QATAR May 2015 INTERNATIONAL SUPPORT KIT OF OPPORTUNITIES

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Brice Walters
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1 May 2015 INTERNATIONAL SUPPORT KIT OF OPPORTUNITIES

2 The Country's Economic Context Industry Structure International Trade, Bilateral Trade with Portugal and Opportunities Novo Banco Internationalisation Support Contacts

3 Business Environment and Key Factors Business environment Ease of doing business 50/189 (Doing Business 2015 ranking) Registering property 36/189 Cross-border trade 61/189 Paying taxes 1/189 Economic Freedom 30/178 (Economic Freedom 2014 ranking) Competitiveness 16/144 (Global Competitiveness Index ranking) Basic Requirements 5/144 Infrastructure 24/144 Institutions 4/144 Doha Efficiency Enablers 20/144 Innovation and Sophistication 15/144 Cosec (Risk group) 3 Grade 1 (lowest risk) to 7 (highest risk) Double Taxation Convention with Portugal Yes Standard & Poor s (Rating) (AAA rating (lowest risk) to D (highest risk, default)) Long term debt in local currency Long term debt in foreign currency Outlook AA AA Stable Sources: IMF, World Bank, COSEC, World Economic Forum, Global Heritage, Bloomberg. Capital: Doha Official Language: Arabic Population (Thousands): 2.2 (Est.2014) Surface Area: 11.6 thousand km2 Time Zone: UTC + 3 Currency: Rial of Qatar (QAR) Type of Government: Emirate Religion: Islam (77%) 03

4 Macroeconomic Indicators E 2016 E 2017 E GDP Current prices EUR billion GDP real growth rate Percentage Inflation Rate Percentage Exchange Rate EUR/QAR Current Account Percentage of GDP Fiscal Balance Percentage of GDP E Estimates. Sources: IMF, Bloomberg, NB Research. 04

International Integration GCC Gulf Cooperation Council Middle Eastern economic, financial and commercial integration organisation which, since 1981, seeks to increase relations between member states.

In 1998, signed, with EU, a cooperation agreement, in terms of goods trade, that assumes the nature of non-preferential agreement, and which provided a compromise between the parties to enter to

5 International Integration GCC Gulf Cooperation Council Middle Eastern economic, financial and commercial integration organisation which, since 1981, seeks to increase relations between member states. The formation of a monetary union has been discussed over the last decadde. Qatar is one of the founding members. In 1998, signed, with EU, a cooperation agreement, in terms of goods trade, that assumes the nature of non-preferential agreement, and which provided a compromise between the parties to enter to negotiations with a view to concluding a Free Trade Agreement, which began in 1990 but were suspended in OPEC Organization of Petroleum Exporting Countries Is an oil cartel whose main objective is to stabilize the oil market and the revenue of oil-producing countries, relying on a quota system applicable to member countries to this end. Qatar is a member since GCC Gulf Cooperation Council OIC Organization of Islamic Cooperation Self-proclaimed as the second largest international institution after the UN, the OIC comprises 57 member states and aims to defend the message and interests of Islamic countries throughout the world. Its mains focus is on support for local events and common positions on international issues. Founded in 1969, Qatar is a member since ABEDA Arab Bank for Economic Development in Africa Is a financial institution controlled by 18 countries belonging to the Arab League, whose objective is to increase economic, financial and trade relations among Arab and African countries. These relations include the elaboration of local development plans and technical assistance and knowledge transfer among member states. Sources: AICEP, NB Research - Sectoral Research. 05

6 The Country's Economic Context Industry Structure International Trade, Bilateral Trade with Portugal and Opportunities Novo Banco Support to Internationalisation Contacts

7 Sectoral Structure of GDP Oil and gas dominate Qatar s economy. Breakdown of GDP by sector (2013 P ) 0.5% Water and electricity 3.5% Transport and telecommunications 4.9% Construction 0.1% Agriculture and fishery 6.2% Distribution, restaurants and hotels 8.6% Public, social and other services 54.4% Oil and Gas 9.8% Manufacturing 12.0% Financial services, insurance and real estate Source: Qatar Central Bank. P Preliminary data. 07

8 The Economy s Sectoral Structure (I) The stability of the banking sector in Qatar has proven to be one of the pillars of growth in the country. In its report of May 2014, the IMF notes that the banking system remains highly capitalized and profitable and the stress tests indicate adequate liquidity and capital to withstand substantial shocks. In 2013, were 18 licensed banks in the financial system of Qatar (seven commercial, four Islamic, six foreign and one state). The banking system is highly concentrated, with the five largest banks to concentrate more than 76% of its assets. Qatar National Bank is the largest bank in the Middle East and North Africa, with assets in excess of USD 121 billion, representing more than 43% of total banking assets in Qatar and has the largest international network, among local banks, with a presence in 26 countries. The Qatari banking sector has the highest growth among the GCC 1 countries and its financial centre is the leader in the Middle East and Africa region, placing it in the global top 25. FINANCIAL SYSTEM The largest banks (top 5) operating in Qatar, 2013 Global Financial Centres Index 2014, Middle East and Africa (top 5) Bank Total Assets (USD billions) World rank (Tier 1) GFCI 14 rank Qatar National Bank Commercial Bank of Qatar Qatar Islamic Bank (QIB) Masraf Al Rayan Doha Bank Qatar 24 Dubai 25 Tel Aviv 32 Abu Dhabi 42 Istanbul 44 Sources: IMF, The Banker, Qatar Central Bank, Qatar National Bank. 1 Golf Cooperation Council (Qatar, Saudi Arabia, Oman, Bahrain, UAE and Kuwait). 08

9 QATAR The Economy s Sectoral Structure (II) The oil and gas sector is a key component of Qatar s economy: 54% of wealth produced in 2013 originated from revenues from these resources. In relation to oil, Qatar s reserves are not significant in comparison with those of its neighbours: Saudi Arabia and the United Arab Emirates. Even so, Qatar ranks 13th worldwide in terms of reserves, having produced 2.3% of total oil production, in 2013 (14th worldwide). The main oil exploration company is Qatar Petroleum, whose key foreign partner is Maersk Oil. The two companies explore the largest oil reserves in the country. OIL Oil Production (Top 15 countries), 2013 (Millions of barrels per day) Sources: IMF, BP statistical review, Qatar Central Bank, QNB. 9

10 The Economy s Sectoral Structure (III) Qatar is one of the leading producers of natural gas worldwide, ranking third in 2013 in terms of proven reserves (it held 13% of total world reserves) and fourth place in terms of production, which totalled 158 billions m3 (35% increase compared to 2010). Qatar has focused on developing the production, processing and distribution of liquefied natural gas. In 2006, it became the world s leading exporter of natural gas, the main export markets being the Japan, India, South Korea and United Kingdom. The state own Qatar Petroleum is responsible, on its own and through a series of joint ventures, for the production of natural gas in the country. New discoveries could still take place in the north of the country, where the largest projects have been carried out: namely, the Al Khalij and Barzan Gas Projects. Natural gas production (Top 10 countries), 2013 (Billions of m 3 ) NATURAL GAS USA Russia Iran Qatar Canada China Norway Saudi Arabia Algeria Indonesia Sources: IMF, BP statistical review, Qatar Central Bank, QNB. 10

11 The Economy s Sectoral Structure (IV) Although the direct contribution of tourism to GDP is very small, it is a sector with high potential and undergoing rapid development. Taking advantage of its peninsular location, the Qatar Tourism Authority has concentrated in developing tourist attractions throughout the country, particularly along the coastline. Currently, Qatar enjoys a set of world-class marinas, some of which are complete while others are under construction. A big tourist attraction will be the 2022 World Cup. This high-profile event will lead to a significant increase in the number of tourists and contribute to an increase in tourist receipts. According to WTTC projections (World Travel & Tourism Council), Qatar is seen posting a 6.6% increase p.a. in investment in tourism in the next decade, the twenty first highest rate of growth in investment in the sector worldwide. TOURISM Investment in the tourism sector, growth World Country CAGR Rank 18 Oman Qatar UAE 5.1 World average Bahrain Saudi Arabia 4.4 Sources: Qatar Tourism Authority, World Travel & Tourism Council. 11

12 The Economy s Sectoral Structure (V) CONSTRUCTION Stimulated by revenues from energy resources and, particularly, by investment in facilities for processing these resources, the construction sector is particularly buoyant, with an increasing share of GDP (CAGR equal to 6.7%), accounting for 4.9% of the economy in The sector is dominated by large public works projects: the new airport in Doha with an expected capacity of 50 million passengers in 2017 and an estimated cost of USD 11 billion; new electricity power stations as well as integrated water and electricity distribution projects; and integrated education and energy facilities. The 2022 World Cup will also have a profound impact on the sector, taking into account all the specific facilities foreseen for this event: nine totally new stadiums, 3 upgraded stadiums, a 320 km metro network linking each facility and a bridge between Bahrain and Qatar at a total cost of USD 3 billion. The construction of hubs has not only stimulated the sector, but also increased the supply of services in other sectors. Examples include the Education City, a science and health cluster, the Energy City Qatar (a USD 2.6 billion energy investment project) and the Hamad Medical City, which aims to increase the supply of beds per patient in the country. Investment spending, F (USD billion) Investment spending, breakdown by sector Chemical 2.8 Water 5.3 Gas 2.6 Power 1.5 Oil 0.5 Industrial 46.8 Construction Transport Sources: Qatar National Bank, Qatar Central Bank, QNB. F Forecast. 12

13 The Country's Economic Context Industry Structure International Trade, Bilateral Trade with Portugal and Opportunities Novo Banco Support to Internationalisation Contacts

14 International Trade Partners Qatar s imports by country, 2013 Qatar s exports by country, 2013 Ranking Country 2013 (EUR Million) Share CAGR Ranking Country 2013 (EUR Million) Share CAGR USA Japan China South Korea UAE India Japan China Germany Singapore Italy United Arab Emirates United Kingdom Taiwan Saudi Arabia United Kingdom South Korea Thailand India Portugal Italy Portugal Source: ITC International Trade Centre. 14

15 International Trade Goods Imports and Exports (World) Qatar s top 10 imports, 2013 Qatar s top 10 exports, 2013 Products (H.S. 4) 2013 (EUR Million) Share CAGR Products (H.S. 4) 2013 (EUR Million) Share CAGR Cars (incl. station wagon) Petroleum gases Aircraft parts Crude petroleum oils Light vessel,dredger;floating dock;floating/submersible drill platform Petroleum oils, not crude Electric app for line telephony,incl curr line system Polymers of ethylene, in primary forms Iron ores & concentrates; including roasted iron pyrites Unwrought alumimum Tap,cock,valve for pipe,tank for the like,incl pressure reducing valve Mineral or chemical fertilizers, nitrogenous Insulated wire/cable Ethers, ether-alcohols, ether-phenols & peroxides & thier derivatives n.a Trucks, motor vehicles for the transport of goods Flat-rolld products of iron/non-al/s wdth>/=600mm,hr,not clad Automatic data processing machines;optical reader Halogenated derivatives of hydrocarbons Articles of jewellery&parts thereof Source: ITC International Trade Centre Polymers of vinyl chloride/other halogenated olefins, in primary forms

16 International Trade Bilateral relations with Portugal (Goods) (I) Portugal s trade balance with Qatar, 2008, 2012 and 2013 (EUR millions) Compound Annual Growth Rate (CAGR) CAGR of imports = 91.4% CAGR of exports = -2.4% Deficit EUR 119 million In 2013, 192 companies exported goods to Qatar 84º (share: 0.03%) 41º (share: 0.2%) % In 2012, 153 companies exported goods to Qatar Source: INE. Goods exports Goods imports Ranking and share as Portugal customer and provider (goods) 16

17 International Trade Bilateral relations with Portugal (Goods) (II) Top 10 Portuguese imports from Qatar, 2013 Top 10 Portuguese exports to Qatar, 2013 Products (H.S. 4) 2013 (EUR Million) Share CAGR Petroleum Gas And Other Gaseous Hydrocarbons n.a Polymers Of Ethylene, In Primary Forms Products (H.S. 4) Electrical Signalling, Safety Or Traffic Control Equipment For Railways, Tramways, Roads, Inland Waterways, Parking Facilities, Port Installations Or Articles Of Plastics And Articles Of Other Materials Of Heading 3901 To 3914, N.E.S (EUR Million) Share CAGR n.a Men'S Or Boys' Suits, Ensembles, Jackets, Blazers, Trousers, Bib And Brace Overalls, Breeches And Shorts (Excl. Knitted Or Crocheted) Men'S Or Boys' Suits, Ensembles, Jackets, Blazers, Trousers, Bib And Brace Overalls, Breeches And Shorts (Excl. Knitted Or Crocheted) Men'S Or Boys' Shirts (Excl. Knitted Or Crocheted, Nightshirts, Singlets And Other Vests) n.a Monumental Or Building Stone, Natural (Excl. Slate), Worked, And Articles; Mosaic Cubes Etc. Of Natural Stone, Incl. Slate, Whether Or Not On A Backing; Women'S Or Girls' Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Excl. Knitted Or n.a Uncoated Paper And Paperboard, Of A Kind Used For Writing, Printing Or Other Graphic Purposes, And Non- Perforated Punchcards And Punch-Tape Paper Men'S Or Boys' Shirts, Knitted Or Crocheted (Excl. Nightshirts, T-Shirts, Singlets And Other Vests) n.a Carpets And Other Textile Floor Coverings, Woven, Not Tufted Or Flocked, Whether Or Not Made Up, Incl. Kelem, Schumacks, Karamanie And Similar Hand-Woven n.a Footwear With Outer Soles Of Rubber, Plastics, Leather Or Composition Leather And Uppers Of Leather n.a Women'S Or Girls' Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Excl. Knitted Or Transmission Apparatus For Radio-Broadcasting Or Television, Whether Or Not Incorporating Reception Apparatus Or Sound Recording Or Reproducing Unglazed Ceramic Flags And Paving, Hearth Or Wall Tiles; Unglazed Ceramic Mosaic Cubes And The Like, Whether Or Not On A Backing (Excl. Of Siliceous Men'S Or Boys' Overcoats, Car Coats, Capes, Cloaks, Anoraks, Incl. Ski Jackets, Windcheaters, Wind- Jackets And Similar Articles (Excl. Knitted Or Crocheted, n.a Glazed Ceramic Flags And Paving, Hearth Or Wall Tiles; Glazed Ceramic Mosaic Cubes And The Like, Whether Or Not On A Backing (Excl. Of Siliceous Fossil Jerseys, Pullovers, Cardigans, Waistcoats And Similar Articles, Knitted Or Crocheted (Excl. Wadded Waistcoats) n.a Automatic Data-Processing Machines And Units Thereof; Magnetic Or Optical Readers Source: UNComtrade, DESA/UNSD. 17

18 Goods export opportunities (I) Set of products (merchandise) identified as needs (imports) of Qatar for which Portugal has production and export capacity, thus representing opportunities to increase the volume of Portuguese exports to Qatar. Top 10 export opportunities to Qatar Polymers of ethylene, in primary forms Soap; organic surface-active preparations for soap use Engines and motors, nes Electric accumulator Bread, biscuits, wafers, cakes and pastries Iron ores & concentrates; including roasted iron pyrites Beauty, make-up & skin-care preparations; sunscreens, manicure or pedi Electro-medical apparatus (electrocardiographs, infra-red ray app, sy Reaction initiators & accelerators, catalytic prep, nes Copper wire Sources: UNComtrade, DESA/UNSD, OECD, NB Research - Sectoral Research. 18

19 Goods export opportunities (II) Top 10 export opportunities to Qatar (Amount and rank of Qatar s world imports) Products (H.S. 4) 2013 (EUR Million) Rank 2013 Share 2013 Annual growth CAGR Iron ores & concentrates; including roasted iron pyrites Copper wire Reaction initiators & accelerators, catalytic prep, nes Electro-medical apparatus (electro-cardiographs, infra-red ray app, sy Beauty, make-up & skin-care preparations; sunscreens, manicure or pedi Bread, biscuits, wafers, cakes and pastries Engines and motors, nes Polymers of ethylene, in primary forms Soap; organic surface-active preparations for soap use Electric accumulator Sources: UNComtrade, DESA/UNSD, OECD, NB Research - Sectoral Research. 19

20 Goods export opportunities (III) Cloud of Export Opportunities to Qatar Transport equipment Machinery and appliances Agricultural and food Railway Or Tramway Track Fixtures And Fittings Motor Vehicles For The Transport Of >= 10 Persons, Incl. Driver Parts Of Aircraft And Spacecraft Of Heading 8801 Or 8802, N.E.S Boards, Panels, Consoles, Desks, Cabinets And Other Bases Fork-Lift Trucks; Fitted With Lifting Or Handling Equipment Machinery, Apparatus And Equipment Machinery Parts, N.E.S. In Chapter Live Animals Cigars, Cheroots, Cigarillos And Cigarettes Of Tobacco Or Of Tobacco Substitutes Meat And Edible Offal Of Ducks, Geese, Turkeys And Guinea Fowls, Fresh Meat Of Sheep Or Goats, Fresh, Chilled Or Frozen Milk And Cream, Concentrated Or Containing Added Sugar Clothing and Footwear Plastic, Rubber Products Other Footwear With Outer Soles Of Rubber, Plastics, Leather And Uppers Of Leather Carpets And Other Textile Floor Coverings, Tufted "Needle Punched" Bedlinen, Table Linen, Toilet Linen And Kitchen Linen Of All Types Of Textile Materia Plates, Sheets, Film, Foil And Strip, Of Plastics Articles Of Vulcanised Rubber (Excl. Hard Rubber) Tableware, Kitchenware, Other Household Articles And Toilet Articles, Of Plastics Pebbles, Gravel, Broken Or Crushed Stone, For Concrete Aggregates Cartons, Boxes, Cases, Bags And Other Packing Containers, Of Paper, Paperboard Printed Books, Brochures And Similar Printed Matter, Whether Or Not In Single Sheets Sources: UNComtrade, DESA/UNSD, NB Research Sectoral Research. 20

21 The Country's Economic Context Industry Structure International Trade, Bilateral Trade with Portugal and Opportunities Novo Banco Internationalisation Support Contacts

22 Novo Banco Internationalisation Support (I) At Novo Banco we support your internationalisation through the International Premium Unit. This Unit is composed of an experienced team of relationship managers, organized by Geographical Desks. 5 Geographical desks geográficos Africa Developed Markets & China Eastern Europe, Ásia & Middle East Latin America North Africa & Turkey Knowledge of how to do business in the main markets; Relationship with local players; Knowledge of national development programmes; Participation in fairs and entrepreneurial missions in the local markets. 22

Novo Banco Internationalisation Support (II) We are present with solutions in all the phases of the process: 1. Knowledge Fine Trade: identification of potential markets. 3.

23 Novo Banco Internationalisation Support (II) We are present with solutions in all the phases of the process: 1. Knowledge Fine Trade: identification of potential markets. 3. Foreign Trade A team with recognized experience to support your foreign trade operations. In 2014, 28% of Trade Finance transactions passed through Novo Banco*. 2. Business Development Identification of local counterparts through the Group s network of Banks, partner Banks; Diplomatica Network or International Chambers of Commerce; Client Referrals; Organization of Entrepeneurial Missions. 4. Investment Structuring, implementation and monitoring of operations with local correspondents. Funding for investment with Development Banks and Multilateral entities. * Trade Finance Market Share as of December

24 The Country's Economic Context Industry Structure International Trade, Bilateral Trade with Portugal and Opportunities Novo Banco Internationalisation Support Contacts

25 International Premium Unit Head Marta Mariz Desk Eastern Europe, Asia & Middle East Desk Paulo Afonso International Business Director Cláudia Batista International Business 25

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Report on Finnish Technology Industry Exports

Report on Finnish Technology Industry Exports Last observation October 2018, 2.1.2019 Goods Export of Technology Industry from Finland Goods Export of Technology Industry from Finland by Branches Source: