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Investments

The economic relations between both States has been crowned with the increase in the commercial exchange volume from USD 5.9 billion in 2011 to more than USD 12.3 billion in 2014. In addition, the Qatari investments in finance sector, banks, properties and other sectors have increased, and the State of Qatar has become the largest supplier of the liquidate natural gas to the People’s Republic of China, as it provides the People’s Republic of China with around 40% of their needs from the externally imported liquidated natural gas, moreover, there are more than 179 operating companies registered in the Qatari market, 10 of such companies are fully operated by Chinese capitals.

Initiation by the State of Qatar for the first set-off center in the Middle East for the Chinese currency (CNY) on April 2015 is deemed a significant achievement on the economic and financial cooperation level, which was in light of the Swap agreement executed between the Qatar Central Bank and the People’s Bank of China for the Chinese currency during the visit of H.H. Sheikh Tamim Bin Hamad Al-Thani, the beloved Emir of Qatar, may Allah protects him, to the People’s Republic of China in November 2014. The center provides the financial settlement services in the Chinese currency, which contributes to increasing the available opportunities to widen trade and investment relations between both States, in addition to provision of commercial and investment services in the Middle East.

The investments

  • The Qatari investments in the People’s Republic of China
    • Qatar Investment Authority has been awarded, in January 2012, (QFII) license “Qualified Foreign Institutional Investor”. The State of Qatar requested at that time an investment share of USD 5 billion, but the Chinese authorities agreed only on USD one billion. Recently, the competent Chinese authorities have raised the volume of foreign companies investment to USD 50 billion, allowing the Qatari investment to be raised to more than USD 5 billion, which is previously requested by the State of Qatar.
    • Qatar Holding purchased 22% of CITIC capital, a Chinese investment Co. in 2012, given that this company has investments in properties sector in Japan, USA…etc, besides the People’s Republic of China.
    • Qatar Holding purchased 22.18% of the Agricultural Bank shares in 2012, which is deemed the third largest Chinese bank in respect of capital and assets. Qatar Holding paid around USD 2.8 billion in order to purchase such percentage.
    • The government of the State of Qatar requests to acquire exception for a piece of land in Beijing in order to construct building of “Harrods” stores which is owned by the State of Qatar, the same as to the granted piece of land to Civil Pacific Co and HSBC Bank in order to construct shopping center in Beijing.
    • Establishing a portfolio of USD 10 billion for infrastructure investment in the People’s Republic of China between CITIC group and Qatar Investment Authority (QIA), such portfolio was signed during visit of H.H. Sheikh Tamim Bin Hamad Al-Thani, the beloved Emir of Qatar, may Allah protects him, to the People’s Republic of China in November 2014.
    • Qatar Investment Authority (QIA) investments in the People’s Republic of China and Hong Kong reached around USD 1.9 billion.
  • The Chinese investments in the State of Qatar
    • Qatar Petroleum signed an agreement with the Chinese establishment CNOOC in August 2009 for exploration and production of the natural gas from B/C quarter in the east of the Qatari Coast, as the Chinese company invested USD 100 million at that time in order to drill 3 wells.
    • Qatargas signed EPSA agreement with Shell and PetroChina in Quarter D in May 2010, near from Ras Laffan.
    • In July 2012, Qatar Petroleum announced that PetroChina signed EPSA agreement, upon which it acquired 40% of quarter 4 from GDF Suez Qatar, which is still operating the process there as it own currently 60% of the quarter.
  • Activity of the Non-petroleum Chinese companies
    • There are 179 Chinese companies registered and operating at the Qatari market, 10 of such companies are fully operated by Chinese capitals, with a total capital of around QAR 1.48 billion. While the mutual Qatari-Chinese companies are 83 companies, with a total capital of around QAR 1.43 billion.  
    • Qatargas signed EPSA agreement with Shell and PetroChina in Quarter D in May 2010, near from Ras Laffan.
    • In July 2012, Qatar Petroleum announced that PetroChina signed EPSA agreement, upon which it acquired 40% of quarter 4 from GDF Suez Qatar, which is still operating the process there as it own currently 60% of the quarter.
    • Activity of the Non-petroleum Chinese companies:
    • There are 179 Chinese companies registered and operating at the Qatari market, 10 of such companies are fully operated by Chinese capitals, with a total capital of around QAR 1.48 billion. While the mutual Qatari-Chinese companies are 83 companies, with a total capital of around QAR 1.43 billion.  
    • Chinese sources indicates that by mid 2011, there were more than 20 Chinese companies operating in the field of construction in the State of Qatar, in which 6700 Chinese employees are working. The most important projects of the Chinese companies in the State of Qatar currently are:
    • The New Doha Port Project (NDPP), with contract value of QAR 3.2 billion or around USD 879 million, which is executed by China harbor engineering, in addition to the execution of part of the new Doha Metro by a Chinese company. Sinohydro also signed an agreement with Mazaya Qatar for Property Development on January 2010 to construct the residential project “Sidra Village” in Doha with a value of QAR 473 million. In addition, China State Construction Engineering Corporation, a governmental company which is constructing Doha Tower, and other companies.