A GLOBAL / COUNTRY STUDY AND REPORT ON QATAR Submitted to Gujarat Technological University IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ASMINISTRATION UNDER THE GUIDANCE OF Mr. Shahal Valjiwala HOD GROW MORE FACULTY OF MANAGEMENT Submitted by STUDENTS OF GROW MORE FACULTY OF MANAGEMENT [Batch : 2011-13, Enrollment No.: [117130592002 - 117130592055] MBA SEMESTER III ------------------------------------------------------------------------------------------------------------- GROW MORE FACULTY OF MANAGEMENT MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad June, 2013 ------------------------------------------------------------------------------------------------------------- 1 STUDENTS’ DECLARATION We, STUDENTS OF GROW MORE FACULTY OF MANAGEMENT, hereby declare that the report for Global/ Country Study Report entitled in Qatar is prepared by us under the guidance of Mr. Shahal Valjiwala, HOD of Grow More Faculty Of Management is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged. Place : Himatnagar Date : STUDENTS OF GROW MORE FACULTY OF MANAGEMENT [Batch : 2011-13] 2 INSTITUTE’S CERTIFICATE “Certified that this Global /Country Study and Report Titled in“Qatar” is the bonafide work of STUDENTS OF GROW MORE FACULTY OF MANAGEMENT, [Batch : 2011-13] under our guidance in MBA SEM III / IV towards the partial fulfillment of the requirement for the degree of Master of Business Administration of Gujarat Technological University. We are pleased to state that the report was successfully completed in MBA SEM III/IV and the report submitted was to our fullest satisfaction. Shahal M Valjiwala HOD & Project Guide Grow More Faculty Of Management 3 PREFACE To study the theories of every subject is important for every student but without experience one can‘t achieve any success in today‘s life. As a student of the MBA, we have studied many theories in the classroom, but only after taking up this project work we have experienced and understood these theories and practices in its fullest sense, which plays a very important role in business field today. During this Global Country Project, students get an opportunity to glance into the real business world. Here, students get a chance to observe the day to day working of business. Thus, doing an international project (GCR) is the most valuable and important experience for any MBA students. The live project is also important in management education because it improves the education level by giving it a practical direction and for this practical training, we have undergone a project work on “QATAR”. During the project we had undergone through live international experience of marketing and got all the information related with current market scenario which will be very beneficial for next coming years. We are very thankful to our college and specially GUJARAT TECHNOLOGICAL UNIVERSITY for providing us such a great opportunity. 4 ACKNOWLEDGEMENT Theoretical knowledge has lethal potential to turn as parochial and myopic but if we flame theory with practical it creates new avenues, opportunities and vistas for knowledge. We are very thankful to Gujarat Technological University, Grow More Faculty Of Management and specially Mr. Shahal Valjiwala, HOD & Project Guide (GM-MBA) for giving us this opportunity, to learn the practical aspects of the management course and good exposure in day to day and international life. We would like to thank our project guide for guiding us throughout our project period & motivating us at every step. We thank him to provide their profound knowledge to overcome the obstacles in our project. At last but not the least, we are thankful to anyone and everyone who took part directly or indirectly to complete this Global Country Project. With regards, STUDENTS OF GROW MORE FACULTY OF MANAGEMENT [Batch : 2011-13] 5 TABLE OF CONTENTS SR. Particulars Pg Sem No no Students declaration Institutes declaration Preface Acknowledgement 1 Overview of Major Industries of Selected Country / 07 III / IV Automobile Industry 2 Ecological & Legal Environment / Telecom Industry 2 3 III / IV 3 Social Environment / Automobile Industry 39 III / IV 4 Technological Environment / Pharma Industry 54 III / IV 5 WTO & Other Trade Unions and its impact on 70 III / IV commerce and industry of Qatar / Pharma Industry 6 Economical Environment / Telecom Industry 91 III / IV 7 Major Trading Partners of Selected Country / 109 III / IV Tourism Industry 8 Political Environment / Tourism Industry 129 III / IV Bibliography 140 6 1. 7 8 Chapter 1 Introduction of Qatar Qatar is a peninsula located halfway down the west coast of the Arabian Gulf. Its territory comprises of a number of islands including Halul, Sheraouh, Al-Ashat and others. It has maritime and land borders with Saudi Arabia and maritime boundaries with Bahrain, United Arab Emirates and Iran. The total land area of Qatar is approximately about 11,500 square kilometers. The terrain is flat and rocky with some low-rising limestone outcrops in Dukhan area in the west and Jabal Fiwairit in the north. It is characterized by a variety of geographical phenomena including many coves, inlets, depressions and surface rainwater-draining basins known as riyadh (the gardens), which are found mainly in the north and central part of the peninsula. These areas have the most fertile soil and are rich in vegetation. Islam is the official religion of the country and Arabic is the official language in Qatar, and English is widely spoken.The major towns are Doha, Al Wakrah, Al Khor, Dukhan, Al Shamal, Mesaieed, Ras Lafan and others. Doha is the capital city, the seat of government and the location of the main commercial and financial institutions 9 10 Chapter - 2 Overview of different industries Introduction of Industry Qatar‘s economic prosperity is derived from the extraction and export of petroleum— discovered in 1939 and first produced in 1949—and natural gas. Before World War II, Qatar‘s population engaged in pearling, fishing, and some trade (with little exception the only occupations available) and was one of the poorest in the world. By the 1970s, however, native Qataris enjoyed one of the highest per capita incomes in the world, despite subsequent declines in income due to fluctuations in world oil prices. Doha is the commercial and administrative capital, and in it lies Doha international airport, the main port, hotels and sports facilities. The city of Doha draws near the Gulf waters through the Doha Corniche which extends to approximately 7 KMs with its green gardens, and the Palm island can be seen in the middle of the gulf. The spirit of love between the residents of Doha in spite of their different nationalities and ethnicities creates a wonderful balance between its religious and cultural and heritage. 11 2.1. Agriculture & fishing Agriculture and fishing – once the mainstays of Qatar's economy – account for a miniscule 0.07 percent of GDP. Since at least the 1970s, the country's government has talked about 'diversification', by which they mean the development of alternative industries and services to reduce the nation's dependence on hydrocarbon commodities. The Agricultural Development Department is responsible for drawing up agricultural and livestock development plans and programmes, establishing experimental and model farms, marketing the products of these farms, providing farming services for farmers, issuing agricultural licenses and applying agricultural and veterinary quarantine procedures. The Agricultural and Water Researches Department is responsible for carrying out field experiments and studies on horticulture, crops, forage, utilization of irrigation water, water conservation and implementing scientific and technological means of agricultural and water development. The marine fishery sector is prominent in Qatar, and during the last decade fish catch doubled to about 17,700 tonnes in 2008. Fish self-sufficiency in Qatar is estimated at 96% and the average annual fish consumption is about 12 Kg per capita, roughly the same as the world average. Future prospects for fisheries may be limited by more intensive upstream fishing, as well as potential impacts of climate change on marine life in the Gulf region. Hence, the QNFSP is planning for environmentally and economically sustainable options for integrated marine and aquaculture fisheries. The government has attempted to modernize the fishing and agriculture sectors by offering interest-free loans; yet food production continues to generate only a tiny fraction of gross domestic product (GDP). The scarcity of fertile land and water imposes severe limitations on agriculture, and a large proportion of the country‘s food must be imported. Production of meat, cereal-grains, and milk also began to increase by the end of the 20th century. 2.2. Manufacturing Sector Qatar has sought to diversify its economy through industrialization. Most of the manufacturing sector comprises large firms of mixed state and foreign private ownership. For example, the Qatar Petrochemical Company is largely owned by a government holding company, and a French firm has a minor stake. Flour milling and cement production have also been undertaken. Diversification by expanding manufacturing depends on an abundance of 12 cheap energy for running plants, however, and is thus tied to Qatar‘s hydrocarbon resources. Its natural gas reserves have been used to develop a strong liquefied natural gas