Obbligazione Qatar 3.375% ( US74727PAZ45 ) in USD

Emittente Qatar
Prezzo di mercato 100 USD  ▲ 
Paese  Qatar
Codice isin  US74727PAZ45 ( in USD )
Tasso d'interesse 3.375% per anno ( pagato 2 volte l'anno)
Scadenza 13/03/2024 - Obbligazione è scaduto



Prospetto opuscolo dell'obbligazione Qatar US74727PAZ45 in USD 3.375%, scaduta


Importo minimo /
Importo totale /
Descrizione dettagliata Il Qatar è uno stato sovrano situato nella penisola arabica, ricco di giacimenti di petrolio e gas naturale, con una cultura profondamente radicata nella tradizione araba e un'economia in rapida crescita basata su investimenti massicci nel settore energetico e infrastrutturale.

The Obbligazione issued by Qatar ( Qatar ) , in USD, with the ISIN code US74727PAZ45, pays a coupon of 3.375% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 13/03/2024









The State of Qatar
U.S.$2,000,000,000 3.375% Bonds due 2024
Issue Price: 99.890%
U.S.$4,000,000,000 4.000% Bonds due 2029
Issue Price: 99.649%
U.S.$6,000,000,000 4.817% Bonds due 2049
Issue Price: 100.000%
The U.S.$2,000,000,000 3.375% Bonds due 2024 (the "2024 Bonds"), the U.S.$4,000,000,000 4.000% Bonds due 2029 (the "2029 Bonds") and the
U.S.$6,000,000,000 4.817% Bonds due 2049 (the "2049 Bonds" and, together with the 2024 Bonds and the 2029 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 2024 Bond at the rate of 3.375% per annum
from and including March 14, 2019 semi-annually in arrear on March 14 and September 14 in each year until (and including) March 14, 2024 (the "2024
Maturity Date"), commencing on September 14, 2019. The State will pay interest on each 2029 Bond at the rate of 4.000% per annum from and
including March 14, 2019 semi-annually in arrear on March 14 and September 14 in each year until (and including) March 14, 2029 (the "2029 Maturity
Date"), commencing on September 14, 2019. The State will pay interest on each 2049 Bond at the rate of 4.817% per annum from and including March
14, 2019 semi-annually in arrear on March 14 and September 14 in each year until (and including) March 14, 2049 (the "2049 Maturity Date" and,
together with the 2024 Maturity Date and the 2029 Maturity Date, the "Maturity Dates"), commencing on September 14, 2019.
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 2049 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 March 14, 2019. No assurance can
be given that such application will be approved, or that the TPEx listing will be maintained.
Crédit Agricole Corporate and Investment Bank, Taipei Branch, Deutsche Bank AG, Taipei Branch and Standard Chartered Bank (Taiwan) Limited
(together, the "2049 Bonds Joint Bookrunning Managers") will offer and sell the 2049 Bonds in the Republic of China (the "ROC" or "Taiwan").
None of Barclays Bank PLC, Credit Suisse Securities (Europe) Limited or QNB Capital LLC (together, the "2049 Bonds Structuring Agents") is
licensed in Taiwan and, accordingly, none of the 2049 Bonds Structuring Agents has offered or sold, or will subscribe for or sell or underwrite, any of the
2049 Bonds offered, sold or re-sold hereby.
No application is being made to the TPEx for the listing of the 2024 Bonds or the 2029 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 2049 Bonds on the TPEx shall not be taken as an indication of the merits of the State
or the 2049 Bonds.
Qatar has been assigned a long-term credit rating of "AA-" with a stable outlook by S&P Global Ratings, a division of S&P Global Inc. ("S&P"), on
December 7, 2018, of "AA-" with a stable outlook by Fitch Ratings, Ltd. ("Fitch") on October 16, 2018, and of "Aa3" with a stable outlook by Moody's
Investors Service, Inc., a subsidiary of Moody's Corporation ("Moody's"), on July 13, 2018.
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 a nominee for, and shall be deposited on or about March 14, 2019 (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 2024 Bonds and the 2029 Bonds
Joint Lead Managers and Joint Bookrunners
Barclays
Crédit Agricole CIB
Credit Suisse
Deutsche Bank
QNB Capital
Standard Chartered Bank

As to the 2049 Bonds
Joint Bookrunning Managers
Crédit Agricole Corporate and Investment
Standard Chartered Bank (Taiwan) Limited
Deutsche Bank AG, Taipei Branch
Bank, Taipei Branch
(Lead Manager)


Structuring Agents
Barclays
Credit Suisse
QNB Capital




Prospectus dated March 7, 2019








TABLE OF CONTENTS
Page
RESPONSIBILITY STATEMENT ........................................................................................................ ii
IMPORTANT NOTICE ......................................................................................................................... iii
OVERVIEW ........................................................................................................................................... 1
RISK FACTORS .................................................................................................................................. 20
NOTICE TO QATARI RESIDENTS ................................................................................................... 32
ENFORCEMENT OF CIVIL LIABILITIES ....................................................................................... 33
PRESENTATION OF FINANCIAL INFORMATION ....................................................................... 35
PRESENTATION OF CERTAIN RESERVES INFORMATION ....................................................... 36
PRESENTATION OF HYDROCARBON DATA ............................................................................... 37
PRESENTATION OF CERTAIN OTHER DATA RELATED TO QATAR ...................................... 38
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS .......................................... 40
USE OF PROCEEDS ........................................................................................................................... 41
OVERVIEW OF THE STATE OF QATAR ........................................................................................ 42
THE ECONOMY OF QATAR ............................................................................................................. 59
MONETARY AND FINANCIAL SYSTEM ....................................................................................... 97
PUBLIC FINANCE ............................................................................................................................ 111
INDEBTEDNESS ............................................................................................................................... 121
BALANCE OF PAYMENTS ............................................................................................................. 127
TERMS AND CONDITIONS OF THE BONDS ............................................................................... 136
THE GLOBAL BONDS ..................................................................................................................... 165
CLEARING AND SETTLEMENT .................................................................................................... 168
TAXATION ........................................................................................................................................ 173
SUBSCRIPTION AND SALE ........................................................................................................... 179
TRANSFER RESTRICTIONS ........................................................................................................... 183
GENERAL INFORMATION ............................................................................................................. 185








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.
ii






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 Barclays Bank PLC, Crédit Agricole Corporate and Investment Bank, Crédit Agricole
Corporate and Investment Bank, Taipei Branch, 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 2049
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
iii






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.
Singapore SFA Product Classification ­ Solely for the purposes of its obligations pursuant to
sections Section 309B of the Securities and Futures Act (Chapter 289) of Singapore (the "SFA") and
the Securities and Futures (Capital Markets Products) Regulations 2018 of Singapore (the "CMP
Regulations 2018"), the Issuer has determined, and hereby notifies all relevant persons (as defined in
Section 309A(1) of the SFA), that the Bonds are "prescribed capital markets products" (as defined in
the CMP Regulations 2018) and Excluded Investment Products (as defined in Singapore Monetary
Authority (the "MAS") Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS
Notice FAA-N16: Notice on Recommendations on Investment Products).
In this Prospectus, any reference to a "series" of Bonds or Bondholders shall be a reference to the
2024 Bonds, the 2029 Bonds or the 2049 Bonds or to their respective holders, as the case may be.


iv







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 QR235,526 (U.S.$64,705) (at current prices) in 2017, according to the
Planning and Statistics Authority. 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 55.7% in 2013 to 32.3% 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 44.3% in 2013 to 67.7% in 2017. In the nine months ended September 30, 2018, the
oil and gas sector accounted for 35.9% of total nominal GDP, while the non-oil and gas sector
accounted for 64.1%. In 2016 and 2017, Qatar's real GDP grew by 2.1% and 1.6%, respectively. In
the nine months ended September 30, 2018, real GDP grew by 2.0% (year-on-year).
Oil and Gas
As of 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 consisted of
proven reserves of approximately 852 trillion standard cubic feet of natural gas (including condensate)
and 1.73 billion barrels of crude oil. As of September 30, 2018, Qatar's proven reserves of crude oil
and natural gas (including condensate) amounted to approximately 172 billion barrels of oil
equivalent. These hydrocarbons consist of proven reserves of approximately 846 trillion standard
cubic feet of natural gas (including condensate) and 1.56 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 in 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), before falling to U.S.$57.36 in December 2018 (monthly Europe Brent Spot Price FOB).
In 2015, the oil and gas sector contributed 37.5% to Qatar's total nominal GDP, compared with 29.7%
in 2016. The lower contribution of the oil and gas sector was due to the continued diversification of
the economy. The contribution of the oil and gas sector subsequently increased slightly to 32.3% in
2017 and 35.9% in the nine months ended September 30, 2018.
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
1







dependence on oil and gas revenues. Nominal GDP for the non-oil and gas sector reached
QR411,639 million (U.S.$113,088 million), or 67.7% of Qatar's total nominal GDP in 2017,
compared to QR320,338 million (U.S.$88,005 million), or 44.3% of Qatar's total nominal GDP in
2013. 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 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 be the 15th largest global producer of petroleum and other liquids
(crude oil, lease condensate, natural gas liquids and other 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
current 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. In September 2018, QP announced its intention to raise Qatar's LNG production from
77.5 mta to 110 mta within five years. Through LNG projects operated by its flagship Qatargas, 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 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 2018, Qatar
exported LNG to 25 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")).
2







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, power generation plants 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 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 and lubricants. 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 approximately 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. The level of indebtedness further increased in
2013 due to new domestic bond and Sukuk issues. In 2015, Qatar repaid various internal debt
obligations and external U.S. dollar-denominated bonds that came to maturity, resulting in a decrease
in the country's indebtedness. In May 2016 and April 2018, Qatar issued U.S.$9 billion and U.S.$12
billion, respectively, in aggregate bonds in the international capital markets. Most of Qatar's
significant energy projects are funded on a stand-alone, limited recourse basis. As at September 30,
2018 Qatar's total indebtedness stood at QR347,001 million (U.S$95,330 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, while the deficit was
QR39,993 million (U.S.$10,987 million) for the year ended December 31, 2017. The 2018 budget
estimated a budget deficit of QR28,113 million (U.S.$7,723 million) for the year ended December 31,
2018, based on an assumed oil price of U.S.$45 per barrel, reflecting 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.
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In 2017, the deficit in Qatar's balance of payments was QR65,071 million (U.S.$17,877 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,
the Council of Ministers, the legislature (the "Advisory Council") and the judiciary. On June 25,
2013, the previous Emir stepped down and his fourth son, His Highness Sheikh Tamim bin Hamad
bin Khalifa Al-Thani, became the ruler of Qatar (the "Emir").
Trade and International Relations
The country has an organized set of institutions supporting the growth in trade and commerce, both
internally and externally, including the Qatar Financial Centre Authority, the Qatar Stock Exchange
(the "QE") and regulators, namely the QCB, the Qatar Financial Markets Authority (the "QFMA")
and the Qatar Financial Centre Regulatory Authority (the "QFCRA").
Qatar has historically had good relations with other members of the GCC and the wider Middle East
in general, although recently relations between Qatar and certain of its neighbours in the Middle East
and North Africa region have become more strained. See "Risk Factors--The State is located in a
region that is subject to ongoing geopolitical, political and security concerns, and the State has
recently been subject to a blockade by four countries" and "Overview of the State of Qatar--Foreign
Relations--Regional Relations". Qatar has significant trade and investment ties with the major Asian
countries and Qatar also has strong ties with the West, notably the United States, which maintains a
significant military presence in the country. Qatar is a member of, among other international
organizations, the UN and the WTO. Qatar has low levels of corruption and has established a
National Committee for Integrity and Transparency in relation to implementing its obligations as a
member of the UN. The 2018 Corruption Perceptions Index published by Transparency International
ranks Qatar 33 out of 180 countries with a score of 62%.
World Cup
Qatar views its upcoming hosting of the 2022 World Cup as an opportunity to further invest in its
infrastructure and develop the non-oil and gas sector of its economy.
From the perspective of Qatar's economic diversification ambitions, the 2022 World Cup presents
new opportunities for the country. Public-private partnerships may benefit some projects and may be
considered within wider public investment decisions. On the business front, the 2022 World Cup is
creating opportunities for domestic enterprises to form strategic alliances externally and to connect to
global value chains.
The entity in charge of the 2022 World Cup is the Supreme Committee for Delivery and Legacy
(formerly known as the Qatar 2022 Supreme Committee, which was formed in April 2011) (the
"Supreme Committee"). The Supreme Committee ensures that all preparations for the 2022 World
Cup align with Qatar's other development imperatives as set out in the Qatar National Vision 2030,
the National Development Strategy 2011-2016 and the National Development Strategy 2018-2022.
Eight stadiums are expected to be available for the 2022 World Cup, with some being newly built
(including the Al Rayyan stadium and precinct, the Qatar Foundation stadium and the Al Wakrah
stadium), while others are being expanded (including the Khalifa International stadium and the Al
Bayt stadium). The total cost of investment in the 2022 World Cup-related sporting facilities is
expected to be approximately QR18.5 billion (U.S.$5.1 billion). Construction of the stadiums is
rapidly advancing, with the first completed venue, the Khalifa International Stadium, having opened
in May 2017.
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