The State of Qatar is making every effort to provide the appropriate environment with adequate incentive to attract private sector investments in manufacturing industries. The Government has been developing the necessary legislative tools that may attract and encourage partnership and contribution to the overall development of the country.
To this end, the Ministry of Energy and Industry (MEI) has put together a set of industrial incentives including, but not limited to the following:
- Conducting surveys to identify problems and challenges facing the manufacturing industries and finding appropriate and effective solutions.
- Forming specialized committees and task forces from concerned bodies to assist private sector investors overcome any obstacles hindering their projects.
- Providing private sector investors with all available data, information and technical support.
- Allocating strips of land compatible to industrial projects provided with all necessary facilities and infrastructure at competitive rates.
- Upgrading and facilitating licensing clearance procedures for industrial projects.
- Exemption from custom duties for all imports related to an industrial project.
- A 3-year exemption (renewable for an equal period by a Cabinet Decree) for foreign investment from income tax.
- Provision of electricity and water at competitive rates.
- Securing loans from Qatar Development Bank (QDB) at favorable terms and conditions. QDB’s capital is now 12 billion Qatari Riyals.
- Supporting exports from industrial projects through the QDB export agency.
- Organizing exhibitions locally and overseas to promote Qatari products.
- Establishment of “Manateq” company to develop industrial zones around the country.
As a result of such attractive incentives, the number of existing and registered industrial establishments rose to 728 facility by end of July 2017 with a work force of 90869.
Investments in these facilities stood at QR. 262 billion, while investment in the refined oil products and GTL amounted to approximately QR. 113.5 billion and in chemical products approximately QR. 57.9 billion.
The State of Qatar is adopting an open-market policy. Observing the WTO terms and conditions, the aim is to protect industrial facilities and create a favorable environment for legitimate competition, away from any forms of monopoly, dumping or any other malpractices.
Based on Qatar National Vision (QNV2030) and Qatar’s National Development Strategy 2011 – 2016, the National Strategy for Manufacturing Industries Development has been put together to achieve their goals and objectives through sound planning and a clear vision of the future. Such development is to be made making maximum use of local resources at the highest possible standards of efficiency and effectiveness.
The industrial development strategy also aims to increase the share of manufacturing industries in the country’s GDP from 9.5% in 2016 to 13% in 2022. This goal is to be achieved by encouraging the establishment of new hydrocarbon and other industries.
The focus of the strategy expands to include food, knowledge, environmental and pharmaceutical industries.