations happing in the country. It means they do not
think that what other peoples doing. They find ways to express their
emotions at work. They also use emotions to communicate their objectives
and manage conflict effectively before it becomes personal.
How People View Status
Qatari peoples work well when they get reward on their achievements but
remains within the norms and culture of their country. These peoples loved to
be valued what they are and often get power and titles without show off in
authority. These people do not let their authority to perform negatively in the
culture.

P a g e | 36

How People Manage Time


These peoples are punctual and give too much value to the time. The culture
of the Qatar is also to perform one task at a time keeping deadline in mind
and set clear goals. Sometime they consider performing several projects at
one time and needing some flexibility in managing time.
How People Relate To Their Environment
Internally in the companies these peoples learn from other peoples and also
take control on their learning. From the culture of the Qatar it is analyzed
that peoples and employees set objectives and agree with people. External
environment also affect their thinking example is the nature of the country is
hot and these peoples need air conditions to work within the offices.
On the other hand some other dimensions can also effect on the culture of
the country and these are as below.
On Gender Basis
Women in the Arab countries including Qatar can now work safely in the
offices and also can take part in the decision making of the company. Before
now females were not allowed to work due to some weak implementation of
the laws. Now days women can work without any problem.
More local women are entering the work force in Qatar and some employers
view them as harder working and more reliable than the average local male

P a g e | 37

worker. Women rising to positions of power and influence tend to come from
middle and upper families and support their families.
Long Term Oriented
The Qatari people are long term oriented and now mainly focus on the 2030
vision and thats why we analyze that these peoples are long term oriented.
This also explains that these peoples can adopt all changing environments.
Uncertainty Avoidance
It is the natural behavior of the all culture people that they move away from
the uncertain conditions and avoid it at all possible levels.

Cultural Norms
Now we can further elaborate the culture of the Qatar in the sense of the
cultural norms and code of ethics and these should also expected from the
visitors. These cultural norms are briefly explained below.
Permission for Taking Picture
Seek permission for taking photographs of people and be cautious about
taking photographs in public. For security reasons the Qatari government do
not allow to take photograph of government buildings, military and some

P a g e | 38

industrial sites, as well as some internal and external portions of the airport
or shopping malls.
Dress
It is expected from the visitors that they should not wear tight clothes by
women and open shirts by the men. They should also follow the courtesy and
hospitality and respect in the Arab world. There are two different types of
clothings in the Arab country regions and in the Qatar. One is for the local
women and the other is for the foreigners. Arab women outside the home will
dress like the rule of Islam as they have to wear abaya which covers the
women from head to feet. Qatari men wear the thobe a loose ankle length
robe made from fine white cotton as worn by Omanis. The visitor women are
not allowed to wear tight and sleeveless.

Language
The official language is Arabic but English is increasingly becoming the
chosen language particularly in business situations. Interpreters can be hired
for business situations where English is not understood by them. Urdu which
is the language of Pakistan is also spoken in Qatar. The following chart

P a g e | 39

presents a few words which will provide help to foreigners and audio tapes or
a simple Arabic language books can also provide help with pronunciation.
English

Arabic

English

Arabic

Yes

Aiwa

Hello (literally, peace be with

Al

Lah

you)
Hello (said in response)

alaykum
Waalaykum

Min

How are you?

salaam
Kef halak?

fadhlak
Min

Welcome

Marhaba

No
Please (to a man)
Please

(to

salaam

woman)
Thank you

(to

fadhlak
Mashkur

I am well, thank you

Al-humdulillah

man)
Thank

(to

Mashkura

Goodbye

Maalsalaama

you

woman)

Greetings
The most common greetings in the gulf region and in Islam are the ASSLAMU
ALAIKUM and to which the correct reply is the WA ALAIKUM MUSLAM. This is
also in the Pakistan. Men should never shake hand with women either they
are all foreigners or not.
Titles
It is a common practice in Qatar to tell your first name and family name. Woman who are
married they use first their first name and their husbands name.

Food

P a g e | 40

They make their Breakfast between 6.00 am and 8.00 am, lunch between 1.00 pm and 3.00 pm.
And Qatari people do their evening meal at home in 18.00-19.00 with tea.
The traditional dishes of Qatar are Machbous, Mathrooba, Kousa Mahshi and Wareq Enab and
drink is Qahwa Helw
Events& Festivals
The events and festivals are celebrates in Qatar are Eid Ul Fitar, Eid Ul Azha,
Ramzan, Art Festival Of Qatar, Doha Cultural Festival, Doha Tribeca Film
Festival, Qatar Marine Festival, Qatar Master Gulf Tournament, Qatar Open
Tennis Tournament
Invitations
If you are invited in the home of the Arab country you should accept it. You
should generally take every opportunity to become acquaint with the local
people and avoid the natural tendency to stay within the social and physical
confines. In these countries you should avoid politics and religion as subjects
for discussion. It is also to note that before entering to the home of Arabs
you should remove your footwears.

P a g e | 41

9. Challenges And Opportunities Of Doing Business In

The Qatar
Challenges
Challenge (the condition of being faced with) something that needs huge mental or physical
effort in order to be done fruitfully.
The Qatar Business environment is not much challenging because government promote foreign
investment in the country by giving tariff benefit, free trade, no import duty on import of
machinery and raw material
The Following Challenges to be face, Master Tiles in Qatar:
Brand Recognition
Master tiles will newly launch in Qatar. So it will be faced brand recognition challenges among
existing brand which have well brand recognition in Qatar
Financial Stability of Retailer
Master Tiles will not have its own distribution channel or outlet in Qatar. So,
Master Tiles will face the problem of seeking out the financially strong
retailer, which he exports its products.
Acceptability
Master Tiles will be newly export to Qatar. So, it will face another challenge
of customer acceptability of its product because it is very much difficult for

P a g e | 42

newly

launched

product

to

gain

customer

acceptability

for

its

goods/products.
International Competition
There are international suppliers in Qatar who provides tiles to people for
construction purposes. So, it will be another challenge foe Master Tiles to
compete in with those international competitors for getting reasonable
market shares because these competitors are old in the Qatari tiles market
and they are well established.
The International competitors who gave competition to Master Tiles in Qatar
are United International Company, Rack Ceramics Pvt Limited and Capital
Trading Company
Short Time
The Major Constructions of Qatar is for the FIFA World Cup 2022. So, there
will be another challenge for Master Tiles that is shortage of time to
penetrate in the market and getting recognition as well know brand.
Meet International Standards
It also another challenge for Master Tiles to maintain international quality
standard because of competing with international brands which is known by
people of Qatar and also people of world.

P a g e | 43

Opportunities
Opportunity means a good chance for improvement or progress or an amount of time or a
circumstance in which something can be done.
The Following opportunities that Master Tiles Will be enjoying in Qatar:
Qatar has one of the highest GDP per head in the world and the per capita income is
$93714. SO, the purchasing power of residence of Qatar is high to purchase our products.
Qatar has the 80% revenue from the industrial sector and 20% from service sector. It
indicates that the people of Qatar are involved in Infrastructure betterment and they
placed our product in their mind.
Qatar has the high bloodline of the economy because it has offer 4.5% interest rate for
lender, which is very low as compare to Pakistan. It will be beneficial for Pakistani
suppliers that they will gain the interest benefit by obtaining loan at the time of financial
need.
IMF (International Monetary Fund) forecast that in coming years the interest rate in Qatar
will more decline.

P a g e | 44

The Budget of Qatar is in surplus which is 22.3 Billion Qatari Rail. It represent that there
is much capacity in its budget to import because according to economist, the balance
between the exports and imports is suitable for any country.
We are going to export our products in Qatar. So, we have to deal with letter of credit and
bill of lading and in case of urgent need of money we can receive/withdraw the money
from the importer at any time but the condition with great credit worthiness and by
delivering the ordered products.
There is no restrictions in investing in Qatar and withdrawing the investment from Qatar
and free from restriction of capital outflow and inflow.
The currency of Qatar is almost stable but the Pakistani currency is fluctuating time to
time. It means in case of depreciation of Pakistani currency we will receive the high
transfer receipt.
The Qatar Government promise to FIFA to built double hotels and apartments to 84000.
So, for the construction of these hotels and apartments they will have to need the tiles and
other building raw material so it is an opportunity for us if we deal with them.
The Qatar government promise to increase private sector loan by 16%. It means in the
construction of 84000 rooms and apartments. It means private sectors are involved and
the private sector concern only with the profit and their investment. If we offer our
products to them at economical price with superior quality tiles. They will be our
customers.
Qatar receives 70% exports revenue from the export of crude oil. So, it will be no
difficult for them to pay in any currency because they have lots of foreign reserves.
The economy of Qatar is liberal in trade and we can exports our products freely without
any kind of restriction and Qatar and Pakistan have a good trade and foreign affair
relationship so it is beneficial for us to exports our products to Qatar.

P a g e | 45

It is also an opportunity for us that there is no import duty on the import on machinery
and raw material and in future if we want to establish our business in Qatar. It will be
beneficial for us.
The exchange rate of Qatar is almost fixed and it is pegged with US Dollar. If it is fixed
with our currency than there will be no fear or risk of fluctuation in currency and it will
be possible only if we will make the big supplier for them.
Due to use of our product in Qatar there will be brand positioning and brand recognition
in the minds of foreign tourists, who are visiting the Qatar to watch and enjoying the
FIFA World Cup 2002 because football is world most liking sports than other sports.

P a g e | 46

10.

Identify international business strategy and


possible mode of entry

The international business strategy which we are use is exports strategy, because exporting is
frequently the 1st international choice for firms because most of the firms rely largely on exports
throughout their history. The export strategy is what is following:

Export Strategy
Exporting is the most traditional and well established form of operating businesses in other
countries markets/foreign markets. Exporting can be defined as the marketing of goods
produced/manufactured in one country into another country. No direct manufacturing process is
required in an overseas country; significant or major investments in marketing are required. The
tendency/propensity may be not to obtain/gain as much detailed or full marketing information as
compared to manufacturing in promotion country; on the other hand, this does not cancel out the
need for a full marketing strategy
Export strategy is a meaning of shipping commodities to other places or countries for sale or
exchange purpose. In economics, an export is any product or commodity, transported or elated
from one country to another country in a lawful fashion, naturally for use in trade.
The following four key pillars of a successful or victorious export strategy:
Interior 1: Export keenness evaluation of a company (and hole analysis/examination with
recommendations how to address the changing requirement)

P a g e | 47

Interior 2: Export keenness evaluation of a product (including benchmarking with parallel


products that are currently fruitfully traded on target markets; technical characteristics;
packaging and labeling).
Exterior 3: Research of 220 countries and the Worlds key trade channels to discover target
market/s.
Exterior 4: Built export strategy to enter the selected higher than target market/s (that will
comprise such considerations like transport, partnership, major distribution channels, pricing,
advertising, volumes etc.).

P a g e | 48

Mode of Entry
International firm may choose to do business in a different ways. Some of the most ordinary
include exporting, franchising, licensing, turnkey operations and by contracting, by joint
ventures, entirely owned subsidiaries and strategic alliances.
The mode of entry which we are select is exports mode of entrance in international market
because many international firms choose exports strategy because exporting is frequently the 1st
international choice for firms because most of the firms rely largely on exports throughout their
history. Exports are seen as comparatively simple because the firm is relying on domestic or
home production, can use a variety of disinterested party to assist in the procedure, and expects
its foreign customers to deal with the promotion and sales issues. Many firms start by exporting
reactively; then become down to business when they realize the possible payback of addressing a
market that is much superior or bigger than the domestic/home one.

P a g e | 49

References

Works Cited
aphttp://www.appletravel.cn/holidays/travel_information.php?id=416
Atlas Media. (2015, June 21). Retrieved from
https://atlas.media.mit.edu/en/profile/country/qat/
Bmir Search. (2015, June 23). Retrieved from http://store.bmiresearch.com/qatarcountry-risk-report.html
Building UK. (2015, May 31). Retrieved from http://www.building.co.uk/qatarsconstruction-boom-the-legal-risks/5030939.article
Global Edge. (2015, JUne 24). Retrieved from
http://globaledge.msu.edu/countries/qatar
infoplease.com. (2015, June 21). Retrieved from
http://www.infoplease.com/encyclopedia/world/qatar.html
Look Lex. (2015, June 21). Retrieved from http://looklex.com/e.o/qatar.political.htm
(2015). Master Tiles Marketing Plan. Gujranwala: Scribed.
Reference for Business. (2015, JUne 24). Retrieved from
http://www.referenceforbusiness.com/management/Gr-Int/InternationalBusiness.html

P a g e | 50
SuddeFrance. (2015, June 21). Retrieved from http://www.suddefrancedeveloppement.com/en/country-profiles/qatar/presentation.html
Wikipedia. (2015, June 20). Retrieved from https://en.wikipedia.org/?title=Qatar
World Bank. (2015, June 18). Retrieved from http://data.worldbank.org/datacatalog/GDP-ranking-table

Appendix
A

Arab, Amir

Brand, Biggest

Centralized

Development, Dress

Equipment, Enlargement, Emir

Fruitfully, Freedom

P a g e | 51
Global, Grape

QIBOR, Qatar

High, Hierarchy

Research, Recognition

Inland

State, Starting

Japan

Tiles

Kingdom, KIBOR

Urban

Legal, Legally

Vast, Vasting

Monarchy

World Wide

Norms, Neutral

Xerox

Operations

Yield

Peninsula, Particular, Petroleum

Zaran