WT/TPR/S/144 Trade Policy Review 
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IV. TRADE POLICIES BY SECTOR 
(1) OVERVIEW  
1. The contribution to Qatar's economy of mining a nd quarrying, basically petroleum and natural 
gas, and of gas-intensive industries (e.g. petroche micals and fertilizers), has increased over the years, 
while the shares of agriculture and services has fa llen.  In accordance with Qatar's long-term 
development strategy, this trend w ill be strengthened as Qatar aims to, inter alia , become a dominant 
force in world gas markets through its role as the leading producer and exporter of both liquefied 
natural gas (LNG) and gas-to-liquids (GTL). Nevert heless, some services subsectors, notably tourism, 
are being promoted to reduce the country's dependence on crude oil.  
2. Despite its very small and decreasing share of total GDP (0.3% in 2003), agriculture is an 
important sector in the economy because of Qatar's f ood security objective.  Qatar is a net importer of 
agricultural products, and food security is promoted mainly through relatively low customs tariffs.  
The simple average applied MFN ta riff on agricultural products (major division 1 of ISIC, Revision 2) 
is 3.3%. The Government assists agricultural producers by offering basic infrastructure (e.g. drainage 
and irrigation facilities), and free provision of inputs, such as pesticides, natural fertilizers, veterinary 
services, and vegetable seeds. 
3. A major state-owned company, Qatar Petroleu m (QP), is the exclusive agent for oil and 
natural gas activities, either directly or in co operation with foreign enterprises through production-
sharing or development and fiscal agreements. Qata r is pursuing an intensive exploration drive to 
enlarge its hydrocarbons reserve base, so as to ex pand the lifetime of its reserves, and broaden its 
production capacity. Qatar is also increasing its elec tricity network and modifying the distribution 
management system in order to meet the country 's growing demand. Electricity imports, and all 
products from mining and quarrying (major division 2 of ISIC, Revision 2) are subject to a tariff rate 
of 5%. 
4. Qatar's manufacturing sector is based on its comparative advantage in gas-intensive 
industries. Despite recent privatizations and jo int-ventures with foreign companies, the State 
continues to play a dominant role in the subsector.  The Government holds a majority stake or is an 
important shareholder in key manufacturing compan ies (e.g. Qatar Steel Company, Qatar National 
Cement Company, and Qatar Fertilizer Company). Manufacturing is being pr omoted partly through 
investment incentives, including exemption from impo rt duties, and tax-holidays for 5-10 years. MFN 
customs tariffs on manufactured goods (major divisi on 3 of ISIC, Revision 2) average 5.1%, with 
rates ranging up to 100% on alcoholic bevera ges, and tobacco and tobacco products. 
5. Services constitute a crucial component in Qata r's overall policy of economic diversification. 
Private sector participation is being encouraged by removing obstacles to foreign investment under 
the 2000 Investment Law.  Neverthe less, foreign investment is still not allowed in certain services 
subsectors, such as banking and insurance. More over, several state-owned companies in Qatar 
dominate services activities, and still operate under monopoly, or hold exclusive rights in some 
branches (e.g. Qatar Telecom, Qatar Postal Corpor ation, and Qatar Airways).  Under the General 
Agreement on Trade in Services, Qatar made so me commitments in several service categories 
(Table AIV.1). Qatar WT/TPR/S/144 
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(2) AGRICULTURE AND RELATED ACTIVITIES  
(i) Main features 
6. Agriculture is considered a strategic sector in Qa tar because of its role in securing food for the 
population. Nevertheless, the contribution of agricu lture and related activities (e.g. fishing) to GDP 
declined from 1.4% in 1993 to 0.3% in 2003, employing about 1% of Qatar's total labour force.  
Moreover, the sector faces development problems main ly related to the scarcity of irrigation water, 
the poor and declining quality of the soil, and adve rse climatic conditions. According to the latest 
available information, in 2001, agricultural land was estimated to be around 650 square kilometres 
(5.6% of total land area), of which 61 square kilometres were cultivated.1 Qatar's main agricultural 
products are milk and dairy produc ts, vegetables, green fodder, red meat, fruits and dates, and fish.2  
7. The agricultural land may be state-owned or pr ivately owned, but the labour force comprises 
immigrants.3  In 2001, there were 916 registered farms: about  one third were small (less than 20 ha), 
over 50% medium-sized (between 20 and 150 ha), a nd the remaining were la rge farms (over 150 ha).4  
Modern farms have been establis hed recently;  25% are located in Al-Rayyan, 20% in Al-Khor, and 
15% in Madinat Al-Shamal. The National Poultry Fa rm is the most important production centre for 
chickens and eggs.5 
8. The livestock subsector, consisting largely of sheep, goats, camels, cows, deer, and horses, 
includes traditional and commercial activities. Total red meat production remained stable at around 
3,600-3,700 tons during 1996-00.  In 2001, 2,571 tons  of meat production were reported in the census.  
Poultry meat production averaged 3,500 tons per year over 1996-01.6 
9. Despite the potential of fishing activities in Qatar, fisheries production (100% marine fish) 
remains limited, averaging around 6,500 tons during  1996-02.  Qatar has neither fresh water fish nor 
aquaculture production.7  Imports of fisheries products increased from US$5.3 million in 1999 to 
US$7.3 million in 2002, and exports grew fro m US$1.7 million to US$2 million over the same 
period.8  
10. Qatar is a net importer of agricultural products. Its agricultural trade deficit rose from 
US$279.7 million in 1998 to US$413. 4 million in 2001 (Table IV.1). Imports of agricultural products 
(US$418.8 million) represented 12.4% of total impor ts in 2001. Qatar's requirements of cereals, 
vegetables and livestock products are largely imported;  the largest share of imports is accounted for 
by chicken meat (8.4% of agricultural imports in  2001), sheep (6.9%), followed by rice (5.1%), and 
cows' milk (4.2%). Qatar imports  vegetal products mainly from GCC countries, followed by the 
European Union (EU), Asia, and the United States ; beef, veal, mutton, and lamb mainly from 
Australia and New Zealand; and poultry from neighbouring Arab countries.9  Local production meets 
approximately 14.5% of domestic demand for vegetables, 38.8% for dairy, 35.5% for eggs, 87% for 
                                                      
1 Planning Council (2003).  
2 Alfalfa is the main green fodder crop, and barley  is the main cereal. Toma toes and melons are the 
main winter and summer vegetables, respectively. 
3 All lands located outside city bord ers in Qatar are owned by the State. 
4 FAO online information.  Available at: http://www.fao.org, Aquastat  [2 September 2004]. 
5 Qatar Chamber of Commer ce and Industry (2004). 
6 Planning Council (2003). 
7 Shrimp fishing is prohibited in Qatar on environmental grounds. Exports of certain fish species (small 
size) are prohibited during ce rtain period of the year. 
8 FAO (2003a). 
9 Qatar Chamber of Commer ce and Industry (2004). WT/TPR/S/144 Trade Policy Review 
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dates, 92% for fish, 11.8% for poultry, and 10.8% for red meat. Given its limited resource potential 
and unfavourable climate, Qatar is likely to remain  heavily dependant on imports to meet its domestic 
demand for most agricultural products.   
Table IV.1 
Qatar's main imports and exports of agricultural products, 1998-01 
(US$ million) 
 1998 1999 2000 2001 
Trade balance     
  Agricultural products -279.7 -251.2 -207.9 -413.4 
Imports     
  Total agricultural products 293.6 263.8 216.9 418.8 
    Chicken meat 25.0 23.0 18.7 35.2 
    Sheep 15.0 21.0 11.6 28.7 
    Rice, milled 13.0 24.0 24.5 21.4 
    Cow milk, whole (fresh) 6.0 6.0 6.0 17.6 
    Cigarettes 13.0 12.0 11.2 17.0 
    Chocolate products n.e.s. 8.4 1.3 2.4 14.4 
    Food preparations n.e.s. 9.0 2.9 3.5 11.9 
    Juice of fruit n.e.s. 9.1 1.0 0.1 11.2 
    Dry skim cow milk 1.0 0.6 0.6 9.1 
    Vegetables n.e.s., fresh 4.1 4.1 0.3 8.8 
Exports     
  Total agricultural products 13.9 12.6 9.0 5.4 
    Camels 0.0 0.0 0.0 1.8 
    Skins with wool, sheep 0.7 0.7 0.4 1.6 
    Sheep 5.2 5.2 1.8 0.4 
    Fat of sheep 0.0 0.0 0.0 0.2 
    Oil of vegetable origin n.e.s. 0.0 0.0 0.0 0.2 
    Breakfast cereals 0.3 0.3 0.3 0.2 
    Beverages, non-alcoholic 0.2 0.0 0.0 0.2 
    Hides n.e.s. 0.0 0.0 0.0 0.2 
    Horses 0.0 0.0 0.0 0.1 
    Chocolate products n.e.s. 0.0 0.0 0.0 0.1 
Source:  FAO (2002), Food and Agriculture Indicators:  Qatar , Rome.  
11. The value of Qatar's agricultural exports has b een decreasing constantly over the past few 
years, representing only 0.1% of total mercha ndise exports in 2001 (Table IV.1). The main 
agricultural exports are camels (33.3%), sheep skins with wool (29.6%), and sheep (7.4%).  Some of 
Qatar's agricultural exports are re-exports, after mi nor processing, such as dates, vegetable oils, and 
hides.  The main markets for Qatar's exports of agricu ltural products are Arab countries, including 
GCC members, and the United States. 
(ii) Policy objectives and instruments 
12. The Ministry of Municipal Affairs and Agricu lture (MMAA) is responsible for the overall 
running of the sector, including assisting producers,  and providing infrastructure. Qatar's key policy 
objectives for agriculture are, inter alia : developing the sector by offering technical assistance and 
subsidized inputs to producers; ensuring food security for the population, including through an 
increase in livestock production in order to pr ovide adequate and balanced nutrition for the 
population; and the implementation of a Global Plan of Action for conservation and sustainable use of 
plant genetic resources for food and agriculture.10 
13. Qatar's agricultural policy reflects overall econom ic policy, which emphasizes diversification 
of the production base.  Development efforts in agri culture have included the promotion of intensified 
                                                      
10 Qatar is considered as one of the richest countr ies in plant genetic resources in the Gulf region 
because of its desert climate varia tions and plant types (FAO, 1998). Qatar WT/TPR/S/144 
 Page 41 
 
 
farming, increasing food self-sufficiency and cons ervation, and further development of existing 
agricultural resources. Recent policy measures emph asize, in particular, rehabilitation of abandoned 
farms, introduction of modern irri gation and drainage systems in all productive farms, promotion of 
the use of treated water, and implementation of le gislation related to wate r use and management. The 
relatively high capital cost and the scarcity of wate r for irrigation constitute the main constraints to 
agricultural development in Qatar.11 Vertical integration links in food processing are also being 
encouraged. 
14. Agricultural production is being promoted through the free provision of a number of inputs, 
such as pesticides, natural fertilizers, veterinary services, and vegetable seeds. Subsidies are granted 
for land preparation. The Government also provi des basic infrastructure, such as drainage and 
irrigation facilities.  In the Uruguay Round, Qatar did not make any commitments to cut financial 
support to agricultural producers; the authorities es timated that their support – as measured by the 
Aggregate Measurement of Support (AMS) – was below the  de minimis  of 10%, for which no 
reduction commitments were required.  Qatar has not made any notification to the WTO Committee 
on Agriculture regarding support measures to its agricultural producers. 
15. Qatar notified the WTO Committee on Agricultu re that it provided no export subsidies in 
1996, 1997 and 1998.12  No further notifications have been received from Qatar. 
16.  According to the authorities, the marketing of all agricultural products in Qatar is free from 
state intervention, including price controls.  Food security is mainly promoted through importation. 
17. The simple average applied MFN tariff for agri cultural products (Major Division 1 of ISIC 
Revision 2) is 3.3% (Chapter III(2)(iv)(b)).  Impor ts of agricultural products, such as wheat, flour, 
rice, feed grains, and powdered milk are duty free.  Tobacco and tobacco products are subject to the 
highest applied tariff rate of 100%, and generally  carry the highest bound tariff rate of 200%. 
(3) MINING AND ENERGY  
(i) Overview 
18. Mining and quarrying, basically petroleum a nd natural gas, accounted for almost 60% of 
Qatar's GDP in 2003, 70% of government revenu es, and about 90% of total merchandise export 
earnings.13  Employment in extraction of crude oil and natural gas, as well as in the manufacture of 
refined petroleum products represented 11.25% of Qatar's total labour force.   In 2001, natural gas  
accounted for 81.6% of Qatar's total primary ener gy supply, while oil contributed the remaining 
18.4%.14 
19. In 2004, Qatar's "expected" petroleum reser ves amounted to 27,016 million barrels (mb) 
(3,917 mb of crude oil and 23,099 mb of condensate) (Table IV.2).  Furthermore, Qatar continues to 
                                                      
11 Qatar has practically no permanent surface water. Direct and indirect rech arge of groundwater from 
rainwater is the main natural water resources.  The tw o main aquifers underlying Qatar are recharged in Saudi 
Arabia. A large but declining number of people outside Doha still rely on water supply by tankers.  Water 
distribution networks in Qatar total 33,000 km;  311.7 km are expected to be added soon (FAO, 2003b). 
12 WTO documents G/AG/N/QAT/1, 3 April 1998;  G/AG/N/QAT/2, 22 March 1999; and 
G/AG/N/QAT/3, 12 August 1999, for 1996, 1997 and 1998, respectively. 
13 Planning Council (2003).  
14 International Energy Agency (2001). WT/TPR/S/144 Trade Policy Review 
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pursue an intensive exploration drive to enlarge its  reserve base, so as to expand the lifetime of its 
petroleum reserves and increase its production capacity.15 
Table IV.2 
Qatar's "expected" reserves of  crude and condensate, 2000-04a 
(Million barrels) 
 2000 2001 2002 2003 2004 
Qatar Petroleum operated fields      
Bul Hanine 429 401 484 515 491 
Maydan Mahzam 256 238 278 263 251 
Dukhan 2,040 1,916 1,793 1,680 1,565 
Total QP oilfields 2,726 2,555 2,555 2,458 2,308 
North Field 8,357 12,300 12,290 23,000 22,725 
Total QP operated fields  11,083 14,855 14,845 25,458 25,033 
Non-Qatar Petroleum operated fields      
EPSA/DPSA 1,966 1,962 1,948 2,100 1,952 
50% of El Bunduq 54 50 43 38 32 
Total non-QP operated fiel ds 2,020 2,012 1,991 2,138 1,983 
Total all fields 13,103 16,867 16,836 27,596 27,016 
a  As at 1 January. 
Source:  Information provided by the Qatari authorities.  
20. Qatar's proven reserves of natural gas, estimated at 25,783 billion cubic meters, are the second 
largest in the world (14.3% of th e globe's total proven reserves).16  Qatar also aims to become the 
largest liquefied natural gas (LNG) producer in the world by 201017, and is building the world's 
largest gas-to-liquids (GTL) plant.  Furthermore, the development of gas-intensive industries, such as 
petrochemicals, fertilizers, and refining, is a key co mponent of Qatar's overall diversification strategy. 
21. Qatar's exhaustible natural resources, includi ng petroleum and natural gas wealth are 100% 
owned by the State, as is Qatar Petrol eum (QP), pursuant to Law No. 10 of 1974.18  Q P  i s  t h e  
exclusive agent for the Government in the conduct of petroleum and natural gas operations, either 
directly, or in cooperation with foreign corpora tions through production-sharing agreements (PSAs) 
or development and fiscal agreements (DFAs).19 Provisions of the agreements are aimed at increasing 
investment inflows, as well as technology and expertise transfer.  
22. Crude oil exploration and production activities may be carried out under PSAs, which allow 
foreign contractors to hold up to 100% "working interest".20  Such PSAs are also referred to as 
development and production shari ng agreements (DPSAs) or expl oration and production sharing 
agreements (EPSAs).21 Natural gas development activities are conducted either by QP, or under 
DPSA contracts that allow foreign companies to hold up to 100% working interest, or under a DFA's 
royalty and tax regime. 
                                                      
15 According to the authorities, Qatar's current petroleu m depletion rate (ratio of reserves to production) 
is 7%, and the objective is to increase it to 10%. 
16 OPEC (2003). 
17 Qatar is implementing a plan to establish a liquefaction capacity of 70 million tons per year.  
18 Qatar Petroleum was previously known as Qatar General Petroleum Corporation (QGPC). 
19 Each agreement must be approved by an Emiri Decree. 
20 The term "working interest" is used in PSAs to indicate that the agreement does not imply the 
establishment of a joint-venture between QP and the related foreign company to run projects. 
21 Under DPSAs, the foreign company is required to conduct reappraisal of an  already discovered oil 
structure and develop it further, while under EPSAs, foreig n firms are granted the right to explore for oil in their 
exploration area and, if oil is discovered, develop the field.  Qatar WT/TPR/S/144 
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23. QP has signed several DPSA, EPSA, and DFA cont racts with foreign companies, such as 
ExxonMobil of the United States, Total/Fina/Elf of  France, and Mitsui of Japan (Table IV.3).   
Table IV.4 shows QP's operating activities, as well as its joint-ventures with other Arab countries, and 
projects under construction. It is estimated that during 1995-03, US$35 billion of foreign investment 
inflows have been allocated to Qatar's petroleum and natural gas industries.22 
Table IV.3 
Contracts between QP and foreign companies 
Production sharing field Signature date Objective/Status Foreign companies 
DPSA     
Qatargas – JV 29 May 1991 Qatargas upstream LNG project  Total 
Exxon Mobil 
Mitsui Marubeni 
Idd El Shargi North Dome 24 July 1994 Oil development/production Occidental 
Block 1 SE Al-Karkara 15 July 1997 Oil develo pment United Petroleum Development Co. Ltd. 
Cosmo Oil Co. Ltd. 
Nissho Iwai Corporation 
Idd El Shargi South Dome 10 December 1997 Oil development/production Occidental 
North Field 2 May 2000 North Field Gas Development Exxon Mobil 
Dolphin 23 December 2001 North Field Gas De velopment Offset Investment Co. Ltd.  
Total 
Occidental 
EPSA    
Block 12 – Al-Rayyan 
Block 13 10 April 1976  Oil development/production 
Exploration Anadarko 
OMV 
Block 6 – Al-Khalij 7 January 1989 Oil development/production Total 
Block 5 – Al-Shaheen 22 June 1992 Oil development/production Maersk 
Block 11 16 July 1997 Exploration Wintershall 
Anadarko 
Block 2 24 March 1998 Exploration Encana 
Chevron 
Svenska 
Block 10 17 November 2002 Exploration Talisman 
Block 4 18 May 2004 Exploration Anadarko 
  
DFA    
Rasgas 1 – JV  20 December 1992 Integrated LNG project Exxon Mobil 
Rasgas I – JV  2 July 2002 Integrated LNG project Exxon Mobil 
Rasgas II – JV 27 March 2001 Integrated LNG project Exxon Mobil 
Qatargas – JV  31 January 1993 Qata rgas downstream LNG project Total 
Exxon Mobil 
Mitsui Marubeni 
Note: JV = Joint venture.  
Source:  Information provided by the Qatari authorities.  
Table IV.4 
QP's activities, October 2004 
Company Activity/location Ownership Percentage Capacitya 
Qatar Chemical Company Ltd. 
(Q-Chem I) Petrochemicals Qatar Petroleum 
Chevron Phillips Chemical 
  51 
 49 Ethylene:  500,000  
HDPE:  453,500  
Hexene-1:  47,000  Sulphur:  36,000  
Qatar Petrochemical Company Ltd. (QAPCO) Petrochemicals Industries Qatar 
Atofina  80 
 20 Ethylene:  525,000  
LDPE:  360,000  
Sulphur:  70,000  
Table IV.4 (cont'd) 
                                                      
22 Economist Intelligence Unit (2004). WT/TPR/S/144 Trade Policy Review 
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Company Activity/location Ownership Percentage Capacitya 
Qatar Fuel Activities Company 
Ltd.  (QAFAC) Petrochemicals Industries Qatar 
Chinese Petroleum Corp. 
Lee Chang Young Corp. International Octane Ltd.  50 
 20 
 15  15 Methanol:  825,000  
MTBE:  610,000  
Qatar Vinyl Company Ltd. (QVC) Petrochemicals Qatar Petroleum 
QAPCO 
Norsk Hydro Atofina  25.5 
 31.9 
 29.7  12.9 EDC:  175,000  
VCM:  220,000 
Caustic Soda:  295,000  
Qatar Fertilizer Company Ltd. 
(QAFCO) Fertilizers Industries Qatar 
Yara International   75 
 25 Ammonia:  1.4 million  
Urea:  1.8 million  
Qatar Liquefied Gas Company Ltd (Qatargas)
b LNG Qatar Petroleum 
Total Qatar Oil and Gas SA 
ExxonMobil Qatargas Inc. Marubeni Corp. Mitsui & Co Ltd  65 
 10 
 10  7.5  7.5 LNG:  7.7 million  
Ras Laffan Liquefied Natural 
Gas Company Limitedc LNG Qatar Petroleum 
ExxonMobil RasGas Inc. 
Itochu Corp. LNG Japan Corp. Kogas  63 
 25 
 4  3  5 LNG:  6.6 million  
Ras Laffan Liquefied Natural 
Gas Company Limited (II) 
(Train 3) LNG Qatar Petroleum 
ExxonMobil RasGas Inc.  70 
 30 LNG: 7.7 million  
Qatar Fuel Company 
(WOQOD) Fuel distribution Qatar Petroleum  70 All petroleum products 
Arab joint-ventures     
Arab Petroleum Investment 
Corporation (APICORP) Finance/Saudi 
Arabia Qatar Petroleum   10  
Arab Petroleum Services 
Company (APSC) Libya Qatar Petroleum  10  
Arab Petroleum Pipelines 
Company (SUMED) Pipelines/Egypt Qatar Petroleum  5  
Arab Ship Building and Repair 
Yard Company Shipbuilding, 
repair/Bahrain Qatar Petroleum  18.8  
Arab Maritime Petroleum 
Transport Company Kuwait Qatar Petroleum  14.8  
Projects under construction     
Ras Laffan Liquefied Natural 
Gas Company Limited (II) 
(Trains 4 and 5) LNG Qatar Petroleum 
ExxonMobil RasGas Inc.  70 
 30 LNG:  9.4 million  
Ras Laffan Power Project Independent 
power and water 
project Qatar Petroleum 
AES Corp  Qatar Electricity & Water 
Co. 
Gulf Investment Company  10 
 55  25 
 10 Power:  750 megawatts 
Water:  40 million gallons/day 
ORYX GTL GTL Qatar Petroleum  51 Diesel:  24,000 barrels/day 
Naphtha:  8,000 barrels/day 
LPG:  1,000 barrels/day 
Qatar Liquefied Gas Company LNG Qatar Petroleum  70 LNG: 15.6 million  
a Capacities are variously nominal, current or expected.  Expressed in tons per year, unless otherwise indicated. 
b Refers to ownership of the downstream project only. c Percent ownership reflects income distribution percentages. 
Source : Information provided by the Qatari authorities. 
24. The Council of Ministers, headed by the Prime Minister, determines mining and energy 
policies and enacts all the relevant legislation. Th e Ministry of Energy and Industry (MEI) is the 
implementing authority, and represents the State in matters relating to petroleum and natural gas in 
regional and international organi zations, particularly the Organization of the Petroleum Exporting Qatar WT/TPR/S/144 
 Page 45 
 
 
Countries (OPEC), of which Qatar has been a member since 1961.23  QP is responsible for all oil and 
gas industry processes, including exploration and dri lling for oil, natural gas, and other hydrocarbon 
substances24, as well as for production, refining, transport, storage, trading, distribution, sale and 
export of such substances and of any of their derivatives and by-products.25 
25. The main policy goals regarding mining and quarrying in Qatar include: self-sufficiency in 
fossil fuels; promotion of economic growth and empl oyment of Qatari nationals; contribution to the 
stability of the world oil market; diversificati on of the economic base (e.g. petrochemical and 
fertilizer industries); strengthening the participati on of the private sector through privatization; and 
protection of the environment through, inter alia , increased consumption of natural gas. 
26. Qatar maintains price controls on petroleum produc ts and natural gas. Pr ices are differentiated 
according to final use. Prices are suggested by QP, subject to approval by the Council of Ministers. 
According to the authorities, there are no measure s to promote local processing of petroleum products 
before their exportation.  
27. Qatar's royalty system on mineral products (12. 5% on petroleum and 20% on natural gas) has 
been designed to enable QP to recover the governme nt intake from operators, through levies (QP pays 
the Government on behalf of petr oleum operators), and dividends (t he Government owns QP and all 
its revenue goes back to the Treasury). 
28. All mining and quarrying products are subject to a 5% customs tariff.  Imports of electricity 
also carry a 5% tariff rate.  
(ii) Petroleum 
29. Qatar's petroleum is produced through QP's operated fields (i.e. the onshore Dukhan Field26, 
and two offshore fields in Bul Hanine and Maydan Mahzam27), as well as through fields operated 
under PSAs, in which QP has a share (Table IV.5). 
Table IV.5 
Qatar's average daily production of crude oil and field condensate, 1999-03 
(Thousand barrels per day) 
 1999 2000 2001 2002 2003 
Qatar Petroleum operated fields      
  Dukhan 318 339 332 309 323 
  Bul Hanine 71 77 72 59 68 
  Maydan Mahzam 45 52 56 41 39 
  Total  434 468 460 409 428 
Table IV.5 (cont'd) 
                                                      
23 OPEC comprises 11 members: Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi 
Arabia, United Arab Emirates, and Venezuela. 
24 In 1988, the Government entrusted QP with the responsibility for supervising hydrocarbon 
exploration in Qatar. 
25 QP's annual budget is approved by the Ministry of Finance, the Council of Ministers, and by the 
Emir. In November 2004, the Minister of Energy and Industry was also the Second Deputy Prime Minister, and 
Chairman of Qatar Petroleum.  
26 Dukhan is the point of origin for the discovery of oil in Qatar;  production started there in 1949. It 
produces from four major hydrocarbon reservoirs, three of which produce oil and the fourth produces non-
associated gas. The field is approximately 70 km long and 25 km wide. Dukhan has a crude oil production 
capacity of approximately 320,000 b/d, excluding condensate. 
27 Bul Hanine became operational in 1973, and Maydan Mahzam in 1965. WT/TPR/S/144 Trade Policy Review 
Page 46 
 
 
 1999 2000 2001 2002 2003 
PSA contractor operated fields      
  Total 252 251 259 315 334 
  Of which Qatar Petroleum's share 99 137 156 185 201 
Total daily production 686 719 718 724 764 
Total Qatar Petroleum share  533 605 615 594 631 
Source:  Information provided by the Qatari authorities. 
30. Qatar's crude oil production and reserves have c ontinued to climb during the last few years 
(Table IV.6), owing in part to increased  international participation through PSAs.28 
Table IV.6 
Crude oil production, exports,  reserves, and price, 1995-03 
 1995 1996 1997 1998 1999 2000 2001 2002 2003 
OPEC quotaa ('000 b/d) 378.0 378.0 378.0 640.0 593.0 692.0 601.0 562.0 635.0 
Production  ('000 b/d) 389.8 393.1 405.1 618.1 608.5 648.2 632.9 568.9 676.0 
Exports ('000 b/d) 333.0 367.0 465.0 572.4 580.5 617.6 605.5 580.8 540.7 
Reserves (million barrels) 3,700 3, 700 3,700 3,700 3,700 13, 157 15,207 15,207 15,287 
Price (US$/b)b 16.86 20.29 18.68 12.28 17.47 27.60 23.12 24.36 28.10 
a End of year. 
b OPEC spot reference basket price. 
Source:  OPEC (2003), Annual Statisti cal Bulletin 2003 , Vienna.  
31. As member of OPEC, Qatar is bound by th e organization's crude oil production ceiling 
allocations.  However, since 2001, the world's demand for oil has exceeded OPEC's production 
forecasts, and Qatar, together with other OPEC members, has overproduced its OPEC quota in order 
to help stabilize world oil markets (Table IV.6 ).  Qatar's crude oil production quota increased from 
635,000 b/d at the end of 2003, to 700,000 b/ d as from 1 November 2004 (the smallest amongst 
OPEC members, or 2.6% of OPEC's total production ceiling29).  
32. In July 2004, Qatar was producing 804,000 b/ d or 2.9% of OPEC's total production30, an all 
time high and close to its maximum crude oil producti on capacity.  According to the authorities, Qatar 
will step up production further if oil prices remain above US$30 per barrel.31  Nominal world oil 
prices climbed from US$12.28 per barrel in 1998 to US$28.10 per barrel in 2003, and reached US$43.16 per barrel on 8 August 2004 (a new daily average record), as a result of larger than 
expected growth in demand, growing political concerns  due to the situation in Iraq, loss of Iraqi oil 
production on several occasions, and hedge fund activity in the oil market. 
33. Asian countries are the destination for all of Qatar's crude oil exports.  In 2003, 59% of 
Qatar's total crude oil exports went to Japan, fo llowed by Korea with 15.1%. China; Philippines; 
Singapore; the Separate Customs Territory of Ta iwan, Penghu, Kinmen and Matsu; Thailand; and 
India complete the list of importers of Qatar's crude oil. 
                                                     
 
28 In 2000, QP accounted for 61% of Qatar's total crude oil production;  the remaining 39% came from 
EPSA/DPSA contracts (Qatar  Petroleum, undated). 
29 Excluding Iraq. 
30 Excluding Iraq (OPEC, 2004). 
31 The authorities of Qatar consider that the price of oil should be settled in the range of US$28-30 per 
barrel. Bound by its technical capabilities and depletion po licy, Qatar will produce at levels that can contribute 
to the stability of world oil markets. The oil price used in  this report refers to the OPEC spot reference basket 
price. It was introduced on 1 January 1987 and is the arithmetic average of seven selected crude oils: Saharan 
Blend (Algeria); Minas (Indonesia); Bonny Light (Nigeria); Arab Light (Saudi Arabia); Dubai (United Arab Emirates), Tia Juana Light (Ven ezuela), and Isthmus (Mexico). Qatar WT/TPR/S/144 
 Page 47 
 
 
34. In order to add value to crude oil production a nd integrate it with other activities and projects 
in upstream (extraction of hydrocarbons) and dow nstream (processing of hydrocarbons) industries, 
Qatar has been increasing production of refined produc ts such as gasoline, kerosene, and distillates. 
Qatar's output of refined products we nt from 59,500 b/d in 1999 to 115,200 b/d in 2003 (Table IV.7).  
Qatar has the capacity to produce 137,000 b/d.   
Table IV.7 
Production and consumption of refined products, 1999-03 
('000 b/d) 
 1999 2000 2001 2002 2003 
Total production 59.5 57.8 42.1 43.1 115.2 
  Gasoline 14.1 13.5 .. 11.0 40.7 
  Kerosene 9.9 9.0 .. 6.7 20.2 
  Distillates  13.7 13.3 .. 11.9 20.2 
  Residuals 17.9 18.1 .. 7.8 7.9 
  Others  3.8 3.9 .. 5.7 26.2 
Total consumption 22.2 23.6 25.4 32.9 30.8 
  Gasoline 11.0 11.7 12.5 15.8 13.4 
  Kerosene 3.7 3.9 4.2 6.7 5.9 
  Distillates 6.5 6.9 7.5 8.8 10.0 
  Residuals .. .. .. .. .. 
  Others 1.0 1.1 1.2 1.6 1.4 
.. Not available. 
Source:  OPEC (2003), Annual Statis tical Bulletin , Vienna.  
35. As part of its industrialization plan, Qatar is developing its petrochemica ls industry, in which 
it has a comparative advantage given the country's  large gas feedstock; gas accounts for 70% of 
production costs in petrochemicals.  The industry is being developed mainly through joint ventures.  
The Qatar Petrochemical Company (QAPCO), establis hed by an Emiri Decree in 1974 to utilize the 
associated ethane gas from petroleum production,  is the largest producer of low-density polyethylene 
in the Middle East, in addition to producing ethylene and sulphura.32  The Qatar Chemical Company 
(Q-Chem) produces high- and medium-density polyethylene, as well as other associated by-
products.33  In mid-2000, the Qatar Fuel Additives Company (QAFAC) commenced production of 
methanol and methyl tertiary butyl ether at Mesaieed.34 Moreover, QATOFIN will be established at 
Mesaieed for the purpose of developing an ethylene derivative facility.35 The industrial city of 
Mesaieed was established in 1996 to accommodate pe trochemical and metallurgic plants, and to 
produce refinery products.36  
36. Qatar is in the process of restructuring the retailing of petroleum products. The current 
measures consist in fixing the price for transporting fuels, such as petrol (gasoline) and diesel, through 
Qatar Fuel Company (WOQOD).37 QP has granted WOQOD a 15-year exclusive right to distribute all 
petroleum products in Qatar. After 15 years,  the exclusive rights will end, conditional upon 
assessment. 
                                                      
32 QAPCO is a joint venture between Industries Qata r (with a 80% share) and Atofina of France (20% 
stake). It has important expansion plans to increase its production of ethylene, the basic building block of the 
petrochemical industry.  QAPCO is behind Saudi Basic Industries Corporation in production of ethylene. 
33 Q-Chem is a joint venture between QP (51% share) and Chevron (49%). 
34 QAFAC is owned by Industries Qatar (50% shar e), Chinese Petroleum Co rporation (20%), Lee 
Chang Yung Chemical Industry Corporation (15%), and International Octane Limited (15%). 
35 QATOFIN will be a shareholding company between QAPCO (63%), Atofina (36%), and QP (1%). 
36 The Mesaieed industrial city, located 45 km south of Doha, has an area of about 43 square 
kilometres, including a fully serviced port.  The total capacity of the refinery at Mesaieed is 137,000 b/d. 
37 WOQOD (fuel in Arabic) is 40% owned by QP and 60% by Qatari investors. WT/TPR/S/144 Trade Policy Review 
Page 48 
 
 
(iii) Natural gas 
37. Qatar's natural gas is produced mainly in the No rth Field, the largest single non-associated gas 
reservoir in the world.38  QP is implementing a five-pronged stra tegy for the exploitation of its vast 
gas reserves in the North Field: (i) production and export of LNG; (ii) meeting the strong domestic 
demand for electricity and water; (iii) regional g as sales; (iv) development of export-oriented 
downstream industries; and (v ) conversion of natural gas into gas-to-liquids (GTL).39 Qatar's reserves 
of associated and non-associated gas during 2000-04 are shown in Table IV.8. 
Table IV.8 
Qatar's reserves of associated and non-associated gas, 2000-04 
(Trillion standard cubic feet) 
 2000 2001 2002 2003 2004 
North field 376.8 496.0 495.0 900 892.0 
Other fields 16.7 16.3 16.3 14.7 14.4 
Total  393.5 512.3 511.3 914.7 906.4 
Source:  Information provided by the Qatari authorities. 
38. Natural gas production in Qatar has increased considerably over the years: it rose from 
13,500 million cubic meters (mcm) in 1995 (equivalent to 4.6% of OPEC's total natural gas 
production) to 30,800 mcm in 2003 (7.1% of OPEC's production).40  Qatar also produces natural gas 
liquids such as condensate, butane, and propane (Table IV.9). 
Table IV.9 
Production of natural gas liquids, 1997-02 
 1997 1998 1999 2000 2001 2002 
Condensate 1,371.9 1,497.7 1,444.2 1,341.8 1,459.1 1,313.0 
Butane 518.7 545.7 618.3 629.4 659.3 617.9 
Propane 708.6 739.2 777.3 790.1 846.0 743.0 
Total 2,599.2 2,782.6 2,839.8 2,761.3 2,964.4 2,673.0 
Source:  Information provided by the Qatari authorities.  
39. The discovery of the North Field in 1991 led Qata r to draw up its Strategic Plan for Natural 
Gas Utilization. The plan resulted in the construc tion of Ras Laffan Industrial City (RLC), fully 
operational since 1996, which is one of the largest LNG export facilities in the world.41 RLC 
accommodates gas-based industries, including  gas liquefaction, processing and export, 
petrochemicals, and refining of condensate.  RLC is run by a management team appointed by QP.  
40. RLC is home to Qatargas42 and Rasgas43, which supply LNG mainly to Europe and the United 
States. Qatargas and Rasgas are implementing ambitious expansion plans, such as setting up LNG 
                                                      
38 Non-associated gas reserves are thos e not connected with an oil deposit. 
39 QP aims to become the "gas-to-liquids capital of  the world". GTL, also known as liquid fuel, is 
environmentally friendly, and is an effective solution to the problem of routing natural gas over long distances. 
40 OPEC (2003). 
41 Ras Laffan Industrial City, located 80 km north of Doha, covers 106 square kilometres. 
42 Qatargas is owned by QP (65% share), ExxonMobil (10%), Total (10%), Mitsui (7.5%), and 
Marubeni (7.5%). Qatar Petroleum online info rmation. Available at: http://www.qp.com.qa, Industrial Cities  
[1 September 2004]. 
43 The Rasgas companies are: Ras Laffan Liquefied Natural Gas Company Limited, established in 1993 
and owned by QP (63% share), ExxonMobil (25%), Kora s (5%), Itochu (4%), and LNG Japan (3%); Ras Laffan 
Liquefied Natural Gas Company Limited II, established in 2001 by QP (70%) and ExxonMobil (30%); and Qatar WT/TPR/S/144 
 Page 49 
 
 
trains and acquiring LNG tankers.  Qatargas and Rasg as aim to become the world's leading suppliers 
of LNG and condensate. 
41. On 29 May 2004, Qatar announced the formati on of Qatar Gas Transport Company (Q-Gas) 
in an effort to involve the private sector in the country's growing gas transportation needs 
(Chapter III(4)(iii)).  Qatargas and Rasgas will lease ta nkers from Q-Gas, which is expected to acquire 
77 vessels by the end of the decade to meet the increasing world demand for Qatar's LNG.44 
42. Qatar has the project of building a 590-km under-s ea pipeline (a long stretch of which will 
pass through Saudi Arabian waters) to transport it s North Field gas to Kuwait, with a view to 
extending its gas marketing network in the regi on. According to the 25-year sale-and-purchase 
agreement signed in January 2002 , QP and ExxonMobil will produce the gas, and Kuwait Petroleum 
Company will build a gas receiving terminal at al -Ahmadi port and pay the price of gas on a c.i.f. 
basis.45 
43. ORYX, a joint-venture between QP and South A frica's Sasol Synfuels, is building the region's 
first, and the world's largest GTL plant (at a cost of US$900 million) located at RLC.  It is due to be completed in 2005, with a production capacity of appr oximately 33,000 b/d: 24,000 b/d of diesel fuel, 
8,000 b/d of naphtha, and 1,000 b/d of liquefied petroleum gas (LPG).
46 
(iv) Electricity 
44. Qatar is in the process of expanding its elect ricity network and modifying the distribution 
management system in order to meet the count ry's increasing demand.  During the summer months, 
electricity demand goes up to 2,500 megawatts (MW) , while Qatar's supply is  about 2,710 MW. Some 
concerns have been expressed about agei ng transmission and distribution networks.47 
45. Electricity in Qatar is generated on the basis of  six power plants.  Five are owned by Qatar 
General Electricity and Water Corporation (Kahrama a), which buys the electricity and water from all 
power plants and distributes it to consumers. Kahram aa is evaluating bids from eight foreign firms for 
a US$110 million project to modify the electricity distribution management system;  implementation of the project is expected to be completed by end 2005.  The sixth power plant resulted from the 
commissioning of Ras Laffan power station, an inde pendent water and power project that went on 
stream in May 2003 on the basis of a build-own-operate-transfer (BOOT) contract.  By 2005, once fully in operation, it is expected to generate  750 MW of electricity and will produce 40 million 
gallons per day of drinking water.
48 
                                                                                                                                                                     
RasGas Company Limited, established in 2001 by QP (70%) and ExxonMobil (30%). Qatar Petroleum online 
information. Available at: http://www.qp.com.qa, Industrial Cities  [1 September 2004]. 
44 Each Q-Gas vessel's capacity will range from 200,0 00-250,000 cubic meters of LNG;   Qatargas and 
Rasgas use ships of 138,000-145,000 cubic meters (Economist Intelligence Unit, 2004). 
45 The initial volume of supply would be 750 million cubic feet per day, which will gradually rise to 
1.4 billion cubic feet per day. Bahrain is also expected to be linked with the planned pipeline through a spur 
(Economist Intelligence Unit, 2004). 
46 In March 2004, QP and Sasol signed a Memorandum of Understanding for the ORYX GTL 
expansion project to increase production to 100,000 b/d.   In addition, QP is negotiating several integrated 
(upstream and downstream) GTL projects with various leading companies.  
47 Economist Intelligence Unit (2004). 
48 The Ras Laffan power station currently produces 430 MW of electricity and desalinates 
40 million gallons of drinking water per day.  It is 55% owned by AES Corporation of the United States, 25% 
by Kahramaa, and 10% each by QP and Kuwait-based Gu lf Investment Corporation (Economist Intelligence 
Unit, 2004). WT/TPR/S/144 Trade Policy Review 
Page 50 
 
 
46. Law No. 10 of 2000 replaced Law No. 6 of 1992 and established Qatar General Electricity 
and Water Corporation (Kahramaa) as the regulator y authority in the subsector.  Kahramaa assumed 
all obligations held by the Ministry of Electricity  and Water (Article 2 of Law No. 10). At the same 
time, the Ministry of Energy and Industry (MEI) was made responsible for, inter alia , proposing 
general electricity and water planning policies, and issuing licences to build power generation and 
water desalination stations (Article 4).  In addition, the Ministry of Municipal Affairs and Agriculture 
(MMAA) is now in charge of drafting the technical  specifications for buildings and installations as 
regards heat insulation, electric and water connec tions, as well as lighting and maintenance of public 
places and roads (Article 6). The involvement of se veral public institutions in electricity and water 
activities could cause inefficient coordination within the subsector. 
(4) MANUFACTURING  
(i) Main features 
47. Qatar has a relatively well developed manufactur ing sector, based mainly on its comparative 
advantage in energy-intensive industries, incl uding basic metals (33.7% of value added in 
manufacturing in 2001), refined petroleum products  (21%), and chemical and chemical products 
(16.7%) (Chart IV.1). Nevertheless, the share of manufacturing in GDP decreased from 13.2% in 
1993 to 6.7% in 2003. 
Basic metals
33.7Publishing and printing  2.9
Metal products  4.8
Wearing apparel
6.2
Other non-metallic 
mine ral products
7.6
Chemicals and 
chemical products
16.7Refined petroleum 
products
21.0Others
4.3Fu rn it ure
2.8Chart IV.1
Value added in manufacturing, 2001
Per cent
Source: WTO Secretariat calculations, based on data provided by the Qatari authorities. 
48. In 2002, manufactured exports accounted for 10. 5% of Qatar's total merchandise exports, led 
by chemicals (62.9% of manufactured exports), iron and steel products (29.9%), and textiles (6.2%) 
(Chart IV.2). Manufactured products have traditi onally dominated Qatar's total imports, accounting 
for 83.5% of total imports in 2002. Machinery and transport equipment repres ented 56.2% of Qatar's 
manufacturing imports in 2002, followed by imports  of other consumer goods (11.5%), and other 
semi-manufactures (10.9%) (Chart IV.3). Qatar WT/TPR/S/144 
 Page 51 
 
 
Iron and steel
29.9
Chemicals
62.9Chart IV.2
Exports of manufactures, 2002
Per cent
Source: WTO Secretariat calculations, based on UNSD, Comtrade database.Textiles
6.2Other consumer 
goods
1.0
Total manufactured products: US$839.5 million
 
49. Despite recent privatizations and joint ventures w ith foreign companies, the State continues to 
play a dominant role in manufacturing.  The Govern ment of Qatar holds a majority stake in some 
heavy industries, such as Qatar Steel Company (QASCO)49, and is an important shareholder of Qatar 
National Cement Company (QNCC).50  In addition, Industries of Qa tar (IQ) has significant shares in 
Qatar Fertilizer Company (QAFCO)51, while QP partially owns Qatar Vinyl Company (QVC).52 
                                                      
49 QASCO is owned jointly by the State (70% share) and two Japanese companies: Kobe Steel (20%) 
and Tokyo Boeki (10%). 
50 QNCC is 43% owned by the State and 57% by Qatari investors. 
51 QAFCO is a joint venture between IQ (75% share) and Yara International (25%). 
52 QVC is owned by QP (25.5% share), QAPCO (31.9%), Norsk Hydro Holland (29.7%), and Atofina 
(12.9%). WT/TPR/S/144 Trade Policy Review 
Page 52 
 
 
Chemicals
8.6
Other transport equipment
4.3
Automotive 
products
15.4
Other electrical 
machines
7.4Office machines and 
telecommunication equipment
5.9Other non-electrical 
machinery
19.2Power generating 
machines
4.0Other consumer 
goods
11.5
Clothing  1.9Chart IV.3
Imports of manufactures, 2002
Per cent
Source: WTO Secretariat calculations, based on UNSD, Comtrade database.Iron and steel
7.7
Other semi-
manufactures
10.9Textiles  3.2
Total manufactured products: US$3,385 million
 
(ii) Policy framework 
50. Qatar's main long-term objectives for the manufacturing sector, include increasing its 
contribution to GDP to help diversify the ec onomy away from crude oil; developing small  and 
medium-sized enterprises (SMEs); and creating more employment for Qatari nationals.   The Council 
of Ministers, headed by the Prime Minister, determines policies for the manufacturing sector and 
enacts all the relevant legislation. The Ministry of  Energy and Industry is the implementing authority. 
51. Quality Qatarization, a programme launched on 1 June 2000 by the MEI, is aimed at 
increasing the share of "quality, competent" Qatari nationals in the energy and industry sector to 50% by the end of 2005.  The programme is not new to th e industry, but differs from previous ones in that 
it contains specific activities (e.g. recruitment, and training and development) in support of company 
manpower requirements to meet the Qatarization targ et. Each of the 23 companies taking part in 
Quality Qatarization regularly monitors, reviews, and updates its respective plan.
53 
52. The manufacturing sector is being promoted partly through investment incentives. The MEI's 
Department of Industrial Development (DID) of fers several investment  incentives to companies 
during pre-investment and construction stages, as well as other incentives for basic industries: 
exemption from import duties and other levies (e.g. on machinery, equipment, and spare parts);  five-
year tax-holidays, renewable for another similar period;  and  customs clearance facilities. 
                                                      
53 The majority of Qataris taken on are directed to QP's Corportate Training Centre where, as 
"trainees", they receive core trai ning through a variety of programme s. Qatarization online information. 
Available at: http://www.qatarization.com.qa, What is Qatarization  [1 September 2004]. Qatar WT/TPR/S/144 
 Page 53 
 
 
53. Qatar maintains price controls on some manufactured products, such as cement. MFN 
customs tariffs on manufactured goods average 5.1% , with rates ranging from zero to 100%;  the 
highest rate applies to alcoholic beverages, a nd tobacco and tobacco products (Chart IV.4).  
(iii) Selected industries 
(a) Chemicals 
54. The manufacture of chemicals and chemical products, particularly ammonia and urea, has 
become one of the most dynamic industries in Qatar over the last few years.  The subsector accounts for about 5% of employment in manufacturing in 2001.
54  MFN tariffs on chemicals and chemical 
products average  4.9%, with rates ranging from zero to 5%. 
55. Exports of chemicals and chemical products re presented 6.1% of Qatar's total merchandise 
exports in 2002, down from 11.4% in 1995. Qatar is  among the world's leading exporters of ammonia 
and urea.  Exports of ammonia increased from 285,404 metric tons (mt) in 1995 to 424,883 mt in 2003, while exports of urea went from 892,801 mt to 1,894,245 mt in the same period. The main 
markets for Qatar's ammonia are India, followed by Denmark; t
he Separate Customs  Territory of 
Taiwan, Penghu, Kinmen and Matsu; and Australia .  India, Japan, and Australia are among the 
leading importers of Qatar's urea. 
56. The subsector is dominated by two main jo int ventures: QAFCO and QVC, both located in 
Mesaieed.  QAFCO, established by an Emiri Decree in 1969, is the only fertilizer producer in Qatar 
and the largest single fertilizer producer in the Middle East.  QAFCO is also the largest single 
producer of ammonia and urea in the world.55 QVC, established by an Emiri Decree in December 
1997 as a limited Qatari shareholding company,  produces ethylene dichloride, vinyl chloride 
monomer, and caustic soda. 
57. The chemicals and chemical products industr ies do not enjoy any specific incentives. 
However, they are major beneficiaries of the incentives provided to companies: exemption from 
import duties and other levies, five-year tax-holidays (renewable),  and customs clearance facilities. 
(b) Iron and steel 
58. As part of its industrialization plan, the devel opment of Qatar's iron and steel subsector is a 
key objective.  The industry generates an annual pr oduction of 1.2 million tons  of molten steel, and a 
rolling mill capacity of  740,000 t ons per year. The industry's total wo rkforce is about 1,250 or around 
4% of employment in the manufacturing sector. Ta riff rates on iron and steel products range from 5% 
to 20% on iron (from 10mm to 32mm). 
59. Exports of iron and steel accounted for 2.9% of Qatar's total merchandise exports in 2002 
(down from 4.6% in 1995).  Qatar's proximity to the other GCC countries enables it to supply a 
sizeable portion of the regions' requirements, in addition to satisfying its  own domestic needs. 
60. The subsector is dominated by a single joint venture, QASCO, which was the first integrated 
steel plant in the Arabian Gulf.  It was establis hed by an Emiri Decree on 14 October 1974, although 
production began in 1979.  QASCO produces steel b illets, plain bars, and deformed bars.  The 
Government grants incentives to QASCO, includ ing exemption of tariff duties on machinery, 
equipment, and spare parts. 
                                                      
54 Planning Council (2003).  
55 In 2003, QAFCO produced about 1.4 million tonnes of ammonia and 1.8 million tonnes of urea.  WT/TPR/S/144 Trade Policy Review 
Page 54 
 
 
0510152025303540
111
122
210230311313321323331
341
351
353355361369372
382
384390Chart IV.4
Qatar's applied tariff by ISIC classsification, 2004
Per cent
WTO Secretariat calculations, based on data provided by the Qatari authorities.AverageMaximum
Minimum
International Standard Industrial Classification, Revision 2
Source :111 
121 
122
130210220
230
390311312
313
314321322
323
324
331
332
341
342Description
Agricultural and livestock production
Forestry
Logging
FishingCoal miningCrude petroleum and natural gas production
Metal ore mining
Other miningFood productionOther food products and animal feeds
Beverages
Tobacco manufacturingTextilesManufacture of wearing apparel, except footwear
Leather products, except footwear and wearing 
apparelFootwear, except vulcanized rubber or plastic footwearWood and wood products, except furniture
Manufacture of furniture and fixtures, except primarily of 
metalPaper and paper productsPrinting, publishing and allied industriesDescription
Industrial chemicals
Other chemicals, including pharmaceutical
Petroleum refineries
Manufacture of miscellaneous petroleum and coal productsManufacture of rubber products n.e.s.
Manufacture of plastic products n.e.s.
Pottery, china and earthenwareManufacture of glass and glass productsOther non-metallic mineral products
Iron and steel basic industries
Non-ferrous metal basic industriesFabricated metal products, except machinery and equipment
Non-electrical machinery including computers
Electrical machinery apparatus, appliances and suppliesTransport equipment
Professional and scientific equipment
Other manufacturing industriesElectrical energy351
352
353
354
355
356
361362369
371
372381
382
383
384
385
390410100110
4090
 Qatar WT/TPR/S/144 
 Page 55 
 
 
(c) Cement 
61. The cement industry has been one of the bigg est beneficiaries of Qatar's recent economic 
dynamism and consequent  boom in construction. 56  However, the pace of construction has turned the 
country from an exporter of cement into a net im porter.  Domestic production of cement amounts to 
5,500 tons per day (t/d), while the demand has surged to 9,000 t/d.  In early 2003, Qatar started 
importing cement, from e.g. Saudi Arabia and India,  to overcome shortages and avoid slowing work 
on a number of building projects.  Tariff rates on cement average 5%. 
62. QNCC and Al Jabor Cement Company are the only two local producers of cement. QNCC 
was established in July 1965 and has 718 employ ees.  It currently produces around 3,200 t/d of 
cement but is expected to produce 4,000 t/d more , once a new plant is completed in 2006. Al Jabort 
Cement Company, a private Qatari company, produces about 500 t/d of cement.57 
63. The Government grants incentives to QNCC an d Al Jabort Cement Company, including 
exemption of tariff duties on machinery, equipment, and spare parts. 
(5) SERVICES  
(i) Main features 
64. In 2003, services accounted for 30.9% of Qa tar's GDP (down from 52.1% in 1993) and for 
65% of total employment.58  The main components are Government services (12.6% of total GDP, 
down significantly from its 29.2% share in 1993), fo llowed by real estate, financial and business 
services (7.5%); trade, restaurants and hotels (5.3 %); transport and communications services (3.3%); 
and social and personal services (2.2%).59 Qatar is a net importer of services; during 1999-03, Qatar's 
services trade deficit averaged US$1,194.2 per year (Chapter I(3)(i)).   
65. Services is a crucial component of Qatar's ove rall policy of economic diversification. The 
Government is promoting the development of the sector.  Private sector participation is being 
encouraged by removing obstacles to forei gn investment under the new Investment Law. 
Nevertheless, foreign investment is still not allo wed in certain services subsectors, such as banking, 
insurance, and commercial representation (Chapter II(5)). 
66. Several state-owned companies in Qatar domin ate services activities, and still operate under 
monopoly, or hold exclusive rights in some branches of the sector.  These include Qatar Telecom   (Q-Tel), Qatar Postal Corporation (Q-Post), and Qatar Airways (QA). These companies are not scheduled for privatization.  
67. Under the General Agreement on Trade in Serv ices, Qatar scheduled commitments in six 
main services categories:  business services, communication services, construction and related 
engineering services, environmental services, fina ncial services, and tourism and travel-related 
services (Table AIV.1).
60  Qatar does not maintain MFN exemptions under Article II of the GATS.  It 
did not participate in the GATS Fourth and Fifth Pr otocols on basic telecommunications and financial 
                                                      
56 According to a study by the Cairo-based Arab Union of Cement Producers, cement consumption in 
Qatar grew by about 17% in 2002 and 20% in 2003. 
57 The company was established in 1978 under the na me of Al Shula Trading Company;  the name 
changed to Al Jabor Cement Company in 1990. 
58 Qatar Chamber of Commer ce and Industry (2004). 
59 Planning Council (2003). 
60 WTO document S/DCS/W/QAT, 24 January 2003. WT/TPR/S/144 Trade Policy Review 
Page 56 
 
 
services, respectively.  Except for entry and tem porary stay of managers , specialists, and skilled 
technicians, Qatar made no commitments on the move ment of natural persons , although it benefits 
from the presence of a significant foreign working p opulation, estimated at 70% of the labour force.61  
Presence of foreign natural persons as self-employers is  not allowed.  Qatar has yet to table its initial 
conditional offer in the ongoing services negotiations. 
(ii) Financial services 
(a) Banking 
68. The banking subsector in Qatar comprises 15 commercial banks: eight are Qatari-owned (i.e. 
five commercial banks62, two Islamic banks63, and the specialized, wholly state-owned, Qatar 
Industrial Development Bank (QIDB)); two Arab banks64; and five foreign banks.65 In 2001, 
3,449 persons were enga ged in banking activities.66  In 2002, total assets of foreign banks represented 
11.8% of total assets in the subsector. Banking ac tivities are highly concentrated, with the three 
largest banks (QNB, Doha Bank, and the Commerc ial Bank of Qatar) controlling 65.7% of total 
assets, 63.7% of loans advances, and 64% of  customer deposits at the end of 2000.67  Moreover, 
approximately half of commercial bank credit has generally been directed to the public sector.68  
69. The authorities have recently been implem enting reforms of the banking legislative 
framework in order to bring prudential regula tion and bank supervision up to the highest 
internationally accepted standards.  The main refo rms adopted include increasing the capital adequacy 
ratio to 10% in 2001 (up from 8%), and simplif ying reserve requirements by setting unremunerated 
cash reserves of 2.75% of total deposits (including  foreign currency) instead of 19% of total demand 
deposits previously in effect.69 In addition, Qatar has drafted two key laws: a new Qatar Central Bank 
(QCB) Law, and an Anti-Money-Laundering Law. The new QCB Law is to replace Law No. 15 of 1993, and is aimed at further strengthening the in dependence of the QCB, and enhancing its banking 
supervision role, while the Anti-Money-Launde ring Law (No. 28 of 2002, amended by Decree 
Law No. 21 of 2003), includes anti-terrorism financing. 
                                                     
 
61 Housing, social programmes, and some aspects of free health care are limited to Qatari citizens. 
WTO document S/DCS/W/QAT, 24 January 2003. Qatar enacted a new Labour Law in 2004 (No. 14 of 2004). 
62 These are (year of establishment in parentheses):  Qatar National Bank (1964), Doha Bank (1978), 
Commercial Bank of Qatar (1975), Al-Ahli Bank of Qatar (1984), and Grindlays Qatar Bank (2000).   
63 The Islamic banks in Qatar are (year of establis hment in parentheses): Qatar Islamic Bank (1982), 
and Qatar International Islamic Bank (1990). 
64 The Arab banks are:  Arab Bank (1958), and Mashreq Bank (1971). 
65 Non-Arab foreign banks operating in Qatar are:  Banque Paribas (1973), HSBC (1954), Standard 
Chartered Bank (1950), United Bank Limited (1970), and Bank Saderat Iran (1970). 
66 Planning Council (2003).  
67 QNB is half owned by the state and half by Qata ri nationals. At the end of 2000, QNB accounted for 
almost half of total banking assets, loans and advances, and customer profits, in addition to handling most of the 
state banking operations (IMF, 2002b). 
68 In Qatar, the Government has extensive financial connections with public enterprises, most notably 
with QP, which blurs the distinction between the allocatio n of credit to the Government and other public sector 
institutions. Lending to the State represents, by far, the largest exposure of the banking subsector in Qatar 
(IMF, 2002b). 
69 IMF (2002b). Qatar WT/TPR/S/144 
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70. The banking subsector in Qatar is supe rvised and regulated by QCB, which, inter alia , 
requires that local banks be audite d by a external auditor each year70, monitors the exposure of bank 
board members, and limits the lending for a bank to any single project to a maximum of 20% of the bank's capital. Local bank participation in the financ ing of Qatar's large infrastructure and industrial 
projects has been rather limited, mainly because of  their relatively low capita l bases. An exception has 
been QNB, which has participated in some of the high profile syndications. Since 2001, QCB has restricted real estate financing by a commercial bank to a maximum of 15% of the deposits received by it, or 150% of the bank's capital. No other activities in Qatar are subject to similar credit 
restrictions. 
71. Banks in Qatar may trade in foreign excha nge markets for their own account or for the 
accounts of their customers. Each bank must draw inst ructions from its board of directors (or the head 
office in the case of a branch of a foreign bank) on the limit of foreign exchange trade, as well as on 
the open foreign exchange spot and forward positions, in the form of a percentage of equity;  these 
limits must be approved by QCB.
71 
72. Despite Qatar's new Investment Law, foreign i nvestment is still not allowed in banking, and 
trading in banking and insurance shares is restricted to Qatari nationals (Chapt er II(5)).  Foreign banks 
can operate in Qatar only by establishing branches a nd upon prior approval by the QCB. Under the 
GATS, Qatar has frozen the number of branches of fore ign banking institutions at  the level existing in 
March 1995 (8 branches).72 The main licensing requirements for fo reign banks are: licence application 
fee of QR20,000; approval of the regulatory authorit ies in the country of the parent foreign bank; 
minimum capital of QR350 million for the parent forei gn bank; at least ten years of previous activity 
of the parent bank; audited balance sheet for the l ast three years for the foreign bank applicant; and 
the parent bank must submit a banking guarantee to c over any capital loss or liquidity shortage in its 
branch in Qatar. According to th e authorities, branches of foreign banks receive the same treatment as 
branches of local banks. 
(b) Securities 
73. Based on Law No. 14 of 1995, the Doha Secur ities Market (DSM) was officially opened on 
26 May 1997. It has a central registry, since A ugust 1998, and electronic trading was launched on 
11 March 2002. There are 30 companies listed (up from 17 when the DSM started), including companies in industry, banking, insurance, and other services.
73 However, three companies, Industries 
of Qatar (IQ), Q-Tel, and QNB, accounted for 30.4%,  26% and 18.5%, respectively, of DSM's market 
capitalization at the end of June 2003.74  There are about 170,000 investors registered in the DSM;  
96% are Qatari, and the rest are GCC citizens and expatriates.75 
74. In parallel with Qatar's economic growth, the DS M has performed very strongly over the last 
few years, with the all-share index increasing by 37.2% in 2001, 37.3% in 2002, and 69.8% in 2003.  
                                                      
70 Asset quality problems prompted the QCB in September 2000 to request an extraordinary audit for 
all the banks, and to strictly enforce non-performing loan classification criteria and provisioning requirements 
(IMF, 2002b). 
71 Limits also apply to the maximum maturities of forward and future contracts, the maximum 
allowable loss for each transaction or open position,  and the total loss allowed during a month and year. 
72 WTO document S/DCS/W/QAT, 24 January 2003. 
73 In order to qualify for listing on the DSM, a company must have at least 100 shareholders and a 
minimum share capital of QR 10 million, at least 50% of which must be fully paid up. Listed companies must 
publish audited financial results annually and report results semi-annually (IMF, 2002b). 
74 QNB (2003). 
75 Economist Intelligence Unit (2004). WT/TPR/S/144 Trade Policy Review 
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The rise in the index has been accompanied by a si milar surge in market capitalization and the volume 
of trading.  Among the factors driving the boom in  the DSM are the movement of funds from banks 
into the stock market, encouraged by a series of interest rate cuts by the QCB since 2001, and good 
performance by key listed companies; they reward ed their shareholders with increased dividends.   
75. The securities subsector in Qatar is supervi sed and regulated by QCB in terms of banking 
affairs, and by MEC regarding commercial registration. 
76. Qatar has taken steps to improve its securiti es legislative framework.  On 19 August 2003, 
MEC issued a new internal regulation for the securities market, aiming to, inter alia : conform with 
international standards in terms of transparency, di sclosure, and diversificati on; improve the standards 
for granting licences to companies wi shing to operate in the securiti es market; and prevent internal 
dealing amongst chairmen, directors, and manage rs of the companies registered in the DSM.76 
77. Currently, only Qatari nationals enjoy the right to trade in all firms listed on the DSM.  GCC 
nationals are allowed to trade in non-banking a nd non-insurance shares, but their holdings cannot 
exceed 25% of the capital of a listed company.  Fore ign investors have access to the stocks of only 
two firms (Q-Tel and Al-Salam International Inv estment Company).  However, Law No. 25 of 2002 
on mutual funds was enacted on 24 August 2002, allowing foreign investors to trade in Qatari shares 
through mutual funds. These funds buy and sell Qa tari shares on behalf of expatriates and non-
resident foreigners.77 
(c) Insurance 
78. Qatar's insurance market consists of ten insura nce and re-insurance companies: five are Qatari 
(all listed in the DSM)78, two are from Lebanon79, and one each from Egypt, United Kingdom, and the 
United States.80 In 2001, 430 persons were engaged in the subsector.  The total number of insurance 
policies issued in Qatar increased from 204,182 in  1997 to 252,659 in 20 02 (85.6% were car 
insurance), while the value of written pr emiums went from QR 529,672 to QR 691,460.81 
79. The market is dominated by a few large compan ies: in 2002, Qatar Insurance Company (QIC) 
had over 50% of Qatari premium income82; Qatar Insurance and Re-Insurance Company, the second 
largest, accounted for about 35% of the Qatari ma rket; and Alkhaleej Insurance Company had 15% of 
the market.83 
80. The insurance subsector in Qatar is supervi sed and regulated by QCB in terms of banking 
affairs, and by MEC regarding commercial re gistration. The minimum capital required is 
QR 10 million. 
                                                      
76 DSM (2003). 
77 For expatriates, the mutual funds law opens up the possibility to invest in Qatar's development, while 
the DSM is expected to benefit from a greater inflow of funds and a wider investor base.  
78 These are (year of establishment in parenthese s): Qatar Insurance Company (1964), Qatar General 
Insurance and Re-Insurance Company (1978), Al-Khaleej Insurance Company (1978), Qatar Islamic Insurance 
Company (1993), and Doha Insurance Company (1999). 
79 Arabian Insurance Company (1966), and Lebanon-Suisse Insurance Company (1966). 
80 The National Insurance Company of Egypt (1969), American Insurance Company (1963), and Atlas 
Insurance Company (1966). 
81 Planning Council (2003).  
82 QIC has four offices in Qatar, one each in Dubai,  Abu Dhabi, and Saudi Arabia, and a representative 
office in Malta. It is now seeking to extend its brand across the region and become  a GCC insurance company. 
83 QNB (2003). Qatar WT/TPR/S/144 
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81. Foreign investment is still not allowed in insu rance (Chapter II(5)). Foreign insurance firms 
can operate in Qatar only by establishing branches a nd upon prior approval by the QCB. Under the 
GATS, Qatar has frozen the number of branches of fo reign insurance suppliers at the level existing in 
March 1995 (five  firms).84 
(iii) Telecommunications and postal services 
82. Qatar's telecommunicati ons network has grown considerably during the last few years; 
notably, subscribers in the mobile market in creased from 65,800 in 1998 to 376,500 in 2003 
(Table IV.10).85  Similarly, the number of internet users climbed from 20,000 to 126,000 in the same 
period.86  At the end of 2003, there were 184,500 fixed telephone lines in service, i.e. a teledensity of 
28.91 (up from 25.99 in 1998).87 
Table IV.10 
Selected telecommunica tion indicators, 1998-03 
 1998 2001 2002 2003 
Main telephone lines ('000) 150.5 167.4 176.5 184.5 
Main lines per 100 inhabitants 25.99 27.45 28.60 28.91 
Public payphones 739 910 .. .. 
Cellular mobile subscribers ('000) 65.8 177.9 266.7 376.5 
Cellular subscribers per 100 inhabitants 11.36 29.31 43.20 58.99 
Full-time telecommunication staff 1,714 1,728 .. .. 
Telecommunication revenue (QR million) 1,096 1,456 .. .. 
Television receivers ('000) 490 530 .. .. 
Cable TV subscribers ('000) 32 34 .. .. 
Internet users ('000) 20 40 70 126 
Personal computers ('000) 70 100 110 .. 
.. Not available. 
Source:  ITU (2004), Telecommunication Indicators , Geneva;  and information provided by the Qatari authorities.  
83. The subsector is under the control of a state-owned monopoly;  Q-Tel. In 1998, the 
Government granted Q-Tel exclusivity to provide all telecommunication services until 2013.88  Q-Tel 
will be paying fees to the Government related to th e licence for exclusivity ri ghts and for frequency, 
equivalent to 25% of net profit, after the ex emption period ends in 2004.  Qatar Public 
Telecommunications Corporation (QPTC) was estab lished as a public firm in 1987 under Law No. 13 
of 1987.  It became a joint-stock company under th e name of Q-Tel in November 1998.  Q-Tel was 
partially privatized at the end of 1998 when the Gove rnment sold 45% of its capital (QR2.8 billion) to 
domestic and foreign investors; it was the first major public sale of government assets in Qatar.89     
84. In 2002, Q-Tel began a three-phase transformation programme called Q-Turn, aimed at, inter 
alia, improving operational efficiency, and making it more customer-oriented by introducing new 
services.  In November 2003, for example, Q-Tel signe d an agreement with France's NavLink to build 
and operate an internet data cent re to provide "value-added services" , including co-location, internet 
bandwidth, back-up and restoration, and advanced managed services in the region. Q-Tel and UAE's 
                                                      
84 WTO document S/DCS/W/QAT, 24 January 2003. 
85 In 1994, Qatar became the first GCC country to offer mobile telephone services. 
86 Internet services in Qatar were introduced in 1996. 
87 Digitalization of Qatar's telephone system was completed in 1992. 
88 Qatar has not made any commitments in telecommunication servi ces under the GATS. 
89 Q-Tel is listed on the DSM, as well as on the London Stock Exchange through a Global Depositary 
Receipt (GDR) programme in July 1999. Q-Tel was liste d on the Bahrain and Abu Dhabi stock exchanges in 
2001 and 2002, respectively (EFG-Hermes, 2004). WT/TPR/S/144 Trade Policy Review 
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Etisalt are building a 200 km subsea, fibre-optic cab le to provide back-up for any emergencies in the 
telecommunications network.90 
85. Q-Tel is also Qatar's regulatory authority in telecommunications.  Under Law No. 13 of 1987, 
Q-Tel is empowered to grant licences and to regulate prices for all telecommunications services, 
including international and mobile telephone tariff s. However, in 2004, a decree law was issued, 
setting up a new telecoms regulator to, inter alia , make the market more efficient.  Although local 
calls are free, and despite recent re ductions in international and mobile  tariffs by Q-Tel, prices are still 
among the highest in the region.91 All telecom prices are set by Q-Tel on the basis of cost;  they are 
not subject to government approval. 
86. Qatar became member of the International Te lecommunications Union on 27 March 1973.  
87. Postal services in Qatar are under the contro l of a state-owned monopoly, Qatar Postal 
Corporation  (Q-Post), establis hed by Decree Law No. 18 of 2001.92  Q-Post has around 440 
employees, and is under the authority of the Council of Ministers. The Postal Law (Law No. 14 of 1990) provides for, inter alia , the scope of the postal monopoly, and fees for postal services.  Postal 
tariffs remained basically uncha nged during 1995-03, which partly caused losses in Q-Post up to 
2002;  Q-Post made a profit in 2003. The Govern ment stopped funding Q-Post at the end of 2001.
93  
New postal tariffs were introduced as from 1 January  2004.  Postal tariffs are recommended by Q-
Post, then analysed by the Planning Council, and ultimately approved by the Council of Ministers. 
88. Qatar is in the process of reforming its pos tal services, as part of the Public Service 
Development (PSD) project, in an effort to increase the efficiency and productivity of postal services. 
With this aim in mind, the Planning Council requ ested an independent study of the subsector. 
According to this study, the scope of the postal monopoly is not defined in detail94, and seems to go 
beyond the guidelines of the Universal Postal Uni on (UPU), which focuses on reserved postal services 
for letter mail up to 1 kg. and parcel mail up to 20 kg.  Some of the main solutions suggested by the study are:  to update and review the legal and re gulatory framework, including separating the roles of 
policy-maker, regulator, and operator(s), while anch oring the policy-making role at a ministry level; 
and to improve systems in all areas of postal management.
95  All postal services are under the 
monopoly of Q-Post, with the exception of express cour ier, in which the private sector participates. 
(iv) Transport 
89. Transport plays a major role in the economy of Qatar.  Air, maritime, and road transport, 
together with communications, contributed 3.3% to  Qatar's GDP in 2003 (down from 3.4% in 1993).  
                                                      
90 Currently, Qatar has a cable link with the UAE, but if the link is damaged, the UAE could not be 
reached, except through satellite. This happened in mid-20 03 when an earthquake in Algeria caused disruption 
to internet and telecoms services in Qatar and elsewhere in the region. The UAE is a nodal telecoms point that 
provides Qatar's links to both the west and east of the globe, as well as the base for the Fibre Optic Gulf (FOG) 
network (Economist Intelligence Unit, 2004). 
91 EFG-Hermes (2004). 
92 Emiri Decree No. 40 of 2001 refers to the formation of the Board of Directors of Q-Post. 
93 Revenues in the subsector account for less than 50% of total expenditures of Q-Post 
(Bearing Point, 2003). 
94 Article 2 of the Postal Law defines postal monopoly as "monopolization of postal services all over 
the State of Qatar in accordance with pr ovisions of the Postal Law and Arab and international postal agreements 
in force". 
95 Bearing Point (2003). Qatar WT/TPR/S/144 
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Qatar has no railway system.  However, GCC transport ministers have approved a feasibility study for 
the construction of a 2,000 km railway network in the region.96 
90. Transport services were not included in Qatar's schedule of commitments under the GATS. 
(a) Maritime transport 
91. Maritime transport is crucial fo r Qatar's domestic and international trade, since some of its 
main industrial centres are on or near the sea. Qatar's merchant fleet is relatively small, and handled 770,000 dead-weight tons (dwt) as of December 2002 (down from 1,154,000 dwt at the end of 1999) (Table IV.11).  Oil tankers, genera l cargo, and container ships registered the major reductions in cargo 
carried, while that of bulk carriers remained constant over the period. 
Table IV.11 
Merchant fleet, 1999-02 
(Thousand deadweight tons) 
 1999 2000 2001 2002 
Total merchant fleet 1,154 1,079 1,040 770 
Oil tankers 466 375 375 208 
Bulk carriers 270 270 270 270 
General cargo 202 206 158 82 
Container ships 198 204 204 184 
Other 18 24 33 26 
Source:  UNCTAD, Review of Maritime Transport , Geneva, various issues. 
92. Qatar's maritime transport is ope rated through three main ports: Doha Port, the country's main 
commercial port, with eleven berths; the port at the in dustrial city of Mesaieed, with three berths;  and 
the port at the industrial city of Ras Laffan, whic h is designed mainly for vessels loading LNG, and 
has commercial berths to handle heavy project cargo,  construction material, and containers.  Port 
ownership and management are still restricted to the Government.   
93. Maritime activities, including the control and management of seaports, are administered by 
the General Customs and Ports Authority.97 As a member of the Intern ational Maritime Organization 
(IMO) since 1977, the Arab Academy for Maritime Tr ansport, and the International Federation of 
Ports, Qatar applies international safety conventions  and regulations. Qatar also participates in the 
United Nations Convention on a Code of Conduct for Liner Conferences, which entered into force on 
6 October 1983. 
94. Until April 2001, Qatar Navigation (previous ly known as Qatar National Navigation and 
Transport Company) was the sole shipping agent and coastal sea tran sport company in Qatar.  Since 
then, the market has been opened to competition and there are now about 20 registered shipping 
agencies.98  The subsector is dominated by the Qatar Sh ipping Company (Q-Ship), incorporated as a 
shareholding company in December 1992.  The co mpany provides extensive services to QP, using 
                                                      
96 The GCC countries are linked only by road and sea. The findings of the GCC railway feasibility 
study will be sent for approval to the G CC summit to be held in December 2004 ( Gulf Times , 18 October 2004). 
97 The General Customs and Ports Authority also comprises the Maritime Commerce and Transport 
Department, and the Ports Department. 
98 In 1974, Qatar Navigation began to diversify in order to reduce its dependence on shipping agency 
activities, and it has since introduced operations ranging from ship repair and steel fabrication to dredging, 
bunkering services, and offshore construction and mainte nance. It also provides equipment and manpower to 
companies involved in oil and gas projects in Qatar, including Rasgas and QP (QNB, 2003).  WT/TPR/S/144 Trade Policy Review 
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most of its eight vessels to ferry oil and gas products  and supplies. Q-Ship is modernizing its fleet due 
to the growing demand for transporta tion in the oil and gas subsector.99 
95. Maritime transport services may be provided by the private sector (foreign and Qatari).  
Foreign companies wishing to provide shipping a nd passenger transport services must obtain approval 
from the General Customs and Ports Authority.  Ship ments to Qatar must be carried on ships that are 
permitted entry into Qatari waters (including flag/o wnership, age of vessel) and may not enter certain 
specified ports en route. 
96. According to the authorities, the only conditions associated with flying the Qatari flag are 
registration and certification.  Any ship may acquire Qa tari nationality if it is registered at any port in 
the State of Qatar, and if the owner or owners are Qatari nationals;  in the case of a corporation, it 
must have Qatari nationality. According to the au thorities, there are no other specific incentives for 
flying the Qatari flag.  
(b) Air transport 
97. Air transport in Qatar is dominated by the na tional carrier, the state-owned Qatar Airways 
(QA).  It is a loss-making company, but Qataris regard it as a "symbol of national pride".  QA aims to 
become profitable within four to five years by, inter alia , expanding its route network (from 
49 destinations in 2003 to at least 60 by the end of 2005), strengthening cargo  services, and improving 
the quality of the services it provides with several new aircraft.  As part of Qatar's Master Plan on tourism, QA is expanding its fleet.  It signed a contract with Airbus in June 2003 (US$5.1 billion) for 
an additional 34 airplanes, which will allow it to fly a fleet of 52 aircraft by the end of 2008.
100  QA is 
an active member of the International Air Trans port Association (IATA) and, in 2003, became the 
first airline in the world to pass IATA's Operational Safety Audit (IOSA) Programme.101   
98. The QA Group consists of seven subsidiary companies: Doha International Airport; United 
Media International Company (controls media advertisement at Doha's airport)102; Qatar Aviation 
Services (handling services); Qatar Duty Free Compan y (negotiate contracts with duty-free shops); 
Qatar Distribution Company (with exclusive rights to  import and distribute "special goods", such as 
alcoholic beverages), Qatar Aircraft Catering Company103, and Qatar Airways Holidays (tourism 
packages). 
99. The Government of Qatar has given QA responsib ility for renovating the airport in Doha;  the 
cost of the project is estimated at US$120 million.  As part of Qatar's Master Plan on tourism, a new 
state-of-the-art airport will be built in three phases over 2005-15.104 The first phase, to be completed 
                                                      
99 Q-Ship is buying six crude oil tankers from Korea.  Q-Ship is 57% owned by Qatari investors and 
43% by the Government (Economist Intelligence Unit, 2004). 
100 QA is half-owned by the Government, 45% by members of the ruling Al-Thani family, and 5% by 
Qatar Insurance Company. By the end of 2003, the airline had debts estimated at US$2.5 billion, owed to 
various local and foreign banks. QA's authorities consider  that the company's debts are related to its expansion 
plans and do not reflect its operational prof itability (Economist Intelligence Unit, 2004). 
101 The IOSA programme is designed to assess the operational management and control systems of an 
airline. IATA online information. Av ailable at: http://www.iata.org/ps/serv ices/iosa.htm [21 September 2004]. 
102 Joint-venture with a company from Bahrain. 
103 Joint-venture with a company from India. 
104 The new airport will be built on a 2,220 ha site (half of it to be taken from the sea), close to the 
existing airport. It will include severa l hotels, cargo facilities, ha ngars, a maintenance centre, a royal terminal for 
VIP flights, and a new QA headquarte rs building. According to the author ities, until the new airport is opened, 
the existing one would be upgraded to meet the increase in passenger growth. Qatar Airways online information. Available at: http://www.qatarairways.com, "The Airline" [21 September 2004]. Qatar WT/TPR/S/144 
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in 2008 at the cost of US$2.5 billion, will increase the capacity of the airport to 12 million passengers 
annually, compared with 4.2 million currently.  In the second phase, the terminal building will be 
expanded to handle 24 million passengers, and in the third phase the airport will handle 50 million 
passengers.  According to the authorities, in 2004,  the new airport project was awarded to Bechtel 
Corporation of the United States.   
100. Private air carriers are allowed to operate schedul ed flights from and to Qatar.  Currently, QA 
collaborates with more than 50 foreign airlines. Author ity for approval of new carriers is vested in the 
Civil Aviation Authority (CAA), the body responsible  for air transport and meteorology in Qatar.  
Under Decree Law No. 16 of 2002, the CAA propo ses the general guidelines of air transport policy 
and relevant legislation to the Council of Minist ers, and enforces international agreements and 
conventions.105 According to the authorities, there are, in principle, no objections to allowing new 
entrants into the market. 
101. Qatar has signed bilateral  air transport agreements with 76  countries. Key parameters covered 
by these agreements are reciprocity of capacity and frequency.  Qatar has open-sky agreements with the United States, Malaysia, Lebanon, and Singapore.  Minimum prices are set by the CAA, with a 
fine of QR10,000 for a first-time violation (this in creases subsequently).  Prices must be submitted to 
the authorities for information purposes. 
(c) Road transport 
102. Qatar has a good highway transport system, which connects all the main cities of the country. 
Qatar's road network is dominated by the highway th at skirts the east coast of the peninsula.  There 
are almost 2,000 km of roads, most are hard-surface d.  Qatar's only foreign road connection is with 
Saudi Arabia. Qatar is connected with Europe, vi a the Trans-Arabia Highway in Saudi Arabia, and 
with the UAE and Oman through a hard-surfaced route, also through Saudi Arabia.  Qatar has no 
public transport system.
106 
103. Road transport activities are regulated by the Mi nistry of Municipal Affairs and Agriculture.  
It is responsible for, inter alia , urban developments, construction of  highways, and road maintenance. 
Given the importance of road transport for the ur ban, industrial, and commercial development of 
Qatar, the main policy goal is to continue expandi ng the road infrastructure.  Some US$1.4 billion has 
been set aside for major road projects, such as the Doha Expressway, a highway designed to ease 
traffic congestion in Doha (at a cost of US$800 million), and a highway connecting the capital with 
the new industrial centre of Salwa.  Moreover, Qa tar and Bahrain plan to build the "Qatar-Bahrain 
Friendship Bridge", a 45-km causeway that will connect the two countries (at a cost of 
US$2 billion).107 
(v) Tourism 
104. Development of tourism activities is a key po licy objective in Qatar, as part of its 
diversification efforts. The Government intends to raise the country's international profile, projecting 
Qatar as a destination for cultural and business tourism,  rather than mass tourism and, in the process, 
                                                      
105 Qatar Chamber of Commer ce and Industry (2004). 
106 Taxis, which can be quite expensive, or private rental cars are the most usual ways of getting around 
the country for those who do not have their own m eans of transport (Qatar Chamber of Commerce and 
Industry, 2004). 
107 International Herald Tribune , 18 November 2004. WT/TPR/S/144 Trade Policy Review 
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attract more foreign investment.108 According to the authorities, Qatar puts only its oil and gas 
industry ahead of its tourism plans.  Qatar has spent US$2 billion during the past two years to develop hotels and tourist resorts. 
105. The key tourist attractions in Qata r are historical and cultural sites
109; 200 kilometres of 
beaches; as well as various sports facilities.110 Furthermore, Qatar has a well-developed infrastructure, 
including high-standard hotel accommo dation, consisting of 28 classified  hotels, with a total of 4,889 
beds in 2002, as well as a range of entertainment.111 During January-September 2004, the average 
occupancy rate was 75.1% in all hotels in Qatar,  compared with 67.1% over the same period in 
2003.112  In 2003, 143,486 tourists visited Qatar (up from 58,691 in 2001): 33.1% from Asia;  30.8% 
from Europe;  21.5% from Arab countries;  10.1% from the United States and Canada;  and 3.3% 
from Australia;  with the remainder coming from Africa and Latin America.  To promote and facilitate 
tourism, the visa application process has been eased for nationals of 34 countries, mostly European; 
they can obtain a visa on arrival.113 
106. The Qatar Tourism Authority (QTA), establishe d in 1998 according to Law No. 16, and under 
instructions from the Council of Ministers, is responsible for, inter alia : developing tourism in the 
country through the preparation of plans and prog rammes; regulating and s upervising all relevant 
agents in the subsector, including categorizing hote ls, and tourist offices; and granting licences.  In 
2003, QTA established a Doha Convention Bureau to act  as the first point of contact, as part of its 
efforts to promote meetings, conferences, and exhibitions.  QTA aims to attract up to one million tourists, mainly from Europe and the United States, by 2010 (up from around 400,000 in 2004).  
107. In 2004, QTA unveiled its Master Plan on Qatar' s tourism development strategy, which will 
require investment of more than US$15 billion over the coming years.  The Master Plan, with Doha as 
the centre, aims to diversify Qatar's tourism products  with a three-axes orientation: (i) the culture and 
heritage axis will include the D oha-Bahrain causeway village, the Na tional Heritage Village at Al 
Zubara, and a number of beach clubs in Al Khor ; (ii) the discovery axis will include seaside 
recreational facilities, a television village, zoo, and e questrian stables; and (iii) the natural axis will 
                                                     
 
108 Qatar hosted a major conference on tourism in May 2004, as part of its promotion efforts. The 
Global Travel and Tourism Summit was attended by the heads of the world's largest travel and tourism 
companies, airlines, hotel chai ns, and government officials. 
109 Cultural tourism will receive a major boost through the development of a number of projects, 
including:  the Museum of Islamic Arts (cost US$1.2 billion), to be completed in 2006 as part of a man-made 
island on the edge of Doha port, which will be the la rgest museum of its kind in the world; Qatar National 
Library, currently under cons truction on Doha's Corniche, which will be  the major repository of bibliographic 
reference material in the region; and Qatar Photography Museum, also under construction on Doha's Corniche. 
In addition, Qatar's existing National Museum is undergoing major expansion and renovation, including the 
creation of a new underground museum. 
110 Qatar aims to become the sporting capital of Asia, and already hosts a number of world class 
sporting events all year around (e.g . Qatar Tennis Open, Qatar Masters Golf tournament, and Motorcycling 
Grand Prix). Moreover, several stadiums are being built or upgraded for the 2006 Asian Games in Qatar, and a 
36.5 hectare athlete's village is being developed in the centre of Doha, ready for conversion to world class 
medical facilities once the games are finished.  
111 By mid 2006, 2,500 additional rooms are expected, with the construction of eight four-star and five-
star hotels in Doha.  
112 Deloitte & Touche (2004). 
113 Economist Intelligence Unit (2004). Qatar WT/TPR/S/144 
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have some ecological sites.  Moreover, two "lifest yle cities" are planned to the north of Doha: the 
Pearl of the Gulf project114, and the North Beach Development and Entertainment City.115 
108. The Government is active in the tourism subsec tor, including financing significant investment 
projects to improve the infrastructure.  According to  the authorities, the Government grants tourism-
related investment incentives after a feasibility study has been undertak en, and provided the project is 
in line with the overall vision of the country. Although there is no official taxation system for the subsector, all hotel bills include a 17% tax (i.e. 10% service charge plus a 7% government tax). 
109. Under the new Investment Law, foreign invest ors may, subject to the Commercial Companies 
Law, own up to 100% of total equity in  the tourism subsector (Chapter II(5))). 
110. Qatar made some commitments in two tourism services (i.e. hotels and restaurants) under the 
GATS (Table AIV.1). 
                                                     
 
114 The Pearl of the Gulf, a US$2.5 billion island project due to open by September 2006, will have 
three luxury hotels with over 900 rooms, as well as fo ur marinas, and a variety of entertainment facilities. 
115 Bechtel Corporation of the United States has carried  out the concept plan. It will include ten resort 
hotels, two golf courses, 3,000 lifestyle villas, 12,000 apartments, and associated retail and commercial space.  Qatar WT/TPR/S/144 
 Page 67 
 
 
REFERENCES 
Bearing Point (2003), Postal Sector Reform in Qatar , Doha. 
 Deloitte & Touche (2004), Hotel Benchmark Survey: Qatar , London. 
 
DSM (2003), Yearly Report 2003 , Doha. 
 Economist Intelligence Unit (2004), Country Report: Qatar , London. 
 
EFG-Hermes (2004), Qatar Telecom , Alexandria (Egypt). 
 European Commission (2003a), GCC-EU 13
th Joint Council and Ministerial Meeting , Brussels. 
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