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During his participation in the Qatar-Germany Business and Investment Forum
Qatar’s Minister of Economy and Commerce says Qatar and Germany are key partners in the MENA region
 HE Qatar’s Minister of Economy and Commerce sheds light on the promotion of bilateral trade and investment ties, as well as the growth indicators and achievements of both economiesQatar and Germany have inked partnership and cooperation agreements in the economic, science, education, vocational training, research, development, and renewable technology fields, among other sectorsQatari-German bilateral trade volume over the 2013-2017 period grew significantly to approximately $12.6 billion. Qatar ranked as Germany’s 11th largest trading partner, and third largest export destination in 2017Over 304 German companies are currently operating in Qatar, including 45 which are wholly owned by German investors, in addition to 259 joint Qatari-German companies operating across various sectorsQatar has invested c.€25 billion into vital projects in the automotive, IT and banking sectorsRemittance outflows from Qatar to Germany amounted to nearly $8 billion during 2015-2017 period, including repatriated profits from businesses, salaries and payments.In 2017, Qatar’s gross domestic product (GDP) rose at constant prices by 1.6%.The non-oil sector’s share of GDP increased to 51.8% in 2017 compared with 50.5% in 2016.The government allocated 93 billion Qatari riyals (21.9 billion euros) in its 2018 budget to fund development projects.
 
H.E. Sheikh Ahmed Bin Jassim Bin Mohammed Al Thani, Qatar’s Minister of Economy and Commerce, has participated in the first session of the Qatar-Germany Business and Investment Forum, which kicked off in Berlin on Friday.
H.E. Dr Ulrich Nussbaum, Germany’s Federal Minister of Economic Affairs and Energy, H.E. Sheikh Khalifa bin Jassim Bin Mohammed Al-Thani, Chairman of Qatar Chamber, H.E. Sheikh Faisal Bin Qassim Al Thani, chairman of the Qatari Businessmen Association, Mr. Salman Kaldari, Chairman of the Single Window, and Mr Khamis Ahmed Al-Mohannadi, Chairman of the Private Sector Development and Support Committee, participated in the session along with a number of Qatari and German officials, businessmen and representatives of major companies.
H.E. Sheikh Ahmed touched on German-Qatari bilateral trade and investment ties, highlighting the most recent economic indicators and achievements of both countries.
H.E. noted that Doha and Berlin have more than 60 years of commercial relations, marked by collaboration and partnership agreements in the economic, science, education, technical training, research and development, and new and renewable technologies fields. Over 44 years of diplomatic relations have positioned Qatar as a key partner of Germany in the Middle East and North Africa region, the minister added.
Qatar and Germany have signed several agreements and memoranda of understanding, including an agreement on the promotion and protection of investments, H.E. said.
Qatar and Germany have also signed agreements and memoranda of understanding in the areas of sports, health and media, in addition to the fields of archeology, solar energy, cultural, industrial, commercial, civil aviation and air transport.  
Both countries have also signed an agreement on the establishment of a joint committee for trade, economic and technical cooperation, H.E. said.
The committee has so far convened for five sessions, with the fifth taking place in Doha in the last quarter of 2016.
These ties reflect positively on the Qatari-German bilateral total trade exchange, which has been steadily increasing year-on-year, reaching approximately $12.6 billion over the last five years.
Qatar is now positioned as Germany’s 11th largest trading partner, and Germany was the third largest destination for Qatar’s imports in 2017, H.E. said.
These positive indicators demonstrate that Qatar and Germany can build on existing opportunities to bolster trade and investment relations, H.E. said, urging additional efforts to achieve a trade balance between the two countries.
Qatar’s significant investments in Germany represent another key reason to expand investment relations and extend the long-term economic and financial cooperation between Doha and Berlin, H.E. said, noting that Qatar Investment Authority (QIA) has invested about $25 billion into vital projects in the automotive, IT and banking sectors.
On the other hand, over 304 German companies are currently operating in Qatar, including 45 companies that are 100%-owned by German investors, in addition to 259 joint Qatari-German companies. These firms are involved in the development of railway, road and infrastructure projects, as well as the service industry, trade, contracting,  telecommunications and medical equipment, among other fields.
H.E. highlighted that Qatar Airways operates around 35 weekly flights to Germany, including 14 each to Munich and Frankfurt, seven to Berlin, and seven weekly cargo flights to Frankfurt. This has reflected positively on bilateral trade and tourism, as demonstrated by the 25% year-on-year increase in the number of German tourists visiting Qatar, reaching 45,000 in 2017.
Touching on the resilience of the Qatari economy, Sheikh Ahmed said Qatar had weathered the unjust blockade imposed on the country in 2017, noting that the strong recovery in global energy prices, thanks to diminishing supply and rising global demand, has bolstered domestic growth performance.
 
Qatar has also managed to establish direct commercial lines with a number of strategic ports that now represent key trading partners, H.E. said, adding that the business-friendly environment and investment opportunities that Qatar offers have contributed to the establishment of a very successful air fleet operated by Qatar Airways, the world’s 5-star airline.
 
Along the same lines, Qatar is utilising its world-class facilities and hi-tech logistics in activating regional agreements with Kuwait, Iraq, Oman, Turkey, Iran, Pakistan, Azerbaijan and other countries in central Asia, H.E. said. Through these agreements, Qatar aims to expand its trade activities by establishing a sea fleet that connects the nation with its major trading partners around the world, targeting a market comprising 400 million people in its first stage.
 
Sheikh Ahmed explained that the wise policies adopted by the state, which stimulated all sectors of the economy to achieve increased productivity, have reflected positively on the nation’s economic performance. Qatar’s economy continued its impressive performance during the past year, H.E. said, confirming that the country was not particularly affected by the blockade.
In 2017, Qatar’s gross domestic product (GDP) rose at constant prices to U.S. $221.6 billion, compared to $218 billion in 2016, – a better than expected growth rate of 1.6%.
Non-oil real GDP grew at a reasonable rate of 4.2% in 2017 despite the unjust embargo imposed on Qatar, H.E. said, adding that the non-hydrocarbon sector’s share of GDP increased to 51.8% in 2017 compared with 50.5% in 2016.
 
The transfer and readjustment of economic activities has also breathed life into the manufacturing, trade and construction sector, which rebounded strongly in the second half of 2017, H.E. said. Sheikh Ahmed also noted a recovery in the wholesale and retail sectors in the fourth quarter of 2017, which reflects the resilience of Qatar’s economy to volatility, thanks to the diversification strategy endorsed in recent years.
 
The opening of the new Hamad Port, one of the country’s leading integrated infrastructure projects, has also played a key role in facilitating foreign trade and addressing the negative consequences of the unjust siege, H.E. noted.
 
Quoting the latest report released by the World Bank, H.E. said that Qatar’s real GDP growth is expected to increase to 2.8% in 2018, the highest among GCC countries.
 
H.E. added that the annual inflation rate in the consumer price index (CPI), declined to 0.5% in 2017 from 2.7% in 2016, reflecting lower rental fees in addition to reductions in food prices.
 
Qatar’s foreign trade sector witnessed remarkable growth last year, with trade volume increasing by 16% to 103 billion US dollars in 2017, H.E. said.
All these positive indicators, according to Sheikh Ahmed, show that Qatar has overcome the challenges arising from the blockade by enhancing its economic competitiveness and cementing its position as an attractive investment destination.
Elaborating on the legislative and legal frameworks that Qatar has adopted to stimulate investments, H.E. said a significant number of laws and regulations have been revised to keep abreast of political and economic developments in the region, as well as to meet the requirements of the Qatar National Vision 2030 and to encourage domestic and foreign investments.
 
For instance, Foreign Investment Law No. 13 of 2000, enables foreign investors up to 100% ownership in numerous economic sectors, H.E. said, stressing that a new law will streamline investment procedures in light of the many promising investment opportunities in the logistics, food security, education, health, tourism and sports sectors.
 
Currently, and within the framework of the National Development Strategy 2017-2022, additional organisational and institutional reforms are being undertaken to encourage foreign direct investments, H.E. said.
 
These reforms enable the Ministry of Economy and Commerce to play a key role in terms of approving foreign investment, reviewing Qatar’s legislative frameworks to remove restrictions on access to priority sectors, and revising the legislative framework of the current investment law to further protect investors’ rights in relation to capital movement and property expropriation, while guaranteeing that foreign and local investors are treated equally in accordance with the law, H.E. said.
 
H.E. added that the Ministry will also seek regulations and legislation that are consistent with international best practices.
 
The amendments that the state introduced to the Free Zones Law represent an important step in strengthening Qatar’s position as a leading investment destination in the region, H.E. said. The new law provides many advantages and incentives for investors. These include allowing foreign investors up to 100% ownership, eliminating restrictions on capital origin, the freedom to choose the legal entity of a project, exempting capital assets, required production material, exports and imports of taxes and fees, which will in turn streamline the flow of goods and services from and to Qatar.
 
H.E. added that free zones constitute a one-stop shop for all licenses required by investors, who are only required to seek the approval of the Free Zone Authority.
Touching on trade openness between Doha and Berlin, H.E. expressed his confidence that Qatar will become a major international business hub in the region across all fields including trade, industry and services.
On the private sector front, Sheikh Ahmed said the sector proved resilient amid economic challenges, noting that Qatari companies seized the opportunities that the government offered to increase their contribution to Qatar’s development.
The government had allocated 93 billion Qatari riyals (21.9 billion euros) in its 2018 budget for the development of major projects relating to the FIFA 2022 World Cup, health, education, and transport among others, H.E. said.
These figures indicate the productive partnership between the public and private sectors, in addition to the key contribution of private investments in the development of  Qatari economy, H.E. stressed.
Public-private partnership projects are not new to Qatar, H.E. explained, noting that the state had previously introduced such initiatives across various sectors including the energy and water sectors. Qatar has continued to undertake such partnerships over the years, and is now aiming to extend PPPs to the infrastructure, sports, education, health and government services sectors.
Qatar is currently developing a legal and institutional framework for PPPs in accordance with best international practices, H.E. said, explaining that this framework has been designed specifically to accelerate and facilitate the implementation of PPPs in Qatar, as well as to streamline the implementation of economic and social infrastructure projects, whether by domestic or foreign investors.
A Public Private Partnership Law has been drafted and is currently being adopted, H.E. explained, noting that the law will also contribute to enhancing government support for PPPs and establishing a clear legal framework based on a more efficient and transparent procurement process.
The ninth edition of the Qatar Business and Investment Forum featured five working sessions attended by high-level government officials, businessmen and representatives of major companies from both countries. The sessions touched on efforts to enhance bilateral economic and investment cooperation including growth indicators of a truly successful partnership, cooperation in the financial sector, the promotion of industrial cooperation between Doha and Berlin to contribute to the diversification of income sources, in addition to the promotion of investments in Germany and bilateral cooperation in the fields of tourism, health and sports, especially in relation to the FIFA 2022 World Cup.
The forum also featured bilateral meetings between Qatari and German businessmen, during which participants reviewed investment opportunities in both countries and discussed mechanisms to bolster long-term economic cooperation between Qatari and German companies.