A GLOBAL COUNTRY REPORT ON QATAR

Submitted to

GUJARAT TECHNOLOGICAL UNIVERSITY

In Partial fulfillment of the Requirement of the award for the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

SOM LALIT INSTITUTE OF BUSINESS MANAGEMENT, AHMEDABAD MBA BATCH – 2011-13

1 | P a g e

INDEX Sr Different Sectors Pg No

No.

1 Acknowledgement 3

2 Pharmaceutical 4

3 Packaged drinking water 22

4 Energy 26

5 Healthcare 46

6 Restaurant 57

7 Sports 70

2 | P a g e

ACKNOWLEDGEMENT

We take this opportunity to express our profound gratitude and deep regards to our guide Prof. Kalika Bansal for her exemplary guidance, monitoring and constant encouragement throughout the completion of the project. The blessing, help and guidance given by her time to time shall carry us a long way in the journey of life on which we are about to embark.

We also take this opportunity to express a deep sense of gratitude to Dr. Jagdish Joshipura, Director, Som Lalit Institute of Business Management, for his cordial support, valuable information and guidance, which helped us in completing this task through various stages.

We also take this opportunity to thank Prof. Supriya Bhutiani, Co-ordinator MBA, Som Lalit Institute of Business Management, for her constant support, guidance and motivation.

We are obliged to faculty members of Som Lalit Institute of Business Management, for the valuable information provided by them in their respective fields. We are grateful for their cooperation during the period of our assignment.

Lastly, we thank almighty, our parents, brother, sisters and friends for their constant encouragement without which this assignment would not be possible.

3 | P a g e

1. INDUSTRY ANALYSIS OF PHARMA SECTOR

FIFA World Cup 2022 & its impact on Qatar: The FIFA World Cup to be held in It is expected to draw about half a million tourists/visitors, almost around 1/3rd of Its current population. Thus The FIFA event is expected of having a significant impact and profit the economy of It. As a part of the plan, the government will spend about more than $40 billion on the projects, The 2022 World Cup event is expected to increase this FDI flow into the country

FOREMOST UPCOMING PROJECT IN QATAR WITH RESPECT TO FIFA

 The upcoming major project in Qatar is one of the largest hospital by 2020 which will require more than 8000 medicines for the upcoming World Cup tournament which is going to be held for the first time

 The hospital will be the a superior one in the world, will be part of a plan by Qatar to amaze the international area when it will hosts the World Cup in 2022, just like it had done in 2006 when it had organised the Asian games,‖.

 Medicines will be borrowed through hospitals or public health centres which will include sports medicine to their range of services.

 They will be appointed by private clinics that present sports medicine.

 in December 2010 Qatar will strike off opponent bids from the US, Australia, Japan and South Korea to turn out to be the primary Arab nation to mass the World Cup Health sector Hamad Medical City, owned and funded by Hamad Medical Corporation, is a $900 million integrated medical complex consisting of several specialty hospitals. Work is underway to build an associated medical complex that will consist of the following: a 338 bed-Pediatric Hospital, a 200-bed Orthopedic Hospital, a 230-bed Physical Medicine and Physiotherapy Hospital, a 40-bed Day Care Surgery Center, and a 228-room Home Care Center for the elderly. As stated earlier there are many beneficial points which encourage an individual to start up an industry in Qatar. The main reason is that the political environment is stable and is a tax free nation. It has many potential projects coming up and one of the biggest project is that they are coming up with the world‘s biggest hospital by 2020 the Gulf nation is prepared to host for the game, so taking this into consideration we have decided to start up with pharmaceutical company as the future demands of drugs and ointments will be high so in order to meet these demands we would start up with Pharmaceutical company.

4 | P a g e

Qatar pharmaceutical industry :Qatar Pharma is the leader in infusion therapy and clinical nutrition in gulf and in its most important countries of gulf. There is many opportunity for pharmaceutical firms. They can grow in gulf country. Qatar pharmaceutical industry counts among the leading suppliers in the gulf market. The firm is focused on the intravenous, hemodialysis & topical drugs therapy and care of critically ill patients in and outside the hospital.

Pharmacy practice in Qatar's strategic plans

At the National level, identity & leadership of the pharmacy practice through Qatar received boost from National Health Strategy in the time period of 2011-2016. This strategy describes the goal of developing comprehensive & world-class healthcare system, like the introduction of the disease management, the health insurance & greater integration between the government & the private sector. This document also advocated ' community pharmacy network which was supported by the appropriate policy & process, decreasing reliance on the hospitals for filling up of drug prescriptions, leading into the increased efficiency & enhanced access'. The policies & plans exemplified the national leadership which will be necessary in order to be able to provide the impetus necessary for a transformation of the pharmacy practice into being an effective & patient -centered service which would be provided by the pharmacists & supported by the technicians & automation.

How will FIFA world cup facilitate the Pharmaceutical Industry?

It is set to benefit a lot from currently planned spending in common, and from the effect of the World Cup as well. Continued economic development would be the primary outcome, just when the fast-moving development, stimulated by the huge build-up in ability in the hydrocarbon segment in latest years, was set to be completed.

5 | P a g e

- Advantages - As large number of people will come to the nation the sale of pharmaceutical products will enhance. As the people are of all ages, it can be anticipated that there will be a increase in sales. - We can propose for the deal of supplying products to the players of the world cup. As this is a game involving physical damage there would be a great want of supplies of pharmaceutical products. - Due to this event, our company can go for capacity expansion and growth - It will gain a competitive advantage over the competitors as it would easily become a large company, though it will begin just a short term ago.

Medical & Health Tools: Opportunities and Trends:-The United States is one of the most important exporters of medical tools, therapeutic supplies, medicines to Qatar. There is chiefly strong interest in U.S. medical apparatus and supplies in Qatar, since the nation‘s medical experts are often trained in the U.S.

The latest establishment of the Weill-Cornell Medical School is also helping to stimulate stronger admiration for United States medical apparatus and procedures. It is working with the nation‘s government to construct a cutting-edge learning hospital that will pay attention on women‘s and children‘s wellbeing. It has incorporated the most sophisticated medical tools and training into the nation‘s healthcare segment. In the country, there are 4 government hospitals, 23 main health care centers, and at least 12 privately owned medical and dental services.

One of the Gulf‘s most appreciated medical institutions, the Hamad Medical Corporation provides recent diagnostic and illness treatment care and is the nation‘s most important non-profit medical service provider. It has a countrywide system of primary health care hubs and four specialized hospitals in Doha.

It is also developing the region‘s biggest medical facility known as the Hamad Medical City Complex that consists of three specialized hospitals. The private segment is playing a stronger position in the healthcare segment in the country, and private medical service now

6 | P a g e stand for around two-thirds of the nation‘s health service providers.

There has been news that working with the Ministry is difficult, mainly in getting information. So, the Commercial Service suggests that U.S. firms should pay attention on pairing with personal medical business and using local agents to work on prospective Agency tenders.

Working with the government may advance with the forthcoming selection of a fresh Minister and structural changes within the Department. There is also news that the Ministry of Public Health will shortly be replaced by a fresh National Health Authority, which will supervise all communal healthcare services there.

The Business Service thinks there is particular prospective for sales of U.S. merchandise in the following goods and services:

• Sports tools and sports-related medical supplies and apparatus, workplace safety apparatus,

• Diagnosis and disease handling apparatus particularly for diabetes (1 in 5 Qataris suffer from diabetes), rheumatology, dermatology, smoking-related diseases, cardiology, plastic surgical treatment, and child disorders.

• Services and tools that offer care for psychologically ill patients, geriatrics, the physically and mentally challenged, & patients who require long term care,

• Nutrition products and knowledge given the rising problem of obesity.

Business in Qatar

Taking in to consideration the above project the best fitted business will be

“PHARMACEUTICAL COMPANY”

 We can enter either by Cost Leadership Strategy or Product Differentiation strategy

 We chose Product Differentiation Strategy

 By following it, we can come up with sports related medicines to our range of products.

7 | P a g e

Possible Modes Of Entry In Qatar The entry in the Qatar country can be in ways which are as under:-

 Tieing up with the local Manufactures in Qatar  Supplying to Big Medical Centres in Qatar like Aster medical Center(D.M. Group),Qatar Medical center etc.  Finding Distributers in Qatar and also managing a good sales team if possible.

The mode which we preferably are willing to select is to tie up with the Local manufacturers in Qatar because

 By this we will be able to exploit the local manufacturer‘s market which has lot potential and its not yet much exploited  Moreover, it will make us a familiar name gradually  Also we would have not to invest in the setup cost there

MODES WHICH WE WOULD PREFER

To tie up with the Local manufacturers in Qatar because .Aslo government is giving special benefits like reduction in taxes etc if the locals are involved.By this we will be able to exploit the local manufacturers market which has lot potential and its not yet much exploited .It will make us a familiar name gradually Also we would have not to invest in the setup cost there

Strategy (Present and Future)

Initially we would enter the market by dealing in general medicines offering few medicines like Glucophage for curing Diabetes ,Euthyrox used for horemone therapy etc .The health problems like above are very rampant there so we would be focusing on medicines related to it. Then slowly and gradually once we establish ourselves we would focus on the ―SPORTS‖ related medicines as World cup will be held and the biggest hospital will be built which will cater to the sports related health issues. So all

8 | P a g e these factors are playing in our advantage and thus we can grow easily if everything is well planned and executed.

We can also look forward to distribution of medicines to medical centres or the distributers who can distribute our medicines in Qatar if any unknown and less importunate circumstance occurs.

FDI IN QATAR In Accordance of the Article (2) of Foreign Investment, Foreign Investors are allowed to invest in all sectors of national economy on the condition that they should have a Qatari partner(s) whose share in the capital shall not be less than 51 % and the company is incorporated in accordance to all the laws of the state. Foreign investors can only upon Minister‘s decision, increase their share in project capital from 49% up to 100 % in the fields of agriculture, industry, health, education, tourism, development and exploitation of natural resources, energy or mining provided that such kinds of projects should equate with the development plan of Qatar and utmost priority is given to such projects which will make the utmost utilization of domestics resources or any resources that would introduce a new product or invent new technology and would qualify national cadre.

Common Privileges for Foreign Investors: -No restrictions to import and repatriate funds. -No restrictions to transfer profits and assets. -Freedom to exchange money at uniforms rates. -Free market economy privileges.

Some General Incentives for Investments: -The full rights given to import the materials and equipment required for the establishment, operation or expansion of projects undertaken. -Exemption from income tax for 10 years effective from the date of commencement of projects.

-Duty-free imports in things like equipment and machinery which are needed for projects

9 | P a g e

-Duty-free imports which is allowed by the law are raw and half manufactured materials needed for industrial projects which are not available in the market

Indian Pharma Industry

Indian pharmaceutical industry is third largest in term of volume and stands 14th in term of value in world. The total turnover of indian pharma industry between 2008 and September 2009 was us $21.04 billion according to department of pharmaceuticals ministry of chemicals and fertilizers. Thus the local market was worth us$12.26 billion. Sales relating all types of medicines in the country is hoped to reach around us$19.22 billion by 2012.

There was many encouragement for growth in pharmaceutical industry by the government. The government started to encourage the growth of drug manufacturing by Indian companies in the early 1960s and the patents act in 1970. it was just because of liberation by Narashima Rao and finance minister Mamohan Shigh. There was growth possible. there were these main factor thus improment of drugs and growth in Pharma companies possible.

The lack of heredity prescription made the nation market undesirable to the multinational companies that had dominated the market, while they streamed out. Indian companies carved a niche in both nation and world markets with expertise in reverse engineering new process of manufacturing drugs at low costs. all are looking for innovation in drugs. Although some of the larger companies have taken small step towards drug innovation.

According to information, exports of pharmaceuticals products increased from us$6.23 billion in 2006-07 to us$8.7 billion in 2008-09 and both combined growth was 21.25% annually. There is expert research that India joined among the league of top 10 global pharmaceutical markets in term of sales by 2020 with value reaching us$50billion according to price water house coopers. There are major pharmaceutical firms like cadila healthcare, Ranbaxy cipla sun and piramal healthcare.

10 | P a g e

Pharmaceutical industry today

The Indian pharmaceutical companies‘ number is fairly low. There is cheap labour in production for that reason there is foreign companies subsidiaries in India. In 2002, there was over 20,000 registered drug manufacturers in India sold $9 billion worth of bulk drugs. it was 85% of these formulations sold in India while over 60% of the bulk drugs exported, more to the United States and Russia. As studied, Mostly the players in the market are small-to-medium enterprises and 250 of the largest companies control 70% of the Indian market. Multinationals represent only 35% of the market, down from 70% thirty years ago according to act 1970. Challenges

There are many challenges in India for pharmaceutical industry. Each company has to spend 5-10% of its revenue in r&d department. There are market leaders such as Ranbaxy and dr. reddy‘s laboratories spent only 5-10% of their revenues on r&d and western pharmaceutical like Pfizer whose research budget last year was greater than the combined revenues of Indian pharmaceutical industry. There is much other reason for difference in product. One is disparity in cost differential. Therefore advances in genomics have made research equipment more expensive than ever. Second, the drug discovery process is over involved by a dearth of qualified molecular biologists. Third, Pharma in India lack the academic collaboration that is crucial to drug development in the west and so far due to the disconnect between curriculum and industry.

Pharmaceutical marketing called medico marketing or pharma marketing in some countries is the business of advertising or otherwise promoting the sale of pharmaceuticals or drugs. There is negative effect of marketing practices. Some evidence for marketing practices can negatively affect both patients and the health care profession. there is limit to advertising by pharmaceutical companies in many country. Economics

Pharmaceutical company spending on marketing far exceeds that spent on research. there are some studies. there was $1.7 billion was spent in 2004 to market drugs to physicians in Canada and $21 billion spent in 2002. in 2005 pharma company has

11 | P a g e spent more money on marketing estimated at $29.9 billion with one estimated as high as $57 billion. when the US numbers are broken down 56% free samples, 25% detailing of physicians, 12.5% direct to user advertising, 4% hospital detailing and 2% on journal ads. even pharmaceutical companies have made large investments in marketing their products. overall promotional spending has been decreasing over the last few years and declined by 10% from 2009 to 2010. companies are cutting back in detailing and sampling while spending mailing and print advertising grew since last year.

COMPARISION OF INDIA AND QATAR IN TERMS OF PHARMACEUTICAL INDUSTRY

India is Third largest in term of volume and stands 14th in term of value in world where as Qatar is in Emerging State. India‘s pharmaceutical sector expected to grow 14% per year to reach USD 280 billion by 2020 where as of Qatar to become a Billion dollar industy by 2019. Low investment in innovative Research & Development in India .In Qatar low cost manpower is available in Science and Technology unlike India also Inadequate regulatory standards are there in India where as in Qatar steady political atmosphere.

SWOT Analysis of Pharmaceutical Industry in Qatar

A SWOT analysis tries to identify and estimate the potency, the flaws, prospects as well as threats a business has to face. A SWOT analysis of the pharmaceutical industry illustrates to top management, in what the industry is excelling, what improvements require to be made, where development is possible and what pre- emptive methods need to be taken to protect shareholder or business value.

Qatar‘s pharmaceutical sector has been estimated to become a billion dollar business by 2019, as per the latest report that was published by Business Monitor International. The sector has been valued at QR1.43billion ($392m) in year 2010 but is expected to observe the compound annual growth rate (CAGR) of around 12.6 % to reach $709 million by 2015, BMI supposed.

"Our estimate for long run for Qatar is, to turn out to be a billion dollar pharmaceutical industry for the first time by 2019 and reach around QR3.99billion ($1.10bn) at the end of our forecast phase in 2020," the report had described.

BMI analysts informed that the expansion will be confirmed by development of the broader economy, for which growth in actual terms is probable to remain higher than 5% a year over the next 10 years.

12 | P a g e

According to recent reports in The Gulf Times, Qatar will have 4 new drugs producers by the ending of Q1 of 2013. The drugmakers will apparently import their raw materials and manufacture tablets, syrups and injectables. It is predicted the drug manufacturers aid restrain reliance on imports and lower prices of retail medicines in the country due to increased local competition, according to Dr Aisha al-Ansari of Supreme Council of Health Pharmacy and Drug Control Department (SCH).

"Qatar‘s feature say that it will be reliant on pharmaceutical imports and as such, the authorities have been moving in this direction to perk up the functioning of this segment," the report supplemented.

In the month of February, the Qatar‘s Advisory Council permitted legislation that was proposed by Qatar‘s Supreme Council of Health that permits the deregulation of pharmaceutical imports to encourage free market competition in the sector.

"It is likely that this will cut down prices and intensify the accessibility of certain drugs by means of the closing down of regime controls over the pricing of medicines and an ending of the monopoly that a little number of importing agents have held in the emirate," BMI added.

It supplemented that it supposed Qatar was a encouraging proposition for drug manufacturers but the small on the whole market would persist to discourage anything more than a sales and marketing presence from the large MNCs, which run the most of their operations from the state‘s larger economies such as the UAE. The GCC presently imports 90 percent of its pharmaceutical requirements and domestic manufacturers need to step up to the challenge, Abdulaziz Bin Hamad Al- Aqeel, the Secretary General of the Doha- based Gulf Organisation for Industrial Consulting (GOIC) said last month.

He cautioned GCC states against continuous importing such a high percentage of medicines and drugs.

In a speech to pharmaceutical industry delegates, he said there were "remarkable opportunities" for home medicine producers. He also said that the pharmaceutical sector in the GCC nations and Yemen exceeded $6bn and is expected to make around $10bn by 2020.

Looking at the enormous potential of pharmaceutical business in Qatar, let us have a look at the SWOT Analysis of pharmaceutical sector in Qatar.

Strengths:

1) Huge potential in pharmaceutical sector:

. The total market size of medical and health care sector in Qatar in 2011 was approximately 90.3 thousand US Dollars.

13 | P a g e

. While, total local production in this area is nil

. The market depends on imports from European countries, Asia as well as the United States.

. In fact, the U.S. is one of the principal exporters of medical and surgical equipments, medical supplies and drugs, medicines as well as pharmaceuticals to Qatar.

2) Knowledge based, low- cost manpower in science & technology:

. Indian pharmaceutical companies have the benefit of low cost man power in the field of science and technology.

3) A package of incentives and the exemptions to encourage investment:

. The condition of sophisticated infrastructure and the nominal cost to rent land in the industrialized areas has been made.

. Duty discharge for construction supplies and equipment imports have been permitted to major contractors operational on projects undertaken in the oil, gas, water as well as electricity segments.

. Consent given for overseas investor to invest 100% in several sectors such as the agriculture, education etc.

. Allotment of the industrial area at a nominal rent starting at 1 Qatari riyal per square meter for a year for overseas investors which the rent for a long time period, renewable, but not greater than 50 years.

. Exemption from income tax for 10 years from the date of functional investment project of the invested foreign capital

. Release of the overseas investor in the business field from the customs duties on raw supplies imports and semi fabricated materials essential for manufacturing purpose, which are not accessible in the local markets

. Has also signed agreements of mercantile and economic collaboration in the security of mutual investments and to prevent double taxation between Qatar and the number of globe countries.

. Qatar joined of the World Intellectual Property Organization (WIPO) in 1976.

14 | P a g e

. They also signed Arab concord protecting the author's rights since 1986 along with the agreement of Berne that shelters the literary and artistic collections in 2000.

. Qatar has also signed the conformity of Paris for the industrial property protection in 2000.

3) Cost effective technology:

. India has the benefit of cost effective technology in the field of pharmaceutical industry.

4) Great natural resources:

. The joint investments with global oil companies in executing a variety of giant projects in the fields of gas and oil, exceeding hundred billion dollars.

. Qatar possesses 14% of the discovered natural gas reserve on the planet. The gas reserve in Qatar reaches about 900 cubic foot trillion and is the third biggest reserve in the globe

. The state contains 51% of the world reserves in oil and gas and 24% of the world production of oil and gas.

5) Proficiency in path-breaking research:

. India possesses proficiency in the field of pharmaceutical research

. It also has chemical and process development competencies.

6) Low cost manufacturer:

. Indian manufacturers are one of the lowest cost producers of drugs in the world.

. With a scalable labour force, Indian manufactures can produce drugs at 40% to 50% of the cost to the rest of the world

7) Excellent chemistry and process reengineering skills:

. Indian pharmaceutical industry possesses excellent chemistry and process reengineering skills.

. This adds to the competitive advantage of the Indian companies.

15 | P a g e

. The strength in chemistry skill helps Indian companies to build up methods processes, which are more cost efficient.

Weaknesses:

1) Low Indian share in world pharmaceutical market:

. Indian pharmaceutical market is one of the least penetrated in the world.

. However, growth has been slow to come by.

. Due to this, Indian pharmaceutical giants are depending on exports for expansion.

. To put things in a nutshell, India has almost 16 % of the world population while the total size of industry is just 2 per cent of the global pharmaceutical industry

. India‘s share in world pharmaceutical market is very low, around 2%

. There is dominance of countries like US, UK in international market.

2) Manufacturing of duplicate drugs:

. Production of duplicate drugs can also pose a problem

3) Tough competition from US and UK:

. We will have to face a tough competition from US, UK etc from where Qatar imports most of its pharmaceutical requirements.

4) Lack of resources:

. India lacks in resources to contend with MNCs for novel Drug Discovery Research and to commercialize molecules on a global basis

5) Production of low cost drugs:

. Production of spurious and low cost drugs tarnishes the image of the industry at home and abroad

6) Low investment in R & D:

16 | P a g e

. There is low investment in innovative R & D among Indian companies as compared to foreign companies

7) Bad brand image:

. Bad brand image of Indian Pharmaceutical merchandise in the USA, United Kingdom & other western countries which is obstructing exports.

8) Low level of Biotechnology:

. Indian companies face hindrance in terms of very low level of Biotechnology in India and also for New Drug Discovery Systems

9) Lack of experience:

. India lacks experience in International Trade in this sector

10) Lack of product patent:

. Indian pharmaceutical sector has been blemished by be short of of product patent

. This prevents global pharmaceutical companies to initiate new drugs in the country and discourages novelty and drug discovery.

. But this has provided an upper hand to the Indian pharmaceutical companies.

Opportunities:

1) The Government of Qatar will continue to maintain high levels of capital spending:

. The Government of Qatar will carry on upholding high levels of capital expenditure on education and health.

. The government plans to invest $9.9 billion in these sectors in the 2012/2013 fiscal year, accounting for 15% of its 2010/2011 fiscal budget.

17 | P a g e

. The Government of Qatar‘s strong obligation to invest in economic diversification through public expenditure on transportation, medical care, education schemes and housing projects will create multiplier outcomes on the rest of the economy of Qatar, contributing to amplified consumption and demand for superior quality housing, office and retail amenities.

2) Energy Sector:

. Qatar has attracted an estimated $100 billion foreign investment, with roughly $60-70 billion imminent from the U.S only.

. It is believed by experts that Qatar will invest more than $120 billion in the energy sector in the next ten years.

. Although a moratorium on North Field development is in place until at least 2015, Qatar is committed to diversifying within the hydrocarbon sector and developing its petrochemical industries in particular.

. This will be helpful to pharmaceutical sector also.

3) Industry experts presume the pharmaceutical sector to expand:

. As per the estimates of the industry, the market for medical and surgical equipment will grow rapidly over the coming 5 years.

. The Qatari market depends on imports from European countries, Asia and the United States mainly.

. In fact, the U.S. is one of the principal exporters of medical and surgical equipment, medical supplies, along with medicines, drugs and pharmaceuticals to Qatar.

. Qatar‘s strong interest in importing medical equipment, healthcare technology and provisions from the U.S.is determined by two reasons:

18 | P a g e

. The increase of innovative construction projects for hospitals and health care centers; and . Qatar‘s lack of home manufacturing capacity in this sector.

. Therefore, Indian companies have great chances to succeed in this sector.

4) Opportunities in health sector: . Hamad Medical City, owned and funded by Hamad Medical Corporation, is a $900 million integrated medical complex consisting of several specialty hospitals. Work is underway to build an allied medical complex that will consist of the following: a Paediatric hospice, an Orthopaedic Hospital, Physical Medicine and also a Physiotherapy Hospital, a 40-bed Day Care Surgery Center, and a 228-room Home Care Centre for the elderly.

. Sidra Medical and Research Facility, which is owned and funded by the Qatar Foundation with an $8 billion donation, Sidra in Qatar will be the foremost educational medical hub that is based on a U.S. model. It is working in partnership with the Weill Cornell Medical College in Qatar and the Hamad Medical Corporation (HMC). Its core focal point will be to offer world-class medical care for women and children, to teach medical students and clinicians, and to specialize in pregnancy health, infertility, genetic deformities, and other diseases that are precise to females. Quite a lot of U.S. companies which are providing medical apparatus have already won lucrative contracts with HMC

5) FIFA world cup to help the Pharmaceutical Industry:

Qatar is set to profit enormously from currently planned expenditure in general, as well as from the impact of the FIFA World Cup. Constant economic development would be the principal outcome, just when the fast-paced development, induced by the huge build-up in capacity in the hydrocarbon sector in current years, was set to come to a halt.

19 | P a g e

 Advantages to these are

- As large number of people will come to the country the sale of pharmaceutical products will increase. As the people are of all ages, it can be forecasted that there will be a growth in sales. - We can bid for the contract of supplying products to the players of the world cup. As this is a game involving physical strain there would be a large need of supplies of pharmaceutical products. - Due to this event, our company can go for capacity extension and growth - It will gain a competitive advantage over the competitors as it would easily become a big company, though it will be commenced just a short term ago.

6) Contract manufacturing:

. Our company can also enter into contract manufacturing of medicines and surgical requirements.

. Can also enter into contract manufacturing arrangements with MNCs

7) Licensing deals and collaborations with MNCs:

. Indian companies can also go into licensing deals and collaborations with MNCs for Innovative Chemical Entities and New Drug Delivery System

8) Important role of private sector in Qatar:

. The private sector is playing a stronger role in the healthcare segment in Qatar, and private medicinal services there now correspond to around two- thirds of the country‘s health service providers

. This will really be an incentive for Indian pharmaceutical companies.

9) Growing awareness for health:

. Physical well being is the main concern for the Qatari government

. The Qatari Government is continually improving the quality of its health services by using latest technology, international expertise and by gaining knowledge in this sector.

. This will boost the demand for health care sector there

20 | P a g e

Threats:

1) Threat from low cost countries:

. Indian companies face threats from various other low cost countries in globe like China and Israel

. However, on the quality front, India is better placed comparative to China. So, delineation in the contract production side may wane.

2) Threat from European countries and US:

. The Qatar market depends on imports from Europe, Asia and the United States for pharmaceutical requirements.

. In fact, the U.S. is one of the principal exporters of medical and surgical equipments, along with medical supplies, medicines, drugs and other pharmaceuticals to Qatar.

. This is a big threat for Indian pharmaceutical concerns.

21 | P a g e

2) Packaged drinking water industry

The global drinking water sales have exaggerated dramatically over the past many decades, reaching a valuation of around $60 billion and a volume of over a hundred and fifteen,000,000 cubical metres (3.0×1010 United States of America gal) in 2006 U.S. sales reached around thirty billion bottles of water in 2008, a small drop from 2007 levels

The GCC countries are set in very arid zones. The region is usually a desert with the exception of slim coastal areas and mountain ranges. the typical annual precipitation ranges from seventy to one hundred thirty millimeter except within the coastal zone on the Red Sea in south-western Saudi Arabia and on the Gulf of Muscat and Oman on the jap shore, wherever orographic precipitation reaches over five hundred millimeter. the overall annual evaporation rate ranges from two,500 millimeter within the coastal areas to over four,500 millimeter midland. the number of renewable geological formation volume is terribly restricted and shallow sediment aquifers offer some renewable groundwater solely in those restricted coastal strips

Gujarat has seen many ups and down in packaged drinking water industry.

Drinking water could be a ‗delicate‘ issue and therefore the want for the ‗purity‘ of water is acknowledged. what's not therefore acknowledge is that the degree of purity, that it should have for human consumption, and even it's identified, not several users the planet over area unit conscious of it. Awareness of this all the same, it's become troublesome to continue orthodox to the wants.

Drinking water comes chiefly from the rivers or from the existent groundwater. Excessive withdrawal of groundwater for domestic and agriculture functions has caused the water level to travel down, creating the water briny thanks to salinity ingress.

Excessive extraction of groundwater led to groundwater depletion caused brackishness due to salinity ingress. Hundreds of large plants in Gujarat, which were set up for supplying good and safe water to the public, have been closed down in their wake. A large number of ‗cottage‘ type Reverse Osmosis (RO) plants came to be marketed for supplying good and safe water to the consumers under ‗packed drinking water‘ category, and a big market emerged.

The market for the mineral/packed water produced by ‗cottage‘ type industries has developed very rapidly in Gujarat between 1996 and 2000, especially in North Gujarat. The water packed pouches has more margins as compared to big-packs of 10 or 20 litres. The price of 10-litre packaged water for the year-round customers is Rs 1500, or Rs 4.11 per can. One pouch of 250ml has the ex-factory price of Rs 0.30 and MRP is Rs 1.00. Producing packed water in pouches requires only an additional investment in packaging machine, which the investors find affordable as it costs approximately Rs 1 lac. The packed drinking water in pouches has a large market catering to the people at large as it has ‗any time, any place‘ type.

22 | P a g e

As long as the municipality‘s supply of ground water in North Gujarat is high on TDS and has more than recommended amount of fluoride, packed drinking water has a good market. People will spend for good water for the sake of health and often to avoid doctor‘s fee. Many people are spending extra for the sealed packed water or chilled insulated plastic can etc.

There is very good growth of this ‗cottage‘ RO industry as the market is very wide. Even if the ISI certification is made mandatory, there is good number of investors who would not mind to invest the extra amount required for the ISI certification, as they know about the quality consciousness of their clientele. In reality, there are two among the 14 plant owners have started doing the initial planning of their new plant as per ISI specification.

Table-: Plant and Machinery, Annual Production, Sale, Expenditure, Profit and Per Litre Expenditure of Production of Water

Sl. Towns Total Annual Annual Gross Gross Expd/Prd No Plant and Prodn. Sale of Annual Annu = Rs per . Machiner of Water Expenditu al Lit y Water Pouch + re Profit Expd.of Rs in Lac Lit in Ca Rs in Lac Rs in Lac Prodn. of Lac n Water 1 2 3 4 Rs in5 Lac 6 7 8 1 Kadi 4.25 8.0 3.3 3.8 - 0.4 2 Mahesana 5.25 433 .1 150 .0 5.5 4 0.9.55 0.8 1 3 Mahesana 4.25 120 .4 07. 4 2.6 9 4.4 5 0.3 2 4 Mahesana 3.75 103 .9 4.6 2 2.3 5 1.3 7 0.4 2 5 Mahesana 5.75 135 .6 4.5 9 5.5 0 - 0 30. 3 6 Maktupur/Unj 4.25 229 .3 175 .6 3.1 3 0.140.62 0.7 1 7 Visha nagar 5.25 36. 5 42. 5 4.7 4 -7 0.5 6 8 Sidhpur/Khali 10.7 497 .5 595 .4 6.7 2 1.539.21 0.8 1 9 Unjha 54. 25 030 .8 150 .8 6.5 6 59. 2 0.3 2 10 Unjha 8.25 463 .7 224 .9 112 .3 112 .5 0.1 2 11 Patan 7.75 425 .4 252 .9 55. 3 207 .5 0.4 1 12 Patan 5.25 05. 8 21. 7 1.5 2 70. 4 0.3 2 13 Patan 6.25 444 .9 173 .6 5.6 5 127 .0 0.2 1 14 Chanasma 7.25 316 .4 164 .9 4.8 8 126 .0 0.2 3 Total 82.5 395 3.8 221 5.5 689 .9 144 6.5 0.0 1 Avg. of 14 5.89 225 .2 115 .3 44. 9 710 .4 0.9 1 Plants 7 9 2 7 9 Source: by International Water Management Institute (2010)

EXPORT AND IMPORT FROM QATAR

It would be very costlier to export packaged drinking water from India to Qatar so plant should be set up there in Qatar and production also be done in Qatar and Qatar has potential of demand for packaged drinking water because of huge traffic of

23 | P a g e foreigners and business people who visit Qatar and Qatar has many big hotels and resort and business town which can be cater by packaged drinking water.

KAHRAMAA’S STRATEGY IN THE WATER SECTOR

. Increasing water storage reserve to 7 Days

. Maintaining 24H uninterrupted supply to customers

. Study and development of underground reservoirs

. Reduction of Water Losses

. Revisiting Qatar‘s water infrastructure, especially underground pipes, on regular basis for timely refurbishment/replacement

. Studying/implementing alternative energy source for water production.

Historical Supply and Demand (2000-2008)

Major Areas of Investment in Qatar Water Industry

INVESTMENT ON

 Latest Technologies for the management of Water Industry  Water Production Facilities - Seawater Desalination Plants using MSF, MED & Sea water R.O. technologies

24 | P a g e

 Feasibility Study on the alternative sources of energy (Solar and Nuclear Energy) for combined Water Production and Power Generation & implementation  storage reservoirs to meet the strategy of 7 days storage  New Water Pumping Stations to supply water to all areas in Qatar  Expansion of Water Transmission and Distribution Networks

Investment on Water Transmission and Distribution Networks expansion

Conclusion

Qatar is one of the fastest growing economies and the wealthiest countries in the world measured by GDP per capita. This has led to rapid development in the infrastructure of every sector of the society & industries

The demand for water has been rapidly increasing in line with the unprecedented developments in the country and meeting the demand in time & supply water to all sectors is a challenge to KAHRAMAA

Today an investor can benefit from the followings: The lowest tax in Qatar. Good business environment

Joining the new global initiatives on ―green energy‖, KM will endeavor to tap ―renewable energy‖ from the abundant solar energy resources available in Qatar for the generation of electricity and water production

Qatar‘s policy of allowing multi-national companies‘ participation in the investment in Water industry is creating a culture of opportunity.

25 | P a g e

3) Energy sector in Qatar

In this summary of the Energy sector of Qatar various important sectors with their technological advancement and needs are explained briefly. The trade linkage between India and Qatar is and business opportunities are also explained at the end of the summary. Trade linkage sows the economic relations between these two countries and the details of import and export between the two countries. The business opportunities covers various aspects and shows whether it is beneficial or not to do business in Qatar.

Qatar has 3rd largest natural gas reserves in the world and by further development it makes Qatar king of the desert and wealthiest gulf country. Telecommunications system of Qatar is one of the most advanced in the world. The government of Qatar had plan investment in new industries like Banking, Finance and other services industries to build strong, active and diversified economy. QATAR has become a role model for the rest of the world. Right now it consist of relatively young population that is growing up with the latest technologies.

Infrastructure of Qatar is among the world‘s best infrastructures. Qatar benefits from a modern transport network of roads, ports and international airports that guarantees connections to all areas of the country.

New Doha International Airport is expected to be the first airport in the world to fully handle the Airbus, the world‘s biggest commercial aircraft. Three times the size of the current airport, at its ultimate development the NDIA will handle 50 million passengers, 2 million tons of cargo, and 320,000 aircraft movements in each year. New Doha Port will be a catalyst for regional economic growth upon completion in 2015. Connected to the major transportation routes planned as part of the Qatar Master Plan, initial capacity will be two million tens seven times the capacity of the existing port. Ras Laffan Port is undergoing a US$1.7 billion expansion project to upgrade all quay walls to liquefied natural gas berths, container berths and administrative buildings. Mesaieed Port a world-class port handling commodities accounting for 60% of national GDP and a wide range of petroleum products..

26 | P a g e

The Museum of Islamic Arts, which completed by 2006 in time for the Asian Games, is a notable landmark for the city of Doha and provides the highest standards of display conversation and renovation. And the museum will also be served as an educational institution offering support to local schools and providing facilities for research within Qatar and from overseas.

Medical Facilities of Qatar is very advance. Qatar has opened very advanced medical equipment and training into the country‘s healthcare sector. In Qatar, there are 4 govt. hospitals, 23 elementary health care centers, and minimum of 12 private medical and dental hospitals. It is a highly respected medical institution of the Gulf, the Hamad Medical Corporation renders modern diagnostic and disease treatment care and it is country‘s one of the best non-profit healthcare providers. It has a countrywide network of elementary health care centers and 4 specialized hospitals in Doha. Qatar is also formulating the region‘s largest medical facility called the Hamad Medical City Complex, which includes specialized hospitals.\

Qatar Environment and Energy Research Institute: Its work on pollutants affecting mankind considers issues such as mercury and lead levels in the environment, carbon diffusion and other contaminants that increase risks for human health.Qatar Computing Research Institute: QCRI‘s mission is to create knowledge generally available and support changed integrity with national priorities by conducting leading position, multidisciplinary applied computing research in jointly with Qatari corporation, government, and institution.

If we look at Finance and Insurance Sector then we can see that Qatar owns six commercial, three Islamic and the specialized Qatar Development Bank. In addition, two Arab and five foreign banks are present in Qatar. The Qatar Financial Centre is a financial and business centre set up by the Government of Qatar in 2005 and located in Doha to demonstrate Qatar as an attractive environment for a wide range of financial services in the Gulf region. . By October 2008 a total of 96 regional and international financial services institutions and major transnational corporations held Qatar Financial Centre licenses to participate in the developing market for financial services in Qatar and elsewhere in the region.

27 | P a g e

Defence Sector of the state needs to be highly advanced because of its location. The country is considered very high profiled because of its enormous resources of oil and ntural gas. There many other country who wish to have same kind of resources but lack of these resources they are depended mainly on gulf countries so these countries need to be very carefull othervise there condition will also be like that of Iraq. As the economy is highly depended on petroleum sector revenue it has to take keen steps to protect it self from any possible attack. Even a singe attack can create major impact on the country because of its major oil fields. It can ruin the economic growth of the country ad can create devastating condition.

The petroleum sector of Qatar is well developed because of its huge oil and natural gas reserves and the technologies the country is using. Qatar gas is the largest LNG producing company in the world. Their goal is, by 2015, to be the whole world‘s premier LNG Company, known for people, innovation, operating excellence, environmental responsibility and corporate citizenship. The major players in petroleum industry are Exxon Mobil, Anadarko, Royal Dutch/Shell, Total, Conoco- Philips, Chevron Texaco, Sasol, Occidental, Talisman, and Maersk Oil Research.

Infrastructure of Qatar is among the world‘s best infrastructures. In recent years, with the expansion of the city of Ras Laffan, Qatar's technological crown jewel. Medical Facilities of Qatar is very advance. Qatar has opened very advanced medical equipment and training into the country‘s healthcare sector If we look at Finance and Insurance Sector then we can see that Qatar owns six commercial, three Islamic and the specialized Qatar Development Bank. Qatar Exchange set up in 1995, the Doha Securities Market officially began operations with 6 listed companies in May 1997. Defence Sector of the state needs to be highly advanced because of its location. The country is considered very high profiled because of its enormous resources of oil and ntural gas.

Qatar is an oil- and gas-rich nation, with the third largest gas reserves and with one of the highest GDP per capita in the world. Qatar is investing a lot of their revenues on improving of their Research & Development program. Qatar is investing heavily in protecting and preserving the environment. Sustainability and ―green‖ initiatives are more and more important on all projects in the country. The State of Qatar, also

28 | P a g e famous as the Dawlat Qaṭar, is an Arab emirate, in the Middle East, residing the small Qatar Peninsula on the northeasterly coast of the very larg Arabian Peninsula.

The State of Qatar has the world's highest per capita production and proven reserves of both natural gas and oil. In the year 2010, Qatar had the world's largest GDP per capita, while the economy rose by 19.40%, the fastest in the world. It is presumed that Qatar will invest approx $120 billion in the energy sector in the coming ten years. The Qatar National Vision 2030 outlines Qatar‘s long-term vision by providing a framework within which national strategies and implementation plans can be carried forward properly. The Qatar National Vision 2030 foresees Qatar's development through four interconnected pillars including human development, social development, economic development, and environmental development.

The Qatari government is planning to spend more than $5bn by end-2013 to increase its electricity and potable water production capacity According to Commercial Bank Capital, the government will infuse $6.9bn and $9bn in the water and power sectors respectively over the coming years.

"The State of Qatar is very important global energy hub and the Doha Energy Forum provides an excellent opportunity for industry representatives to discuss changes and developments in the worldwide energy market and also local," Energy City Qatar is the region‘s first integrated business hub dedicated to the hydrocarbon industry providing a single point of access to markets and expertise, in what will be the Middle East‘s home for global players in the hydrocarbon value chain.

Energy City Qatar will bring leadership of energy industry in one location, which will exert a pull on investment from considerable global players in the hydrocarbon chain and hence will provide a distinctive investment opportunity offering high yields and low risk. Energy City Qatar is the country‘s first integrated business hub dedicated to the hydrocarbon industry providing a one point of access to markets and expertise.

At Qatar, they have seven LNG trains, from them four are the biggest in the world- which is known as mega-train – each train has 7.8 million tone production capacity per annum. Today, the customers for Qatar are spread throughout the four corners of the world in all the European, Asian and the Americas markets. At Qatar, they are going to add to the global energy diversity and remain committed to the long-term

29 | P a g e mix of energy supplies. Their goal is, by 2015, to be the whole world‘s premier LNG Company, known for people, innovation, operating excellence, environmental responsibility and corporate citizenship.

Their commitment is care for the environment continues to be amply demonstrated in their award winning, project for coral conservation, working with the Ministry of Environment of Qatar (MOE), for scientific study and marine biological conservation to support long-term coral conservation in the State of Qatar.

Pulse-Chlorination has introduced by Qatargas into its cooling seawater systems and has become the first company in the Indian Ocean region to research and use this pace-setting technology. This new innovative technique allows Qatargas to reduce the amount of chlorine added into the cooling seawater by over 50%. It reduces blockages caused by fouling.

Some of the recent LNG projects of Qatar are mentioned here. One of them is RasGas LNG 3, 4 & 5.The scope of this project is to produce near about 1.5 BSCFD of gas for LNG export to India (Petronet) and Italy. RasGas LNG 6 & 7: This project is expecting the US market with two trains each of sized for 7.8 MMTA. Qatargas III Project:The proposed train will benefit from Qatargas II studies and that will have the maximum synergy as possible extent. Gas-to Liquids (GTL) Projects: for the production of base oil stocks and synthetic fuels. Pearl GTL: Shells GTL is an integrated project which will develop near about 1.6 BSCFD of North Field gas to result approximately 140,000 BPD of base oils and synthetic fuels. Sasol Chevron: The project will produce diesel and naphtha as the primary products. ExxonMobil: The project will produce stocks of base oil in addition to the synthetic fuels. Marathon: The Marathon GTL project will produce near about 120,000 BPD of diesel and naphtha.

Qatar Petroleum (QP) is a state owned petroleum company in Qatar. The petroleum company operates all types of oil and gas activities. It includes production, exploration, refining, transport, storage, etc. It was founded in 1974.

The major players in petroleum industry are Exxon Mobil, Anadarko, Royal Dutch/Shell, Total, Conoco-Philips, Chevron Texaco, Sasol, Occidental, Talisman, and Maersk Oil.Research and Development department of Qatar Petroleum

30 | P a g e executes needs for new business opportunities and existing business and initiate, lead and support initiatives toward development and retention of new knowledge that will deepen and broaden the technical capabilities of QP. It will be central in forming QP‘s long-term strategy for technology, and remain forefront of key technologies through collaborative research with international partners. Recently Qatar extends oil field pact with France's Total

In Water and Energy Technology Qatar is taking very good initiatives. Lack of water resources it is highly active on water saving and green technology. With one of the world‘s lowest level of rainfall, Qatar depends on water from three sources: desalination, groundwater and recycled water, all subject to inefficiencies that may create stresses and eventually pose a threat to water security..

Power distributed through Qatar‘s grid is produced water using gas turbine technology. The gas used to produce domestic power has an opportunity cost in forgone export revenues. For a few large industrial users, power is provided through standalone generation facilities. Qatar could achieve greater efficiencies through technical enhancements. Such changes could save 5% of domestic gas consumption—and possibly may be more. By burning less natural gas, Qatar would support the national goal of lowering carbon dioxide, reducing the country‘s contribution to global climate change. With air conditioning accounting for 67% of residential power consumption, a shift to modern energy-efficient systems would bring significant savings. Government will look to encourage the use of energy- efficient technologies, such as automated sensor lighting systems that cut power demand directly, Wider use of district cooling systems on domestic and commercial premises would save on power and further the environmental benefit of expanding the market for recycled water. For new structures, gains will come from efficient design.

31 | P a g e

Chart shown below mentions the rate of CO2 emission in Qatar

Solar Technology can benefit Qatar and nearby countries because of their geographical location .It is a real opportunity for achieving significant reduction in global carbon emissions if such solar energy is captured and utilized efficiently. The eco-villa will include an in-house energy generating system, irrigation and intelligent building control systems. The $5.3 million, one-hectare pilot plant is built to turn the desert into greenery and produce energy.

Qatar Solar Technology aspires to become one of the world‘s leading integrated solar company, by using products domestically and exporting in other countries. It will ensure a sustainable industry for Qatar beyond the country‘s natural oil and gas capabilities. Due to the World Cup in Qatar 2022, the planned stadiums will use solar power as part of the organizing committees aiming to host a carbon neutral event.

Increasing Energy consumption and production, oil and gas production and exploration (accounting 67% of total carbon diffusion) and increasing usage of vehicles increasing stress on environment safety issues.

With the help of construction business, hydrocarbon sector and growing number of high-income individuals, Qatar has created more than 7,000 tonnes of solid waste. Qatar will adopt a multifaceted strategy to contain the levels of waste generated by individuals, commercial plants, and industrial units and to recycle much more of what waste is generated.

32 | P a g e

Energy Profile Qatar

Before the emergence of petrol-based industry, Qatar was just a pearl fishing country. The exploitation and production of oil and gas fields began in 1940. In 1973, oil and gas production and exploitation revenues increased drastically, taking the state out of the ranks of the world's poorest countries and offering it with one of the highest per capita incomes in the world.

The State of Qatar has the world's highest per capita production and proven reserves of both natural gas and oil. In the year 2010, Qatar had the world's largest GDP per capita, while the economy rose by 19.40%, the fastest in the world.

Oil production will not remain long at apex levels of 500,000 barrels per day, as oil fields are calculated to be mostly depleted by 2023. However, large natural gas reserves have been located off Qatar's northeast coast. Qatar's reserves of gas are the third-largest in the world, exceeding 250 trillion cubic feet.

Qatar's heavy industrial plans, all based in Umm Said, include a refinery with a 50,000 barrels per day capacity and there are also some other projects like a fertilizer project for urea and ammonia, a steel project, and a petrochemical project. All these industries are depended on gas fuel. Most are joint ventures between European and Japanese firms and the state-owned Qatar General Petroleum Corporation (QGPC). The U.S. is the biggest equipment supplier for Qatar's oil and gas industry, and U.S. companies are playing a vital role in North Field gas development.

QATAR POWER REPORT – 2012 – Q4

The Qatari government is planning to spend more than $5bn by end-2013 to increase its electricity and potable water production capacity, according to Qatar Electricity & Water Company CEO Abdulsattar al-Rasheed. $2.4bn will be invested by 2012, while $2.8bn will be spent in 2013. New projects include a 2,250 megawatt (MW) power plant. During the period 2012-2021, Qatar‘s overall power generation is expected to increase by an annual average of 6.7%, reaching 46.6 terrawatt hours (TWh). Driving this growth is an annual 6.0% gain in generation of gas-fired, which remains the key form of power supply in the country.

Qatar's Energy Leader

"The State of Qatar is very important global energy hub and the Doha Energy Forum provides an excellent opportunity for industry representatives to discuss changes

33 | P a g e and developments in the worldwide energy market and also local," said Deputy Managing Director, Maersk Oil Qatar,Sheikh Faisal Al-Thani. The company currently produces around one-third of Qatar's daily oil production. " Maersk Oil is a long-term partner with Qatar Petroleum and the State of Qatar and is therefore pleased to encourage on-going dialogue between industry peers to help share knowledge and ideas."

In 2000, shale gas represented just 1% of American natural gas supplies. Today, it is 30% and rising, and triggering energy prices to fall. While the scale of Shale oil could be even greater than gas, with some forecasts claiming there exists 8 barrels of crude locked in shale rock for each 1 barrel of conventional oil. The International Energy Agency's most recent World Energy Outlook predicted that the US will lead the world in both oil and natural gas production by the end of the decade, overtaking Saudi Arabia and Russia.

The Trade Linkage between India and Qatar

The Trade Linkage between India and Qatar can be understood from the following details.

India Qatar Economic Relations

The very large India has a long history of friendly relations with Qatar country marked by commercial ties and people to people contacts. The relationship today is very rich, close and multi-dimensional. Indian community acts as the catalyst for enhanced ties across a spectrum of bilateral relations

India‘s bilateral trade with Qatar country rose up from US$ 1.2 billion in 2005 to US$ 3.7 billion in 2009. Indian exports to Qatar country increased from US $ 380 million to US$ 900 million at the time of this period. Main items of Indian exports are machineries and equipments, transport equipments, textiles, food products, ores and minerals etc. Qatar‘s exports to India amounted to US$ 2.8 billion in the year 2008 as compared to US$ 896 million in the year 2005. India is the 4th largest export market for Qatar country after Japan, South Korea and Singapore countries. In terms of Qatari import, India ranks at the 10th position. As per Indian statistics data, India‘s exports in amount to Qatar country for the year 2009-10 were $537 million while India‘s imports in amount from Qatar country for the same period amounted to $4.6 billion.

India and Qatar have signed a trade agreement and accordingly India will purchase LNG of 7.5million tons for the next 25 years. The first shipment has taken place in the year 2004. The countries have also signed Memorandum of Understanding in the import of petrochemicals and fertilizers for the Indian industry. India has also sought

34 | P a g e investment from Qatar in crude storage facility being developed by Indian Oil Corporation. From our side, we have indicated interest in setting up a petrochemical and a fertilizer plant in Qatar but Qatar has indicated that these projects can only be considered after an embargo is lifted over further allocation of gas.

A large number of Indian companies such as L&T, Dodsal, Punj Lloyd, Voltas, Simplex, Wipro, Aptech, Satyam Mahendra, NIIT etc have set up offices in Qatar and have secured major contracts/ business. The Indian community is estimated to be in the range of 500,000. Indian professionals constitute an important component. There are eight Indian schools following the CBSE syllabus. The annual remittance from Qatar is estimated to be over US$ 1 billion. Air India, Indian, Jet Airways and Qatar Airways operate direct flights between India and Qatar. Qatar Airways has been continuously increasing its services to India and has 86 weekly flights to India now.

Indian professionals and businessmen constitute a small but important component of the Indian community in Qatar. The Indian Business and Professionals Network (IBPN), the Institution of Engineers (India), Indian Medical Association and the Institute of Chartered Accountants maintain active chapters in Qatar with an expanding membership and on-going activities. There are a number of exchange houses run by involving Indian banks, which channelize remittances to India. The three major exchange houses involving Indian banks are Eastern Exchange (Canara Bank), Trust Exchange (State Bank of India) and National Exchange (Syndicate Bank). India is a major buyer of ethylene, propylene, ammonia, urea and polyethylene from Qatar. However, India has not been a major customer for Qatari crude oil / products. It is evident that economic relations between India and Qatar are strong and are rapidly expanding and diversifying. There is a shared desire on both sides to further deepen these relations.

As there are very less taxes nowadays Qatar is known as the Tax Haven. This factor has attracted investment from number of companies. There are also some strict rules to start up a business like to join hand with any Qatari firm doing similar business or interested in it. But the benefits overweigh the drawbacks.

35 | P a g e

In conclusion we can say that there is still need of advancement in the technology the state of Qatar using in water purification. Because the present technology is too costly and it is not capable enough to provide clean water to the increasing population of the state. Because of its location the residents have to bear sometimes very hot environment. This leads the demand of the water. It also creates business opportunity for those who are providing water purifying technology and involved in the business of gardening.

1. Introduction

Large number of power projects (XI and XII five year plans) is under construction to overcome the power shortages and meet the growing energy requirements in the country. However, the sector has been encountering problems on account of inadequate / depleting conventional fuel resources, slippages in capacity addition, transmission / open access constraints and high Aggregate Technical & Commercial (AT & C) losses in the country. Since the formulation of Electricity Act 2003, Government of India (GoI) has been taking several initiatives and announced various regulations to strengthen the sector. Significant GoI / regulatory initiatives in recent times have been those pertaining to Mega / Ultra Mega Power Generation projects revised tariff regulations for existing central government projects, competitive bidding for all future power generation projects, tariff norms for renewable energy / introduction of Renewable Energy Certificates, new transmission pricing grid code, power market regulations, Re – structured Accelerated Power Development Reform Programme (APDRP2), National Electricity Fund, etc. 2. Projected demand, XII plan capacity additions and projected investment

• According to 17th Electric Power Survey (2007), the energy requirement in the country is projected to grow at a CAGR of 7.5% during 12th plan period reaching from 9,68,658 Giga Watt hour (Gwh) in FY 2012 to 13,92,065 Gwh by FY2017, while peak load requirement is projected to grow from 1,57,324 MW in FY2012 to 2,23,660 MW in FY 2017 at a CAGR of 7.4%.

36 | P a g e

• Ministry of Power and Central Electricity Authority (CEA) have projected a total investment requirement of Rs. 11,35,142 crore for the power sector during the 12th Plan period, which also includes investment for generation capacity addition of about 1,00,000 MW. (Existing capacity is 1,64,508 MW)

• According to Crisil report (June 2010), about 82,000 MW of generation capacity at an investment of Rs. 5,10,000 crore is likely to be added in the next five years i.e. during FY2011 to FY2015. The Central (with NTPC having the major share), State and Private sectors are estimated to add about 21,500 MW, 15,000 MW and 45,500 MW respectively during the next five years. Further, about 12,900 MW of captive generation capacity at an investment of Rs. 75,000 crore is expected to be implemented by several players. The investments in transmission and distribution segment are projected at Rs. 3,44,000 crore during the above period.

• According to Crisil report (June 2010), out of the 82,000 MW capacity (scheduled for commissioning over the next five years), more than 90% of the projects have received environmental /forest clearances, acquired land, achieved financial closures and placed equipment orders. About 80% of the above projects have either signed PPAs or earmarked a portion of their total power for merchant sales.

Emerging Developments

The emerging developments in the power sector are highlighted below:

Competitive procurement of power

As per the National Tariff Policy, the procurement of power by distribution licensees have to be made through competitive bidding. From January 2011, Central / State

37 | P a g e public sector companies also are expected to compete with private sector to supply power to the distribution companies through competitive bidding. Thus, volume of power contracted through competitive base bidding {Case 1 2 (location, technology or fuel not specified) & Case 2 (location specific where the GoI assists developer in securing land, clearances, etc)} is likely to increase in the medium term.

Thermal projects & Supercritical technology

In the medium term, thermal power is likely to remain the major source of generation as the coal based (particularly pit head plants) /gas based projects presently have a competitive tariff advantage over renewable energy projects. Thermal based capacity of about 29,000 MW is under construction (under Eleventh Plan) and about 75,000 MW coal – based capacity and 10,000 MW gas based capacities are being planned for twelfth plan period. There is continued emphasis on technology in proximity to the coal mines (pit head plants) or at coastal regions (for imported coal) in the country to leverage on economies of scale / fuel efficiency.

About 60% of the thermal capacity planned in the twelfth plan is on Supercritical technology, which is considered to be fuel – efficient and environment friendly technology. The overall share of Thermal power in total installed generation capacity is likely to increase from 64% (FY2010) to about 74% by the end of twelfth plan. 3.3 Hydro / Nuclear / Renewable energy

The developments in Hydropower, Renewable energy (wind & solar) and Nuclear power are mentioned in Annexure IV. Under Jawaharlal Nehru National Solar Mission (JNNSM), GoI has planned an addition of 20,000 MW solar power by FY2022 (1100MW of Solar power has been planned under the phase I of the JNNSM

Power trading / power exchange

Several players participating in competitive bid projects are planning to set aside 15 – 20% of their capacities to sell through the merchant route to profit from the spread between merchant power prices and power purchase agreement (PPA) tariffs.

38 | P a g e

According to Crisil report (June 2010), by FY2015, merchant power capacities are expected to account for 5.0 – 6.0% (13,000MW) of the country‘s generation capacity vis – a – vis 1.0 – 1.5% (2000 – 3000 MW) in FY 2010. Going forward, the generation of power from future capacity addition is likely to be increasingly routed through the power traders / power exchanges gradually increasing the liquidity in the bilateral / OTC / power exchange market. The share of volume of power sold in short – term market (bilateral / OTC / power exchanges) which is currently at 4.1% of the total electricity generated is likely to increase in the medium term.

Developments in Hydropower, renewable energy and nuclear projects Hydro power projects

As on FY 2009, there were 40 hydro power projects with an aggregate capacity of 13,085 MW under construction. Hydro Power projects have been facing difficulties on account of factors such as difficult and inaccessible potential sites, difficulties in land acquisition, rehabilitation issues, environmental and forest – related issues, inter – state issues, geological surprises and long gestation period. 84 schemes with an installed capacity of 22,383 MW have been allotted to private developers by states. There were 11 schemes with an installed capacity of 4,111 MW under construction in private sector. As on FY 2009, out of the 162 projects for which preliminary feasibility reports were prepared under the 50,000 MW Hydro Electric initiative, 77 schemes 33,951MW have been taken up for detailed survey & investigation and preparation of detailed project reports implementation of which DPRs for 18 schemes have been completed. Central Electricity Authority has identified about 31,000 MW capacity under Twelfth Plan. Of this about 25,316MW is considered feasible

Renewable Energy

GoI has envisaged National Action Plan on Climate Change, which envisages increase in usage of green energy with an aim to minimize the carbon footprint in the country as also provide electrification through distributed generation to remote areas. NAPCC has stipulated that minimum renewable purchase standards may be set at 5% of the local power

39 | P a g e purchase in 2010 an dtherafter should increase by 1% each year for 10 years. Regulatory commissions in the country are also emphasizing the procurement of renewable energy by Distribution companies as stipulated by the Renewable Purchase Obligations. GoI has set target of 14,000 MW for renewable energy during Eleventh Plan period, of which only 60% capacity addition is likely to be achieved. Potential for wind power is estimated in the range of 50,000 MW to 1,00,000 MW in the country. Wind energy has been the main contributing force which has witnessed increase in level of indigenization in the manufacturing of wind generators and increasing trend towards state of the art technologies such as use of lighter and large blades in turbines, more aerodynamic design, higher towers and direct drive and variable speed gearless operation using advance power electronics. GoI is also encouraging the addition of solar power under Jawaharlal Nehru National Solar Mission, where in 20,000 MW of solar power have been planned in three phases upto the 13th Five Year Plan (i.e. FY 2022). Under the first phase (up to March 2013) of the mission, upto 1,100 MW grid – connected solar power plants have been targeted. Under the Mission, NTPC, Vidyut Vyapar Nigam Ltd. is designated as the nodal agency to procure solar power from PV the thermal project developers at a tariff by the Central Electricity Regulatory Commission.

Nuclear Power

India has signed 123 agreements (Concerning peaceful uses of Nuclear Energy) with the United States in October 2008, paving the way for development of civilian nuclear energy in the country. The ban on nuclear fuel imports into the country has also been lifted by the Nuclear suppliers group thus enabling the country to procure nuclear reactors / equipment as well as nuclear fuel. The integrated 14 energy policy has envisaged a possibility of reaching a nuclear power capacity of 21000 – 29000 MW by 2020, and 48000 – 63000 MW by 2030, through a mix of indigenous Pressurized Heavy Water Reactors, Fast Breeder Reactors, and Light Water Reactors which however is continent on availability / import of fuel / reactors through international cooperation as also on the evolving nuclear policy / regulatory framework and issues pertaining to nuclear liability / legal and institutional framework.

40 | P a g e

Developments in Transmission

Power evacuation has been a critical issue on account of factors such as a) development / augmentation of transmission system to cater to the long term requirements of large number of upcoming inter – state private sector generation projects as also need to harness renewable energy / non – firm power into the grid, b) requirements of maintaining the redundancies and reliability of interconnected network (as per the grid code) with increasing complexity and c) requirements to cater to the increasing volume of short – term / open access transactions. GoI is planning to develop National Inter State transmission Grid with interregional transfer capacity of 37,700MW at an investment of Rs. 55,000 crore by FY 2012. The power grid of the future is expected to be more intelligent, effective and environmentally sensitive comprising of several elements such as Ultra High Voltage / HVDC (765KV ac, 800KV HVDC and 1200 KV AC) lines, flexible alternating current transmission system (FACTS), dynamic control systems, wide area monitoring system and distribution network management. Power Grid Corporation of India Ltd is planning an additional investment of Rs. 80,000 crore over the next eight years to build transmission corridors and strengthen the grid in the country. PGCIL is planning to complete nine transmission corridors over next five years to evacuate 50,000 MW of upcoming projects by IPPs in various States. PGCIL is also exploring to set up transmission project to evacuate power from neighboring countries such as Myanmer, Banglahesh, Nepal, Bhutan and Sri Lanka. Seven transmission projects with investment of Rs. 5000 crore have been planned during Eleventh Plan period, while 14 other (Ultra Mega Transmission Projects) at an investment of Rs. 20,000 crore have been identified by the empowered committee on transmission that are to be awarded through tariff based competitive bidding to the private sector.

CERC has recently notified regulations on sharing of inter – state transmission charges and losses which have replaced the ‗Regional Postage Stamp‘ method by ‗Point of Connection(PoC)‘ system. Under the regional transmission on a pooled basis in the ratio of quantum of power drawn through the inter – state transmission system. A state in the southern region buying power from a state in the eastern region have to pay for the pooled transmission charges and losses of both eastern and southern regions leading to pancaking of charges. Under PoC, transmission

41 | P a g e charges will be locationally differentiated the generators will have to take a view both on transmission costs of electricity and transportation costs of fuel. With many new independent power producers (IPPs) expected to come up in the near future and bulk consumers being allowed to buy power through open access from anywhere in India, even across regions, the change seems relevant. Under the new transmission – pricing framework, all the power users will be default signatories to the transmission service agreement, requiring these users to pay the point of connection charge, which covers the revenue of transmission licensees. This commercial arrangement is expected to help financial closure of various transmission investment, as the transmission licensees will no longer be faced with the uncertainty in power generation project and the difficulties in getting the bulk power transmission agreements (BPTA) signed by all the expected beneficiaries of the transmission system. 15 Under the new system, the entire network is divided into various nodes based on geographical continuity, electrical contiguity and major consumption areas and major generation areas (load centers). Under the new mechanism, both the generator (who till now has been exempted) and load serving entity need to pay transmission charges and losses based on their location / connection level in the network (defined by node / zone comprising network of nodes) and the corresponding network usage chares as per the load flow studies conducted for each node one at a time.

Thus the location of generating company will impact its share during the allocation of transmission charges and losses as computed in the respective network node / zone. The new pricing system is also likely to facilitate the development of competitive market by enabling interregional Case I bids to overcome distortions pertaining to pancaking of transmission charges, rationalize long – term, medium term and short term open access charges and encourage solar power projects (by allowing Zero transmission charges and losses) and merchant power plants.

Development in procurement of Power equipment / EPC contracts

There has been increasing reliance on the imports of Chinese equipment for the ongoing power projects. About 30,000 MW of capacity (of which 10,000 MW are planned for twelfth plan projects) has been ordered with Chinese equipment

42 | P a g e companies. Several companies have also been awarding Engineering, procurement and construction (EPC) contracts to Chinese companies. While there have been issues pertaining to design and technical parameters (such as improper design, ability to run on domestic / low calorific value and high ash content coal, boiler tube failures, water leakage, etc) with Chinese equipment, several domestic companies have had a satisfactory experience with Chinese equipment. Thus as the lifetime costs of main plant equipment are influenced by operation and maintenance costs, availability of spare parts and technical support, the long run cost – to performance will remain critical for the companies relying on Chinese equipment. GoI has recently imposed restrictions on Chinese workface which however has been recently relaxed. GoI has also directed the Central and State sector generation players to source supercritical equipment from domestic companies. GoI is also contemplating to impose duty on power equipment imports. While the domestic companies (BHEL, L&T, etc) who are currently running full order books are augmenting their capacities, several joint ventures (L&T and Mitsubishi Heavy Industries, JSW Group and Toshiba Corporation, Bharat Forge Ltd. and Alstom, etc) have come in to power equipment market to cater to the increasing demand for BTG and other equipment. It is estimated the to fulfill the demand for power by different sectors, domestic power equipment manufacturing capacity of about 40,000 MW needs to be created every year till FY2017.Restrictions on Chinese workforce may compel the domestic players to restrict the contracts to boiler turbine and generator (BTG) only rather than the manpower intensive EPC contracts.

Coal supply outlook India has Coal resources of about 267 billion tonnes of which proven reserves are about 106 billion tonnes. Recent initiatives / plans in domestic coal sector such as competitive bidding of coal, improvised / underground mining efforts, New Coal Distribution (NCDP), revision in coal prices, fuel supply agreements with power utilities, pricing of coal based on Gross calorific Value rather than Useful Heat Value, creation of coal regulator, etc might give a fillip to the domestic coal production (by Coal India Ltd.). As on March 31, 2009, 201 coal blocks with geographical reserves of coal of 45.89 billion tones have been allocated to eligible companies. Of the 201 blocks, 3 blocks have been de – allocated and mining lease of one block has been declared void. Out of remaining 197 blocks with reserves of 16 27.59 Billion tonnes

43 | P a g e have been allocated to PSUs. Out of the 100 blocks allocated to private companies with geographical reserves of 17.93 Billion tonnes production has commenced in 23 blocks. According in industry sources, in FY2011, domestic production of coal is projected at 572 million tonnes(mt) (6.8 % increase compared to previous fiscal) and imports are projected to reach 84 million tonnes (21% increase from previous fiscal). While Coal India Ltd, the major producer of domestic coal is aggressively planning to increase its production and also acquire overseas coal assets, the overall demand is unlikely to be met from the domestic supplies alone in the medium to long term. Power sector consumes about 72% of the total consumption of coal in the country. Domestic consumption of coal by power sector is projected at 442 million tonnes in FY2011, while the domestic availability is projected at 389 million tones.

Thus, the domestic demand supply gap of coal for the power sector is projected to be about 53 million tonnes FY2011. After factoring Gross Calorific value, the projected imports are estimated at 35 million tonnes in FY2011. The domestic coal demand supply gap for power sector is projected to increase to about 120 million tonnes by FY2013. According to industry sources, Coal requirements for the power sector is projected to reach to about 800 mt by FY 2017 and increase to 1070MT by FY2022. However, domestic coal supply is projected to increase to 554 Mt by FY 2017 and 756MT by FY2022. Total Coal imports are projected to reach about 200 million tonnes by FY2017. NTPC the largest power company in the country plans to raise its existing 32,000 MW capacity to 51,000 MW by 2012 and 75,000 MW by 2017. It is estimated that NTPC (currently 80% of capacity is coal based) which has consumed 150 Mt during Fy2010 would be requiring about 280 MT of coal annually by the end of the 12th plan period (2017). Around 70% NTPC coal requirement by the end of 12th plan period is expected to be met from domestic sources, while another 20% through its mines and the remaining 10% through imports.

There have been also issues pertaining to the coal imports such as steep escalation in international coal prices and proposal by Indonesia to impose a cap on their exports. With the sudden emergence of China as a major buyer of thermal coal, global coal prices had also witnessed sharp escalation till FY 2008, which moderated subsequently. However the international sport prices have been witnessing upturn and is projected to be firm in the long term. In Jan 2010, GoI has made allocations

44 | P a g e for IPPs (which are feasible for commissioning in Eleventh plan period). GOI have recently issued notice to cancel the coal blocks allocations where the respective players have failed to develop the same considering the shortage scenario of coal. GoI has prioritized coal linkages during Twelfth plan period based on Sector and technology. GoI is also planning to stop allocating domestic coal linkages to UMPPs which henceforth have to fully rely on imported coal and directed the domestic players to have the technical capability to process blended coal by importing upto 20% of their coal requirements. Several players are also scouting for acquisition of overseas coal assets. Recently companies such as Reliance Power, JSW Energy, Essar, NTPC and Tata Power have bought overseas coal mines.

Gas Supply outlook

In Fy 2010, the overall demand for natural gas (from sectors viz., Power, Fertilisers, Petrochemicals, Spongeiron / Steel, City Gas Distribution, CNG, etc.) in the country is 190 mmscmd against overall suppliers (from Administered Price Mechanism (APM) gas, Joint Venture (JV) gas, natural gas supplies by private under National Exploration and Licensing Policy (NELP) and Regasified Liquefied Natural Gas (RLNG) of 175 mmscmd witnessing a shortage scenario to the extent of 15 mmscmd. At present, the total allocation of domestic gas to the power sector stands at 79 mmscmd. Gas based power plants have operated at 67.3% Plant Load Factor (PLF) in FY 2010, which is an 17 improvement over 57.6% in FY09, on account of increase in allocation of gas supplies from KG basin to power sector. Potentially, gas power plants can operate at 90% PLF and thus have a potential shortfall of about 19 mmscmd. At the end of eleventh Plan period, projected shortfall in gas supplies are 35 mmscmd @90% PLF) /14 mmscmd @70%PLF). About 90 mmscmd of additional supplies are projected to need the requirements (at 70% PLF) of planned capacity during 12th plan period. The development in national grid is likely to facilities the continuity in supplies to the power plants and facilitate setting up of power plants closer to the load centers. While the Reliance has begun gas production from KG basin, the gas supplies from recent discoveries of ONGC and GSPC is likely to partially materialize by FY2017. Overall gas supplies by Reliance, ONGC and GSPC are likely to be in the range of 50 to 70 mmscmd by FY2017. By FY2017.

45 | P a g e

4) Healthcare sector in Qatar

Qatar has been ranked top for per capita health expenditure list from the Gulf cooperative Council (GCC) by the World Health Organization (WHO). Some vital health statistics has been positively affected by this expenditure. As for example, the rate of the crude death in the year of 2006 was reported 2.09 per 1000 of the population. The average life expectance at birth and total fertility rate for some period was 2.67 and 75.8 years.In the year of 2005 the National Health Authority (NHA) was established and which has replaced the Ministry of Public Health. The NHA brings necessary medical services from other countries and puts them in the wellbeing of public health and entrust them to public health institution. The main institution names Hamad Medical Organization (HMC). Doha is the capital city of Qatar which is having numerous clinics and hospitals. For convenience, health centers has been set-up along the highways.Since Qatar opened its first hospital 50 years ago, numerous variations and developments have been presented. The healthcare system is accessible to all; whether you are a national, deportee or a traveler. Qatar has a public health service that provides free or highly subsidized healthcare and, generally speaking, it is of an outstanding standard.

HOSPITALS

There are 9 hospitals in Qatar, 5 are government operated and 4 are privately run. In 2006, there were a total of 2,077 hospital beds, which equates to about 25 beds per 10,000 of the population. The main hospitals include the Hamad General Hospital, which is having 616 beds covering all general medical areas, with specialties in pediatrics, surgery and internal medicine; the Rumaillah Hospital and the Al Amal Hospital, a ground-breaking specialist center for the detection, treatment and rehabilitation of cancer. In 2006 there were 27.6 physicians and 73.8 nurses per 10,000 of the population.

46 | P a g e

EMERGENCY SERVICES

The ambulance service has improved spectacularly in numbers in 2002 and, as such, ambulances are available countrywide. As a result, there is very low average response time to an emergency call. For better service, ambulances are linked to the Hamad Hospital via satellite.

Since the country's first hospital opened its doors almost 50 years ago Qatar's healthcare sector has come a long way. Today, the industry claims the highly qualified staff and most advanced medical apparatus, a countrywide web of hospitals and healthcare centres, as well as a cardiology department that is referred to by outside specialists as "one of the best in the world". A report given by the general secretariat of the GCC ministers of health, Qatar has the region's lowermost maternal mortality rate.

PRIMARY HEALTH CARE

Primary health care aims to realize social development by adopting health programs that help citizens to become productive elements in society. The programs implemented by the Primary Health care include health consciousness, maternity and childhood health care, immunization against childhood diseases, diagnosing and treating chronic diseases, providing medicinal drugs, healthy food and clean water and ambulance and medical emergency services.

HAMAD MEDICAL ORGANIZATION

Hamad Medical Organization is considered to be one of the most outstanding specialized medical creation in the Arabian Gulf region. It was established in 1982 after completing the merger of all hospitals belonging to HMC into an integrated administrative body comprising Hamad General Hospital, Rumailah Hospital and the Women's Hospital.

47 | P a g e

PRIVATE HOSPITALS

AI Ahli Hospital: AI Ahli Hospital looks set to be a major private hospital in Qatar. It opened with limited services in December, and full operations are scheduled to be launched in phases throughout the first half of 2005.

AI Emadl Hospital: Besides nursing patients back to health, the management at AI Emadi Hospital aims to provide comprehensive healthcare education to its patients. It believes in knowledge-sharing and planning with patients and their families. Its wide range of specialty care includes treatment of obesity, general surgery, plastic and reconstructive surgeries, dermatology, dental services and emergency services. See page 218 for further details. American Hospital Doha: Opened in mid-October 1999, American Hospital Doha was Qatar's first private hospital and has recently upgraded its apparatus and facilities. Doha Clinic Hospital: Doha Clinic started life as a polyclinic in 1994 and expanded over the years to become a fully integrated hospital in 2001. It was renamed Doha Clinic Hospital.

How to obtain a Health Card

To obtain a Health Card, expatriates must provide the following:

 Copies of passport and Residence Permit

 Copies of Qatar ID  Two passport-sized photographs

 A fee

These should be taken to the Rumailah Hospital, or alternatively to any HMC clinic. The card takes two to three weeks to process, and can be collected from the hospital, or delivered for an enhanceitional fee. A medical file is also opened for the holder, and kept at their nearest government health centre. Employers often undertake to carry out the above procedures on behalf of the employee.

Cards last for the same number of years as the holder's Residency Permit, and can be renewed online on the Qatar government Hukoomi website.

48 | P a g e

MEDICAL R&D IN QATAR

Currently, there is lots of investment in research and development, through organizations such as the Qatar Foundation. There are also funds to attract researchers to come to Qatar with financing for existing research and development projects that occur in several places around the world. This is not yet up to speed but the growth of projects and breakthroughs year by year is quite high. If we compare the level of medical research and development in Qatar to the region, it is much better in Qatar. If we compare it to international standards and to what Qatar wants to achieve, there are still a lot of efforts that have to be made.

SWOT Analysis of Qatar healthcare sector Strength Qatar has the most advanced medical equipment .Highly qualified staff available in Qatar.A countrywide network of hospitals and healthcare centers Cardiology department that is referred to by outside specialists as "one of the best in the world" Driven by new government strategy and regulatory reforms, more investments are expected in the GCC healthcare industry .Great Infrastructure provide by Government . Weakness

Laws governing private practice are strict, and licensing Problem to get is always challenging in Qatar. Qatar has small population .Lack of Nursing Staff and Doctors because of number of colleges for them is low

Opportunities

HMC, the Qatari government has also promoted the private sector providing healthcare to the publicCommon health difficulties include alcoholism (particularly among bachelors, owing to loneliness and depression) and respiratory difficulties caused by sand and dust in the air – a situation exacerbated by non-stopping building work in most states. Hard work and long hours in often extreme heat can also affect the immune system and compromise the body‘s ability to counter illness. Demand of Healthcare is always highest level

Threat

Government Hospitals are threat for Private Hospitals Also At these HMC facilities, medical and dental treatment is free for people of Qatar.Residents and visitors are required to apply for a QR100 health card, which allows them to pay small charges for various tests and consultations as well as a nominal fee for inpatient care.Dubai,

49 | P a g e

Saudi Arabia, Kuwait are Investing largely so the market is sharing also these healthcare services

PESTEL ANALYSIS OF QATARS HEALTHCARE SECTOR

Political

Qatar Government Established Hamad Medical Corporation (HMC) was comes to provide state-of the-art diagnosis and treatment of dieses Since in October 1979, HMC has become Qatar's leading non-profit healthcare provider through its network of Primary Health Care Centers and four highly specialized hospitals in the capital, name Doha.Also HMC, the Qatari government has also promoted the private sector providing healthcare to the public. Driven by new government strategy and regulatory reforms, more investments are expected in the GCC healthcare industry, aimed at enhancing and developing healthcare infrastructure and value chain. This increase in investment will lead to a significant expansion in the healthcare sector and will create attractive opportunities for private sector participation in the industry.

Environmental

Respiratory difficulties caused by sand and dust in the air, Expatriates – particularly manual workers – can suffer sunstroke and sunburn. You should be excused work outdoors if the temperature reaches 50oC (122oF), which isn‘t uncommon at the height of summer, although it‘s unusual for work to be stopped under these conditions. In the summer, humidity causes enhanced discomfort, with eye infections common. Dehydration is also a threat and is a potentially fatal condition that shouldn‘t be underestimated – not only by those working outdoors but also by anyone playing outdoor sports, including ‗leisurely‘ pursuits such as golf.

Social

Increased urbanization and rising per capita income have also led to a more sedentary lifestyle in the GCC. This has substantially increased the prevalence of lifestyle-related diseases such as diabetes, cardiovascular ailments and cancer. According to the World Health Organization, the GCC has the highest ranking in the world in incidences of diabetes and obesity. The higher incidence of lifestyle diseases is projected to lead to an increase in per capita healthcare costs and more demand for specialized tertiary medical facilities. Additional investment and private sector participation are required to reduce the demand/supply gap.

50 | P a g e

Legal

The main government hospitals are administered by the Hamad Medical Organization (HMC), while the Ministry of Health is responsible for the units known as Primary Health Care Centres. The Supreme Council of Health oversees the country's healthcare system and policies. English is widely

Economic

According to the Economic Intelligence Unit (EIU), the Gulf Cooperation Council (GCC) population reached 45 million in 2010 and is forecast to reach close to 57 million by 2015, posting a cumulative annual growth rate of 5%. The GCC population is relatively young with the vast majority of people under the age of 29. But this structure is expected to change in the next 10 years, with the over-65 age segment experiencing the fastest growth rate. This segment has a proportionally higher healthcare cost per capita associated with the treatment of diseases such as heart ailment, hypertension and diabetes.

BUSINESS PLAN

Medical Tourism India

Medical Tourism in India is a million dollar booming business, drawing loads of overseas patients. Medical Travel India is projected to capture 2.5% of the International Medical Tourism Market by the year 2012, with concurrent revenue projects of $ 2.3 billion. It has been estimated, that the Medical Tourism Industry in India will attract over 1.1 million patients from across the globe, by the end of 2012.

Contemporary and state of the art infrastructure, high end technological support, and excellent quality of health care, make India, an alluring Medical Trip destination, chiefly for patients in the U.K., and U.S., where health care costs are exceedingly steep. Coming to India for a Medical Trip helps save a significant amount of money, sometimes to the tune of 50 % to 70 %. Importantly, low cost of medical care, in no way indicates substandard or poor quality. Indian hospitalsprovide first-class services and facilities. Also, Medical Travel to India, helps to do away with the long waiting lines that patients experience in their home country, and thus, assists them in gaining easy access to timely medical care.

51 | P a g e

There are several factors which are favoring exports of the healthcare services. These factors are

1) Shift from the socialized to private providers. 2) Booming economy and high literacy rates. 3) Shift to the lifestyle related diseases. 4) Easier financing 5) Increasing life expectancy 6) Recognition by government priority sector

The majority of healthcare services in India are provided by the private sector. 60 percentage of hospitals in India belong to the private sector. Private sector owns about 75 % of all dispensaries. Government spending on the healthcare sector is declining relatively and Indian government spends only 0.9 % of GDP on the healthcare sector. Developed countries spends around 5 % of GDP on the healthcare sector.

GUJARAT HEALTH CARE SECTOR:

SNAPSHOT ON GUJARAT HEALTH CARE

INFRASTRUCTURE Primary health care share 70% of total health care sector, Gujarat has district hospitals as well as sub district hospitals. MEDICAL EQUIPMENT Well tronix, ABC sons and GE health care are supplier of medical equipment PHARMACEUTICAL INDUSTRY Zydus, cadila, lupin, sun pharma, intas, Aventis and many foreign [players are operating in Gujarat. HEALTH INSURANCE GOVERNMENT SCHEMES

PRIVATE COMPANIES Bajaj Allianz, TATA AIG life insurance Company, national insurance company.

52 | P a g e

MEDICAL TRAVEL Medical tourism, treatment at cost effective rates

CLINICAL RESEARCH: Many of drugs are under trial and some of them are patented continuous research and development is done to improve quality of life. Stem cell therapy and various R&D on HIV, cardiac and diabetic Drugs are under clinical trial.

EDUCATION Many courses including medical and para medical courses are in the state

TECHNOLOGY AS DRIVER OF THE SECTOR: Gujarat has well equipped medical services for e.g. Muljibhai Patel hospital of Gujarat is 2nd hospital after AIIMs to start nephro – neurological surgeries by robotic technology. Anand is known globally for in vitro fertilization technique.

HEALTH INSURANCE Heath insurance not only cover expenses incurred but also covers the pre and post treatment expenses of medicines and tests. Integrated insurance scheme, Gujarat The community based insurance scheme is done by the nonprofit government organization (NGO) or by the SEWA (Self- employed women Association), Ahmedabad Primary activities by them include providing financial services to women they also have package including the life, accident and asset insurance This package covers In patient care 1) Hospitalization cover, member can use any kind or hospitals weather it is public, private or trust. 2) Delivery benefits for FD members

53 | P a g e

The scheme delivered by SEWA is purchased from Government insurance company and ICICI Lombard.

GOVERNMENT INITIATIVE SWASTHYA BIMA YOJNA GUJARAT

Insurance scheme for the workers in unorganized sector belongs to BPL category and five family member are beneficiary of scheme. Pilot project launch in Dahod , Bharuch ,Jamnagar, Kutch and Patan covers 4.5 lacks BPL families and 42 talukas and 3500 villages . Whole state will be covered in 5 years Which gives securities against unforeseen health expense upto 30000.

BUSINESS OPPORTUNITIES IN FUTURE

Gujarat has medical expertise and good facilities which are better than the other nations in Asia. Hospitals are trying to sell hard abroad for that they are developing themselves at each axis in services to customized package and other efforts they put to get client from abroad. The state Gujarat offers potential to develop medical tourism in the major cities like Ahmedabad, Vadodara, Surat, and Rajkot Gujarat has world class medical facilities of super specialty hospital which is competitive at international level Health care treatment is available at very competitive rates so it makes Gujarat lucrative for the people who wants medical services cost effective rates. There are excellent infrastructure facilities which offers foreigner attractive option to choose. There are so many resorts and premium hotels which provides good services to attract both local and foreign tourist.

PUBLIC PRIVATE PARTNERSHIPS (PPP) Gujarat government with EMRI (emergency medical research institute) take care of emergency of fire and road accidents and provide services 24 hours by just dialing 108.

54 | P a g e

CHCs are run by community based organization (Malav, Shamlaji, Rajsitapur, Chansad, and MotaPhospholiya).Shamlaji hospital is located in sabarkantha and managed by all India movement for sewa.. CHETNA (center for health education, training and nutrition awareness support 14 NGO‘s to implement RCH (reproductive and child program)

SSA( SarvaSwawstaAbhiyan) which is an NGO linked to improve quality of health at remote area they have opened 10 centers in the tribal area of Mundra , Prantij , Idar , Bardoli , Hansot ) that are connected to nearby superspecialty hospital of Ahmedabad, Vadodara,Nadiyad, Surat . WHG (wockhardt hospital group) manage 275 beds civil general hospital at palanpur. PPP model also used for chiranjiviyojna (approx. 900 gynecologist are part of the scheme)

MEDICAL EQUIPMENT MARKET

Gujarat medical equipment industry include surgical, medical and dental products for treatment. The demand for hi-tech devices in Gujarat is growing Severs factors that makes the industry potential are well developed industry, economic growth, free market environment, and investment opportunities. MEDICAL EQUIPMENTS

Medical disposables Fitness equipment Surgical instruments Ultrasonic therapy Otoscope Lumber traction Short wave diathermy Traction table Ear currets Interferential therapy Hot and cold therapy Slimming equipment Equipment Muscle stimulator Physiotherapy equipment

55 | P a g e

SOME OF THE MAJOR SUPPLIER OF MEDICAL EQUIPMENTS Welltronix instruments A.B.C sons Bhupendrasurgicals Excel enterprise RLS techno services GE healthcare

HEALTHCARE OUTSOURCING

56 | P a g e

5) Restaurant business in Qatar

Current scenario of Qatar

Qatar has an array of world-class restaurants and night-spots, with something to offer everybody Fun and food for all Hotels in Qatar serve not only their own guests but also cater for a large number of local residents. Their restaurants cover the full range, from coffee shops to fine dining and specialty outlets and the standard of service is on a par with the best in the world. The night-life is equally varied, with many bars, and discos open until the small hours.

International Cuisine

Standards of international cuisine in Doha are high and the choice is wide. Top class western restaurants in the city‘s hotels include French, Italian, Swiss, Spanish, Greek, British and American. International fast food chains are also represented by such names as McDonald‘s, Kentucky Fried Chicken, Pizza Hut, Pizza Inn, Taco Bell, AFC, A&W, Burger King, Hardee‘s, Dairy Queen and Al Tazaj Fakieh.

GOVERNMENT POLICY ON SMALL-MEDIUM ENTREPRISES (SMEs) AND ENTREPRENEURSHIP IN QATAR

Foreign Entrepreneurship

Like all countries, Qatar has its own guidelines for foreigners interested in doing business in Qatar. Foreign investors must appoint an agent or sponsor in order to do business with Qatar. There are two types of agents a service agent and a commercial agent. In the case a foreign investor is planning a project, which is to be executed for Qatari private entities and leave the country upon completion, a service agent is required to take care of all administrative work with the government. If the business intends to import to Qatar a commercial agent is required to act as a sales

57 | P a g e or distributor representative. Experts believe that the requirement for a service agent in Qatar is becoming more lenient, and may be abolished in years to come. If foreign investors wish to do business in Qatar it has become the common practice to establish a Limited Liability Company. In this case, foreign ownership cannot exceed 49% of the capital with a Qatari partner owning at least 51%.

Finance and Banking

In Qatar, there are no personal taxes, social insurances, or other statuary deductions from salaries and wages paid in the country. Qatari and GCC nationals are not subject to income tax in Qatar. This may seem misleading because Qatar is not a tax free zone. Foreign investors, partnerships and companies operating in Qatar must pay a tax on corporate business. By law, all occupations, professions, service trades, contract executions or any other business are subject to these terms. Certain tax exemptions are allowed in Qatar depending on whether the activities of the foreign firms are directly benefitting Qatar, incorporating modern technology, and/or fulfilling a strategic goal for the government.

The Qatar Development Bank (QIDB) was founded in 1997 and specializes in the promotion and financing of small and medium enterprises. The objectives of QIDB are to: (1) provide industrial loans and finance imports of raw material, machinery, and technical equipment, (2) provide loans for export of industrial products, (3) undertake studies, provide advisory services and promote sound projects identified through a comprehensive development strategy, and (4) promote small and industrial projects and monitor their implementation phase.22 In this way, Doha hopes to increase the number of local business owners and consequently improve competition in various sectors.

58 | P a g e

Doing Business in Qatar

In keeping with the objectives spoken in its National Vision 2030, Qatar has driven to shift its economic and developmental focus away from a dependence on oil and gas by promoting a policy of economic diversification as evidenced by the now internationally recognized brands of Qatar Airways and Al Jazeera, and its fruitful bid to host the 2022 FIFA World Cup. Knowing that the contribution of non-Qatari investors is an essential part of the successful recognition of this policy, Qatar continues to implement new legislation intended at liberalizing the business atmosphere for such investors, and presenting incentives and exemptions that supplement the country's already significant investment appeal.

1. Investment restrictions

(a) Non-Qatari investors may only invest in Qatar in harmony with the provisions of the Foreign Investment Law (Law No. (13) of 2000 as amended). (b) Non-Qatari investors may invest in all parts of the national economy (other than those set out in (c) below) with a Qatari partner who must have at least 51% of any enterprise. (c) Non-Qatari investors may not invest in commercial agencies or, broadly speaking, real estate and infrastructure. Authorization from the Council of Ministers is necessary for foreign investment in banking or insurance. (d) The Minister of Business & Trade (Minister) may license non-Qatari investors to own up to 100% of an initiative in precise business sectors, being, agriculture, industry, health, education, tourism, the development of natural resources, energy or mining, consultancy and technical services, information technology, culture, sport and recreation/entertainment services and distribution services, though such approval is not granted frequently. (e) Foreign capital is guaranteed in contradiction of expropriation (although the State may acquire assets for public benefit on a non-discriminatory basis, provided the full economic value is paid for the asset). (f) A non-Qatari company which is performing a specific contract in Qatar may register a diminishing entity or division office (Branch) if the project facilitates the performance of a public service or utility.

59 | P a g e

(g) A non-Qatari company working in Qatar under a Qatari government concession to extract, exploit or manage the State's natural resources is exempt from the Foreign Investment Law. In exercise this shields all the major oil companies. (h) A company formed between a non-Qatari entity and the Government or a Governmental entity (an Article 68 Company) will be subject to special rules.

Company structures

The two forms of vehicle most estimated to be of attention to non-Qatari investors are Limited Liability Companies (LLCs) and so-called Article 68 Companies. Other potential legal entities under Qatari law are Limited Partnerships, Particular Partnerships, Holding Companies, Single Owner Companies and Qatari Shareholding Companies (QSC), but non-Qatari participation is regulated.

If the non-Qatari investor is allowed to own 100% of the company (by MBT as a result of investing in certain specified sectors) the single shareholder company can be used as the vehicle for such investment.

Article 68 Company

Characteristics include: (a) formed among an investor, which may be non-Qatari, and the Government or a company in which the Government holds shares in the share capital of a company; (b) the non-Qatari investor's portion of the company is a matter for negotiation, but can be greater than 51% subject to Council of Ministers' sanction; (c) corporate structure is of a "Qatari Shareholding Company with Government Participation"; and (d) falls outside the Foreign Investment Law and, to a certain degree, the Commercial Companies Law.

60 | P a g e

Taxation Registered Entities

The Tax Law (Law No. (21) Of 2009) presented a new tax system with effect from 01 January 2010. Profits attributable to non-Qatari receivers are now taxed at a flat rate of 10%. The new tax law also presented withholding tax for the first time. Qatari individuals and registered entities must now reserve either 5% or 7% of any payment made to a non-Qatari service supplier (depending on the services delivered) where that provider cannot show that he, she or it has a stable place of establishment in Qatar.

Non-Qatari investors are advised to gain Qatar tax advice before arriving in the Qatar market; the "Big 4" accounting firms have offices in Qatar.

Tax treaties

Certain countries, such as the United Kingdom, have double tax treaties with Qatar. In the lack of such treaties, unilateral help may available where Qatari income tax has been paid.

Tax exemptions

The Tax Law establishes the idea of tax exemption for specific projects where definite conditions apply.

Request for tax exemption of projects is assessed by a Committee reporting to the Ministry of Economy and Finance.

The exemption periods are 3 years on the sole sanction of the Minister of Economy and Finance and 6 years on the agreement of the Council of Ministers

61 | P a g e

'Qatarisation'

A Qatarisation initiative is in place which aims to surge the number of Qatari residents in the public sector workforce. The Labour Law (Law No. (14) Of 2004) presents Qatarisation initiatives for private sector entities. The employment of Qatari nationals is one of the measures taken into account when tax exemptions are decided.

Contract of employment The popular of Qatari contracts of employment will be ruled by the Labour Law which must be in Arabic and approved by the Labour Department. Employment contracts for employees of Government entities and agencies along with some energy firms will be governed by the Human resources Law (Law No.(8) of 2009).

Social and business customs

Qatar is a Muslim national, and the heritage of Islam is deeply embedded in the Qatari character. Islamic customs govern the general way of life; care must be taken to respect this, particularly in such matters as the dress code, the observation of the times of prayer and the fasting month of Ramadan, when food and drink may only be used up between sunset and sunrise. The importation and consumption of alcohol is strictly regulated, however, liquor permits may be gained by non-Qatari employees in certain circumstances and the major hotels are allowable to serve alcohol in restaurants and selected bars. Qatar forbids the brewing and trafficking in alcohol. Drunken activities in public or driving under the influence of alcohol is an offence punishable by imprisonment, a fine or both, and the cancelation of the offender's driving license in relation to the latter.

Qatar has prohibitions on all pork products.

Qatar forbids individuals from photographing airports, Government Ministry buildings or defense installations and care should be taken to evade taking photographs that might constitute an invasion of an individual's privacy.

62 | P a g e

As with all Arab peoples, the ritual of hospitality and generosity is sturdy. It is vital to display courtesy and patience in negotiations.

Procedure of starting up a business in Qatar 1. Apply online for approval of the planned name with the Ministry of Business and trade. 2. Submit the Articles of Association for examination at the Commercial Companies Inspection Department at the Ministry of Business and Trade. 3. Open bank account and deposit minimum capital. 4. Sign the Articles of Association before an agent at the Ministry of Justice counter located at the OSS. 5. Gain commercial registration from the Ministry of Business and Trade and register with the Chamber of Commerce and Industry at the single counter located at the OSS. 6. Get trade license and signage license from the municipality counter located at the OSS. 7. Register for taxes and get Tax Identification number. 8. Gain a company seal.

Required Documents Mandatory Documents  Copy of passport  Non-Qatari Commercial Registration authentication by the Ministry of Foreign Affairs  A copy of ID of the authorized signatory by partner  Foreign owner‘s official proxy ratified and authenticated by the Ministry of Foreign Affairs  ID of the CR applicant and building license  Lease contract of a property  Deed contract of a property  Copy of property sitemap and drawings  Construction conclusion certificate of the company/establishment premises Documents required on case by case basis  Franchise contract authorizing the use of the trademark

63 | P a g e

Restaurant Business in Qatar

Company Ownership The restaurant will start out as an LLC corporation, owned by its founders, Monank Patel, Gaurang Tank, Digvijay Parmar, Pratik Sur, Nihar Nathvani and Balmukund combinely holding 49% of stack with other 51% by a Qatari Friend.

Start-up Summary

The restaurant will require 3000 sq. feet space. Our start-up costs are mostly expensed equipment, furniture, painting, reconstruction, rent, start-up labor, and legal and consulting costs associated with opening our restaurant.

We will require minimally QAR 100,000 just to open a bank account (After One month of the establishment we can use this money)

We will then need to cover the fees of all commercial registrations, computer ID's etc. (maybe around QAR 50,000) We will purchase the following current assets during start-up:

 Fixtures and Lights: QAR 118,000  Sound and Televisions: QAR 30,000

 Office Equipment (2 Computers, Fax, Printer, Safe): QAR 24,000 Long-term Assets in the amount of QAR 237,000 include all kitchen equipment.

Restaurant Design Single-Level Design Concept: The total space requisite is 3,000 square feet. The restaurant will feature a comfy and open concept design. The central dining area will allocate 76 seats, the lounge 22 seats, and the dining bar with 12 seats. In total, the eatery will offer seating for 110 patrons.

Restaurant Location:

Midtown of Doha, Qatar.

64 | P a g e

‗Al Jalsa‘

It‘s love that we serve

Objectives

At Al Jalsa we will always believe in trying to build the best gastronomy. In the past many years we have found that people of Qatar are being attracted towards dishes of different countries. As economy of Qatar is growing rapidly, people from different countries are being attracted to try their fortunes in Qatar. So our objective is to satisfy the choices of people from every country possible.

Serving best possible cuisine to customers and specializing in Indian curry. Our objective also includes being famous not only for the infrastructure but also for the quality product. But primarily we want to be known for top notch hospitality and customer satisfaction.

Mission

Providing different type of cuisines with top quality. To achieve such standards our main mission is to provide nutritious food in fair price. Our efforts would be directed towards delivering modern service with traditional taste. We will set up an excellent team of chefs and cooks from the respected countries with different type of dishes. The ingredients used will be of superior quality.

Vision

Though we are beginning as three star restaurants but our ultimate goal will be achieving a seven star standard and being known for our hearty hospitality.

65 | P a g e

Also we wanted to establish one of the biggest and most respected restaurant chains in the world and bringing up name of Qatar in the world map. Our aim is to win ―Best Arabic Restaurant‖, ―Best Lebanese Restaurant‖ and Qatar Today Award‖.

Marketing

Marketing is pivotal in keeping a restaurant running. It is important to retain our existing customer base while growing the restaurant by attracting new diners.

An example of a marketing goal might be to attract new diners from a particular neighborhood. Objectives might include using social media to engage potential diners in conversations about food, to join the neighborhood summer activities planning committee and to send a direct mailer inviting people from the neighborhood to try a free appetizer.

Doha‘s population is 1.76 million. Average spending by a person on food in Doha is $17. Main marketing strategies to be adopted will be word of mouth and in store marketing.

Revenue

Revenue goals are important, since money is the driving force of the business. To achieve goals, consider figuring how much revenue we would need each month to achieve this goal. Also consider if there are months or weeks busier than others.

Perhaps our business increases during the holiday season when people are busy shopping and have less time for cooking.

Next, break down by how many meals/units need to be sold each week and each day.

Consider our dining crowd. If we're more likely to have a full house on weekends, the revenue goals for these days will be higher than weekdays.

66 | P a g e

Service

Excellent service paired with quality food is a base plan to keep diners returning.

An example of a restaurant service goal might be to provide the best front-of-house service of any area restaurants.

We would then define what this experience would look like. Perhaps diners would be greeted within two minutes of entry and seated within 10 minutes. It could also include an edict that diners receive water and bread at their tables no later than five minutes after seating.

SWOT ANALYSIS

Strength

 One of very few sea-facing restaurant of Qatar.

 Party yachts for making special occasions more special.

 It also possesses vast area with top quality infrastructure.

 Dedicated chefs for different varieties of cuisines.

 Top quality food with excellent hospitality by warm welcoming staff.

 The only restaurant of Qatar providing cuisines from more than ten countries.

 The only restaurant in Qatar providing pick up facility.

 Discount on every visit and dedicated members‘ card with extra benefits.

 Play area for children and extra care for pets.

 Although we run a company we‘re responsible for our employees and their families, so it is a lot of stress and mental preoccupation to deal with, but from that we find the satisfaction and the motivation to go on, when we look back at our career and realize what we have achieved.

67 | P a g e

 That is what makes it all worthwhile, and it is what drives us to go on; knowing that we have worked hard and have accomplished something

Weaknesses

 New in market

 Limited fund availability

 Huge competition

 Cultural differences

 Extreme climate

 Cultural diversity among staff

 Might not be affordable by a particular segment of people

 Setting up the infrastructure would be time consuming and difficult process.

 Legal implications

 Operating cash flow would be low due to promotional events.

Opportunity

 Doha‘s 30% urban population is Indian

 Development of tourism industry will fetch more number of customers.

 People from various countries reside in Doha which will provide opportunity to go global.

 Special government aids given by government tourism department will provide us with more favorable benefits.

68 | P a g e

 Joint ventures with various restaurant giants in world are possible after establishing status in Doha.

 Growing economy provides higher standard of living which will bring more customers.

 Beautiful sea facing infrastructure will give pleasant experience to customers and hence will increase the number of customers at the end of their hectic schedule.

 Perfect building and pleasant interior will be done by hiring best architects and professional interior decorator.

Threats

 Licensing and other legal implication will be hectic.

 Already set and established competitors

 More number of partners will make it difficult to achieve effective profit sharing

 Operating cost will be higher for first couple of years.

 Language and cultural differences might cause clashes between staff.

 Threat of formation of groups in staff.

 Training employees will be difficult and cost will be higher due to language differences.

CONCLUSION Qatar is a dynamic market with excellent growth potential. By transferring reliance on oil profits to modern health facilities, tourism infrastructure, and western style education institutions, the Qatari government aims to establish a forward-looking and highly skilled population. However, with the fast-paced growing markets the Qatari government is not always able to establish necessary laws and procedures which business requires. Sometimes regulations are not widely published and are at times enforced with little or no consultation with the private sector.

69 | P a g e

6. Sports Sector

Investors who are looking for a reliable and steady return in capital they should invest in infrastructure projects focus their attention in Middle East region, according to ―Infrastructure Investment Index‖ report published by global built assets consultancy EC Harris.

In the Middle East rankings, Qatar and the UAE were both placed in the top five in the final rankings, finishing in second and fourth position respectively.

This report also shows the scale and volume of opportunities that is present across the Middle East particularly in Qatar where a major capital investment program is already underway to enhance the Qatar‘s infrastructure before the 2022 FIFA world cup. Qatar estimates $100 billion is to be allocated to infrastructure projects including sport infrastructure.

Why Sports Infrastructure Industry In Qatar

Qatar is planning to develop itself as a global sporting destination. So sport infrastructure development has enjoyed unfettered supports of Qatar‘s government.

Since 2004, Qatar hosted various prominent international competitions like marine sports football, cycling, golf, tennis.

Qatar is now setting its sights on FIFA 2022world cup and 2020 Olympic Games. Hosting such high-profile events would evaluate Qatar‘s profile on the world stage as well as accelerating infrastructure development and this would help to diversify the economy of Qatar away from hydrocarbons.

70 | P a g e

Qatar sees sport as a key way in which to diversify its economy away from its high dependence on oil and gas, particularly hosting the World Cup and other international sporting events.

Sports Infrastructure Opportunities in Qatar

Opportunities can be broken down into the following general list:

 Infrastructure: planning, construction, maintenance and equipment  Specialist Expertise: project management, consultancy, financing and insurance

 Current Sports Market

Qatar currently holds around 28 sporting events each year.

The largest event held in Doha up to 2012 was the 15th Asian Games in 2006.Other major sporting events in Qatar have included the Qatar ExxonMobil Open tennis tournament, the annual Commercial bank Qatar Masters golf tournament, and the World Indoor Athletic Championships.

 Qatar’s Sporting Plans

Qatar certainly has huge the funds drawn from its large proven oil and gas reserves to spend on new sports infrastructure and facilities.

The bid committee have said that the Al-Wakrah and Al-Khor stadiums will be built regardless of whether Qatar‘s bid to host the 2020 Olympic is successful. There are also proposals to expand two existing stadiums, Al-Rayyan Stadium and Al- Gharaf Stadium

71 | P a g e

 Infrastructure

Qatar is undertaking a number of large scale infrastructure projects. Major part of Qatar budgets is now bookmarked for infrastructure improvements, including the sports infrastructure. Qatar has forecast to spend of $3bn on the Qatar rail network to support major events like FIFA 2022.

 Accommodation

Qatar currently has less than 10,000 hotel rooms. So Qatar is planning to build a large number of hotels to support the event – FIFA 2020.it requires a host country to have 60,000 hotel rooms, So Qatar has promised that it will provide more than this figure. The intention of Qatar‘s government is to build accommodation projects that can be re-used after the games as office developments such as a media city district or rather it can be redeveloped for residential use.

INDUSTRY TO OPERATE

Societies have always emphasised on sports and physical activities for recreation or competition henceforth it plays a vital role in the society. Sports is the medium by which individuals, communities, families and countries come together in a fun and participatory way which helps connecting cultures and improves communication. It promotes core principles such as tolerance, cooperation and respect, inculcates discipline, confidence and leadership. Certain sports, such as falconry and camel racing in Qatar and the other Gulf Cooperation Council (GCC) countries, are also closely related to cultural identity.

Sports and physical activities have an affirmative impact on reducing the likelihood of diseases and also impacts positively on people‘s physical and mental health.

72 | P a g e

A development in sports can improve economic productivity and can also increase economic outputs. Activities such as sports events, sports-related services, sports tourism and the media can also be a significant economic force in itself.

Hosting of the FIFA 2022 World Cup in Qatar is considered as an enabler that will support accomplishment of some of the goals of other sectoral strategies. For example, by using an eco-friendly green technology, diversifying sources of income by engaging the private sector, and through the development of sports tourism. Qatar‘s profile regionally and internationally will also be raised, it would also create job opportunities, build the capability of young people and produce efficient and productive workforce. It is also expected to have a major impact on national sports through youth, providing high standards sport facilities by increasing the level of participation in sport and physical activity.

Sports sector is playing an increasingly prominent role in Qatar in shaping the national identity and progress. Sports events such as successful staging of the 15th Asian Games in 2006 have helped change Qatar‘s image in the world. Success in sports has become an encouragement for the whole society which contributes to an energized, confident and modernizing nation.

Sports development is one of the four pillars of the Qatar National Vision 2030 (QNV 2030). Through increasing sports participation Qatar is planning to achieve an active lifestyle practices among its population to improve health and sport outcomes, Qatar is also using sports to build friendships and improve relations between nations globally. It is also building itself to become a global sports hub with an array of first class sports facilities and a host of regional and international sporting events.

73 | P a g e

74 | P a g e

Essentials For An Investor

 Main incentives for FDI in Qatar.

· Ownership of up to 49% foreign investment in all Qatari economic activities - Up to 25% ownership of Shareholding Companies listed on the Doha Securities Market

· Allotment of land to set up an investment project for a period not exceeding 50 years

· No import duties are payable on machinery, equipment and spare parts brought into Qatar

·No export duties

· No corporate taxation for predetermined periods, and income tax exemption for 10 years

· Expatriates‘ salaries are exempt from income tax

· Loans can be secured from the Qatar Development Bank

· There are no quantitative quotas on imports.

 Taxonomy of entry modes

In infrastructure sector, in present Qatar allowed 49% FDI but now Qatar government think of 100% FDI. Main reason after this strategy is in next few years Qatar will organised World Championship of Handball in 2015 & Football in 2022. Also Qatar hopeful to win bid of men‘s Volleyball World Championship, 2018 & Olympic, 2020. Also Qatar Vision 2030 is also one reason for this strategy.

75 | P a g e

Modes of Entry

1. Equity International Joint Ventures

 Equity International Joint Ventures (EIJV) is defined as ―a separate legal organizational entity representing partial holdings of two or more parent firms, in which the headquarter of at least one is located outside the country of operations of the joint venture‖ (Zeira and Newburry, 1999).  Equity International Joint Ventures (JV‘s) are a very popular entry mode, especially in the Middle East & Asia/Pacific area.  The main idea after an EIJV is that transaction costs of entering in any foreign market are much lower than establishing a wholly owned subsidiary.  The entering firm is able to benefit from the local partners knowledge of the host Country‘s competitive conditions, culture, language, political and business systems.

76 | P a g e

 The local partners see a joint venture as an attractive mode to profit from the EIJV partner‘s specific competitive advantages. It is this complementarily of interest that makes the EIJV appealing especially in markets that are determined by high industry specific market barriers. Another important advantage of EIJV is the possible sharing of costs that may be needed for research and development.  Despite these advantages, EIJV‘s do have some serious drawbacks. A firm entering a foreign market, through an EIJV, risks giving control of its technology to his partner. This technology and know-how could be a former competitive advantage, and may arise the risk of opportunistic behavior by a joint venture partner, who does not share this knowledge within the JV and only want to benefit from the others technology as a free-rider.  One more disadvantage of EIJV is objectives of the EIJV partners are different. It is difficult to reach agreements on how to operate, fund, and benefit from the venture.

2. Greenfield Entry

 In the hierarchical model of market entry modes, the Greenfield entry can be considered into the high equity based entry modes, because it requires a major resource assurance in the overseas location (Pan and Tse, 2000). That recourse promise usually refers to the set up of a new plant, requiring involvement of capital, human resources and a transfer of the firm‘s know-how and/or technology. Greenfield entries can be categorized under the term of wholly owned subsidiaries, where the firm owns 100 percent of the stock.  A wholly owned subsidiary is main two types. By acquisition (to acquire an established firm), or By Greenfield entry (the setting up of a new venture).  The common goal behind acquisitions and Greenfield investments is combination of firm‘s specific advantages with other assets available in the foreign country. The difference is that a Greenfield entry uses resources of the investor and combines them with assets acquired locally, whereas an acquisition uses primarily assets of local firms and combine them with the

77 | P a g e

investors resources e.g. management capabilities (the level and nature of the firm specific advantages).  What investors want to exploit abroad will determine whether the entry will be Greenfield or acquisition. Location specific advantages don‘t play a significant role, as it is equally important for either an acquisition or Greenfield entry to be in the most preferable location.  One advantage of a Greenfield investment is the transferring of firm-specific advantages to a foreign market, without the risk of losing control over that competence, as is described in the case of Equity International Joint Ventures.  This is especially the case when a firm‘s competitive advantage is based on technological know-how which is one of the core competencies of a firm. Other inherent advantage of Greenfield investments is that they give a firm tight control over operations in different countries, which is necessary in a global strategy.  Establishing a wholly owned Greenfield subsidiary is a very costly way of entering a foreign market. Companies must bear the full costs of setting up a new plant, finding suitable employees, costs of learning different government restriction and different law systems.  One additional disadvantage of Greenfield investment compared with acquisition is that Greenfield investment adds capacity to the entering market. This argument against Greenfield investments could be very important in markets with high competition or fed up markets.  Overall Greenfield investment can be a very risky market entry mode, as the investors may have to carry the risk of sunk cost alone in a new and uncertain marketplace.

78 | P a g e

HOW TO ENTER IN QATAR?

From the above features of joint venture and green field investments, we would like to go for a joint venture. As government of Qatar is allowing for 49% of FDI and in the future they are planning to increase the same to 100%. It would be beneficial to go via joint venture.

We will venture with a firm who is established well in infrastructure in Qatar but not so much in sports infrastructure so that we can keep our competitive advantage over the company along with getting the required resources, manpower, goodwill and expertise of the company.

QATAR SPORTS SECTOR STRATEGY

The sports sector strategy, which is formed by the Qatar Olympic Committee in consideration with Olympic 2030 and FIFA World Cup 2020, focuses on six sectors which namely as follows:-

1. Sports Management 2. Hosting International Events 3. Sports awareness, education and cultural change 4. Promotion and Publicity 5. Sports Leisure facilities 6. Athlete pathway development

79 | P a g e

Sports leisure facilities:-

 Improving existing venue access and usage  Construct new facilities  Construction of purpose built venues

Promotion and Publicity:-

 Marketing and Sponsorship  Marketing Qatar as a sports tourism hub 

Athlete pathway development:-

 Establish additional leagues  Supporting athletes reaching the top level  Developing original talent

Sports Management:-

 Management support to clubs, committees and federations  Developing HR with financial accountability

80 | P a g e

Sports awareness, education and cultural change:-

 Increasing participation of women and special needs athletes  Spreading awareness of all sports and the benefits related to it

For sports infrastructure development, our main objectives from 2011 to 2016 are as follows:-

1. To educate and engage the people in sports activity for healthy lifestyle. 2. To increase the opportunity for people of all ages and abilities to participate in physical activities. 3. Ensuring appropriate, adequate and accessible facilities for competitive sports. 4. To identify new sports talent and sponsoring them.

The outcomes of the actions would be:-

1. Increased participation of community due to high technology infrastructure. 2. Public health programmers which would lead to healthy and active lifestyles. 3. Improved sports talent management and performance. 4. Management plan for coaches and technical officials for identifying and developing professional needs.

Infrastructure statistics

Gross domestic product at current prices (Million Qatari Riyal)-Major Infrastructure Industries Economic Activity 2006 2007 2008 2009 2010 2011 Electricity and Water 1,569 1,820 2,063 1,794 2,070 2,564 Percentage to GDP 0.7 0.6 0.5 0.5 0.4 0.4 Percentage change 16 13.4 -13 15.4 23.9 Building and Construction 10,846 15,925 27,199 25,522 24,144 23,325 Percentage to GDP 4.9 5.5 6.5 7.2 5.2 3.7 Percentage change 46.8 70.8 -6.2 -5.4 -3.4 Trade, Restaurants & Hotels 14,789 20,848 23,429 29,839 32,309 34,920 Percentage to GDP 6.7 7.2 5.6 8.4 7 5.5

81 | P a g e

Percentage change 41 12.4 27.4 8.3 8.1 Transport and 6,885 8,697 14,775 16,212 18,275 21,593 Communications Percentage to GDP 3.1 3 3.5 4.6 3.9 3.4 Percentage change 26.3 69.9 9.7 12.7 18.2 Finance, Insurance, Real 29,371 41,982 51,580 58,099 62,119 73,427 Estate & Business Services Percentage to GDP 13.3 14.5 12.3 16.3 13.4 11.6 Percentage change 42.9 22.9 12.6 6.9 18.2 Social Services 1,727 3,004 3,461 4,149 4,347 4,883 Percentage to GDP 1.2 1.4 0.8 0.9 0.9 0.6 Percentage change 46 -10.3 -12 29.1 0 Total 2,21,61 2,90,1 4,19,5 3,55,9 6,31,6 6,31,6 1 51 82 86 09 09

Contribution of Infrastructure sectors in the Qatar Economy

(Million Qatari Riyal)

Years 2006 2007 2008 2009 2010 2011 Infrastructure 39,378 50,694 58,369 71,026 76,818 87,156 sectors GDP at 2006 156,662 184,838 217,486 243,492 284,226 324,356 prices % of GDP 25.1 27.4 26.8 29.2 27.0 26.9

82 | P a g e

SWOT Analysis of Infrastructure industry

Strength & Opportunities

 The construction industry now a day move away from residential and commercial construction towards infrastructure projects as a result of the global financial crisis.  In the 2011-12 Qatar budget, infrastructure is the lead sector with 34 per cent of total investments allocated to infrastructure upgrades. In five year development plans Qatar also points to high amount of spending for infrastructure in medium term. The recent announcement stats that Qatar is to host FIFA 2022 World Cup has stimulated private and public infrastructure and industrial projects to the value of more than US $140 billion.  Qatar is one of the rich countries in the world and fastest growing economies in the Middle East. The growth in the economy is because of its large production of oil, liquefied natural gas and condensates, supported by increases in hydrocarbon prices.

Possible weakness and threat

 Qatar‘s Government revenue is largely depended on oil and gas leaves growth.so, export and revenue of government vulnerable to shift in world price.

 That may cause the cut down volume of government budget and possible allocation to infrastructure sector.  Qatar is currently depends on immigrant labour that cause outflow of remittances are high.  Though Qatar‘s dependence on immigrant labour and outflow of remittances are high, Qatar‘s current account remains firmly in surplus.

 Oil-fuelled asset price booms may cause an upside risk to inflation.

83 | P a g e

 Tight credit markets could make financing for large-scale projects hard or prohibitively expensive.  Some major sporting events cannot be held when the temperature is too high. So infrastructure has to be built with keep in mind this point or event must organize in other seasons during January.  Like, When Asian Football Confederation selected Qatar as the host of the 2011 AFC Asian Cup they opted to run the event in the January window rather than July or August because they considered it to be "too hot‖ in the Gulf region.

Estimated Capital Requirement

. The basic capital requirement to start a business in Qatar is estimated to be 200000 QR.

. Since our company is going in a joint venture, it would not require a huge start up, but due to the company being into sports infrastructure industry it would require 1000000 QR as its start up cost.

 HOSTING FIFA WORLD CUP 2022

According Middle East Economic Digest ( MEED ), Qatar‘s successful bid to host the FIFA world cup in 2022 is said to launch a US $ 60 billion construction boom in the gulf state. MEED estimates that infrastructure projects for sports worth approximately US $ 55-60 billion that had been planned and will now go ahead.

For the world cup 2022, Qatar government is expecting to have 12 football stadiums which will host the matches. Out of 12, 3 stadiums already exist and which will be expanded in terms of increasing their seating capacity and facilities to the players and the fans.

84 | P a g e

The other 9 stadiums will be state of the art eco-friendly and cutting edge football stadiums and Qatar has estimated a budget of US $ 4 billion for it. The name and location of the stadiums are as follows:-

 Lusail- Lusail iconic stadium  Doha- Khalifa international stadium  Doha- sports city stadium  Doha- education city stadium  Al khor- Al Khor stadium  Madinat ast Shamal- Al Shamal stadium  Al Wakrah- Al Wakrah stadium  Umm Salal- Umm Salal stadium  Doha- Doha port stadium  Doha- Thani Bin Jassim stadium  Al Rayyan- Ahmed Bin Ali stadium  Doha- Qatar university stadium

Out of 12, the first 5 stadiums will employ cooling technology capable of reducing the temperature of the stadium to 20 °C (68 °F), and the upper tiers of the stadiums will be disassembled after the World Cup and donated to countries with less developed sports infrastructure.

The Lusail iconic stadium will have a capacity of 86,000 seats and the tournament‘s opening and closing ceremony along with final matches will be held there.

Al Khor, which is located 50 kms north of Doha, will have the stadium named Al khor stadium. It will have a capacity of 45K to 46K and out of it, 20K would be temporary seats in upper tier which will be disassembled after the FIFA.

The Al Wakrah stadium to be located in Al wakrah. It is in the southern part of Qatar. It will have the same capacity as Al Khor stadium with same temporary seats. The stadium will be decorated with Islamic art and will also be surrounded by large solar panels which will assist in generating electricity.

All these infrastructure projects are part of Qatar‘s ambitious National Vision 2030 which is for modernizing the country and making it a role model for the whole world.

85 | P a g e

Due to FIFA world cup 2022, these projects will start in full swing and expected to complete by 2020.

As a part of these projects Qatar will spend US$ 45 billion and remaining of budget will be spend on others high profile mega projects largely in transportation, tourism, health, education, and housing sector. Plan also includes US$ 25 billion metro and rail project.

As FIFA is world‘s largest fan following tournament, Qatar require to build new international airport. Doha is hosting most of the matches of tournament; Airport would be in Doha, capital of Qatar. First 2 phases would be ready by 2018 and others will be by 2027. It will replace the old airport which has capacity of handling 16 million passengers per year with 24 million passengers per year. This Capacity of handling passengers can be expanded to 50 million.

Officials in Qatar have already announced the launch of a staggering 200 projects in different areas by the first quarter of 2011. Qatar will receive an unexpected boost primarily in two areas, sports facilities and hotel/leisure facilities. So there is an opportunity of expanding our sports infrastructure business.

Constructing 12 stadiums will overkill a country like Qatar but authorities have already planned that they will dismantle the stadiums once the mega event is over and gift to other countries. Qatar is also planning to build around 90,000 hotel rooms for the FIFA world cup nearby the stadiums. Actually requirement is for 65,000 to 70,000 hotel rooms but the government does not want to take any chances considering the number of football fans over the world.

US$20 billion will be spent on road improvements and expansion programs. It includes US$687 million Lusail Express way, Doha Expressway, Dukhan Freeway and Doha Bay crossing. Rail Network will cover the construction of metropolitan railway in Doha, a high speed rail link between new Doha international airport and city centre. Approximated budget for this construction is US$25 billion. In addition to this, freight line will be added to link up with GCC Rail network. Qatar Bahrain causeway which had US$4 billion budget was put on hold in last June but due to FIFA world cup this scheme will now be given renewed impetus. It is a 45 km long fixed link between Qatar and Bahrain.

86 | P a g e

MEED construction analyst Andrew Roscoe said that, ― building towards the world cup will inject a new dynamism into the drive by Qatar and the region to diversify its economy away from its dependence on oil and gas.‖ It was being criticized by many of the other countries that Qatar has lack of football supporters than how can it organize FIFA. It was fantastically answered that countries around Qatar like Saudi Arabia, Iraq, Iran and Egypt has large football mad populations.

Qatar didn‘t bid for the FIFA world cup to host it but also for developing its own physical infrastructure and social, economic and legislative environment to lay the bed rock of a sustainable diversified economy that can be a model for the rest of the region.

RAW MATERIALS REQUIRED

For the construction of the stadium, the basic raw material which are required are

 Concrete  Iron  Steel  Cement  Sand  Grass  Wood  Soil  Underground heating device

These raw materials are available at cheaper rates. The leading firms which supply these raw materials are as follows:-

Concrete Companies:-

1. Qatar Concrete Company 2. Beton W.L.L 3. Hamad Bin Khalid ( HBK ) Ready mix

87 | P a g e

Iron Companies:-

1. Hammam Iron 2. Hoddadco Iron Ltd. 3. Ductile Iron Co

Steel companies:-

1. Qatar steel Company 2. Nafal Qatar 3. Steelco trading and contracting company

Cement companies:-

1. Qatar National Cement Company 2. Gulf Cement Company 3. Khalid Cement

Sand companies:-

1. Qatar Primary Materials Co. 2. INMA Company 3. Red Flint sands

Grass Companies:-

1. ASCON engineering co. 2. Salam Enterprises 3. Assiyana Services

Underground Heating Devices Companies:-

1. NicroPads 2. Danish Heating and Cooling 3. Custom Heating Elements

88 | P a g e

OVERALL COMPARISON WITH INDIA

Every country has its National Sports Policies which highlights the need for creation of sports infrastructure at the grass-root level and its necessity of implementation of schemes to promote excellence in sports infrastructure.

The National Sports Policy of India emphasized primarily on:

(a) The development of basic sports infrastructure especially in the rural areas and preservation of the existing playgrounds, and

(b) The integration of sports and physical education as an integral part of the students‘ curriculum.

The main objectives of this policy were to ensure mass contribution in sports and to promote excellence in sports through ―institutional support, international exposure and incentives to sportspersons‖. To achieve this objective, the set up was made to oversee all matters related to sports promotion and management. Initially In 1992, Plan of Action was formulated by the Government to revive the objectives of National Sports Policy. However, by the year 2000, there was no visible improvement in the infrastructure facilities and the rate of participation remained low (especially at the grassroots level). For example out of a population of 77 crore, only 5 crore people below the age of 35 years had access to organized games and sports facilities. This necessitated a new policy, and in 2001, a National Sports Policy was formulated, which was followed by a National Comprehensive Sports Policy in 2010.

Despite many attempts by the government, none of the departments, policies or schemes has been able to achieve the desired result. India still lacks a strong sporting culture and this is primarily because of policy lacunae and sparse and sporadic budgetary support from Union Government and State Government. The laid-back attitude of the government and sports administrators has further enlarged the loopholes present in sports management system. It has also been observed that

89 | P a g e there is often replication of work done by the Union government and the state governments. This arises due to the synchronization failure between them.

Every report of the government cited three important reasons for the current despicable state of sports affairs. These are:

a) Lack of sports consciousness and culture in the country, b) No network of basic sports infrastructure, c) Absence of effective system for talent identification, d) Training and fair selection of teams.

Although there is awareness at the government level, limited actions have been taken to actually devote in sports infrastructure. Funds granted are very sparse and even if funds are allocated to the states, it lies unutilized in many states.

For example, In West Bengal out of INR 1.3 crore (USD 275,102) (approximately) disbursed by the Union Government to the State for sports infrastructure development (in certain districts), only few lakhs have been utilized. Not only the States, but also the Union Government does not fully use the funds available to it. In Tenth Sports Development Plan, INR 1360.41 crore (USD 287 million) was utilized by the Central Government against an allocation of 1463.69 crore (USD 310 million).

Playing fields in many parts of the country are now grazing grounds for cows and cattle. Also existing stadia are in a dilapidated state. Indira Gandhi Indoor Stadium (IGI), second largest indoor stadium in the Asia, lay covered in heaps of dirt. The main stadium of Asian Games 1982 and CWG 2010 (which has been renovated in 2010 at a cost of INR 240 crore i.e. USD 52 million) has lost its glamour and no longer boasts of its glorious past. Its lavatories are leaky, wall paints and plasters are peeling off, wirings of the galleries are on the floor and wrestling platform is falling apart.

Lack of proper management has further aggravated the difficulty of the stadiums. Even though many sportspersons have been speaking about this issue, government has done little to relieve their throbbing. Absence of proper management results in misuse of the sports complexes. Dumurjala Indoor Stadium in (Howrah) Kolkata (West Bengal, India) is currently being used to shoot reality shows for Bengali channels.

90 | P a g e

Official Apathy has also harmfully affected cricket – the most popular and beneficial sports in India. BCCI, one of the richest sports associations in the world, still lacks a proper monitoring system to ensure utilization of funds for creation of infrastructure in towns and villages. As a result, several state cricket associations do not own their own cricket stadium in spite of having a bank balance of more than INR 100 crore (USD 21.9 million).

Irregular funding and absent of energetic, approachable and result-oriented governance has resulted in unacceptable condition of sports and sports infrastructure in India.

While on the other hand, Qatar has become one of the most exciting sporting destinations in the world. Infrastructure developments at home and sporting investments overseas have fired up the thoughts, including the purchase of the leading French football club Paris Saint- Germain and a UAE-Qatar joint partnership working on the world‘s first-ever extreme sports park.

The results of a $2.8 billion infrastructure investment include the; iconic Aspire Dome, the Qatar MotoGP track and the five-floor ultra-modern Hamad Aquatic Centre; from which the Emir launched the Aspire Academy‘s Football Dreams Project.

For the past seven years the Project has scouted more than two million youth footballers from across the world which is one of the many factors that helped secure Qatar‘s proposal to host the 2022 World Cup. The World Cup will be staged in 12 future-inspired venues, such as the futuristic Al-Wakrah Sports Complex and dhow- shaped Al-Shamal, which would just be 30 minutes far from Bahrain by water taxi.

Investment in infrastructure on this level will provide firm foundations for future generations in Qatar and further away to enjoy the advantages of sport for decades to come. The country is expected to spend $130 billion on infrastructure projects ahead of hosting the FIFA World Cup tournament in 2022, the immoveable deadline of which is proving a key catalyst for activity as Qatar prepares to present itself on the world sporting stage. The government wants Qatari firms to be involved in all World Cup related projects; further boosting the event‘s diversifying effect on the economy.

91 | P a g e

The FIFA World Cup is the largest single event sports tournament in the world by a considerable margin and will put Qatar on the world map. Qatar‘s hospitality sector and tourism sector expects it to help boost the Gulf state into becoming a preferred destination for international tourism while reinforcing its reputation as a mass nation for major sports events. Qatar National Vision 2030 includes the government‘s first national sports sector strategy, a plan determining the importance of sport, not only to the country‘s business, leisure interests, and tourism, but also in support of the population‘s health. The future use of the event‘s facilities should also provide good inheritance opportunities to other industries like education, health, real estate etc.

In Qatar, a determined infrastructure building programmed has been in place since 2004 to build more competition fields, neighborhood playgrounds and cultural centres. Before deciding on whether to build new facilities, the option to use, co- share and co-locate with existing sports facilities should first be considered as a matter of due diligence.

By maximizing usage and increasing access to existing venues, the quantity and mix of sports facilities that are available to the public can be increased without the need for heavy capital expenditure. Public policy needs to consider both access and use of sports venues and public parks, to ensure the best possible environment is made available for people to be physically active.

In order to better inform policy, the Qatar government proposes the development of a National Sports and Recreation Facilities Master Plan to systematically collect and analyze data related to sports and recreation facilities. An inventory of national sports facilities will help Qatar:

a. Develop a network of accessible, high quality open spaces and sport and recreation facilities, which meet public needs, are fit for purpose and are economically and environmentally sustainable;

b. Determine an appropriate balance between new facilities and the enhancement of existing facilities; and

c. Promote these facilities locally and internationally for future revenues.

92 | P a g e

A sporting culture cannot take root overnight. The recommendations contained in this Strategy will generate some momentum and sow the seeds for a future whereby people will grow to embrace sports physical activity as a way of life. The five projects identified within the Sports Development Plan represent a comprehensive range of first steps towards achieving Qatar‘s goal of developing an active and healthy nation, with a strong sense of identity and social cohesion. Through the delivery of this strategy, by 2016, it is expected that:

a. There is a growing conviction of the value of sport & physical activity and the contribution it can make to national outcomes, resulting in better coordinated planning and delivery of sports b. Children across Qatar are introduced to sport from an early age and more children, irrespective of their gender and ability, progress into higher level sporting opportunities c. Qatar benefits from new and improved access to quality sports facilities and public facilities d. More potential athletes are recognized and supported, including top athletes who are fully prepared to represent Qatar on the world stage; and e. More coaches and other technical human resources have developed their skills and qualifications, in turn improving the experience of a wide range of participants.

Sports infrastructure sector has a very good scope in India as well as in Qatar but Qatar does have its competitive advantage over India. This is in terms of the cost of raw materials plus labour. That can be seen in the following table ( in INR ):-

Unit India Qatar Comparison Cement Per 50 kg 290 195 + River sand Per tonne 650 522 + Manufacturing sand Per tonne 500 373 + Concrete Per Cubic meter 2,900 4,500 - Steel Per metric Tonne 12,650 44,715 - Grass Per Sq. Meter 5,500 560 + Iron Per Metric Tonne 24,100 34,770 -

93 | P a g e

Wood Per Tonne 7,700 42,200 - Soil Per Tonne 1,100 3,500 - Land Per Sq. Meter 30,000 6,000 +

 Basic requirement for building a stadium is land, and as we can see in the above table, it is very cheap in Qatar than in India. Rate of the Land in sub- urban Qatar is Rs. 6000 per sq. meter which 1/5th of the rate prevailing in India. It is around Rs. 30,000 per sq. meter in sub-urban part of Delhi. This also shows that building a total of 9 stadiums would be cost effective for Qatar considering the fact that the stadiums will be built in sub-urban areas.  Constructing football grounds in Qatar is also beneficial because the artificial grass that will be used on the football pitch is 10 times cheaper than India. Current price of grass in Qatar is INR 560 per sq. meter.  The main raw materials required for the construction of the stadium, i.e Sand and Cement are also cheaper than India. Cement and manufacturing sand are 33% cheaper than India and river sand is 20% cheaper.  Wood per tonne in India is at INR 7,700 but in Qatar it is very expensive which is 5 times higher than India. But it‘s not an issue to worry because we can utilize less wood while constructing the stadium. Instead of using wood for seating arrangement, we can go for fiber/ plastic which is cheaper. Rate of making plastic/ fibre chairs will cost around INR 150 in Qatar per seat in comparison to INR 500 in India.  The rate of Iron and Soil is more in Qatar but the other advantages we are getting are over shadowing this disadvantage.  The only loss we can get is in steel, which is very costly. The rate prevailing in Qatar is INR 44,715 per m.t. which is 3 times costlier than the steel available in India.  Cement prices dropped to 72% last year in Qatar whereas in India it rose by 10%  Ready mix concrete declined to 25% in Qatar but in India it showed the same rise as cement.  Iron and steel price rose to 16.78% and 10% respectively.

94 | P a g e

Direct labor conditions:-

 The other important aspect for constructing the sports facilities is labor, which is available at cheaper rate in Qatar. The prices/ wages that should be given to laborers are governed by Emir of Qatar. The working conditions and safety concerns are better than India due to which labor can be found easily.  In Qatar, the average working hours are 40-48 hours a week and during Ramzan schedule are flexible and workers have to work for only 6 hours a day.  While in India, the working hours are not fixed because of which the workers are made to work 12-14 hours a day and also do not get overtime wages. In addition to that many organizations face problems from labor unions.  Both these factors cause high labor turnover rate in India

Direct Expenses:-

 For constructing the facilities other direct expenses require are Transportation, Loading-Unloading, freight charges and warehousing.  Transportation cost is 5 times lower than India due to cheap oil prices.  Loading unloading cost is very low in Qatar due to mechanized process  Freight charges are low.  Warehouses are highly organized with adequate space and technology  Technologies are more advanced in Qatar which helps in bringing a more safe environment for all the factors.

95 | P a g e