Investment in Quatar ( situation )

Qatar Investment Authority is a sovereign wealth fund of the Government of Qatar. The firm specializes in public and private equity, real estate, alternative assets, and fund of funds investments. It does not invest in the Qatar energy sector. The firm invests in companies based in Qatar . Qatar in 2005 to strengthen the country’s economy by diversifying into new asset classes. Headquartered in Doha, the QIA is structured to operate at the very highest levels of global investing. As a world class investor, the QIA adheres to the strictest financial and commercial disciplines. It has a strong track record of investing in different asset classes, including listed securities, property, alternative assets and private equity.

Qatar Investment: $ 40 Billion for 2022 World Cup

Road, rail and sea infrastructure projects in Qatar are to be fast-tracked to ensure and to guarantee the efficient and right movement of fans at the 2022 World Cup, Global Arab Network reports according to OBG.

Integral to the plan is a:
1- $ 13 Billion for a new international airport by 2013
2- $ 20 Billion is also slated for road and highway projects
3- $ 5.5 Billion for a new deepwater port.

There will be up to $ 40 Billion invested on rail construction, with a 340-km, 98-station metro line for Doha and its outskirts and a high-speed connection linking Qatar with other Gulf States.
While the multi-billion dollar commitment to building an integrated transport network was a major selling point of Qatar’s World Cup bid, the infrastructure schemes were developed as part of the failed attempt to host the 2016 Olympic Games, unfortunately for Qatar!
According to credit ratings agency Standard and Poor’s, Qatar is well-placed to fund the vast infrastructure program through oil and gas revenues. “We believe the World Cup will have a substantial impact on Qatar’s already promising economic growth over the next few years as the country readies itself to host this major sporting event,” said Luc Marchand, a credit analyst with S&P, in December.

While the transport infrastructure program will undoubtedly spur economic growth in the lead-up to the World Cup, Doha will also need to make the most of its investment after the tournament’s final whistle. South Africa has struggled to find uses for some of the World Cup facilities it built for 2010, with stadiums and the transport links connecting them to urban centers underused.

Qatari officials have stressed that the infrastructure built for 2022, along with further investments in targeted sectors such as tourism and logistics, will continue to pay dividends after the end of the football spectacle.

- Mighty Problems:
1- One of the problems that the country may face is sourcing skilled labor. Some of Qatar’s neighbors have also announced large-scale transport infrastructure program, including multi-billion dollar light and mainline rail projects in Saudi Arabia, Oman, Kuwait and the UAE.

2- Over the coming decade, the regional demand will also rise for building materials and equipment, as well as the technology needed by modern airports and ports, possibly leading to rising costs. Shortages and delays could lead to a big pressure on what may become tight deadlines.

3- There is also a risk, at least with the proposed international rail links, that neighboring nations may not complete their components, affecting World Cup fans considering making use of the train for travel to the UAE.

While Qatar has a head start with its transport scheme, with its transport master plan drafted almost five years ago and 12 years until the World Cup, intense international scrutiny of its cup build-up means it will need to leave nothing to chance.

Investment Analysis: 2022 Football World Cup

Since it was agreed on, we all ask each others: Can Qatar loses the rights to host 2022 Football World Cup?
FIFA president Sepp Blatter, who is standing for re-election, has refused to rule out a re-run of the vote to host the 2022 World Cup, if allegations that Qatar paid millions of dollars in bribes to secure its win are proven. He also said, “We are anxiously waiting for these evidences or non-evidences in order that we can take the adequate steps.”

There is a least possibility to snatch the world cup host-ship from Qatar now, even if bribery is proven it could stringent the rules of voting methodology & may add more transparency in awarding rights to host the World Cup for future.
We have seen that the decision to host the 2022 World Cup in Qatar was graded as having “high operational risk”, generated criticism from media & some countries officials on the concern of Qatar’s suitability to host the biggest sporting event, with regards to hot weather, press control & human rights in Qatar, being an Islamic state, rule under Sharia laws.

Analysts cannot completely ignore the possibility of the other way around. If Qatar stripped of 2022 World Cup then it would be the biggest U-turn in the FIFA’s history & could be devastating for FIFA & Qatar’s reputation and situation of course!
The decision to keep or reverse the rights to host the world cup would not solely based on inquiry commission set by FIFA, in fact Politics within the FIFA, international politics & economic considerations would play a major role in the decision.

-Qatar’s Economic Outlook: Situation.
Qatar has pledged investments of up to 75 billion dollars (60% of its GDP) for infrastructure, public facilities, sports facilities, tourism, communications and transportation. According to IMF, major infrastructure upgrades related to the FIFA World Cup 2022, such as the integrated metro/rail systems, roads, and airport, have already been taken into account in the medium-term expenditure profile, since they were planned notwithstanding the outcome of their bid to host the World Cup.
Therefore, in case Qatar won’t host the world cup, the majority of the infrastructure investment would go as plan, though with delay, in less enthusiastic way & relatively on shorter scale.
The stadium where Qatar will host the 2022 World Cup final isn’t built yet, therefore, in case Qatar won’t host the world cup, the sunk cost won’t be too much. It could also reduce the pressure on fiscal balance, in case no world cup, vice versa.

-If Qatar loses, effect will be the following:
In case Qatar won’t host the world cup then its hospitality sector will hurt the most. As Qatari government earlier announced to more than double hotel and apartment rooms to 84,000 & plans to build Lusail, a city of 200,000 hosting the final that will be linked to the rest of the country by new roads and railways would derail.
Many domestic, regional & global banks, property developers, construction, steel & cements companies would be in a loser list, in case Qatar won’t host the world cup.
Prominent losers will be Qatar National Bank, Deutsche Bahn, Orascom Construction, Emirates steel, Ezz steel, Hochtief AG, Barwa Real Estate Company.

Investing in Qatar

Qatar looks on the surface like a country with great economic promise. The nation is rich with cash and natural resources, and it’s been making small but sure strides toward economic and social reform. But is that enough to make it a place for your investing dollars? As we all know for every investment in any country or company possesses its good and bide sides, each.

The good side:
The economic data surrounding Qatar appears to indicate the potential for good investing opportunities. Profits from the petroleum industry have made it one of the highest per-capita-income countries in the world and have fueled one of the fastest GDP growth rates anywhere in the past few years. Qatar also sits near the planet’s largest natural gas field and will likely become the top liquefied natural gas (LNG) exporter in the near future. No wonder several U.S. companies, among them Chevron (NYSE: CVX), ExxonMobil (NYSE: XOM), Occidental Petroleum (NYSE: OXY), and Conoco Phillips (NYSE: COP), have joint development projects going on in the country.
Not to mention, that political signs point toward apparent stability in Qatar. Although it remains a conservative Muslim country, it does not, unlike its neighbor Saudi Arabia, allow religious fanatics to enforce adherence to dress codes or prayer attendance. In fact, Qatar’s emir, Sheikh Hamad bin Khalifa al-Thani, has pursued a path of cautious social and economic liberalization that has thus far met with success. He subsidizes the first truly free media in the Middle East, Al Jazeera, whose popularity has ignited a revolution in Middle Eastern journalism.

Clearly, the emir envisions Qatar competing with Dubai and the other members of the United Arab Emirates for future foreign business investment. And he just might succeed. In the wake of recent militant violence and beheadings of foreigners in Saudi Arabia, many Western companies have fled to Qatar and the Emirates.
The presence of two major United States military bases — Camp as-Sayliyah and al-Udeid Air Force Base — further ensures Qatar’s military stability. The U.S. military maintains an excellent relationship with the Qatari government.

The bad side:
As we described earlier, it really sounds like a good place to invest in, but hereby you will find what numbers tell, the complete opposite.
Like most other petroleum-rich Persian Gulf countries, Qatar is run by a very small group of men, the sheikhs, who own almost everything in the nation. As a result, any foreign company that wishes to do business in Qatar will likely have to have a sheikh sponsor it. These roughly 50 men are fabulously wealthy, and extremely powerful.

The rest of Qatar’s wealth is spread among its roughly 250,000 citizens, who receive monthly government stipends and other favors. That leaves about 630,000 other people who do not hold Qatari passports but still live and work in the country and ultimately depend on the largesse of a sponsoring sheikh for their employ. Many of these people are Palestinians, Lebanese, Egyptians, Iraqis, and various other Arabs from less fortunate nearby countries, but the vast majority comes from India and the Philippines. And their jobs and pay scales are all subject to a racism that places Gulf Arabs at the top, other Arabs in the middle, and Indians and Filipinos at the bottom.
It’s not likely to get better. The chasm separating rich and poor in Qatar will likely grow as the economy grows. And the problems it generates will remain a turbulent force churning beneath the surface of Qatari society. Already, the resentment between differing national communities is easy to see, for those who take the time to look.

Qatar is a small country with a small-country mentality. Its insularity tends to blind its citizens to the problems lurking right outside their borders. That means that although the nation may be secure in economic terms, it still remains subject to too much volatility on nearly every other level.

Qatar Privelege in Investment

Qatar opens the door for foreign investments to take place on its land by moderning laws that makes the whole investment process easy and flexible with different advantages. But Qatar ascertains that every foreign investment in a company should be faced by at least 51% of a Qatari investment. The capital is selected in sectors such as agriculture, industry, health, education, tourism, development of natural resources or energy and mining. Several Priveleges are offered to investors to develop their investment in a way useful and beneficial for both locals and foreigners. www.mofa.gov.qa

VOdaphone Now in Qatar

In April 2011. Vodaphone have invested in Qatar after finding the market is really demanding a high quality standard for telecommunication. Vodaphone sees in Qatar the land of opportnities to develop and progress due to the huge growth done by this state. Vodaphone will present an extremely fast internet in Qatar from now till 2015. The company overview Qatar to be one of the main markets for its customers and a tool to expand its businesses althrough the Middle East.

HSBC Offshore Investment Program in Qatar

HSBC offer you a special package of  investment that helps you to invest in Qatar. This way of investment through HSBC ensures a secure way to spend your savings and gain profit on them.

HSBC facilitates your investment in the Qatari market even if you do not live or work in Qatar. This International Service is being developed through your account by making you relax and see your account grow and prosper. To make you rest, HSBC provide you with your latest financial staement everytime you need to. This policy which is developed by the bank makes you know your own good and perform a unique way for you to really invest with an ensured profit.