‘Best investment option for US firms in Qatar’

By Pratap JohnChief Business Reporter

Seetharaman: Significant opportunities in Qatar

Qatar’s rules, regulations and industrial standards are all ‘major incentives’ for US companies to consider investments in the country, Doha Bank Group CEO R Seetharaman has said.Qatar has a stable currency and the country imposes no foreign exchange controls, he said. Another incentive for investors looking at Qatar is the ‘well capitalised’ financial institutions in the country, Seetharaman told Gulf Times yesterday.US companies have said the customs clearing process in Qatar is generally ‘problem-free’.“It is possible to resolve commercial disputes in Qatari courts, though the process is more time-consuming than in the US,” said Seetharaman, who is a panelist at a session on ‘finance and banking’ at the ‘Business & Investment in Qatar Forum’, which will be held in New York on April 6 and 7.He said US companies can benefit from Qatar’s financial markets as bonds trading at the Qatar Exchange this year will enable investors from US to participate. Qatari bond yields are higher and can be a good option for US investors.Also this year, the QE will be connected to SFTI (Secure Financial Transaction Infrastructure), a worldwide network that connects banks and brokers across the world to exchanges. The Universal Trading Platform launched by the Qatari bourse in 2010 improved ‘order system’ and attracted ‘diverse investor base’. This has already put the QE on par with major global exchanges. (NYSE has a 20% stake in QE).The QE aims to introduce delivery-versus-payment (DvP) system, which will enhance post–trade processing services and increase confidence among US investors.Seetharaman said ‘significant opportunities’ exist in Qatar in view of the country being chosen to host the FIFA World Cup in 2022. The total expenditure is expected to be around $65bn. New roads, hotels, stadia and other infrastructure are being set up.Ongoing projects in Qatar total about $40bn. They include Dohaland ($5.5bn), Lusail City ($5bn), Energy City ($2.6bn), The Pearl Island ($15bn) and Mesaieed Industrial City ($5bn).He said the total bilateral trade between Qatar and the US stood at $3.62bn last year, up from $3.22bn in 2009. Many large US corporates, in the energy, banking and finance and technology sectors are participating in some of the prestigious projects in Qatar.Seetharaman said the ‘Business & Investment in Qatar Forum’ is expected to further boost bilateral trade between the two countries. “Qatari and US-based companies are expected to sign five contracts worth more than $5bn during the upcoming forum in New York. Also, Qatar is soon expected to have a full-fledged Boeing facility,” he added.