Essential Financial Concepts

International business

Asses the National Business Environment

Qatar, which is operated under a mixed economy, has a very stable and promising business environment. The country has major plans to diversify its economy in order to become less reliant on oil and gas. In doing so, a lot of efforts have been made to spur growth in the business environment. These efforts include improvement in the tax and overall business sector. Notable changes in Qatar’s taxation policies include the introduction of withholding taxes (tax on 5% of the gross amount of royalties and technical fees or 7% of the gross amount of interest, commissions, brokerage fees, director's fees, attendance fees and any other payments for services carried out wholly or partly in the State), a cut in tax rates to 10% and the upgrade to an advanced online tax administration system.

An important aspect of Qatar’s National Vision 2030 is to expand the country’s economy by stimulating competitive business interactions, attracting more foreign investors and improving international relations.  In August 2014, Law 9/2014 was instated , amending the foreign investment law to accommodate an increase in the share of non-Qatari investors in publicly listed companies listed on Qatar Exchange to 49%. Before this amendment, said companies had a upper limit on combined foreign ownership that which did not usually exceed 25%. Compounding this, the law allows GCC citizens to be considered in parity with Qatari citizens in the ownership of the companies listed on Qatar Exchange.

Cultural forces

It is widely agreed that only about 20% or Qatar’s population is Qatari and the remainder are foreign workers. . An estimated total of 91.4 percent reside in urban areas, mostly in the capital. Because male foreign laborers come without their families, there is an imbalance of males and females in the total population. The foreign workers, mostly from India and Pakistan, cannot obtain citizenship and reside in the country on temporary visas.

Symbols of national identity include the family, items associated with the nation's past, and images of the ruler. Qataris often employ an idiom of kinship and/or tribalism, referring to compatriots as "brother," "sister," or "cousin." This habit of speech often tends to signal brotherhood among the citizens and exclusion of the non-citizens. Aesthetics  associated with desert nomadism and maritime trade that are used to evoke Qatar's past include Bedouin tents and carpets, falcons used for hunting, camels, weapons, sailing vessels, and pearls and pearl diving equipment.

Foods mainly included in Qatar’s cuisine are the many native varieties of dates and seafood. Additional foods grown locally or in Iran are considered local delicacies, including sour apples and fresh almonds. The traditional dish machbous is a richly spiced rice combined with meat and/or seafood and traditionally served from a large communal platter.

Economic and Financial Forces
Qatar’s economic foundation depends heavily on exploiting its significant oil and gas reserves. Although strong, it has been impacted notably by the falling oil prices. The Government is implementing reforms to reduce public spending and diversify the economy away from oil and gas, including through promoting the role of the private sector and SMEs.

Qatar’s National Vision 2030 is based on economic, social, environmental, and human capital development. Qatar has up to US$220bn of investments planned to deliver the National Vision 2030 and Football World Cup in 2022. This is one of the most ambitious investment programs in the world. Large-scale infrastructure projects include Lusail City, the Doha Metro system, the New Port Project and major road projects.

Political Forces

The former Emir, His Highness Sheikh Hamad bin Khalifa Al-Thani, ruled Qatar from 1995 to June 2013 until his son, His Highness Sheikh Tamim bin Hamad Al-Thani succeeded him. His Excellency Sheikh Abdullah bin Nasser bin Khalifa Al Thani was appointed Prime Minister at the same time as well as continuing in his existing role as Interior Minister.

Qatar is a member of several international organizations, including the League of Arab States, the Gulf Cooperation Council (GCC), the Organization of the Islamic Conference (OIC), the United Nations (where it was a member of the Security Council from 2005 to 2007), and the Organization of the Petroleum Exporting Countries (OPEC).

                                              Basic Appeal of Product

Determining Basic Demand

    A basic demand for the product, Irie Soda does exist in Qatar. Gulf Cooperation Council (GCC) economies are set to offer remarkable opportunities for soft drinks producers over the next five years. Countries in the GCC benefit from a high disposable income and, for most countries, strong exposure to tourism. The soft drinks market is already well developed, driven by hot climatic conditions and alcohol restrictions.

     Cultural convergence is also a major driving force in the demand for soft drinks in Qatar. This is so because many of the residents in these areas are interested in experiencing the Western culture, therefore they support the products which have come from these regions. This accounts for the incredible support of Multinational Companies such as PepsiCo and The Coca-Cola Company in Qatar, Saudi Arabia and the UAE.

  To put our own touch of individuality on this product, we will be using Caribbean flavors which are known and loved internationally. These flavors include sorrel, passion

Determining Availability of Resources

     Most of the ingredients we plan to use will be sourced locally. The artificial fruit flavors will be imported from Jamaica but all other raw material will be from Qatar. This is financially feasible as importing too much of our ingredients will lead to hefty tariffs, or other government barriers.

    Labor, another very important resource is widely available in Qatar. First preference in employment is given to Qatari nationals. Unemployed Qatari Nationals can register with the Labor Ministry for potential job placements. However, employers seeking to hire non-Qataris from abroad will have to first obtain permission from the government. The new Labor Law of Qatar (2004) aims to balance the rights of employer and employee, offering hiring priority to Qatari nationals, and specifying several obligations for companies about their employees.