Saudi Arabia, Kuwait, United Arab Emirates, Bahrain, Sultanate of Oman: the Gulf States attract companies from all over the world. In Qatar, Belgium is not missing for various reasons.
Despite its small size and young age (the country only gained independence in 1971), Qatar has emerged as a major economic player. The emirate, which today faces much criticism for ethical issues, respect for human rights or global warming, is indeed a very attractive region for business.
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Despite its small size and young age (the country only gained independence in 1971), Qatar has emerged as a major economic player. The emirate, which today faces much criticism for ethical issues, respect for human rights or global warming, is indeed a very attractive region for business. “It is out of the question to apologize to Qatar for certain negative aspects surrounding the World Cup, but we focus too much on these issues when there is a huge and undeniable economic reality that we cannot ignore as we grow our sales want”, says François-Xavier Depireux, Belgian and founder of the company LD Export, which specializes in supporting SMEs in this region of the world. With an area three times smaller than Belgium and a very limited domestic market (fewer than 3 million inhabitants), “the country is one of the richest nations in the world”, recalls Dominique Delattre, inspector general of the geographical department of the Wallonia Export Agency (Awex ). Its gross domestic product (GDP) per capita is $85,660, compared to Belgium’s $48,210 per capita GDP. A wealth that it owes above all to its abundant deposits of fossil energy, especially natural gas. For Belgium, the emirate is therefore an important gas supplier, accounting for up to 90.64% of our imports from this country in 2021, well before the start of the war in Ukraine. But there remains a smaller trading partner: 70th customer from Belgium and 61st from Wallonia. Conversely, the chemical and pharmaceutical industries, mechanical and electromechanical machinery and equipment, metals and plastics are the main Belgian export sectors to Qatar. Exports, which have increased from 290 million euros in 2020 to 400 million in 2021 and even doubled between 2019 and 2021, come from Wallonia thanks to the pharmaceutical and chemical sectors (33.04 million euros). Qatar’s economy is still largely dependent on hydrocarbons, which account for 50% of wealth creation, 94% of exports and 80% of budget revenues. But the country has entered a new phase of development and wants to further diversify its economy, with growth also being generated through other activities. “Besides energy, the key sectors for Belgian companies are construction, sport and leisure, and tourism,” emphasizes Dominique Delattre. “There are also development opportunities in healthcare and IT,” adds François-Xavier Depireux. “The renewable energy sector, waste water treatment and agribusiness are also sectors where development opportunities are interesting,” explains Qaisar Hijazin, Secretary General of the Belgian-Arab Chamber of Commerce. “The country is trying to follow the development of diversification initiated by Dubai and Saudi Arabia a few years ago,” analyzes the Inspector General of the Geographical Department of AWEX, recalling how Dubai has become a commercial stronghold today, where major international trade fairs are held. “But if Dubai has long been a corporate favourite, interest is growing in other countries in the region,” adds François-Xavier Depireux. These golf markets have become strategic for Belgian companies. Due to limited local production, products and services from Europe are in high demand and demand is constantly increasing, targeting the 40 million potential buyers in the region. And thanks to its emblematic investments abroad, Qatar benefits from a disproportionate augmentation effect compared to its real weight. Enough to encourage Belgian companies to invest there? “This decision is important and requires careful consideration,” admits Dominique Delattre. Qatar may find itself on the short list of Belgian companies looking to invest in the region, but they will likely prefer another country whose market size is more important. But Qatar is a gateway to development in the Middle East and a very open country, benefiting from an investment dynamism. “Qatar’s market is small, it shouldn’t hope to reach the same volumes as Saudi Arabia,” admits the founder of LD Export, based in Bahrain for five years, but it was precisely this small size that motivated Châssis Hanin to dare the adventure there: “It was interesting to be able to enter a market the size of Wallonia. It was more reassuring,” explains Mathilde Rutot, the company’s boss, who has opened a branch in Doha with perhaps different ambitions for the future. “What works in Qatar works in the other countries in the region,” Qaisar Hijazin recalls. Qatar is interesting in terms of growth, notes Arnaud Jacquemin, founder of Belgian company Univers Drink, which offers festive soft drinks and has been exporting to Qatar for eight years. In relation to the size of the country, the turnover of the distributors is greater than that of others in the region.” In order to successfully develop an activity in the emirate, one main criterion is essential anyway: Quality “Made in Belgium is recognized as a seal of quality”, says Qaisar happily Hijazin. But a criterion that is not necessarily sufficient. “Even a product without competition will not be enough to win the favor of a local decision-maker,” warns François-Xavier Depireux. Because in Qatar the mentality, the culture, the customs and Customs extremely varied. A word, a gesture, a smile, a frown, a yes, a no, a handshake, a hug… it’s the details that count to earn the trust of future partners. But above all, friendship. It’s a fundamental relationship value here, which is very different from Asia or the United States.” Very few Belgian companies are actually active in Qatar. The Belgian-A Arabian Chamber of Commerce estimates their number at 40. The best-known company, present for several decades, is the Besix Group. But the Awex recorded 20 to 30 requests for information from Walloon companies in 2021. The World Cup offers its share of opportunities,” acknowledges François-Xavier Depireux. But precisely because of the controversies surrounding this World Cup, few companies communicate lightly about their investments and now avoid shouting from the rooftops that they are dealing with Qatar.” These are confidential projects, explains Mathilde Rutot, whose company has a permanent office in Doha. Of course, from my European perspective, some aspects could be improved, but I build chassis, don’t do politics and above all I don’t teach.” “These are very young countries,” remembers François-Xavier Depireux. From a European point of view, their efforts to change are not enough, but in reality they are making leaps and bounds.” “From my point of view, we are exporting Belgian know-how,” continues Head of Chassis Hanin. We are very well respected abroad. The specificity of Belgium means that we can easily understand other cultures.” An observation shared by the founder of LD Export, who recalls how much Belgians underestimate themselves when they can offer real added value.