Guidance

Overseas business risk: Qatar

Updated 21 May 2023

1. Political and Economic

General Overview

Qatar is one of the safest, most stable and prosperous countries in the Middle East and North Africa region and, per capita, one of the richest countries in the world.

The FIFA World Cup, held in Doha in November and December 2022, gave Qatar a prominent position on the international stage. The event also brought criticism of the country’s human rights record. Qatar emphasises the success of the tournament on multiple fronts: FIFA has reported record viewing figures, and the tournament broke new ground as the first World Cup to have been held in an Arab Muslim country. Qatar’s focus in 2023 is on the legacy of the World Cup, including growth potential for business and tourism.

A major exporter of hydrocarbons, particularly Liquefied Natural Gas (LNG), Qatar has seen government revenues rise – and has generated a significant budget surplus – since the 2021/22 energy crisis. Qatar Airways continues to expand its network to cement Doha’s position as a global transit hub.

Between 2017 and 2021, a dispute between Qatar on the one hand and Saudi Arabia, the UAE, Egypt and Bahrain on the other saw diplomatic relations severed and land, sea and air space closed to Qatar. That dispute is now largely resolved. Diplomatic relations are either restored or (in the case of Bahrain) on track to resume in 2023.

UK-Qatar relations are strong and close. 20,000 British nationals live in Qatar, and many Qataris see the UK (especially London) as a second home. There are deep ties between the two countries in defence, trade and investment, and education and health.

Qatar and the UK signed a Strategic Investment Partnership (SIP) during a visit to London by Qatar’s Amir in May 2022. Alongside the SIP signing, Qatar agreed to look for opportunities to invest up to £10bn in the UK over the next 5 years, on top of c.£40bn already invested.

Qatar is a conservative society. It continues to attach great importance to traditional Arab tribal and Islamic values that consider the family to be a central pillar of society.

Political Overview

Qatar is ruled by its Amir, Sheikh Tamim bin Hamad Al-Thani. The Al-Thani family has ruled Qatar since the 19th Century. Elections are held for an advisory Shura council, and Qatar operates a Cabinet-style government, but executive authority sits firmly with the Amir. Political parties are not allowed, and criticism of the Amir or government is illegal.

In recent years Qatar’s immediate political priority has been the restoration of relations with neighbours in the Gulf Cooperation Council (GCC) including Saudi Arabia, the UAE, and Bahrain, as well as with Egypt. A political and diplomatic dispute between 2017 and 2021 saw most of Qatar’s surrounding land, sea and air space closed, and most trade links cut. That dispute is now substantially ended, though direct flights between Qatar and Bahrain are yet to resume.

Qatar’s wider political focus is to cement a prominent place on the global stage. Qatar is proud of its role as a mediator in international conflicts. In 2021, for example, Qatar played an important role in Afghanistan and assisted with the evacuation of British Nationals. It also helped to broker an earlier US-Taliban agreement.

While Qatar has strong relations with a wide range of countries (it holds regular strategic dialogues with the UK, US, Japan, France, Italy, China and Turkey), its foreign policy is ultimately Western-oriented. In 2022, for example, the United States designated Qatar as a Major Non-NATO Ally.

Qatar is an active and growing provider of humanitarian aid and development support. It hosts a number of UN agencies in Doha. In addition to the UN, it is an active member of several international organisations, including the League of Arab States, the Gulf Cooperation Council (GCC), the Organisation of Islamic Cooperation (OIC), and the Gas Exporting Countries Forum (GECF). Qatar withdrew from OPEC in 2019.

A series of set-piece annual events bring prominent international figures to Qatar for economic, political and diplomatic discussions. These include the Qatar Economic Forum and the Doha Forum.

Information on political risk, including political demonstrations is available in FCDO Travel Advice.

Economic Overview

Qatar’s economy centres on hydrocarbon exports, which make up more than 80% of government revenue.

In recent years, with oil and gas price spikes, this focus has led to economic success and significant budget surpluses. QatarEnergy, the state energy company, is further developing its North Field in the largest Liquefied Natural Gas (LNG) project in history. This will increase Qatar’s LNG output by over 60% (from 77 to 126 mtpa), with new volumes coming to market by 2027.

Qatar’s efforts to diversify its economy are focused on its National Vision 2030. Under that plan it works towards national development plans, the latest of which is expected in summer 2023. Given its focus on hydrocarbon revenue, a low oil price is the chief economic risk to Qatar. The second chief economic vulnerability potentially faced by Qatar is regional political instability – for example, Qatar is dependent on the Strait of Hormuz for its LNG shipments.

Qatar recorded a budget surplus of $24.34bn (QAR 88.6bn) for 2022. This compares to a forecast deficit of $2.27bn (QAR8.3bn) in Qatar’s 2022 budget statement. Qatar’s trade balance in Q4 2022 rose by 64.9% YoY.

Total trade in goods and services (exports plus imports) between the UK and Qatar was £13.4 billion in the four quarters to the end of Q4 2022, an increase of 186.4% or £8.7 billion in current prices from the four quarters to the end of Q4 2021. Of this £13.4 billion:

• Total UK exports to Qatar amounted to £4.9 billion in the four quarters to the end of Q4 2022 (an increase of 103.8% or £2.5 billion, compared to the four quarters to the end of Q4 2021);
• Total UK imports from Qatar amounted to £8.5 billion in the four quarters to the end of Q4 2022 (an increase of 275.1% or £6.2 billion, compared to the four quarters to the end of Q4 2021).

Qatar was the UK’s 26th largest trading partner in the four quarters to the end of Q4 2022 accounting for 0.8% of total UK trade.

The IMF forecasts GDP growth of 2.4% for the Qatari economy in 2023, and an inflation rate of 3%.

The Gulf Cooperation Council (GCC) as a whole (which includes Qatar as one of the six member states) is the UK’s third-largest trading partner beside the EU. Negotiations for a UK-GCC Free Trade Agreement (FTA) are underway.

Qatar has introduced a number of different routes by which foreign companies can establish operations in the country. These include the traditional route of having a local sponsor, under which there is usually a requirement for a partnership split of 49% to 51% in favour of the Qatari national. Qatar Financial Centre, Qatar Free Zones Authority and Qatar Science and Technology Park allow 100% foreign ownership, as part of the country’s efforts to attract FDI and diversify its economy. Challenges facing businesses operating in Qatar include bureaucracy, payment delays and a lack of transparency in the market.

2. Business and Human Rights

Around 90% of the 2.9m population of Qatar is non-Qatari. Foreign workers are entirely dependent on their employer for residency rights.

Qatar continues to face criticism, particularly from European countries, of its record on labour rights.

The International Labour Organisation (ILO) opened an office in Doha in 2017, at Qatar’s invitation. Since then, Qatar has legislated a number of significant reforms. These mean, in principle, that Qatar has abolished exit permits for almost all workers, ended the need for a ‘No Objection Certificate (NOC)’ to change employer, and introduced both a non-discriminatory minimum wage (the first country in the Gulf to do so) and stricter penalties for employers who do not pay their workers on time.

The UK has welcomed these steps. However, the UK and others remain concerned to see proper implementation and enforcement of Qatar’s labour reform legislation. Many NGOs and some international media continue to highlight concerns about issues including unpaid wages, heat stress and the status and treatment of domestic workers. (A Domestic Workers Law was introduced in 2017. This sets out minimum statutory rights for domestic workers, who are excluded from the provisions of Qatar’s Labour Law.)

The most recent US trafficking in persons report notes that ‘the Government of Qatar does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so. The government demonstrated overall increasing efforts compared with the previous reporting period.’

3. Bribery and Corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.

In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.

In the latest Transparency International corruption perception index (CPI), Qatar is ranked third-best (i.e. least corrupt) of all Middle East and North African countries, and 40th among 180 countries overall.

Read the information provided on our Bribery and corruption page.

4. Terrorism Threat

Read the information provided on our Terrorism threat page of FCDO Travel Advice.

5. Protective Security Advice

The Centre for the Protection of National Infrastructure also provides protective security advice to businesses

Read the information provided on our Travel Advice page and Protective security advice page.

6. Commercial disputes

Resolution of commercial disputes in Qatar can be lengthy, complex and costly. You should sign a contract before undertaking any work or projects in Qatar, and ensure that contracts clearly specify payment terms.

In 2022, Qatar established a new Investment and Commerce Court, which aims to resolve disputes more efficiently. Qatar also introduced a new law aimed at encouraging the use of mediation to resolve disputes, which includes provisions for enforcing settlement agreements. Qatar adopted the Singapore Convention on Mediation in September 2020.

7. Intellectual Property

IP rights are territorial, that is they only give protection in the countries where they are granted or registered. If you are thinking about trading internationally, they you should consider registering your IP rights in your export markets.

GCC Patents Office Website

Refer to the website of the World Intellectual Property Organisation’s (WIPO) Qatar webpage for further information on intellectual property in Qatar; and the information provided on our Intellectual Property page.

8. Organised Crime

Read the information provided on our Organised Crime page.

9. Contact Department for Business and Trade in Qatar

For further information, please contact us on +974 4496 2000 or ditmeap.enquiries@fcdo.gov.uk . You can also visit our DBT pages for more information.