COOPERATION WITH THEM HELPS THIS MIDDLE EASTERN COUNTRY REALIZE ITS AMBITIOUS PLANS

E. O. KASAEV

MGIMO (U) student of the Russian Foreign Ministry

Qatar Keywords:, Asian countries, trade, trade turnover, investment

Doha considers the Asian direction to be one of the priorities of its foreign economic activity. At the same time, many Asian countries consider strengthening relations with Qatar as a "locomotive" for promoting their relations with other members of the Cooperation Council for the Arab States of the Persian Gulf (GCC) - Bahrain, Saudi Arabia, the United Arab Emirates, Oman and Kuwait.

IRAN

Qatar's economic ties with Iran have been developing successfully for many years. Iran is one of the main suppliers of agricultural, food, light and chemical products, as well as building materials and furniture to Qatar. In turn, Qatar exports petrochemical products, including agricultural fertilizers, to the Islamic Republic of Iran (IRI). The volume of trade turnover in 2010, according to Iranian diplomats, amounted to about $170 million*.

Today, Doha is also seriously interested in investment cooperation with Tehran. With the participation and coordination of the Qatari-Iranian Business Council, the possibility of investing Qatari capital in various projects in the territory of Iran in the field of industry, energy and agriculture is being worked out.

This interest is mutual. In February 2011, a representative delegation of Iranian entrepreneurs visited the Emirate, and in May, a four-day exhibition "Made in Iran" was held in Doha, the main purpose of which was to activate the development of bilateral economic relations by demonstrating to the Qatari side the export products of Iran that can be delivered to the local market. In early 2011, Qatar expressed its intention to export Iranian natural gas. By the way, an agreement was reached between the two countries on the division of blue fuel production areas in adjacent sea areas.

Turkey

Another State with which Qatar continues to establish close economic cooperation is Turkey, * * with which Doha shares political views on many regional and international issues. There are about 30 Turkish companies operating in the emirate, which are mainly represented in the construction and hotel business, as well as in the service sector.

The trade turnover between the two countries in 2010 amounted to about $340 million, which, however, is significantly lower than in 2008 - $1.2 billion. Turkey exports steel, electric vehicles and various equipment, automobiles and spare parts, textiles, furniture, and food products to Qatar. In turn, Doha supplies Ankara with natural gas, plastic products, and petrochemical products. Turkish investments in Qatar are mainly focused on consulting, contracting and subcontracting services.

About 7.5 thousand Turkish citizens live in Qatar, some of whom hold important positions in various large companies operating in many areas of the economy. Some Turkish specialists serve as consultants to large Qatari businessmen.

Turkish business, actively lobbied by the authorities, is pushing the Anglo-American dominant in the emirate's economy. In January 2011, Turkish Prime Minister Recep Tayyip Erdogan paid an official visit to Qatar, accompanied by more than 500 Turkish entrepreneurs.

During the trip, R. Erdogan held talks with the Prime Minister and Foreign Minister of Qatar, H. E. Abdullah bin Salman. The main topic of the meeting was the development of bilateral relations in the fields of energy, investment and agriculture. The main result of the meeting was that the "sponsorship" system, which is mandatory for foreign firms, will eventually be abolished for Turkish companies operating in Qatar (although it is not known when exactly).

In addition, R. Erdogan and members of the delegation took part in the Qatari-Turkish business forum. In their speeches, representatives of the Turkish side noted that " ... in the next two years, the trade turnover between Ankara and Doha may reach $10 billion."¹. This is largely due to the fact that, according to the Turkish Prime Minister, his state intends to actively participate in the elections.

* Here and further, statistics of the most important trade indicators (turnover, exports, imports) are provided mainly on the basis of data obtained by the author during conversations with officials of Qatar and other foreign countries, as well as according to information received from the Qatar Statistics Office. Organization's website - http://www.gsa.gov.qa/eng/index.htm

** The country is located in Southwest Asia and Southeast Europe, but the European part is much smaller than the Asian part. In this regard, we consider it reasonable to consider this state as an Asian one in the framework of this study.

Turkish companies have already been granted the right to carry out construction projects necessary for Qatar to host the 2022 FIFA World Cup. ² They have already obtained the right to carry out World Cup-related transactions in Qatar for a total of $6.6 billion.

It was also noted during the forum that the construction of the Qatar - Turkey gas pipeline could become an important factor in strengthening bilateral ties. Qatar is considered by Turkey as a supplier of "blue fuel", which can partially reduce Ankara's dependence on Russian gas. It would seem that there are prerequisites for this, since Doha plans to lay a gas pipeline to Turkey through the territory of Saudi Arabia. However, in our opinion, this main project will not be implemented, as Doha is unlikely to want to become dependent on its regional antagonist Riyadh. However, in the long run, progress in this area of Qatari-Turkish economic relations is also quite possible.

India

Today, the largest importer of Qatar's liquefied natural gas (LNG) among Asian countries is India, which receives about 7.5 - 7.7 million tons of blue fuel annually from the emirate on the basis of a long-term contract. This is no coincidence: the economy of this Asian state is gaining momentum much faster than tankers with Qatari gas have time to reach the Indian coast. According to analysts ' forecasts, by 2050 this country, like China and the United States, will enter the top three states with the most developed economy in the world.

In January 2011, the 3rd meeting of the India-Qatar High-level Commission was held in Delhi under the joint chairmanship of the Qatari Minister of State for International Cooperation. Al-Attiyah and Chief Secretary to the Prime Minister of India T. Nair. The parties discussed a possible increase in raw material exports to India, which imported 7.7 million tons of Qatari LNG ⁱⁿ 2010.3. As a result of the expansion of receiving capacities, the Indian side is asking the Qataris to increase the volume of deliveries by 3-4 million tons annually, starting from 2013. However, due to Doha's unwillingness to meet Delhi halfway and reduce the cost of gas, bilateral negotiations were suspended without getting practical implementation.⁴

In 2010, the trade turnover between the two countries amounted to $5.185 billion, and recently there has been a growing trend. In the period from 2006 to 2010. it has increased by 5 times. Qatari exports increased from $901 million to $4.468 billion, while imports increased from $259 million. up to $536 million. Indian exports are dominated by machinery, including transport, and equipment, textiles, food, and ores of various minerals. India imports energy from Qatar.

Geographically and historically, India is an organic partner of the Gulf states, including Qatar. According to Indian diplomats, the time has come to improve trade and investment relations between the two countries. Work in this direction is already underway. Thus, the Indo-Qatari Business Association has been established and is functioning, which is designed to give an impetus to bilateral investment cooperation. The association's results are clear: major Indian entrepreneurs are building bridges to invest in Qatar's petrochemical, banking and tourism industries. In addition, Qatar Airways and Air India signed an agreement on the development of corporate relations.

In the emirate, Indian business is quite widely represented. A number of Indian companies (for example, Voltas, Dodsal, Simplex, Tata Consulting Engineers, Panj Lloyd) They are accredited in Doha and implement major projects. The scale and nature of economic relations between the two countries is influenced by the large Indian community living in the emirate (more than 500 thousand people) - the largest among the foreign communities of Qatar*. Some Indians are engaged in trade, contracting and intermediary activities. Most of them are employed in the service sector, construction sites, and industry.

China

The Emirate actively cooperates with China, which is rapidly increasing imports of Qatari LNG. In January 2011, Qatari Deputy Prime Minister A. Al-Attiyah visited China and met with Chairman of the National Development and Reform Commission of the People's Republic of China Ts. By ping. During the talks, the parties discussed the current state and prospects of bilateral economic cooperation, especially in the fuel and energy and petrochemical industries. The Qatari representative said that, according to preliminary agreements, in the coming years, the volume of Qatari LNG supplies to China will significantly increase compared to 2010 (1.2 million tons) and will amount to 12 million tons**.

This will be possible only if new capacities for receiving LNG are launched. During 2010 - 2011, China was actively working in this area. At the terminal in Guangdong Province, work has begun to expand capacity to 6.7 million tons per year. A complex was under construction in the port of Dalian (Liaoning Province), the capacity of the first stage of which will be 3.5 million tons per year. A similar capacity is announced for the first stage of the terminal in Rudong district (Jiangsu Province)⁵.

For 2012-2015. Beijing plans to launch several more terminals: in the port of Ningbo (Zhejiang Province), in the Jinwan district (Zhuhai, Guangdong Province), on Hainan Island, in Shenzhen (Guangdong Province), in the port of Qingdao (Shandong Province), in Tangshan. In addition, the National Commission for Development and Reform submitted applications for the construction of three more terminals ⁶.

It would seem that a large-scale increase in receiving capacity

* The Qatar Department of Immigration estimates that Asians make up about 75% of the country's migrant workers. People from India, Pakistan, the Philippines, Nepal, Bangladesh, and Sri Lanka predominate.

** Qatar's agreements with India and China confirm Doha's intention to significantly increase LNG exports to the Asian region in 2011 by increasing its own production capacity. At the same time, the growth of Qatari hydrocarbon exports to China may complicate Gazprom's process of agreeing energy prices with Beijing, taking into account that the Russian company has signed basic gas supply terms with China without agreeing on prices.

It allows China to count on large LNG supplies, but the situation may be complicated by the fact that Qatari gas companies are very uncompromising negotiators, as a result of which it will not be easy for the Chinese side to agree on an acceptable price for raw materials.

Doha is also interested in investment cooperation with China. Thus, the state-owned real estate company Qatari Diar, which is a subsidiary of the Qatar Investment Authority (QIA), considers the Chinese market as promising for Qatari capital. KUI has already acquired $3.5 billion worth of Agricultural Bank of China securities.⁷ In May 2010, Qatar Petroleum, a state-owned oil and gas company, signed an agreement with Shell and the China National Petroleum Corporation for exploration of Block D located in Qatar and subsequent production sharing. State-owned Qatar Petroleum International (KPI), which is responsible for all foreign oil and gas projects in the Emirate, announced plans to invest about $5.6 billion. in the construction of a petrochemical plant in the Chinese province of Hainan ⁸.

Cooperation between Doha and Beijing in the banking sector has been established and continues to develop. A few years ago, a representative office of a large and reputable Doha Bank opened and successfully operates in China.

In 2010, the trade turnover between the two countries exceeded $2 billion, and judging by the emerging trend, we should expect its further growth in the future.

REPUBLIC OF KOREA

Qatar's major trading partners include the Republic of Korea (ROK)*. According to the statement of the Ambassador of the Republic of Kazakhstan to Qatar Ch. In 2010, the trade turnover between Doha and Seoul, after overcoming a temporary decline in 2009, amounted to $17-18 billion, ⁹ which was a clear proof of the gradual recovery of the two countries ' economies after the global financial and economic crisis. In the coming years, this indicator is likely to increase further due to the expansion of bilateral ties in the financial and tourism sectors.

In March 2009, Qatar Airways opened a flight service from Doha to Seoul.

In 2010 Kazakhstan imported 7.5 million tons of Qatari LNG for about $¹⁰ billion, meeting the country's gas needs by 32%. Qatar also supplies South Korea with oil, but relatively little.

Many large South Korean companies are active in the Qatari market. LG Electronics and Samsung account for about half of the total electronic commerce sector in the Emirate. Hyundai and Kia cars are popular in Qatar due to their economy and good price-performance ratio. The Republic of Korea also supplies Qatar with quite exotic products: walking along the embankment in the center of Doha, you can see picturesque wooden pleasure boats made by craftsmen from the Asian state.

Qatar and South Korea are united, in particular, by the fact that their economies were the least affected by the global economic crisis.

Japan

Emirate - the third largest (after Saudi Arabia and the United Arab Emirates) Among the GCC countries, Japan is a trading partner. The trade turnover between the two countries in 2010 amounted to $22.84 billion. Moreover, exports to Qatar decreased by 30% over the year, amounting to $1.14 billion, while imports from Doha increased by 36%, reaching $21.70 billion. The trade deficit is therefore $20.56 billion.

The main items of Japanese imports are hydrocarbons (LNG, oil, propane, butane, methanol) and fertilizers (urea). Most of the exports are industrial equipment (steam and gas turbines, nickel pipes, cable for various purposes). Qatar buys ferrous metallurgy products, various equipment and electronics from Japan. Due to the crisis, shipments from Japan to Qatar of many types of high-tech products declined sharply in 2010, although cars were sold 58% more than in 2009 - a total of $775.2 million.

In 2010, 7.5 million tons of Qatari LNG were delivered to Tokyo.

Qatari hydrocarbon exports to Japan are likely to increase in the near future, as the country's demand for fuel has significantly increased due to the earthquake and a serious accident at the Fukushima nuclear power plant. The state-owned company Katargaz agreed to supply an additional 4 million tons of LNG to the Japanese by the end of spring and early summer.¹¹ In addition, the Qatari leadership has allocated $ 100 million to Tokyo for the country's post-disaster recovery ¹².

Vietnam

Another state - owned company, Qatar Petroleum International, plans to invest about $4 billion by 2015. in the construction of a petrochemical plant in Vietnam. Japan's Itochu Corporation and Thailand's Siam Cement will also participate in the project. On the Vietnamese side, it is likely that the state-owned company Petro Vietnam will participate in the construction of the enterprise, ¹³ with which KPI is negotiating about this.

Despite the low trade turnover, which amounted to about $130 million in 2010. (Qatar exports petrochemicals and fertilizers, imports food, furniture, electronic equipment, textiles), both countries attach great importance to the development of economic cooperation. In 2009 A delegation of Qatari businessmen visited Vietnam and signed an agreement on their participation in the construction of a seaport and logistics center.

Qatari investment "heavyweights" - "Qatar Holding", "Katari Diar", "Barva", "Hassad Food" intend to invest heavily in industrial and agricultural enterprises in Vietnam, in particular in rice farms.

Singapore

Qatar successfully cooperates with Singapore in many areas. In 2010, the trade turnover between the two countries amounted to $6 billion, which is $500 million higher than in 2009. Like many Asian countries, Singapore imports hydrocarbons and fertilizers from Qatar, while exporting telecommunications equipment.-

* The unofficial name of the country that is widely used in the media is South Korea.

mining, construction materials, and refined petroleum products. Major companies of the Emirate - Kapko, Qatar Telecom, Tasvig, as well as banks-Qatar National Bank and Doha Bank opened their representative offices and branches in Singapore.

In turn, 12 Singapore companies are accredited and operate in Qatar. Their area of interest is planning ("Surbana), consulting services (Yurong International), project management and engineering (Keppel), and architecture and design.

In addition, Singapore companies are involved in the modernization of Doha International Airport and the construction of a seaport. Together with the state foundation" Qatar Foundation", Singapore entrepreneurs are going to help Qatar develop libraries and the educational system. Singapore businesses claim to receive a number of orders timed to coincide with the 2022 FIFA World Cup in Qatar. Singapore companies could, for example, equip stadiums and other sports grounds with lighting devices, lay metro and surface urban transport lines, etc.

Qatari entrepreneurs plan to build a terminal in Singapore for receiving LNG vessels. Most likely, it will be located on an artificial island specially created for the start of LNG supplies. Although construction has not yet begun, the deadline for completion of construction work is 2013.

THAILAND

In Thailand, a similar terminal has already started functioning. The company "Katargaz" delivered several batches of LNG there. In 2009 Doha and Bangkok signed a number of intergovernmental agreements and memoranda of understanding, which stimulated the development of bilateral economic relations. In 2010, the trade turnover between the two countries exceeded $2 billion. Qatar imports cars and spare parts, iron and steel products, and air conditioners from Thailand. It exports gas, oil, petrochemicals and fertilizers.

indonesia

Recently, the Emirate has become the most important investor and trading partner of Indonesia. Thus, Qatar Telecom State Corporation has a 65% share - more than $3 billion. - in the second largest telecommunications company in Indonesia, PT Indosat. A representative office of Qatar Islamic Bank is successfully operating in Jakarta. In May 2010, Qatar Holding (an investment arm of KUI) established the Indonesia Fund, ¹⁴ which will invest in mineral extraction and various infrastructure projects. Qatar Petrochemical Company has opened a representative office in Indonesia.

Indonesian firms are also involved in the development of the Qatari economy. For example, PT Medco, PT Inti Karia Persada Tech, Valko Group and others invest in Qatar's oil and gas industry. Indonesian businesses are also represented in the construction, furniture and infrastructure sectors.

The trade turnover between the two countries in 2010 amounted to about $300 million. Qatari imports are mainly products of the aviation, furniture and food industries; exports are hydrocarbons, petrochemicals and fertilizers.

MALAYSIA

Qatar's economic relations with Malaysia are gaining momentum. Progress is noticeable on both the trading and investment tracks. According to the results of 2010, the trade turnover amounted to about $421.3 million, of which Qatari exports - $247.8 million, and imports -$173.5 million. Doha mainly imports Malaysian electrical and electronics products, transport equipment, and supplies hydrocarbons, petrochemicals, and fertilizers.

In July 2011, Qatargaz and Malaysia's Petronas entered into a long-term agreement that the former would sell 1.5 million tons of LNG to the latter annually from ²⁰¹³ to 2033.1

The two leaders often meet each other, both in Doha and Jakarta, which gives additional impetus to economic cooperation between the two countries.

* * *

Qatar operates not only in Asian markets , but also in European and American markets. However, due to temporary difficulties caused by the financial crisis, it was decided to suspend the implementation of more than half of foreign projects, mainly in the EU countries and in the United States. The Asian vector of foreign economic activity, in contrast to the European and American ones, is considered more reliable.

Hence the logical conclusion: the multi-profile trade and investment relations of the emirate with Asian countries are effective. In addition, they, as a rule, unlike Euro-American ones, are focused on the long term. By skillfully harnessing the potential of these States, Doha can implement its most ambitious plans. There are definitely prerequisites for this.

^{Santhosh V.P.} 1 Qatar, Turkey bilateral trade seen at $10bn // Gulf Times, 13.01.2011.

² Ibidem.

³ Closed report of QNB Capital, a research division of the Qatar National Bank.

⁴ India, Qatar disagree on pricing of LNG // Business Standard, 29.10.2011.

⁵ Oil&Gas Journal, 7.03.2011.

⁶ Ibidem.

⁷ The Peninsula, 16.07.2011.

⁸ Qatar to Build $9.8 Billion Plants in China, Vietnam (Updatel) // Bloomberg, 18.11.2009.

^{Mishra R.} 9 Qatar - South Korean trade hits $18 bn, says envoy // Qatar Tribune, 5.11.2010.

¹⁰ The Peninsula, 20.06.2011.

^{Carlistle T.} 11 Qatargas pledges extra LNG supplies for Japan // The National, 17.04.2011.

^{Dizon L.R.} 12 Charity concert for tsunami victims in Japan a big hit // Qatar Tribune, 29.05.2011.

¹³ Qatar Petroleum, Itochu May Join Vietnam Chemicals Project, Dau Tu Says // Bloomberg, 10.11.2010.

¹⁴ Qatar Holding, LLC sets up $1 Billion Indonesia fund // Emirates Business 24/7, 11.05.2010.

¹⁵ Qatar agrees to supply LNG to Malaysia for 20 years // Reuters, 24.07.2011.

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