Key Takeaways

• Cultural influence on new business ventures in Qatar is widely dependant on the knowledge and adaptation of clients to understand and acknowledge the Islamic principles.
• Businesses should address cultural norms and practices to build and maintain consumer and client rapport.
• Expatriates requires specific tips on setting up office in Qatar, adequate paperwork on visas, office and home rentals
• Small and large businesses would sustain a competitive advantage when being culturally sensitive and adaptative to local societal norms; to clients, and consumer market.

• DOING BUSINESS IN QATAR
  

Qatar ranks 37 out of 181 economies on the ease of doing business, according to the Doing Business 2009 report by IFC and the World Bank.

Important Indicators

• 6 days to open a business in Qatar, shorter period compared to other countries in GCC region
• Ranked 2 for its taxation regime
• Ranked 27 for dealing with construction permits
• Ranked 31 in ease of closing a business
• Appeared on bottom half of rankings for obtaining business credits and contract enforcement (1.5 years compared to Singapore)
  

These findings and potential areas of reform were discussed today at a seminar hosted by Qatar's General Secretariat for Development Planning and the World Bank Group in Doha.

• BUSINESS AND SOCIAL ETIQUETTE TIPS

Qatar is a traditional country experiencing rapid social changes. It is important to Qatar to maintain its heritage and the modern appearance may mislead people into forgetting that it is still a traditional society with consequential social misunderstandings.



The following tips may be useful:

1. Dressing

Foreign visitors are expected to dress in a style that is sensitive to the Islamic culture. Conservative clothing is recommended. Men generally wear long trousers and a shirt in public. Women's attire in public - as opposed to hotels or private clubs - should cover the shoulders, upper arms and knees. Western bathing attire is permitted at hotel and club swimming pools and beaches. Topless sunbathing is strictly forbidden.

2. Photography

Seek permission before taking photographs of people and be cautious about taking photographs in public. For security reasons Government buildings, military and some industrial sites, including some internal and external parts of the airport or shopping malls, should not be photographed.

3. Greeting

When Arab men meet, they usually shake hands. A man does not generally shake hands with a woman. Male business associates will shake the hand of a female business associate if she extends her hand first. Some Arab men and women will shake hands with a woman. If an Arab person pulls back their hand and holds it against the heart this is a sign of greeting in preference over hand-shaking.

4. Bargaining

Bargaining with shopkeepers is common practice especially in the souq (market). Negotiations may include the buyer requesting the 'best best price'. Insisting on a discount beyond this best price might be deemed insulting.

5. Drinking

Qatar prohibits the brewing and trafficking of alcohol. Drunken behavior in public or driving under the influence of alcohol is an offence punishable by a period in prison, a fine or both and cancellation of the offender's driving license. It is also illegal to transport liquor in your vehicle except from the point of sale directly to your home.

6. Drugs and Pork

The country also applies a zero tolerance attitude to the use and possession of illegal drugs. The import of pork is prohibited.

• NATIONAL DRESSING

Qatari national men wear a thobe, a long white shirt over loose pants. They also wear a loose headdress, called a gutra, in white or red and white cloth, held on with a black rope known as the agal. Qatari national women cover their head with a black headdress called a shayla, their body with a long black dress called an abayha. Some women also cover their face with a black bourga; sometimes the eyes are left uncovered.

• LANGUAGE
  

As mentioned earlier, the official language is Arabic, although English is increasingly becoming the chosen language particularly in business situations. Translators can be requested for business situations where English is not understood.

Urdu, the language of Pakistan, is also spoken. The following chart offers a few words that may be helpful.


Drink tea.
Business and pleasure in the Middle East go hand in hand. Having strong relationships is often more important than having a good product or service in this region. Successful business people understand that drinking tea and attending late night meals with Qataris is an essential step in earning the credibility and trust needed for successful business relationships in the Middle East. Making an effort to learn some Arabic expressions works wonders in nurturing positive and profitable business relationships in the Middle East.

Adapt.
Successful foreign firms in Qatar understand that inconsistencies and change are a fact of life both in Qatar and throughout the Middle East. Learn to live with new procedures and laws by injecting a healthy dose of flexibility into your business plan. The U.S Commercial Service suggests foreign firms insist on payment by letter of credit to avoid costly payment delays.

Maintain independence.
Having a reliable local partner can spell the difference between success and failure in Qatar. However, firms advise not to rely on your local partner too much for all contacts and market information affecting your business. Foreign companies are advise to negotiate expatriate labor visa issues with their sponsors, agents, and partners in the early stages of contract negotiation.

Look alive!
Be aware that tender announcements frequently come out in the Arabic newspapers 4-5 days before they come out in English. Become familiar with Qatar’s laws and regulations governing business. Don’t engage in “unofficial” arrangements with business partners – insist that important agreements be put down on paper! Local firms that are not willing to comply to this request are not worth doing business with.

• TIPS ON SETTING UP OFFICE IN QATAR

Visa, work permits & driving licenses
Obtaining the necessary paperwork can be a complicated process, as all official documentation needs to be completed in Arabic. Fortunately, there are local companies that offer translation services. Nationals of 33 countries including Singapore and Malaysia can receive a visit-visa for a period of two weeks for a payment of about S$45 upon arrival. For visas of a longer period, application should be made before flying to Qatar.

Business visas, typically pre-obtained from a local Qatari company, are valid for a period of one to three months, while permanent employment visas (called Resident Permits) are valid for one to three years. Resident Permits are renewable and are granted to individuals who have employment contracts in Qatar.

Recruitment agencies
In the race for local and expatriate talent, employers are finding their efforts increasingly overshadowed by broader social and economic factors. High inflation in parts of the region has affected the purchasing power and saving potential of expatriates. These conditions make finding qualified staff more challenging, and it is advisable to enlist the help of a professional recruitment agency. Key recruitment firms include Qatar Recruitment Agency, Ma Foi Management Consultant and Key Resources Recruitment Agency.

Bank accounts
The process of opening a corporate bank account can take anywhere from one to three months after registering a business entity in Doha. A significant number of supporting documents are required, depending on the nature of your entity. Some documents require attestation by the Qatar embassy in the home country. Attestations from any GCC embassy are usually accepted by most authorities in Qatar.

Office rentals
There are primarily two kinds of office rentals in Qatar. Business centres, which come with comprehensive facilities comparable to those found in Singapore, are the first type. They are suitable for temporary office space typically needed for a few months up to a year. Notable business centers include Servcorp Smart Office, Gulf Business Centre, Regus Doha and Sidra Serviced Offices.

Home rentals
Local newspaper classifieds are an appropriate source of real estate agents, who can assist with apartment rentals. Several contacts are listed daily, and it is advisable to get in touch with one of these agents shortly after arriving in Doha. Rentals are quite high in Doha compared to Singapore. For example, a one-bedroom fully furnished studio apartment can cost roughly S$2,000 to S$3,000, while a three-bedroom semi-furnished apartment can range from S$4,500 to S$ 5,500.

Exit visas
All residents, except dependents, must have Exit Permits obtained from the sponsor and chopped by the immigration in order to leave the country. There are no restrictions on non-residents exiting the country, provided they have not overstayed. Usually Exit Permits can be issued on the same day of travel in case of emergencies, but it is best to obtain them a few days in advance.

Alternately the expatriate, with permission from the sponsor, can apply for an annual exit permit that is more expensive but gives peace of mind to the bearer.

Source: Setting Up office tips courtesy of Kenneth Sim, Assistant Manager International operations (Middle East & Africa) IE Singapore http://www.iesingapore.gov.sg/wps/portal