With a lower average cost per container, fewer documents required, and a quicker average procedure time for both importing and exporting than the regional averages, trading internationally with Qatar is relatively easy, says BMI Research.

By Pratap John/Chief Business Reporter

With a lower average cost per container, fewer documents required, and a quicker average procedure time for both importing and exporting than the regional averages, “trading internationally with Qatar appear relatively easy”, BMI Research has said in a report.
Qatar, it said, is well-suited to meet its logistical needs in the short-to-mid-term future. With one eye on the upcoming FIFA World Cup, and an overarching focus on achieving the 2030 Qatar National Vision objectives, the country’s infrastructure is being overhauled and modernised.
Combined with regionally relaxed and cost-efficient trading procedures, Qatar is well placed to ensure that its international trade is maintained at its required levels. For these reasons, BMI has given Qatar a score of 61.1 out of 100, placing it in sixth position regionally.
At present, Qatar’s international trading and logistical infrastructure largely caters to the exporting of fossil fuels and the importing of construction materials and food. With the world’s largest LNG exporting facility, and major airport and seaport refurbishment and development projects coming online imminently, Qatar looks set to increase its logistical capacity growth in line with the growing demands of its population, BMI said.
Qatar also holds “reasonable attractiveness” for foreign investment and businesses, in large part due to its high availability of cheap utilities, abundance of natural wealth, and clear openness to attracting foreign investment.
Due to a current strong trade position, Qatar’s export growth is predicted to slow, BMI said. However, the high demand for its exports, the majority of which are fossil fuels, is likely to ensure the country retains its wealth and trade surplus.
Qatar’s burgeoning population and increasing international prestige are likely to drive trade growth over the medium-term. In terms of utilities, Qatar enjoys cheap fuels and extensive domestic electrical production, with particular subsidies for foreign businesses, as well as one of the most developed IT sectors in the region, BMI said.
The major risk, however, in this section is the availability of quality water, which is low, having mostly been produced through desalination plants. For these reasons, Qatar receives a score of 66.6 out of 100 for ‘market size and utilities’, placing it in fifth position regionally.
According to BMI Research, Qatar’s transport infrastructure is “sufficient” to meet its current logistical demands. With heavy investment in upgrading the major Qatari airports and seaports, as well as the development of a parallel rail system to ease some of the pressure off of the road infrastructure, Qatar’s logistical chain is improving its capacity to transport freight.
However, the major risk is that until the rail system comes online, the road network is struggling with congestion and damage, severely increasing costs and delays. For this reason, Qatar merits a score of 52.9 out of 100 for its ‘transport network’, placing it in fifth position regionally, BMI said.
BMI Research sees Qatar’s trade governance and regulation as “regionally efficient and cheap.” With a lower average cost per container, fewer documents required, and a quicker average procedure time for both importing and exporting than the regional averages, trading internationally with Qatar appear relatively easy.
“This indicates an efficient bureaucracy and a government that seems to be seeking to attract investment and trade. The major risk in this section is Qatar’s low shipping connectivity, which could be improved once the major port development projects have been completed. Qatar receives a score of 64 out of 100 for ‘trade procedures and governance’, placing it in ninth position regionally,” BMI said.