Bond Qatar 3.875% ( US74727PAW14 ) in USD

Qatar

100 % ⇌

Qatar

US74727PAW14 ( in USD )

3.875% per year ( payment 2 times a year)

22/04/2023 - Bond has expired

Prospectus brochure of the bond Qatar US74727PAW14 in USD 3.875%, expired

Qatar is a sovereign Arab state occupying a peninsula on the west coast of the Persian Gulf, known for its vast natural gas reserves, modern infrastructure, and hosting of the 2022 FIFA World Cup.

The Bond issued by Qatar ( Qatar ) , in USD, with the ISIN code US74727PAW14, pays a coupon of 3.875% per year.
The coupons are paid 2 times per year and the Bond maturity is 22/04/2023

The State of Qatar
U.S.$3,000,000,000 3.875% Bonds due 2023
Issue Price: 99.322%
U.S.$3,000,000,000 4.500% Bonds due 2028
Issue Price: 99.673%
U.S.$6,000,000,000 5.103% Bonds due 2048
Issue Price: 100.000%
The U.S.$3,000,000,000 3.875% Bonds due 2023 (the "2023 Bonds"), the U.S.$3,000,000,000 4.500% Bonds due 2028 (the "2028 Bonds") and the
U.S.$6,000,000,000 5.103% Bonds due 2048 (the "2048 Bonds" and, together with the 2023 Bonds and the 2028 Bonds, the "Bonds") are being offered
inside the United States to qualified institutional buyers in reliance on Rule 144A under the United States Securities Act of 1933 (the "Securities Act").
In addition, the Bonds are being offered outside the United States in reliance on Regulation S under the Securities Act.
The State of Qatar, acting through the Ministry of Finance ("Qatar" or the "State"), will pay interest on each 2023 Bond at the rate of 3.875% per annum
from and including April 23, 2018 semi-annually in arrear on April 23 and October 23 in each year until (and including) April 23, 2023 (the "2023
Maturity Date"), commencing on October 23, 2018. The State will pay interest on each 2028 Bond at the rate of 4.500% per annum from and including
April 23, 2018 semi-annually in arrear on April 23 and October 23 in each year until (and including) April 23, 2028 (the "2028 Maturity Date"),
commencing on October 23, 2018. The State will pay interest on each 2048 Bond at the rate of 5.103% per annum from and including April 23, 2018
semi-annually in arrear on April 23 and October 23 in each year until (and including) April 23, 2048 (the "2048 Maturity Date" and, together with the
2023 Maturity Date and the 2028 Maturity Date, the "Maturity Dates"), commencing on October 23, 2018.
Unless previously redeemed or purchased and cancelled, each series of Bonds will be redeemed at its principal amount together with accrued interest on
the Maturity Date applicable to the relevant series of Bonds. The State may redeem any series of Bonds, in whole or in part, at any time at a redemption
price equal to the greater of (a) 100% of the principal amount of the relevant series of Bonds plus accrued and unpaid interest and (b) the relevant Make-
Whole Amount (as defined in the Terms and Conditions of the Bonds).
Except as set forth herein, payments in respect of the Bonds will be made without any deduction or withholding for or on account of taxes of Qatar or any
political subdivision thereof or any authority therein or thereof having power to tax.
An investment in the Bonds involves certain risks. Prospective investors should review the factors described under "Risk Factors" in this
Prospectus.
Application has been made to the Commission de Surveillance du Secteur Financier (the "CSSF") in its capacity as competent authority under the
Luxembourg Act dated July 10, 2005 on prospectuses for securities to approve this document as a prospectus within the meaning of Article 5.3 of
Directive 2003/71/EC as amended, including by Directive 2010/73/EU (the "Prospectus Directive"). Application has been made to the Luxembourg
Stock Exchange for the Bonds to be admitted to trading on the Luxembourg Stock Exchange's regulated market and to be listed on the official list of the
Luxembourg Stock Exchange. The Luxembourg Stock Exchange's regulated market is a regulated market for purposes of Directive 2014/65/EU. The
CSSF assumes no responsibility as to the economic and financial soundness of the Bonds and the quality or solvency of the State pursuant to provisions
of Article 7(7) of the Luxembourg Law on Prospectuses for Securities.
Application will be made to the Taipei Exchange ("TPEx") for the listing of, and permission to sell or resell, the 2048 Bonds to "professional investors"
as defined under Paragraph 1 of Article 2-1 of the Taipei Exchange Rules Governing Management of Foreign Currency Denominated International Bonds
of the Republic of China (the "TPEx Rules") only and such permission is expected to become effective on or about April 23, 2018. No assurance can be
given that such application will be approved, or that the TPEx listing will be maintained.
Deutsche Bank AG, Taipei Branch and Standard Chartered Bank (Taiwan) Limited (together, the "2048 Bonds Joint Bookrunning Managers") will
offer and sell the 2048 Bonds in the Republic of China (the "ROC" or "Taiwan"). None of Al Khalij Commercial Bank (al khaliji) P.Q.S.C., Barclays
Bank PLC, Crédit Agricole Corporate and Investment Bank, Credit Suisse Securities (Europe) Limited or QNB Capital LLC (together, the "2048 Bonds
Structuring Agents") is licensed in Taiwan and, accordingly, none of the 2048 Bonds Structuring Agents has offered or sold, or will subscribe for or sell
or underwrite, any of the 2048 Bonds offered, sold or re-sold hereby.
No application is being made to the TPEx for the listing of the 2023 Bonds or the 2028 Bonds.
The TPEx is not responsible for the content of this Prospectus (as defined below) and/or any supplement or amendment thereto and no representation is
made by the TPEx as to the accuracy or completeness of this Prospectus and/or any supplement or amendment thereto. The TPEx expressly disclaim any
and all liability for any losses arising from, or as a result of the reliance on, all or part of the contents of this Prospectus and/or any supplement or
amendment thereto. The admission to the listing and trading of the 2048 Bonds on the TPEx shall not be taken as an indication of the merits of the State
or the 2048 Bonds.
Qatar has been assigned a long-term credit rating of "AA-" with a negative outlook by S&P Global Ratings, a division of S&P Global Inc. ("S&P"), on
August 25, 2017, of "AA-" with a negative outlook by Fitch Ratings, Ltd. ("Fitch") on 28 August, 2017, and of "Aa3" with a negative outlook by
Moody's Investors Service, Inc., a subsidiary of Moody's Corporation ("Moody's"), on July 4, 2017.
It is expected that the Bonds will be rated "AA-" by S&P, "AA-" by Fitch and "Aa3" by Moody's. A rating is not a recommendation to buy, sell or hold
securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organization. The credit ratings included or
referred to in this prospectus (the "Prospectus") will be treated for the purposes of Regulation (EC) No 1060/2009 on credit rating agencies (the "CRA
Regulation") as having been issued by S&P, Fitch and Moody's. Each of S&P, Fitch and Moody's is established in the European Union and is registered
under the CRA Regulation. Each of these agencies is included in the list of credit rating agencies published by the European Securities and Markets

Authority on its website (http://www.esma.europa.eu/page/List-registered-and-certified-CRAs) in accordance with the CRA Regulation. Any change in
the rating of the Bonds may adversely affect the price that a purchaser may be willing to pay for the Bonds.
The Bonds have not been and will not be registered under the Securities Act and are being offered and sold in the United States only to qualified
institutional buyers in reliance on Rule 144A under the Securities Act. Prospective purchasers that are qualified institutional buyers in the
United States are hereby notified that the seller of the Bonds may be relying on the exemption from the provisions of Section 5 of the Securities
Act provided by Rule 144A. Bonds sold to purchasers in the United States are not transferable except in accordance with the restrictions
described under "Transfer Restrictions".
The Bonds will be offered and sold in registered form in denominations of U.S.$200,000 or any amount in excess thereof which is an integral multiple of
U.S.$1,000. Bonds which are offered and sold in transactions outside the United States in compliance with Regulation S (the "Unrestricted Bonds") will
initially be represented by beneficial interests in a global Bond for each series of Bonds (the "Unrestricted Global Bonds"), in registered form, without
interest coupons attached, which will be registered in the name of BT Globenet Nominees Limited as nominee for, and shall be deposited on or about
April 23, 2018 (the "Closing Date") with, a common depositary for, and in respect of interests held through, Euroclear Bank SA/NV ("Euroclear") and
Clearstream Banking, S.A. ("Clearstream, Luxembourg"). Bonds which are offered and sold in the United States in reliance on Rule 144A (the
"Restricted Bonds") will initially be represented by beneficial interests in one or more global Bonds for each series of Bonds (the "Restricted Global
Bonds"), in registered form, without interest coupons attached, which will be deposited on or about the Closing Date with Deutsche Bank Trust Company
Americas, as custodian (the "Custodian") for, and registered in the name of Cede & Co. as nominee of, The Depository Trust Company ("DTC").
Interests in the Restricted Global Bonds will be subject to certain restrictions on transfer. See "The Global Bonds--Transfers". Beneficial interests in the
Unrestricted Global Bonds and the Restricted Global Bonds (together, the "Global Bonds") will be shown on, and transfers thereof will be effected only
through, records maintained by DTC, Euroclear and Clearstream, Luxembourg and their participants. Except as described herein, individual definitive
certificates for Bonds will not be issued in exchange for beneficial interests in the Global Bonds.
As to the 2023 Bonds and the 2028 Bonds
Joint Lead Managers and Joint Bookrunners
al khaliji
Barclays
Crédit Agricole CIB
Credit Suisse
Deutsche Bank QNB Capital Standard Chartered Bank

As to the 2048 Bonds
Joint Bookrunning Managers
Deutsche Bank AG, Taipei Branch
Standard Chartered Bank (Taiwan) Limited
(Lead Manager)
Structuring Agents
al khaliji
Barclays
Crédit Agricole CIB
Credit Suisse QNB Capital

Prospectus dated April 13, 2018

TABLE OF CONTENTS
Page

OVERVIEW ........................................................................................................................................... 1
RISK FACTORS .................................................................................................................................. 18
NOTICE TO QATARI RESIDENTS ................................................................................................... 31
ENFORCEMENT OF CIVIL LIABILITIES ....................................................................................... 32
PRESENTATION OF FINANCIAL INFORMATION ....................................................................... 34
PRESENTATION OF CERTAIN RESERVES INFORMATION ....................................................... 35
PRESENTATION OF HYDROCARBON DATA ............................................................................... 36
PRESENTATION OF CERTAIN OTHER DATA RELATED TO QATAR ...................................... 37
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS .......................................... 39
USE OF PROCEEDS ........................................................................................................................... 40
OVERVIEW OF THE STATE OF QATAR ........................................................................................ 41
THE ECONOMY OF QATAR ............................................................................................................. 56
MONETARY AND FINANCIAL SYSTEM ....................................................................................... 91
PUBLIC FINANCE ............................................................................................................................ 108
INDEBTEDNESS ............................................................................................................................... 119
BALANCE OF PAYMENTS ............................................................................................................. 124
TERMS AND CONDITIONS OF THE BONDS ............................................................................... 132
THE GLOBAL BONDS ..................................................................................................................... 161
CLEARING AND SETTLEMENT .................................................................................................... 164
TAXATION ........................................................................................................................................ 169
SUBSCRIPTION AND SALE ........................................................................................................... 175
TRANSFER RESTRICTIONS ........................................................................................................... 179
GENERAL INFORMATION ............................................................................................................. 181

ii

RESPONSIBILITY STATEMENT
The State accepts responsibility for the information contained in this Prospectus. To the best of the
knowledge and belief of the State (having taken all reasonable care to ensure that such is the case), the
information contained in this Prospectus is in accordance with the facts and does not omit anything
likely to affect the import of such information.
To the best of the knowledge and belief of the State, the information contained in this Prospectus is
true and accurate in every material respect and is not misleading in any material respect and this
Prospectus, insofar as it concerns such matters, does not omit to state any material fact necessary to
make such information not misleading. The opinions, assumptions, intentions, projections and
forecasts expressed in this Prospectus with regard to the State are honestly held by the State, have
been reached after considering all relevant circumstances, and are based on reasonable assumptions.
iii

IMPORTANT NOTICE
No person has been authorized to give any information or to make any representation other than those
contained in this Prospectus in connection with the offering of the Bonds and, if given or made, such
information or representations must not be relied upon as having been authorized by the State or by
any of Al Khalij Commercial Bank (al khaliji) P.Q.S.C., Barclays Bank PLC, Crédit Agricole
Corporate and Investment Bank, Credit Suisse Securities (Europe) Limited, Deutsche Bank AG,
London Branch, Deutsche Bank AG, Taipei Branch, QNB Capital LLC, Standard Chartered Bank and
Standard Chartered Bank (Taiwan) Limited (together, the "Banks"). Neither the delivery of this
Prospectus nor any sale made hereunder shall, under any circumstances, constitute a representation or
create any implication that there has been no change in the affairs of the State since the date hereof.
This Prospectus may not be used for the purpose of an offer to, or a solicitation by, anyone in any
jurisdiction or in any circumstances in which such an offer or solicitation is not authorized or is
unlawful.
This Prospectus is not intended to provide the basis of any credit or other evaluation and should not be
considered as a recommendation by the State or by any Bank that any recipient of this Prospectus
should purchase any of the Bonds. Each investor contemplating purchasing Bonds should make its
own independent investigation of the financial condition and affairs, and its own appraisal of the
creditworthiness, of the State.
In connection with the issue of the Bonds, Deutsche Bank AG, London Branch (the "Stabilizing
Manager") (or any person acting on behalf of it) may over-allot the Bonds or effect transactions with
a view to supporting the market price of the Bonds at a level higher than that which might otherwise
prevail. However, stabilization may not necessarily occur. Any stabilization action may begin on or
after the date on which adequate public disclosure of the terms of the offer of the Bonds is made and,
if commenced, may cease at any time, but it must end no later than the earlier of 30 days after the
issue date of the Bonds and 60 days after the date of the allotment of the Bonds. Any stabilization
action or over-allotment must be conducted by the Stabilizing Manager (or persons acting on behalf of
the Stabilizing Manager) in accordance with all applicable laws and rules and, in respect of the 2048
Bonds, to the extent permitted by applicable laws and regulations of the ROC.
The State is relying on an exemption from registration under the Securities Act for offers and sales of
securities that do not involve a public offering. By purchasing Bonds, each prospective investor will
be deemed to have made the acknowledgements, representations, warranties and agreements
described under "Transfer Restrictions" in this Prospectus. Each prospective investor should
understand that it will be required to bear the financial risks of its investment for an indefinite period
of time.
Neither the State nor the Banks are making any representation to any prospective investor in the
Bonds regarding the legality of an investment in the Bonds by such prospective investor under any
legal investment or similar laws or regulations. The contents of this Prospectus are not to be construed
as legal, business or tax advice. Each prospective investor should consult with its own attorney,
business advisor and tax advisor for legal, business and tax advice regarding an investment in the
Bonds.
The distribution of this Prospectus and the offer or sale of Bonds may be restricted by law in certain
jurisdictions. Neither the State nor the Banks represent that this Prospectus may be lawfully
distributed, or that any Bonds may be lawfully offered, in compliance with any applicable registration
or other requirements in any such jurisdiction, or pursuant to an exemption available thereunder, or
assume any responsibility for facilitating any such distribution or offering. In particular, no action has
been taken by the State (save for the approval of this Prospectus by the CSSF as a prospectus within
the meaning of Article 5 of the Prospectus Directive) or the Banks which would permit a public
offering of any Bonds or distribution of this Prospectus in any jurisdiction where action for that
purpose is required. Accordingly, no Bonds may be offered or sold, directly or indirectly, and neither
this Prospectus nor any advertisement or other offering material may be distributed or published in
iv

any jurisdiction, except under circumstances that will result in compliance with any applicable
securities laws and regulations. Persons into whose possession this Prospectus or any Bonds come
must inform themselves about and observe any such restrictions. In particular, there are restrictions on
the distribution of this Prospectus and the offer or sale of Bonds in the United States. For a description
of these and certain further restrictions on offers and sales of the Bonds and distribution of this
Prospectus, see "Subscription and Sale" and "Transfer Restrictions".
The Bonds have not been registered with, recommended by or approved or disapproved by, the
United States Securities and Exchange Commission (the "SEC") or any other federal or state
securities commission in the United States, nor has the SEC or any other federal or state securities
commission confirmed the accuracy or determined the adequacy of this Prospectus. Any
representation to the contrary is a criminal offense in the United States. The Bonds are subject to
restrictions on transferability and resale. See "Transfer Restrictions".
MIFID II product governance/professional investors and ECPS only target market Solely for
the purposes of each manufacturer's product approval process, the target market assessment in respect
of the Bonds has led to the conclusion that: (i) the target market for the Bonds is eligible
counterparties and professional clients only, each as defined in MiFID II; and (ii) all channels for
distribution of the Bonds to eligible counterparties and professional clients are appropriate. Any
person subsequently offering, selling or recommending the Bonds (a "distributor") should take into
consideration the manufacturers' target market assessment; however, a distributor subject to MiFID II
is responsible for undertaking its own target market assessment in respect of the Bonds (by either
adopting or refining the manufacturers' target market assessment) and determining appropriate
distribution channels.
In this Prospectus, any reference to a "series" of Bonds or Bondholders shall be a reference to the
2023 Bonds, the 2028 Bonds or the 2048 Bonds or to their respective holders, as the case may be.

v

OVERVIEW
Introduction to Qatar and its Economy
Qatar is one of the most prosperous countries in the world, with a nominal gross domestic product
("GDP") per capita of QR231,092 (U.S.$63,487) calculated by taking Qatar's 2017 nominal GDP and
dividing it by a population of 2.64 million as estimated in 2017 by the Ministry of Development
Planning and Statistics. For most of the past two decades, Qatar was one of the fastest growing
economies in the world and its growth was driven by the development of its large natural gas reserves.
Following the completion of its LNG projects, in 2011, the rate of economic growth has slowed and
this has been compounded more recently by lower revenues from hydrocarbon exports due to lower
hydrocarbon production and prices. As a result, the contribution of the oil and gas sector to nominal
GDP has declined from 52.5% in 2014 to 32.7% in 2017. However, the non-oil and gas sector is
becoming stronger with the contribution of the non-oil and gas sector to total nominal GDP increasing
from 47.5% in 2014 to 67.3% in 2017. In 2016, Qatar's nominal GDP contracted by 7.4%, and
Qatar's real GDP grew by 2.2%. In 2017, Qatar's nominal GDP grew by 9.9% and real GDP grew by
1.6%.
Oil and Gas
As at December 31, 2017, Qatar's proven reserves of crude oil and natural gas (including condensate)
amounted to approximately 173 billion barrels of oil equivalent. These hydrocarbons consist of
proven reserves of approximately 852 trillion standard cubic feet of natural gas (including condensate)
and 1.73 billion barrels of crude oil. Virtually all of Qatar's proven reserves of natural gas and
condensate are located in the North Field, which is estimated by the U.S. Energy Information
Administration to be part of the largest non-associated gas field in the world as at January 2015.
According to the U.S. Energy Information Administration, Qatar had the third largest natural gas
deposits after Iran and Russia and owned 14% of the total gas reserves of the world in 2015.
In recent years, hydrocarbon prices have been volatile with a noticeable decline that began in the third
quarter of 2014, although prices have begun to recover since January 2016. Prices generally averaged
between U.S.$95 and U.S.$125 per barrel (monthly Europe Brent Spot Price FOB) for most of 2011
to 2013 and for the first three quarters of 2014. However, in October 2014, crude oil prices began to
fall sharply, reaching U.S.$38.01 per barrel in December 2015 (monthly Europe Brent Spot Price
FOB) and U.S.$30.70 per barrel in January 2016 (monthly Europe Brent Spot Price FOB). Oil prices
have shown signs of recovery since early 2016, to U.S.$53.31 per barrel in December 2016 (monthly
Europe Brent Spot Price FOB), U.S.$64.37 per barrel in December 2017 (monthly Europe Brent Spot
Price FOB) and U.S.$69.02 as at April 2, 2018 (Europe Brent Spot Price FOB). In 2015, the oil and
gas sector contributed 38.6% to Qatar's total nominal GDP, compared with 30.3% in 2016. The lower
contribution of the oil and gas sector was due to the continued diversification of the economy. In
2017, the oil and gas sector contributed 32.7% to Qatar's total nominal GDP.
Following the conclusion of Qatar's successful 20-year LNG development plan, LNG production has
sustained a high, but steady, level since 2012. Future growth in gas production is expected to come
from the Barzan project, which once completed and on stream will supply pipeline natural gas to
Qatar's domestic market, as well as a new gas field development in the North Field which is expected
to add approximately 23 mta of LNG in years 2023/2024.
Non-oil and Gas
In recent years, Qatar has focused on diversifying its economy, through increased spending on
infrastructure, social programs, healthcare and education, in an effort to reduce its historical
dependence on oil and gas revenues. Nominal GDP for the non-oil and gas sector reached QR410,379
million (U.S.$112,741 million), or 67.3% of Qatar's total nominal GDP in 2017, compared to
QR356,468 million (U.S.$97,931 million), or 47.5% of Qatar's total nominal GDP in 2014. In the
energy sector, Qatar is developing solar power to have a more diverse energy mix. The construction
and real estate sectors have recently made substantial contributions to Qatar's economic growth. In
1

addition, significant investments have been made to increase economic returns from, in particular,
financial services, infrastructure development and tourism. Qatar's economic growth has also enabled
it to diversify its economy through domestic and international investments into different classes of
assets.
In 2005, the State set up the Qatar Investment Authority (the "QIA") to propose and implement
investments for the State's financial reserves, both domestically and abroad. Through the QIA, Qatar
has invested in private equity, the banking sector, real estate, publicly traded securities and alternative
assets. With its growing portfolio of international and domestic long-term strategic investments, the
QIA has contributed to the State's financial stability and diversified its sources of fiscal revenue for
the future (although currently the QIA reinvests all income from its assets).
Qatar Petroleum
Qatar Petroleum ("QP"), which is wholly owned by the State and is the State's primary source of
hydrocarbon revenues, is responsible for all phases of the oil and gas industry in Qatar. Oil was
discovered in Qatar in late 1939 and crude oil exports began in 1949. Until recently, Qatar has
steadily increased its levels of crude oil production, both directly and indirectly, by entering into
exploration and development production sharing agreements with leading international oil exploration
and production companies, including Total and Occidental Petroleum. The U.S. Energy Information
Administration estimated Qatar to have been the 13th largest global producer of petroleum and other
liquids (crude oil, gasoline, heating oil, diesel, propane, and other liquids including biofuels and
natural gas liquids) in 2017.
LNG Development
In the early 1990s, Qatar developed a long-term strategy to accelerate the commercialization of its
substantial natural gas reserves as a means to diversify and ultimately modernize Qatar's economy. In
furtherance of this strategy, Qatar has made large scale investments across the entire value chain of
liquefied natural gas ("LNG") trains, tankers, and storage and receiving facilities. Qatar has been the
leading LNG producing country in the world since 2006. In December 2010, Qatar reached its
planned LNG production capacity of 77.5 mta, which represented an increase of more than 150%
since 2008 and production has remained close to capacity since then, including allowing for scheduled
maintenance. Via its flagship Qatargas and RasGas LNG projects, Qatar has developed its LNG
business through strategic partnerships with a number of the world's leading oil and gas companies,
including Exxon Mobil Corporation, Shell, Total and ConocoPhillips. By investing across the entire
LNG value chain, Qatar now enjoys meaningful cost advantages in the gas sector due to significant
economies of scale and a low cost structure. Because most of the natural gas in the North Field is
"wet", meaning it is associated with other hydrocarbons, such as condensate, Qatar's LNG projects
also produce significant quantities of condensate and natural gas liquids which contribute to the
diversification of the State's revenue sources and create downstream opportunities. Qatar also has a
good central geographic location for global shipping to all major gas consuming regions of the world.
LNG has been contracted to be sold globally under long-term take-or-pay agreements, thereby
providing certainty of volume offtake, but is also sold in spot markets. In 2016, Qatar exported LNG
to 26 countries, mainly in Asia (including Japan, South Korea, India, China and Taiwan) and Europe
(including the United Kingdom ("UK"), Italy, Spain and Belgium) but also in the Americas
(Argentina and Brazil) and the Middle East (Kuwait and the United Arab Emirates (the "UAE")).
Downstream Development
Qatar continues to develop its natural gas resources beyond the LNG industry by implementing a
downstream strategy driven by opportunities to generate additional revenue from its existing oil and
gas production. QP has developed pipeline gas projects both for regional export markets and for
domestic petrochemicals and industrial consumption. In addition, QP is the majority shareholder in a
number of industrial companies, located primarily at Ras Laffan Industrial City and Mesaieed
Industrial City, which use natural gas as feedstock and/or fuel to produce various value-added
products, such as refined products, petrochemicals, fertilizer, steel and aluminum, both for domestic
2

consumption and for export. Qatar has also invested in exploiting various Gas-to-Liquid ("GTL")
technologies, and has two joint venture projects currently in operation to generate GTL products such
as distillates. These two joint ventures are Shell's Pearl GTL, which is the largest project of its kind in
the world, with a production of 140,000 barrels per day and Oryx GTL with a production of 34,000
barrels per day. See "--Oil and Gas Sector--Natural Gas Operations--Gas-to-Liquids Projects".
Indebtedness
Throughout a period characterized by rapid growth and development, Qatar has aimed to demonstrate
fiscal responsibility by managing its budget and public finances prudently. The State has historically
had low levels of indebtedness but there has been an increase in indebtedness since 2009 mainly due
to the support given by the State to the commercial banking sector during the global financial crisis
in 2009 and the issues of treasury bills ("T-bills") and treasury bonds ("T-bonds") by the Qatar
Central Bank (the "QCB") in 2010, 2011 and 2012, mainly for liquidity management and to develop
the yield curve for riyal-denominated domestic bonds. As at December 31, 2013, the level of
indebtedness had further increased due to new domestic bond and Sukuk issues. The decrease in
indebtedness in 2015 was due to the repayment of various internal debt obligations and external U.S.
dollar-denominated bonds that came to maturity during this period. The increase in indebtedness as at
December 31, 2016 was due, among other things, to the issuance of U.S.$9 billion in aggregate bonds
in the international capital markets in May 2016. Most of Qatar's significant energy projects are
funded on a stand-alone, limited recourse basis. As at December 31, 2017 Qatar's total indebtedness
stood at QR302,320 million (U.S.$83,055 million).
Public Finance
Qatar had consistent budget surpluses over the 15-year period from the fiscal year ended March 31,
2001, to the fiscal year ended March 31, 2015. The budget surplus for the fiscal year ended March 31,
2015 was QR108,604 million (U.S.$29,836 million), or 32.4% of total Government revenues. The
shift to a fiscal year corresponding to the calendar year meant that there was a nine-month budget for
the period from April 1, 2015 to December 31, 2015, for which there was a deficit of QR4,233 million
(U.S.$1,163 million). For the year ended December 31, 2016, the deficit was QR50,829 million
(U.S.$13,964 million), or 29.7% of total Government revenues, primarily as a result of a decrease in
oil and gas revenue, including income from investments by QP. According to preliminary data, for the
year ended December 31, 2017, the deficit was QR35,395 million (U.S.$9,724 million). The 2018
budget estimates that for the fiscal year ending December 31, 2018, Qatar will have a budget deficit of
QR28,113 million (U.S.$7,723 million), based on an assumed oil price of U.S.$45 per barrel. The
estimated budget deficit for the fiscal year ending December 31, 2018 reflects Qatar's continued
commitment to capital expenditure for ongoing infrastructure projects combined with a conservative
oil price assumption.
Balance of Payments
Qatar maintained a surplus in its balance of payments between 1999 and 2014, except in 2011.
However, recent years have shown a deficit. The surplus in the balance of payments in 2014
represented an 85.7% decrease as compared with the surplus in 2013 and, in 2015, there was a deficit
in Qatar's balance of payments. In 2016, there was a deficit in Qatar's balance of payments of
QR20,510 million (U.S.$5,635 million), primarily due to lower hydrocarbon production and prices.
According to preliminary data, in 2017, the deficit in Qatar's balance of payments was QR61,757
million (U.S.$16,966 million), primarily due to the deficit in the capital and financial account.
Government Organization
During his rule, the previous Emir instituted a number of governmental reforms, including the
promulgation of the Constitution, which came into effect in 2005 and replaced the provisional
constitution that had been created shortly after independence. The Constitution formally separates
power among the executive branch, which is comprised of the Emir, with assistance from his Cabinet,
3