NO BETTER PLACE NO BETTER TIME Discover QATAR FREE ZONES December - - PowerPoint PPT Presentation

NO BETTER PLACE NO BETTER TIME Discover QATAR FREE ZONES

December 2018

Landscape of Economic Diversification

• 1. Nominal GDP; 2. Doha Securities Market established in ’95, began operations in ’97, and renamed Qatar Stock Exchange in ’09 Sources: Oxford Economics 2016, ‘Qatar's economy -

Past, present, future’ by Ibrahim Ibrahim & Frank Harrigan, Other important bodies include Qatar Central Bank (’93), Qatar Development Bank (’97), Enterprise Qatar (’08), and Manateq (’11)

GDP DP (20 (2018 18)

$200 $200 BN BN

Strengthen ngthen secur urity ity

• f
• f suppl

ply

1

Support

• rt

economic nomic diver ersifi sificat cation ion

2

The Free Zones Authority’s objectives are to enhance Security of Supply and Drive Economic Diversification

Grow Non Oil and Gas GDP Attract high-value foreign investors Drive knowledge- intensive jobs and industries

Qatar’s Two New Free Zones

• Direct access to Hamad Intern’l Airport
• Light Manufacturing
• International Business Services
• Aviation sector
• Emerging Technologies
• Logistics Hub
• Direct access to Hamad Port
• Maritime Industries
• Heavy Manufacturing
• Industrial Sectors Focus
• Emerging Technologies
• Logistics Hub

RAS BUFONTAS

Airport Free Zone Port Free Zone

Area 4 sq. km Area 30 sq. km

O O

Qatar Free Zones Identified Sectors

Logistics

E-commerce, Jewelry and Art Storage High Value Spare Parts Pharma Supply Chain

Downstream Chemicals

Engineered Plastic, Advanced Materials Specialty Chemicals

Emerging Technology

Agriculture and water technology Energy / Power storage solutions Intelligent Logistics and Transport Food Packaging, Cooling Chain Digitalization, Artificial Intelligence, Cybersecurity

Intern rnet et Users As % of Popula latio ion Firm Leve vel Technolo logy Absorptio ion Qualit ity y of Port Infrast structure Qualit ity y of Airport Infrastructure

7 18 12 5

2017 2017-2018 2017 2017-2018

Global Competitiveness

Global Competitiveness Rankings in Key Investment Pillars

Source: The World Economic Forum - Global Competitiveness Report 2017-2018.

Global l Tax Regim ime

2

Free Trade Agreements Bilater eral al Inve nvest stmen ent treatie ies s Bi Bi-Lateral l Trade Agreements

24 23 40+

2017 2017-2018 2017 2017-2018

Source: The World Economic Forum - Global Competitiveness Report 2017-2018.

Global Relationships

An Open Economy with a Liberal Trade Policy

Number ber of Agreem ements ents betwee een n Qatar ar & its Trading ing Partn tner ers

60%

• f the world population within

8 hours

flying time

Asia, Europe and America just 18 days

by ship

Strategic Location Linking Global Markets

9

Qatar’s Investment in World-Class Infrastructure Provides Best Air/Sea Connectivity

5th Best Airport in the World Best Airport in the Middle East Best Service staff in MENA 230 daily passenger flights and 29 cargo flights First airport in MENA- region awarded with ISO- certification asset management standard Large cargo facility with a size of 292 KM Direct access to Free Zone Ras Bufontas Qatar Airways Cargo offers fastest global airline transfer and flexibility Hamad International Airport Hamad Port Hamad Port offers direct access to Um Al-houl Free Zone Hamad port is currently capturing 27% of trade in the Middle East and aiming to reach 35% in the next two years More than 15 direct shipping lines, e.g. to Oman, Pakistan, India, South Korea and Uruguay Increased global connectivity ranking over 70 positions within one year of beginning

• perations

CONVENIENT BUSINESS ENVIRONMENT AND STRONG INFRASTRUCTURE FOR BUSINESSES

FDI Partnership Opportunities with Local Champions

2022 FIFA World Cup is a catalyst for Qatar’s economic diversification

• USD 11.4 billion allocated on

Transportation and infrastructure projects to improve roads and public transportation

• USD 6.2 billion allocated to develop and

expand the healthcare with new hospitals and medical facilities

• USD 5.2 billion allocated for new schools,

colleges and development of the Education Sector

• USD 2.4 billion of ongoing projects to be

completed around Qatar to expand and improve water sector by 2030

• Qatar National Tourism Sector Strategy set

a target of 5.6m tourists per annum by 2023 to be achieved with new Hotels, leisure, and recreation facilities

Qatar implements green building and modular structures to construct the stadiums, which can be altered to suit future demand The average seating capacity in the stadiums is 45,000 seats, while Lusail Stadium, hosting the

• pening and the finals – will

have a capacity of 92,000 seats FIFA obliges the host country to provide 125K hotel rooms and

• apartments. Qatar has

currently 25,000 hotel rooms and apartments available Qatar will be among the fastest growing construction markets globally over the next 5 years, as a result of tackling the significant infrastructure needs Qatar Capitalises Sustainability Hotel Sector Growth Service Sector Challenges Construction Sector Flourishes

Source: ADVANCED CONFERENCES & MEETINGS FZ-LLC

Qatar’s Economy Provides Great Opportunities for Investors Through 2022 FIFA World Cup

8 Stadiums 1.2 Million visitors $200 Billion Planned Budget 125,000 Hotel Rooms

Training Center and projects with Qatar Airways, Qatar University and Qatar Armed Forces Focus on R&D and training Microsoft IT Academy Largest foreign investor with over $20B of FDI Pearl GTL, Qatargas 4 Design, testing, maintenance at QSTP Engines for Qatar Airways/ Dolphin

12+ 11+

2017 2017-2018

15+ 35+

Qatar already has a successful track record with foreign investors

Workforce Availability – International Educational Hub

Qatar has 15 universities (4 State, 11 International Branches) + Various Vocational Training Centers ensuring excellent education

• f skilled professionals:
• Qatar University
• Texas A&M
• Carnegie Mellon
• College of the North Atlantic
• Cornell

Qatar provides free education at the primary and secondary level Qatar ranks 5th out of 137 countries for the quality of its education system in the WEF’s Global Competitiveness Index 2017-2018, and it leads among GCC states Qatar has about 30,000 students

• Particularly

talented young Qatari students are awarded with full scholarships for undergraduate and graduate programs in universities around the world

• International students make up 34% of all students in

Qatar

Government is working to develop for its nationals, opportunities to acquire necessary skills applicable to key sectors

• f

the economy

Ranked 52nd in the Times Higher Education Asia University Rankings 2018, third in the Arab World

Qata tar’s Emphasis on

• n Higher

her Educa cati tion

• n

To Rai aise e Local cal Talent nts

Airpor port, t, seapor

• rt,

t, flexib xible le land d

• ptio

tions, , comm mmunic unicatio tions infr frastr structu cture Flexib xible le foreig eign workforce e and visa regim imes es No custom toms s dutie ties s on impor ports ts. . Expor

• rts

ts to domestic mestic market ets s only ly charged ed for r imp mpor

• rte

ted d comp mpone

• nents

nts Potent

• tential JVs

ial JVs wi with th go gover ernment nment bac backed ed companies companies 100% f 100% for

• reign

eign

• wner

wnership ship and f and full ull ca capital pital repa epatr tria iation tion

Qatar Free Zones Offering to Investors

No indiv divid idual ual income

• me tax

and 20 year corpo porate te tax holida liday Acces Access s to i to invest estment ment fun funds ds

Regulations

1.

• 1. Advance

nced d licensin ensing regime ime 2.

• 2. Comp

mplia liance nce with h inte terna rnational tional best t practice tice 3.

• 3. Transpa

nsparent ent and d competiti petitive operating ting envir iron

• nment

ent 4.

• 4. Qatar

r Intern ernati tion

• nal

al Court t 5.

• 5. Regul

ulations tions to serve e FDI 6.

• 6. Special

ial laws to serve Intelle ellectual ctual Proper

• perty

ty Rights ghts, , Priv ivac acy y and Data Prote

• tecti

tion

• n

Inde dependent pendent Autho hority ity aims ms to set User-Friend iendly ly, Pro-Bu Busine siness ss and Global

• bally

ly Comp mpeti titiv tive Regul ulato tory ry Frame amewor

• rk

Logistics

Qatar is positioned in the midst of the Gulf Region with 25 economies located within 3,000 km distance

>300 100–300 50–100 <50 GDP 2016

in USD BN Note: 3,000 km is a range that a typical wide-body cargo plane can fly with a full load without refueling

Qatar

• Tremendous markets and economic

power within reach of <3,000 km – >2BN people – >6TN USD in combined GDP

• India and Pakistan offer large

populations and domestic markets

• Qatar is well positioned to serve Iran

and and help Iraq with rebuild activities

• Even markets like Turkey and CIS

countries (Uzbekistan, Kazakhstan, etc.) are not beyond reach and offer industries with potential for logistics

• In the long-term, KSA is another

potential market so serve – currently it is not accessible

• Excellent access to the Eastern Africa

market

Rank Country LPI Score Evaluation criteria Infrastructure Logistics competence Customs Int‘l shipments Track and trace Timeliness

1 Germany 4.2 4.4 4.3 4.1 3.9 4.2 4.4

…

10. UAE 4.0 4.0 3.9 3.6 3.9 4.0 4.4 …

30. Qatar 3.5 3.4 3.4 3.0 3.8 3.6 3.7

… 43. Oman 3.2 3.2 3.1 2.9 3.3 3.0 3.8 44. India 3.2 2.9 3.1 3.0 3.2 3.3 3.5 … 47. Turkey 3.2 3.2 3.1 2.7 3.1 3.2 3.6 … 55. Saudi Arabia 3.0 3.1 2.9 2.7 3.0 3.2 3.3 … 64. Iran 2.9 2.8 2.8 2.6 2.8 2.8 3.4 … 122. Pakistan 2.2 2.2 2.6 2.1 2.6 2.3 2.7 … 147. Iraq 2.2 2.0 1.9 1.8 2.3 2.2 2.7

Qatar is well positioned in the global logistics performance index, especially featuring modern logistics infrastructure

Logistics Performance Index (LPI) – Positioning of Qatar against selected countries 2018, 5 = highest score and 1 = lowest score

Source: The World Bank

There are multiple opportunities for international logistics players to enter Qatar logistics market

FREIGHT FORWARDING FOR IMPORT/EXPORT

• Qatar imports machinery, electronic equipment, metal products
• etc. in large quantities to support its diversification strategy
• This, together with increasing importance of industrial exports, offers an opportunity

to serve manufacturers in Mesaieed Industrial City and in Ras Laffan WORLD CUP FREIGHT FORWARDING AND PROJECT LOGISTICS

• Multi-billion investments into preparation for World Cup 2022
• Over 1.5 million tourists are expected to visit WC2022
• Significant demand for freight forwarding and logistics services both prior

to and during WC conduction COLD CHAIN CONTRACT LOGISTICS SERVICES

• Growing Qatar population fuels food imports; recend blocade by other GCC states

re-imposed the importance of self-suffiency in food supply for Qatar

• Large-scale cold chain facilities and respective network to serve Doha food market

is yet to be established HIGH-PROTECTION STORAGE FOR VALUABLE GOODS

• Qatar imports of precios metals amounted to $1.4 BN in 2016
• Provision of professional secure storage and handling

DISTRIBUTION NETWORK FOR E-COMMERCE

• Qatar's online B2C market is expected to grow at a compound annual rate of

17% over the next years

• It remains fairly fragmented, with mostly local players operating DCs

and conducting pick-ups and deliveries

@

@

Servicing the local logistics market in Qatar

Size of market opportunity1

Providing regional logistics/trans- shipment services

Size of market opportunity1

Value-added services for selected industries

Size of market opportunity1

USD M ~ 800 p.a. USD M ~200 p.a.

Service: Local logistics services within Qatar Value chain part: Courier, Express & Parcel (CEP), Contract logistics (CL), Freight Forwarding (FF), Warehousing (WH) Drivers: National Vision 2030, import/export growth, eCommerce growth Service: Regional hub for transshipment services Trade routes: IND-IRN, IND-IRQ, PAK-TUR, IRN-TUR, IRN-UAE, IRQ-UAE, PAK-Other, IRN- Other Commodities: (Precious-) metals, metal products, transport./industrial equipment, chemicals/pharma, textiles Service: Value adding contract logistics services Countries: Iran, Pakistan and Western India Industries: Industrials/Manufacturing, Automotive, Health Care/Pharma and Electronics

USD M ~ 450 p.a.

International logistics player can access a $1.5 Billion Market

Downstream Chemicals

23

Attractive proposition in Chemicals Combined with Free Zones Offerings

Attractive feedstock

Favorable energy costs

Investment incentives Stable environment Qatar's positioning Qatar has a strong natural gas advantage and has the ability to offer feedstocks at competitively low prices Access to natural gas gives Qatar some of the lowest energy prices regionally and globally Qatar is prepared to work with interested companies to co-invest in projects in the country Geographical position favourable to cater both Asian and European markets

Free Zone

• ffering
• Full fledged

infrastructure and logistics tailored to

the chemicals industry

• Streamlined

business set up and operations services

• Advantages over

mainland

• perations

(e.g. Corporate tax holidays, 100% foreign

• wnership, relaxed visa

regulation, full capital repatriation, etc.)

Investment drivers Geography The political and social stability of Qatar increases the attractiveness of the country for long term investment

24

Feedstocks Produced in Qatar Ready For Investors

Partnership opportunities with local producers

PRIORITY SECTORS: DOWNSTREAM OF DOWNSTREAM

Selective list of feedstocks produced in Qatar Ethylene Vinyl Chrolide Monomer Benzene&alkalybenzene Ammonium MTBE HDPE Linear olefins LDPE EDC Caustic soda/chroline Methanol LLDPE

Downstream Chemicals is A Key Strategic Focus

Thank You

For Additional Information Please contact: Qatar Free Zones Authority 6th Floor General Secretariat of the Council of Ministers Building P.O. Box 258 Doha, Qatar Email: investors@fza.gov.qa Tel: +974 440 18648 or 4401 8675