Trade and economic relations
Trade in goods and services between Ukraine and the State of Qatar
According to the data provided by the State Statistics Service of Ukraine in the year of 2018 the total trade in goods between Ukraine and Qatar amounted to 68,3 million USD. In comparison to the 2017 the total volume of bilateral trade in goods between Ukraine and the State of Qatar increased by more than 15,8 m. USD (more than 35%).
The volume of goods exported from Ukraine to the State of Qatar reached 59,93 m. USD. At the same time volume of goods imported from Qatar to Ukraine substantially decreased to 08,37 m. USD.
The trade balance of bilateral trade in goods and services during the year of 2018 caused a surplus for the Ukrainian side of 51,56 m. USD.
During 2018 the most exported types of goods from Ukraine to the State of Qatar were:
- agricultural products, grains – 67,4%;
- base metals and articles of thereof – 26,9%;
- woods and furniture – 1,0%.
During 2018 the most imported types of goods to Ukraine from Qatar were:
- polymers, plastics and articles thereof – 76,0%;
- inorganic chemicals, various chemical products – 16,0%;
In the year of 2018 in comparison to the 2017 the total volume of bilateral trade of services between Ukraine and State of Qatar increased and amounted to 5,39 m. USD. The volume of services exported from Ukraine to the State of Qatar reached 4,39 m. USD. The volume of services imported into Ukraine from Qatar amounted to 0,995 m. USD. The trade balance of bilateral trade in services during this period caused a surplus for the Ukrainian side of 3,399 m. USD.
Ukraine attaches great importance to the prospects of increasing exports of Ukrainian agricultural, machine-building and metallurgical products to Qatar.
Qatar demonstrates interest to the potential of Ukraine in agriculture, industry, real estate and tourism.
DOING BUSINESS IN QATAR
The State of Qatar is at the cross roads of contrasting economies, cultures and natural environments. Its strategic location on the Arabian Gulf has attracted visitors for thousands of years. Qatar’s land area is 11,521 sq km and it enjoys 560 km of coastline that bounds the country to the west, north and east. Neighboring its border is Saudi Arabia to its south and west, Bahrain off its northwest coastline, and the UAE close by in the southeast. Of its population of 2.3 million people, 300,000 are Qatari nationals, the remainder made up of expatriates from around the world. The climate is generally characterized by a hot summer (37 to 45 degrees Celsius in May to October, with peak during July and August) and a mild and long winter (between 7 to 30 degrees Celsius in November to April) with very little rain. The capital city is Doha though majority of the industrial activity is located in the coastal cities of Ras Laffan, Mesaieed and Dukhan. Islam is the official state religion and Arabic is the national language, with English very widely spoken. Qatar’s time is 3 hours ahead of GMT. Its currency is the Qatari riyal (QR), pegged to the US dollar at QR 3.64/US$1.
Investing in Qatar
The Qatar’s Investment Law (No. 13 of 2000 as amended) better known as the Foreign Capital Investment in Economic Activities Law regulates the inflows of foreign capital into Qatar. Generally, foreign investors may invest in all the sectors of the national economy provided that they have one or more Qatari partners whose share is not less than 51% of the capital, and provided that company is properly incorporated in accordance with the provisions of the Law. In other word, the foreign entity/entities are only allowed to have a maximum of 49% of holdings in a company.
Approval from the Council of Ministers is required for foreign investment banks or insurance activity.
Under Article 2(2) of the Foreign Capital Investment in Economic Activities Law, the Minister of Business and Trade may allow the shareholding of foreign investors in joint ventures to surpass the limit of 49% and reach up to 100% of the capital in selected sectors such as agriculture, industry, health, education, tourism, development of natural resources or energy and mining, on condition that the projects in question are in line with the country's development objectives; give priority to optimizing the utilization of and add value to local raw materials and local products; are export oriented; introduce new products; use new technologies; seek to introduce industries with international fame or develop the national human resources. (Source: Ministry of Foreign Affairs)
Publicly listed companies are limited to 25% foreign ownership in aggregate unless otherwise specified in that company’s memorandum and articles of association.
In addition to the above the Qatar Financial Center provides an alternative platform for entities providing financial services. The Qatar Financial Center allows foreign entities offering financial services, particularly reinsurance, captives and asset managers, the benefit of a more sophisticated regulatory regime as well as allowing full foreign ownership.
Qatar is blessed with a solid base of attractive investment package. It is a politically and socially stable country and production conditions favors the engagement in the vast power consuming industries in light of the fact that the country has the largest single concentration of non associated gas in the world, which has gained it a remarkable edge on economic advancement. The country is located in the hub on the gulf region, and being a peninsula gives it longer shorelines and so more maritime access routes to the world, which makes it more competitive as a center for international investment. In addition, the Qatari economy is market oriented; and the State continually enacts and updates legislation to bolster the trend of economic openness towards all countries of the world.
Customs charges and bureaucratic or procedural restrictions are minimal or non-existent in regard to all transactions including repatriation of foreign capitals; and legislation is in place to provide incentives and facilities that could help raise the profit margins of investments.
The State places the infrastructure including roads, utilities, ports and communications high in its list of priorities to bring about economic diversification, attract foreign investments and help increase the sources of national income.
Qatar facilitates the recruitment of the foreign workforce required for the development projects of the country.
Foreign investors are allowed according to the Qatari investment laws to invest in all national economy sectors provided that they have a Qatari partner who has a share of at least 51% of the capital of the joint venture and that the company is duly established in accordance with the provisions of the law of commercial companies.
Based on an Emiri decree, The Qatari law allows full shareholding of foreign investments in sectors such as industry, agriculture, mining, energy, tourism or contracting provided that the investment is geared to develop the industry in question or provide a public utility or service that serves the best interests of the community. The law also allows non-Qatari investors to import the required materials that are not available locally for their projects.
Qatar is committed not to impose any additional restrictions on foreign investments in Qatar in order to avoid undermining the requirements of fair competition between foreign and Qatari capitals. However, foreign invertors are not allowed to invest in the fields of banking, insurance, commercial representation and real estate purchase.
General Privileges For Foreign Investors:
Freedom to import and repatriate funds.
Freedom to transfer profits and assets.
Freedom to exchange money at stable rates.
The benefits of a free market economy.
Some of the General Incentives for Investments:
The right to import the materials and equipment required for the establishment, operation or expansion of projects.
10-year exemption from income tax effective from the date of commercial commissioning of projects.
Duty-free imports of equipment and machinery required for projects.
Duty-free imports of raw and half manufactured materials needed for industrial projects and not available locally.
Some of the Proposed Incentives:
Preparing investment opportunities and initial studies for industrial projects.
Preparing feasibility studies on the technical and economic aspects for projects and providing technical advice for the prospective private investor.
Providing suitable land sites in industrial estates for industrial projects at reasonable lease rates and long lease terms.
In 1997, Qatar Development Bank (QDB) was established with an authorized capital of QAR 200 million. It is a 100% owned by the State of Qatar. Its main purpose is to provide loan at a lower rate and serving a longer term of payment.
Providing advice and assistance for investors regarding the available information, data and studies on their chosen investment projects.
Providing the project with power, fuel, water and natural gas at competitive prices (subsidized price).
The Government also offers an additional incentives such as: 5-year renewable tax holidays (subject to Government approval); No income tax on salaries of expatriates; No exchange control regulations - the Qatari Riyal is freely convertible at a parity of $1=Qatari Riyals 3.64, a rate of exchange which has been stable for two decades; Excellent medical and educational facilities; Easy access to world markets with first class air and sea connections.
Online-map of contact investment point in Ukraine: https://www.google.com/maps/d/viewer?mid=1NQcrQFBBrQxgnrjcu6PIoqy0sDc&ll=48.03568353115275%2C37.06267562187509&z=9