4 July 2019

Qatar: Market Profile

1. Overview

Economic growth of Qatar is likely to accelerate slightly in the short term, as rising
energy receipts help ease fiscal constraints, spending on the multi-year infrastructure
upgrades ahead of the FIFA World Cup continues, and the USD10 billion Barzan natural
gas facility comes online in 2020. Government investment in economic diversification
initiatives will continue apace even as hydrocarbon output is set for moderate expansion.
Qatar's peg to the United States dollar means that monetary policy will continue to track

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Qatar: Market Profile

the United States Fed's tightening cycle. Government efforts to ease the costs and lighten
the effects of the blockade on the population will likely limit the scope for cutting
spending sharply.

Sources: World Bank, Fitch Solutions

2. Major Economic/Political Events and Upcoming Elections

June 2017
Saudi Arabia led an air, land and sea blockade by a number of Arab countries (including
the United Arab Emirates, Bahrain and Egypt) against Qatar.

January 2018
In a bid to boost non-Gulf Cooperation Council (GCC) foreign investment (especially in
the wake of the GCC crisis), Qatar passed a new foreign investment law in January 2018
(which came into effect from March 2018). This law has removed the 49% cap on foreign
ownership of businesses in Qatar in a wide variety of sectors.

March 2018
The CEO of the Qatar Financial Centre (QFC) announced that Qatar was looking to
diversify its sources of inward foreign direct investment (FDI) towards Asia in this new
era. Qatar was reportedly looking to assist this process by making it easier for foreigners
to obtain work visas and purchase real estate within its borders.

December 2018
Qatar announced that it would withdraw from the Organisation of Petroleum Exporting
Countries (OPEC) in January 2019, citing a move towards a greater reliance on gas
exports rather than petroleum.

Sources: BBC Country Profile – Timeline, Fitch Solutions

3. Major Economic Indicators

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Qatar: Market Profile

e = estimate, f = forecast
Sources: IMF, World Bank, World Economic Outlook Database
Date last reviewed: May 14, 2019

4. External Trade

4.1 Merchandise Trade

e = estimate (this only applies to imports for 2012)

Source: WTO
Date last reviewed: May 14, 2019

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Qatar: Market Profile

Note: Trade Map (Mirror Data)

Sources: Trade Map, Fitch Solutions
Date last reviewed: May 14, 2019

4.2 Trade in Services

Source: WTO
Date last reviewed: May 14, 2019

5. Trade Policies

Qatar has been a member of the World Trade Organisation (WTO) since January 13,
1996 and a member of the General Agreement on Tariffs and Trade since April 7,
1994.
Qatar is a member of the GCC, which consists of Saudi Arabia, Kuwait, Oman, the
UAE, Bahrain and Qatar. GCC membership means that Qatar is part of a single
market and customs union with a common external tariff. Under the accord, goods
imported into the GCC area can be freely transported throughout the region without
paying additional tariffs.
The standard rate of external tariff is 5% (ad valorem) in accordance with the GCC
customs union. According to the WTO, Qatar's simple average most favoured nation
(MFN) applied tariff was set at 5.7% for agricultural goods and 4.6% for non-
agricultural goods in 2016.
Value-added tax (VAT) of 5% will likely be introduced in 2020 in accordance with the
GCC.
The average applied import tariff for goods entering Qatar is 3.36%.
For cultural and religious reasons, import tariffs of 100% are levied on alcoholic
drinks, and import tariffs of 200% are levied on tobacco products (GCC tariff). The
Qatar Distribution Company (QDC), a subsidiary of the national air carrier Qatar
Airways, has the sole authority to import alcohol products.

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Qatar: Market Profile

Even before the blockade, importers to Qatar have faced, on average, the highest
tariff rates out of all six GCC member states. The country imposes additional tariffs
beyond the Common External Tariff on a wide range of products, and has a stringent
import licenseing regime.
Non-Qataris are barred from engaging in distribution activities in Qatar. Importers,
who must be Qatari nationals, have to register in the Importers Register and be
approved by the Qatar Chamber of Commerce and Industry (QCCI).
Certain local manufacturers are protected by a higher customs duty. For example,
Qatar has a 15% tariff on records and musical instruments, 20% on steel and
cement and 30% on urea. Imports of pork and pork products are prohibited. With
the approval of the Director General of Customs, some categories of goods may be
temporarily allowed to be imported without collection of customs duties. These
include heavy machinery and equipment for project execution, semi-finished
products, use in exhibitions and temporary events, machinery and commercial
samples. This approval is normally valid for a period of six months, but may be
extended by another six months.
Sanctions imposed on June 5, 2017 by Saudi Arabia, the UAE, Bahrain, Egypt,
Yemen and the Maldives, among others, moved to cut diplomatic and transport ties
with Qatar, accusing it of supporting terrorism. Modest price pressures associated
with higher import costs from the ongoing diplomatic crisis in the Gulf – and
resultant restrictions on intra-regional cross-border movements – appear mostly
transitory, fading with the government-led (and partly government-funded)
development of new supply chains.
There are additional import requirements for meat and meat products to ensure that
they are halal-compliant.

Sources: WTO - Trade Policy Review, Fitch Solutions

6. Trade Agreement

6.1 Trade Updates

The Saudi-led land, air and sea blockade has made exporting and importing products to
and from Qatar far costlier and more difficult. As its only land border with Saudi Arabia
has been closed, ships destined for Qatar cannot dock at certain ports and its aircraft are
not allowed to use certain airspace. However, Qatar has mostly proved resilient and has
found ways to work around the barriers imposed by its neighbours.

6.2 Multinational Trade Agreements

Active

1. GCC: In January 2015, the GCC implemented a customs union and a free trade
agreement (FTA) that allows free movement of local goods among member states.
Members of the GCC are Bahrain, Oman, Qatar, Saudi Arabia, and the UAE. This
agreement helps member states to leverage one another's industrial capacity and
logistics networks. The geographic proximity of these countries and their general
adoption of free trade economic policies are factors that foster a competitive
business environment. Only imports on certain sensitive goods from GCC countries
face tariffs, and there is freedom of movement between GCC countries without
customs or non-customs restrictions.
2. GCC-Singapore: The GCC-Singapore FTA (GSFTA) became effective on September 1,

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Qatar: Market Profile

2013. The GSFTA eliminates most tariffs (99%) on Singapore's exports to the GCC.
This is a comprehensive agreement covering trade in goods, rules of origin, customs
procedures, trade in services, and government procurement among others. Key
sectors benefitting include telecommunications, electrical and electronic equipment,
petrochemicals, jewellery, machinery and iron and steel-related industry. The
recognition of the halal certification of Singapore's Majlis Ugama Islam Singapura
(MUIS) will also pave the way for trade in halal-certified products to gain faster
access to the GCC countries.

Singed But Not Yet In Effect

1. The Trade Preferential System of the Organisation of the Islamic Conference (OIC):
The agreement would see to the promotion of trade between member states by
including MFN principles, harmonising policy on rules of origin, exchanging trade
preferences among member states, promoting equal treatment of member states
and special treatment for least developed member states and providing for regional
economic bodies made up of OIC nations to participate as a block. The agreement
will cover all commodity groups. The OIC comprises 57 members, making a full
realisation of such an agreement highly impactful, encompassing approximately 1.8
billion people. Although the framework agreement, the protocol on preferential tariff
scheme and the rules of origin have all been agreed on, a minimum of 10 members
are required to update and submit their concessions list for the agreements to come
into effect. As of January 2019, only seven nations have done so.
2. GCC-European Free Trade Association (EFTA) (Iceland, Liechtenstein, Norway and
Switzerland): The GCC and the EFTA signed an FTA on June 22, 2009 which entered
into force on July 1, 2014. The agreement covers the progressive elimination of
tariffs in trade in services and manufactured goods as well as investment, and other
trade-related issues, such as protection of intellectual property, and is fully
consistent with provisions of the WTO. In addition, bilateral arrangements on
agricultural products between individual EFTA States and the GCC form part of the
instruments establishing the free trade area between both sides. Between 2014 and
2017, total trade between the GCC and EFTA grew by 22%.

Under Negotiation

1. Australia-GCC: Australia and the GCC share a significant economic relationship,

encompassing trade and investment across a broad range of goods and services.
The GCC is a key market for agricultural exports such as livestock, meat, dairy
products, vegetables, sugar, wheat and other grains. The agreement provides an
opportunity to address a range of tariff and non-tariff barriers related to food
exports that will benefit the GCC.
2. GCC-China: The first-round negotiations of the GCC-China FTA commenced on April
27, 2005. Greater trade liberalisation will help develop the industrial and service
sectors. Qatar mainly exports commodities such as hydrocarbons to China and
imports electrical goods and machinery from China. Trade liberalisation with the
GCC will help the group integrate and grow with mutual cooperation and
comprehensive tariff reduction. In 2017, China accounted for 12% of the GCC's total
global trade.
3. India-GCC: The GCC and India are negotiating an FTA. The agreement is expected
to remove restrictive duties, push down tariffs on goods and pave the way for more
intensive economic engagement between the nations. More than 50% of India's oil
and gas comes from the GCC countries.

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Qatar: Market Profile

4. Japan-GCC: Japan and the GCC are negotiating an FTA. This agreement will seek to
reduce tariffs and liberalise services trade and investment. Japan mainly imports
aluminium, natural gas, liquid natural gas and petroleum products from the GCC,
while Japan mainly exports electronics, vehicles, machinery and other industrial
products to the GCC.
5. GCC-Pakistan FTA: Negotiations are currently ongoing between the GCC and
Pakistan for the conclusion of an FTA between them (the third round of negotiations
was held in August 2017). While in 2016, Pakistan accounted only for an estimated
1.2% of Qatari exports (mostly liquified natural gas and a small amount of crude),
and only around 0.3% of Qatari imports, there has been a recent shift in these
dynamics brought on by the GCC diplomatic crisis. Since June 2017, when the
Saudi-led bloc severed all diplomatic and transport ties with Qatar, Qatar has been
required to diversify its import partner portfolio (especially for foodstuffs).
Therefore, in August 2017, a new direct shipping route was launched between
Qatar's Port of Hamad and Pakistan's Port of Karachi (with shipping times estimated
at taking around four days). Qatar Airways has also reportedly strengthened its air
operations to Pakistan, and it is now much easier for Pakistan citizens to obtain visas
to work in Qatar. Since the blockade was imposed in 2017, trade flows between
Qatar and Pakistan have received a significant boost.
6. Other: A number of other GCC FTAs are currently under negotiation. The countries
engaged in negotiations include New Zealand, South Korea, the MERCOSUR bloc and
Turkey.

Sources: WTO Regional Trade Agreements database, government websites, Fitch

Solutions

7. Investment Policy

7.1 Foreign Direct Investment

Source: UNCTAD
Date last reviewed: May 14, 2019

7.2 Foreign Direct Investment Policy

1. The Qatar Business Development and Investment Promotion Department under the
Ministry of Economy and Commerce (MEC) is responsible for promoting business
development and attracting FDI. Information related to Qatar's investment climate
and incentive schemes are provided on the MEC website. Qatar offers various
incentives in attracting FDI, including import duty exemption on machinery,
equipment and spare parts for industrial projects, tax exemptions on corporate tax

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Qatar: Market Profile

for pre-determined periods and export duty exemption.

2. Qatar launched its economic diversification plan 'Vision 2030' in October 2008, which
aims to transform the country's state-owned and petroleum-dominated economy
into a model more characterised by increased diversification and private sector
involvement.
3. Two Free Zones, namely the QFC and the Qatar Science and Technology Park
(QSTP), have been established, with tax and duty incentives provided. Currently,
Qatar's government is encouraging foreign investment by streamlining licensing and
financial sector regulations, with the corporate tax rate set at 10%. More recently,
Qatar has started work on the country's new special economic zones, which will be
divided into three projects, namely the Ras Bufontos, the Umm al Houl and the al
Karaana, to focus on different sectors. These three zones are expected to be
completed in phases between 2017 and 2022 and offer favourable tax and duty
incentives.
4. Qatar used its trade surplus accumulated from oil and gas wealth to establish the
Qatar Investment Authority (QIA). QIA and its subsidiaries invest in leading
companies in non-oil sectors, such as hotels, retail, real estate and manufacturing,
in the hope of lifting Qatari standards and diversifying the economy. The
establishment of sizeable financial endowments helps Qatar provide continuity and
predictability of funding for essential services, such as health and education, despite
the fluctuation of hydrocarbon receipts.
5. Massive infrastructure projects are underway, including the construction of
stadiums, rail connections and highways. In an effort to increase the transparency of
available investment projects, in June 2016, the Qatari government launched a new
online procurement portal to consolidate information on all government tenders.
6. In a bid to boost non-GCC foreign investment (especially in the wake of the GCC
crisis), Qatar passed a new foreign investment law in January 2018 (which came
into effect from March 2018). This law has removed the 49% cap on foreign
ownership of businesses in Qatar in a wide variety of sectors. Now, 100% foreign
ownership is permitted, with no Qatari equity partner required. Restrictions on the
purchasing of real estate and franchises still apply, and government approval for
banking and insurance licenses is still required.
7. Qatar has some restrictions on the foreign ownership of property. Although the GCC
nationals are allowed to own up to three properties in Qatar, other foreigners are
limited in terms of the areas (Pearl, West Bay Lagoon and parts of al Khor) in which
they can purchase real estate. Non-GCC foreigners can own property in these
specific areas (land or residential), or they can enjoy rights to property for a period
of 99 years (which is renewable) in certain 'investment areas'. This right has to be
registered in order to be legally recognised.
8. Foreign participation is not allowed at all in the public transport, electricity and
water, steel, cement, and the fuel distribution and marketing sectors.
9. Quotas exist for the mandatory employment of Qatari nationals in certain sectors,
such as banking and insurance.
10. The telecoms sector was opened to private competition from 2007, and there are
some international players operating in Qatar in the critical oil and gas sector.
11. Foreign players hold interests in the upstream oil sector. However, the downstream
sector is completely dominated by state-owned Qatar Petroleum. Qatar's large and
lucrative hydrocarbons industry has historically offered the main attractions for
foreign investment, with exploration and production by foreign companies permitted
through production sharing contracts with Qatar Petroleum, which controls all
hydrocarbons activities in the country. Foreign investment is nevertheless warmly
received owing to the technology and expertise that can be provided by foreign

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Qatar: Market Profile

businesses.

Sources: WTO – Trade Policy Review, ITA, US Department of Commerce

7.3 Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive Programme Main Incentives Available

QSTP in Doha - The park is intended to attract companies

with a science and research focus.

- Applicants who receive license to operate

within this Free Trade Zone (FTZ) receive
the following benefits:

Operate as a local company, or

operate as a branch of a foreign
company
100% foreign ownership
Hire expatriate employees
No taxes
Duty-free import of goods, services,
equipment and tools into the free
zone
Unrestricted repatriation of capital
and profits

Three further FTZs are under development in Doha, one These zones allow businesses to import
near the Hamad International Airport (with a focus on light goods and services customs-free, and offer
manufacturing and financial services), one near the a range of other incentives.
Industrial Area (for manufacturing and transport
industries) and one near Mesaieed (with an emphasis on
the energy sector)

QFC - The QFC was set up in 2005 in order to

assist in turning Qatar into a global financial
hub and encourage investment from foreign
banks and financial services providers in
Qatar.

- Incentives include:

100% foreign ownership;

100% profit repatriation;
A flat 10% corporate tax on locally-
sourced profits only
A legal environment based on English
common law

Source: Fitch Solutions

8. Taxation – 2019

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Qatar: Market Profile

Value Added Tax: 0%

Corporate Income Tax: 10%

Source: Ministry of Finance Qatar

8.1 Important Updates to Taxation Information

January 2019 saw Qatar establish the General Tax Authority (GTA). The GTA will be
tasked with implementation of tax laws, as well as improving the country's level of
tax compliance. These duties and responsiblities previously fell under the auspices of
the Qatari Ministry of Finance.
Qatar has entered into double tax agreements (DTAs) with more than 40 countries,
including mainland China and a Comprehensive DTA with Hong Kong, which was
concluded in 2013.
GCC countries have signed a VAT common framework. The Cabinet of Qatar has
approved a draft law on VAT and its executive regulations as put forth by the Qatar
Ministry of Finance. The Ministry of Finance has announced that Qatar will not be
introducing VAT in 2019 as the effects are still being assessed.

8.2 Business Taxes

Type of Tax Tax Rate and Base

Resident companies wholly Exempt from corporate income tax

owned by Qatari citizens/GCC
nationals

Resident companies not Taxable up to the levels of profits ultimately attributable to non-GCC
wholly owned by Qatari national shareholders and GCC shareholders who are not tax residents in
citizens/GCC nationals Qatar, at a flat rate of 10% (but only on profits of Qatari-sourced income)

Withholding Tax Dividends - 0%

Interest - 7% (with certain exceptions)
Royalties - 5%

Non-resident companies Flat rate of 10%

Stamp duty Taxed at rates specified in their agreements, provided the tax rate is not
less than 35% of their taxable income

VAT None

Property Transfer Tax None

Source: Ministry of Finance Qatar

Date last reviewed: May 14, 2019

9. Foreign Worker Requirements

9.1 Localisation Requirements

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Qatar: Market Profile

Developing human capital and increasing nationals' workforce participation constitute key
elements of the GCC member states' economic diversification plans, and will thus
continue to drive labour market policies across the region over the coming decade.
Localisation policies have been devised to promote the employment of Qatari nationals in
the private and public sectors. Therefore, quotas for the mandatory employment of Qatari
nationals exist in certain sectors, such as banking and insurance.

9.2 Kafala System and New Immigration Law

Typically, as a result of relatively small domestic populations and the fact that a large
portion of the domestic working-age population is employed by the public sector in all six
of the GCC states, employing foreign workers to fill low-skilled and high-skilled positions
for the private sector has been relatively easy. The large presence of migrant workers in
Qatar is attributed to the 'Kafala' (sponsorship) system, which emerged in many GCC
states in order to regulate the relationship between employers and migrant workers in
these countries. The employer is seen as the foreign worker's sponsor, and is entirely
responsible for their visa and legal status. A downside risk is that some foreign workers
have had their passports and wages illegally withheld by GCC employers, and some risk
not being allowed to leave the country or change employers without their current
employer's permission.

The main commercial objective of the Kafala system is to facilitate the steady supply of
temporary and rotating labour rapidly in to such countries at times of an economic boom,
and which could be expelled fairly easily in less prosperous periods. However, increasing
pressure on GCC states from human rights groups about the exploitation of foreign
workers under this system (specifically in relation to the treatment of foreign workers on
various construction projects for FIFA 2022 projects), paired with rising economic
pressures in GCC states owing to the 2015/2016 global slump in oil prices, the ease and
costs of hiring foreign workers in Qatar is expected to become more difficult over the
medium term. From December 2016, the Qatar government announced the coming into
force of its New Immigration Law. Under this new law, the Qatari government plans to
change the sponsorship relationship, which forms the basis of the Kafala system, to one
of an employment contract.

Furthermore, migrant workers employed under the Kafala system will no longer require
their employer's permission to leave the country, but are instead required to apply to the
Ministry of Interior, which will, in turn, inform the employer. Migrant workers who have
completed their fixed-term contracts will no longer need their employer's permission to
take another job.

9.3 Obtaining Foreign Worker Permits for Skilled Workers

Under Qatar's New Immigration law (which came in to force in late 2016), a foreign
worker may only apply for a work permit if they have an offer of employment from a
Qatari national, a business registered as a legal entity or a resident family member on
whom the individual is dependent.

Once the employer has made the application to the relevant Qatari labour authority, the
expatriate employee will be issued their residence permit (if granted) within 30 days.

9.4 Visa/Travel Restrictions

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Qatar: Market Profile

In a bid to make Qatar a more attractive international tourist and business destination for
countries outside of the Gulf region, in early August 2017, the Qatari government
announced the launch of its new visa-free program for over 80 countries worldwide.
Nationals from over 33 countries will be allowed to enter and stay in Qatar for up to 180
days without a visa (only a valid passport being required), and citizens of another 47
countries will be permitted to stay in Qatar for up to 30 days without a visa. This will
make business travel to the country far easier for a wide range of international
companies. Citizens of GCC states and Turkey do not require a visa. Citizens from a wide
array of countries (the main eurozone states, the United States, various Central Asian
states, Japan and Malaysia) may apply for a 30-day visa on arrival.

Sources: Government websites, Fitch Solutions

10. Risks

10.1 Sovereign Credit Ratings

Rating (Outlook) Rating Date

Moody's Aa3 (Stable) 13/07/2018

Standard & Poor's AA- (Stable) 07/06/2017

Fitch Ratings AA- (Stable) 16/10/2018

Sources: Moody's, Standard & Poor's, Fitch Ratings

10.2 Competitiveness and Efficiency Indicators

World Ranking

2017 2018 2019

Ease of Doing Business Index 83/190 83/190 83/190

Ease of Paying Taxes Index 1/190 1/190 2/190

Logistics Performance Index N/A 30/160 N/A

Corruption Perception Index 29/180 N/A N/A

IMD World Competitiveness 17/63 14/63 N/A

Sources: World Bank, IMD, Transparency International

10.3 Fitch Solutions Risk Indices

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Qatar: Market Profile

World Ranking

2017 2018 2019

Economic Risk Index Rank N/A 77/202 89/202

Short-Term Economic Risk Score 58.3 55.6 55.4

Long-Term Economic Risk Score 57.4 56.1 54.0

Political Risk Index Rank N/A 76/202 68/202

Short-Term Political Risk Score 84.4 84.4 81.0

Long-Term Political Risk Score 69 69.0 70.6

Operational Risk Index Rank N/A 35/201 36/201

Operational Risk Score 64.5 66.2 66.2

Source: Fitch Solutions

Date last reviewed: May 14, 2019

10.4 Fitch Solutions Risk Summary

ECONOMIC RISK
The primary economic threat for Qatar is lower energy prices, given its over-reliance on
hydrocarbon exports. Nevertheless, the sheer size of the country's exports of liquefied
natural gas (LNG) - Qatar accounts for one-third of global LNG trade - means that the
fiscal account will remain roughly balanced even in a structurally lower energy price
environment. Moreover, the government's plans to boost the non-hydrocarbon private
sector will gradually reduce the economy's reliance on oil and gas revenues, limiting the
risks involved in a future crisis.

OPERATIONAL RISK
Qatar is one of the GCC and regional outperformers in terms of the relatively sound
operating environment that this market provides for businesses. Qatar is a regional
outperformer for its logistics network and the country provides a safer operating
environment than many of its regional peers. While interstate tensions between Qatar
and a Saudi-led bloc have become far more elevated since June 2017, tensions are not
expected to escalate beyond these measures. Qatar has efficient tax, bureaucratic and
legal systems, a low tax burden and lower perceived levels of corruption than its regional
peers.

Source: Fitch Solutions

Date last reviewed: May 14, 2019

10.5 Fitch Solutions Political and Economic Risk Indices

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Qatar: Market Profile

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Economic and Political Risk Indices
Date last reviewed: May 14, 2019

10.6 Fitch Solutions Operational Risk Index

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Qatar: Market Profile

Operational Labour Trade and Logistics Crime and

Risk Market Risk Investment Risk Risk Security Risk

Qatar Score 66.2 65.0 61.8 71.6 66.5

MENA Average 48.3 52.3 48.0 48.7 44.1

MENA Position 2 3 6 1 3
(out of 18)

Global Average 49.7 50.3 49.8 49.0 49.8

Global Position 36 22 56 31 48
(out of 201)

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Operational Risk Index

Country Operational Labour Trade and Logistics Crime and

Risk Index Market Risk Investment Risk Risk Security Risk
Index Index Index

UAE 73.6 71.2 79.1 68.7 75.3

Qatar 66.2 65.0 61.8 71.6 66.5

Oman 66.2 62.2 61.9 64.5 76.0

Bahrain 66.0 63.1 69.5 71.5 60.1

Saudi Arabia 62.6 67.2 62.1 62.7 58.6

Jordan 59.1 56.9 60.7 59.0 60.0

Kuwait 55.5 54.2 51.2 52.5 64.1

Morocco 54.1 43.2 63.8 54.8 54.6

Egypt 49.3 49.9 45.7 56.4 45.3

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Qatar: Market Profile

Tunisia 47.1 42.2 56.2 47.3 42.8

Lebanon 44.7 43.0 51.9 41.4 32.4

Iran 43.0 49.5 36.7 50.8 35.1

Algeria 42.0 46.1 31.1 42.9 47.9

West Bank and 34.8 48.8 37.4 32.0 21.2

Gaza

Libya 28.0 47.2 22.1 29.3 13.4

Syria 27.3 45.5 23.7 27.0 12.7

Iraq 27.1 43.7 24.8 28.6 11.3

Yemen 22.4 32.7 24.9 15.8 16.1

Regional 48.3 52.3 48.0 48.7 44.1

Averages

Emerging 46.0 48.1 46.5 44.7 44.8

Markets
Averages

Global Markets 49.7 50.3 49.8 49.0 49.8

Averages

100 = Lowest risk; 0 = Highest risk

Source: Fitch Solutions Operational Risk Index
Date last reviewed: May 14, 2019

11. Hong Kong Connection

11.1 Hong Kong’s Trade with Qatar

Note: Graph shows the main Hong Kong exports to/imports from Qatar (by consignment)

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Qatar: Market Profile

Date last reviewed: May 14, 2019

Note: Graph shows Hong Kong exports to/import from Qatar (by consignment)
Exchange Rate HK$/US$, average
7.75 (2014)
7.75 (2015)
7.76 (2016)
7.79 (2017)
7.83 (2018)
Sources: Hong Kong Census and Statistics Department, Fitch Solutions
Date last reviewed: May 14, 2019

2017 Growth rate (%)

Number of Qatari residents visiting Hong Kong 2,525 -31.2

Source: Hong Kong Tourism Board

2017 Growth rate (%)

Number of Middle East residents visiting Hong Kong 129,816 -0.2

Source: Hong Kong Tourism Board

Date last reviewed: May 14, 2019

11.2 Commercial Presence in Hong Kong

2016 Growth rate (%)

Number of Qatari companies in Hong Kong N/A N/A

- Regional headquarters

- Regional offices

- Local offices

11.3 Treaties and agreements between Hong Kong and Qatar

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Qatar: Market Profile

Qatar is a member of the GCC and GAFTA. It has also entered into DTAs with more than
40 countries, including mainland China, and concluded a comprehensive DTA with Hong
Kong in December 2013. Qatar entered into a bitaleral investment treaty with mainland
China in April 2000.

Sources: Hong Kong Department of Justice, UNCTAD Investment Policy Hub

11.4 Chamber of Commerce (or Related Organisations) in Hong Kong

The Arab Chamber of Commerce & Industry (ARABCCI)

ARABCCI was established in Hong Kong in 2006 as a leading organisation at promoting

commercial ties between Hong Kong, mainland China and the Arab World.

Address: 20/F, Central Tower, 28 Queens Road, Central, Hong Kong

Email: info@arabcci.org, secretariat@arabcci.org
Tel: (852) 2159 9170

Source: The Arab Chamber of Commerce and Industry

The Consulate General of The State of Qatar in Hong Kong

Address: Level 19, Cheung Kong Center, 2 Queen’s Road, Central, Hong Kong
Email: hongkong@mofa.gov.qa
Tel: (852) 3469 5259, 3469 5260
Fax: (852) 3469 5257

Source: Visa on Demand

11.5 Visa Requirements for Hong Kong Residents

A Qatar tourist visa is not required for Hong Kong residents for a stay up to 1 month.

Source: Immigration Department

Date last reviewed: May 14, 2019

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