COUNTRY ANALYSIS

MIDDLE edit QATAR Click to EAST:Master subtitle style

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Middle East And North Africa Overview

It will remain of paramount importance to

global stability, owing to its massive oil reserves and status as the cultural hub of the Muslim world population live here, it has highest percentage of Muslim-majority countries and sets the tone for the Islamic world

Although only 20% of the world's Muslim

Apart from Israel, Lebanon and Turkey, no

Middle Eastern state has an entirely democratic political system. The other countries are all absolute monarchies or led 4/18/12 by authoritarian presidents.

Middle East And North Africa Overview

Rise of Islamist militancy due to: 1.

demographic and social pressures 2. widespread anger at US (and more broadly Western) policy towards the Middle East and wider Muslim world 3. backlash against Western culture major source of instability in the Middle East

Israeli-Palestinian dispute continues to be a

Another major faultline in the Middle East is

the divide between the majority Sunni Muslim world and the Shi'a world 4/18/12

QATAR
Arabemirate, in theMiddle East,

occupying the small Qatar Peninsula on the northeasterlycoastof the much largerArabian Peninsula monarchic,emirate-type government

Qatar has an unelected, Climate is characterized by intense heat

and alternating dryness and humidity production and proven reserves of bothoilandnatural gas

Qatar has the world's largest per capita

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Cultural considerations for life and business in Qatar

Culture is predominantly Arabic Islamis the predominant religion Official language is Arabic Five key distinguishing characteristics of

Arabic culture:
1. Arab Language - For Arabs, their language is

sacred because it was the means by which God revealed the Koran to Muhammad. Classical Arabic is used not only by religious scholars, but also the educated and the media.
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2. Arab Values - Arabs are noted for their love of

Cultural considerations for life and business in Qatar

4. Arab Personal Distance - Arabs seek close

personal relationships, preferably without great distance or intermediaries. Thus, olfaction is prominent in Arab life. For many Arabs, smells are necessary and a way to be involved with each other. Body and food odors are used to enhance human relationships.

4. Arab Sociability and Equality - Cordiality is

at the core of this culture. The traditional greeting is to place one's right hand on the chest near the heart as an indication 4/18/12 of sincerity and warmth, though modern

Cultural considerations for life and business in Qatar

There is a trend toward Westernization of

managers

Managers prefer the native Arabic

language for business communication

In negotiations, they have two dominant

styles, competitive and collaborative

In joint ventures foreigners are required to

hire locals and train them to be part of the management establishing personal rapport, 4/18/12 mutual respect, and trust

Business relationshipsare facilitated by

Cultural considerations for life and business in Qatar

Connectionsandnetworkingare most

important

Negotiatingandbargainingare

commonplace processes
Decision-makingis traditionally done in

person. Decisions are usually made by the top person in the government agency or corporation
Socializationin business is traditional, and

social gestures, courtesies, and invitations are commonplace

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Marketingshould be focused on specific

Cultural considerations for life and business in Qatar

Socializationin business is traditional, and

social gestures, courtesies, and invitations are commonplace. Arabic as a language is high context, manifested with raised voices and much nonverbal body language (wide gestures, animated facial expressions, eyebrow raising, tongue clicking, standing close, eye contact, and, except with strangers on first meeting, a side nod of the head is often given as affirmation) unfamiliar circumstances

Taboosare many, so caution is advised in

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Product launch for Qatar

Launch of a Water Sports Company

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Reasons for setting up a water sports company in Qatar

high disposable incomes

Highest per capita income in the world and Major part of the country surrounded by the

Persian Gulf which makes it ideal for water sports results in lower fuel costs

Enormous oil and natural gas reserves Presence of a large expatriate population

mainly from developed countries who are fond of water sports

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Reasons for setting up a water sports company in Qatartoo are increasingly taking up water Locals
sports
Presence of a large South East Asian

population comprising of Indians, Pakistanis and Sri Lankans will not cause barriers in communication
Most Qataris are well educated in US and

European institutes and have a western outlook towards leisure and sports activities

The younger generation of Qataris who

4/18/12 have more of a western outlook own SUVs

Foreign Investment Considerations

In the last decade, Qatar has attracted

significant foreign investment

There is discretionary system of law

controlled by the emir, although civil codes are being implemented. Qatar accepts binding international arbitration between the government and foreign investors.
Tax rates for foreign-owned businesses

have fallen to ten per cent from a high of 35 per cent.

There are no withholding tax rates in Qatar,
4/18/12 and the country is yet to establish a

Foreign Investment Law

Foreign investment in economic activity in

Qatar must be made through a locally incorporated company that is at least 51 per cent owned by Qatari interests

Land may be allocated to a particular

project on the basis of a long-term lease not exceeding 50 years, with an option to renew.
Guarantee against expropriation of the

foreign investment except in circumstances where it is in the public interest to do so

4/18/12 Foreign investor will have the right to

PEST Analysis
Political:
1. 2. 3.

Economic:

State benefits of no 1. Stable government fiscal taxation policy and market-based Close ties with the US monetary policy Clampdown on corruption 2. Membership of the GCC customs union facilitates trade with Gulf peers 3. 100% foreign ownership is permitted (subject to government approval) in agriculture, industry, tourism, health and education, and natural resources Investments in education are improving the skills base A small population means

Social:
1.

Technological:
1.

2.

Development of natural gas reserves and distribution deals, 4/18/12 especially in the liquefied

Business setup
Water sports business can be considered as

a form of tourism which provides for 100% foreign ownership in Qatar

1. Underwater sports:

Water sports can be classified as:

Scuba diving, Freediving, Underwater photography Boating, Canoeing, Fishing, Surfing, Water skiing, Windsurfing, Yachting
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2. On the water sports: Skurfing,

. Need to find a location with adequate

beach and dock access

Business setup
Quality sports equipment needs to be

imported as local manufacturing is not a big industry arranged

Insurance for life and assets needs to be Setting up a resort near the sea side will be

mandatory

Recruitment of personnel meeting staff,

hospitality and operational needs to be undertaken

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Marketing Strategy
Target the male population between age

groups 15 to 50

As males in Arab families play a dominant

role this will include the entire family and will also serve as an outdoor activity for the family
Also target expatriate population from

developed countries like USA who are into water sports universities also will form a major customer 4/18/12 base

Corporates and major foreign exchange

Conditions of access to the market

Qatari market is free and open to trade Local sponsorship agreement is required to

distribute and market imported goods

Qataris a signatory to the Geneva

Convention (industrial property) and the Bern Convention (intellectual property) cent stake in a company operating in the agricultural, manufacturing, health care, education, tourism or energy sectors sponsor when applying for a residence

Foreign investors can now own a 100 per

Foreigners are required to have a Qatari 4/18/12

Human Resource-related Issues

Workforce in Qatar consists mainly of Asian

and expatriate Arab workers expertise

European and US nationals with specialized In recent years, the Ministry of the Interior

has imposed quotas on visa allocations for citizens of certain countries to ensure that Qatari nationals are employed to the fullest extent possible
Trade unions are not permitted in Qatar There are no social insurance or other 4/18/12

statutory deductions from pay, nor are any

Human Resource-related Issues

There are no payroll taxes in Qatar as

individuals in employment are not liable to income tax at present obtaining special permission. Nationals of other countries must obtain residence and work permits before their entry into Qatar, except in the case of transit and visit visas. expatriate manpower with appropriately skilled Qatari staff.
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GCC nationals may live and work without

It is stated government policy to replace

Legal Environment
The judicial system is divided into two main

divisions: the Civil Court and the Sharia (Islamic) Court

Sharia Court has limited itself to the

adjudication of disputes between Muslims in matters of personal status such as marriage, inheritance and certain criminal acts, although it may include commercial matters if the parties to the action are Muslims or have voluntarily submitted to its jurisdiction and the relevant proceedings are initiated in the Sharia Court
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Types of laws:

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Risk Assessment
High inflation due to high rental prices and

the rising cost of imported products due partly to the weakening of the dollar appreciable

Influence of conservatives is still Playing host to the US Central Command

during the Iraq war has angered some Islamists in the region and could be a target for Iranian forces or militants capped at 49%

In most sectors, foreign ownership is Dependence on oil and gas leaves growth,
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THANK YOU
JOHAR MENEZES ROLL NO. 519
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