KEY FEATURES OF QFC FOR COLLECTIVE INVESTMENT FUND FOR ASSET MANAGEMENT WHY QATAR? • 10% corporate tax rate • Multi billion dollar investments being made and in pipeline • Highest GDP per capita in the world • No income tax on individuals • World class banking system • Double tax agreements in orce with over 60 countries worldwide • High quality inrastructure (including telecommunications) • Strategic geographic location or Middle East markets • Good quality of life • Access to international schools and universities • Qatar Airways ies to over 120 destinations worldwide LEGAL, ADMINISTRATIVE AND REGULATORY ENVIRONMENT • Opportunities to establish unds, manage investments, market and sell units in Qatar and provide und administration services • A streamlined application process ensures licensing and registration with the Companies Registration Ofce is completed within a short timerame ater receipt o a single combined application • Transparent administrative process with easy access to decision makers • World class regulatory environment comparable with the UK and other best in class jurisdictions • Equally world class legal regime with access to an independent court, tribunal and Alternative Dispute Resolution Centre • Separate immigration and employment regulations based upon international standards • Accounts may be prepared in accordance with IFRS, UK GAAP, US GAAP or Islamic Finance Accounting Standards (AAOIFI) TAX • Competitive tax rate o 10% on profts o local asset management company • Tax exemption or Collective Investment Scheme income, with no withholding taxes on distributions out o the und to either local or international investors • Sel assessment regime or tax returns • Transer pricing guidance available • Can obtain binding tax ruling covering any areas o uncertainty • Tax losses o QFC entities can be carried orward indefnitely • Participation exemption applies or gains on qualiying shares • All dividend income is exempt • No wealth tax/Zakat or VAT • No personal income tax in Qatar DISCLAIMER: PLEASE READ The structures, examples and inormation contained in this document are only intended as a guide and to provide illustrative sa mples. Specifcally, the QFC Authority makes no recommendation or representation, gives no warranty or guarantee, and excludes all liability in respect o the document. Beore you take any action in respect o the document you must seek and rely on your own independent legal, tax and other proessional advice. PO Box 23245, Doha, Qatar • T: 974 4496 7777 • F: 974 4496 7676 • ino @ qc.qa • www.qc.qa QATAR FINANCIAL CENTRE (QFC)
The MENA reinsurance markets continue to benefit from the region’s robust economic expansion. Growing insurance premiums and a relatively low exposure to natural perils are the main attractions, which drive the unabated increase in reinsurance capacity. Since 2008 the region’s economies grew at an inflation-adjusted rate of 4.0% per annum, well above the global average of 2.9%. A strong pipeline of infrastructure and construction projects and a relatively low natural catastrophe exposure further contribute to the region’s attractiveness.
2 Dun & Bradstreet’s Business Optimism Index – Qatar Global Outlook In its hal yearly report Global Economic Prospects, the World Bank has cut its growth orecast or the global economy in 2014 ollowing a weak start to the year in both rich and poor countries. Bad weather in the US, tension in the Ukraine, the slowdown in China and political strie in countries, such as Turkey, will all delay an expected pick-up in activity. The bank expects the global economy to grow by 2.8% in 2014 compared with the 3.2% orecast in January. Developing country expansion has been revised down rom 5.3% to 4.8%, while expansion in high-income countries has been shaved rom 2.2% to 1.9%. The report highlights the prospect o a third straight year o sub-5% growth in the developing world. However, ater a sluggish start to 2014, the bank expects activity to accelerate during the rest o the year and or global growth to be 3.4% in 2015 and 3.5% in 2016. A stronger perormance by the US and a gradual recovery in the Eurozone are expected to help developing countries by acting as markets or their exports. However, the report points out that a number o actors that could hit the developing world – nancial turmoil prompted by an end to the heavy doses o nancial stimulus used by central banks over the past ve years, the possibility o a hard landing in China, elevated geo-political risks in the Eastern Europe and Middle East regions and the vulnerability o some emerging market economies that combine high ination and current account decits, such as Brazil, South Arica and Turkey. Hydrocarbon Sector The IEA expects world oil demand in 2014 to average 92.76 million bpd, 960,000 bpd more than expected in May 2013. Global demand growth is expected to accelerate to 1.42 million bpd next year rom 1.32 million bpd in 2014. The report contrasts with the IEA’s previous medium-term update in May 2013, which had orecasted that US shale oil would help meet most o the world’s new oil demand, leaving little room or OPEC to lit output without risking lower prices. In the latest report, the IEA indicated that OPEC will need to pump more oil than expected in the previous medium-term report, raising its orecast o demand or OPEC crude plus inventories by 900,000 bpd to 30.1 million bpd in 2014. Underlining the steady shit o oil demand growth to Asia, the IEA said China would overtake the US as the world’s top crude oil importer as soon as this year. The average monthly OPEC basket increased modestly in April by 12¢ to USD 104.27 per barrel, supported by rmer rening margins, ongoing supply outages, and the return o some reneries rom maintenance. The average monthly OPEC basket increased urther by USD 1.17 in May to stand at USD 105.44 per barrel and inched up urther in June, amid rming sentiment in the crude oil market. Crude prices were supported by price speculation on account o lingering tensions in the Crimean peninsula between Ukraine and Russia, the ongoing geopolitical tensions in Iraq and Libya, and strong market indicators in the US, which are seen to drive demand in the US. According to OPEC, the ongoing rise in crude supply should be adequate to satisy the growth in oil demand in the second hal o 2014, resulting in a well-balanced market. The IMF projects that Qatar’s real GDP rom the Hydrocarbon sector will contract by 1% during 2014 but will return to positive territory in 2015, with a growth o 0.9%. While LNG production will remain steady at 76.3 million tons during 2014, crude oil production will decline rom 726,900 bpd in 2013 to 653,300 bpd in 2014. Qatar accounts or about one- third o global LNG trade and has become the key supplier or Japan, South Korea, India, and the UK. The tight LNG market and supply disruptions among other oil producers have kept Hydrocarbon prices high. LNG prices in Qatar’s main export markets in Asia have so ar remained largely unafected by the rapid growth in US unconventional gas and oil production. While a urther expansion o LNG production is possible, Qatar will maintain a moratorium on development o new Hydrocarbon projects until at least 2015 to give itsel time to assess its production perormance and carry out a comprehensive study o its North Field. The business optimism survey or the third quarter o 2014 shows a declining trend in the Hydrocarbon sector outlook. The composite BOI has been steadily declining since Q4,