14 TO 16 MAY 2002
On the invitation of President Mbeki, His Highness Sheikh Hamad bin Khalifa Al-Thani will undertake a State Visit to South Africa from 14 to 16 May 2002.
His Highness Sheikh Al-Thani, the current Chair of the 55-member Organisation of the Islamic Conference (OIC), will be the first Head of State from a Gulf Arab country to pay a State Visit to South Africa. His Highness will assume the annual rotating Chair of the six member Gulf Co-operation Council in 2003.
Sheikh Al-Thani's visit is the result of the steady development of relations between South Africa and Qatar since the establishment of diplomatic ties in 1994. This visit will present the opportunity to address the further development of trade and diplomatic ties through the signing of a Memorandum of Understanding on Co-operation between the two Foreign Ministries, and the signing of a Memorandum of Understanding on co-operation between the Chambers of Commerce and Industry of Qatar and Johannesburg. The eventual conclusion of agreements on the promotion and protection of investments and the avoidance of double taxation will further advance this process. A Bilateral Air Service Agreement and a Defence Co-operation Agreement have already been concluded between South Africa and Qatar. Qatar, which is a source of crude oil and natural gas, recently signed an agreement with SASOL to use SASOL technology to convert natural gas into liquid fuel.
The advancement of peace and sustainable development in Africa through NEPAD, regional co-operation between the Southern African Development Community and the Gulf Co-operation Council, developments in the Middle East Peace Process and the promotion of international peace and security will also be explored. South Africa's current chairing of the Non-Aligned Movement and later as a member of its Troika and Qatar's chairing of the OIC could play a significant role in advancing these issues.
Background
Strategic objectives towards Qatar
Qatar is one of the most affluent countries in the Gulf Region because of its abundance of natural gas and crude oil resources. Its mineral wealth and its physical position in the region gives it a geo-strategic importance for South Africa as a source of crude oil, a venue for investments in Qatar's energy sectors and as a market for South African goods and services.
In November 2000, Qatar assumed the chair of the Organisation of the Islamic Conference for two years. Thus while South Africa is the chair of NAM, and later as a member of the Troika of NAM, Qatar will be an important interlocutor on the Middle East Peace Process and on international security concerns about Iran and Iraq. In addition to its chairing of the OIC until November 2002, Qatar will assume the Chair of the Gulf Co-operation Council in 2003. This could facilitate GCC-SADC co-peration.
Qatar's political and financial support, together with the support of the other Gulf States, for the implementation of the development projects of NEPAD, will contribute towards its success.
General objectives towards Qatar
Development of bilateral relations
Bilateral interactions
Since the establishment of diplomatic relations in 1994 and the accreditation of the South African Ambassador in Abu Dhabi to Qatar on a non-residential basis, bilateral relations have developed through the undermentioned actions i.e.:
Status of Agreements
Finalised Agreements
Expansion of trade and investment relations
The opening of embassies in Pretoria and in Doha are expected to help balance the trade and commercial relations and increase investments between Qatar and South Africa.
A major South African investment project, is SASOL'S USD 800 million contract with Qatar Petroleum (QP) for the construction of a gas-to-liquids plant at Ras Laffan Industrial City in Qatar. QP will own 51% of the project and SASOL 49%. SASOL hopes that this 34 000-bpd plant, which is expected to be operational in 2005, will be the first of a series of such projects. The Qatari Government has indicated that this project will allow QP to participate in the developing markets for environment-friendly fuels.
The SASOL deal will introduce South African technology into the Gulf region and bring South African expatriates to it in substantial numbers. Jobs will be created and maintained in South Africa and secondary industries in the energy and engineering sectors will be boosted. Two-way trade is expected to increase considerably once machinery, plant and equipment from South Africa start arriving at Ras Lafan.
South African Landscape Architects have been involved in the refurbishing of the Sheikh Khalifa Al-Thani underpass and the waterfront Cornish in Doha.
Woolworths is investigating the possibility of opening a branch of their store in Doha.
In 1999, the South African Minister of Defence visited Qatar and succeeded in boosting relations on defence matters by assisting the South African armaments industry in certain initiatives currently underway in Qatar. Minister Jeff Radebe followed up on this and visited Qatar in January 2002 to further the marketing of South African military equipment. The Minister also signed a Defence Co-operation Agreement. It is expected that Ambassador Al-Fehani's military experience will further facilitate the development of military relations and armament sales between South Africa and Qatar.
Tourism promotion: An increase in high-value tourism from Qatar could significantly increase the inflow of foreign currency into South Africa and assist in the strengthening of the tourism industry.
Import and export statistics
Year
Imports from Qatar Exports to Qatar
1994 R 82 204 R 9 224 251
1995 R 38 642 537 R 6 018 073
1996 R 14 030 210 R 21 365 639
1997 R 199 370 987 R 15 638 785
1998 R 96 738 151 R 33 569 662
1999 R 49 311 227 R 28 920 123
2000 R 206 389 645 R 31 354 468
2001 R 190 900 758 R 74 538 029
Main commodities imported from Qatar in 2001
Chemicals - R 166 919 766
Plastics - R 23 962 271
Main commodities exported to Qatar in 2001
Base metals - R 41 779 315
Chemicals - R 9 354 500
Textiles - R 7 278 631
Machinery - R 5 083 541
Suggested trade and investment strategy
South Africa's capture of a niche in the Qatari energy sector should be capitalised on. The sale of South African goods to the value R74 million in 2001, requires an effective marketing strategy to increase trade to Qatar.
Of all the Gulf States, Qatar is the most barren. Unlike Oman, Yemen, Saudi Arabia and the Emirates, Qatar has no fertile land. Agricultural production and fisheries accounts for .9 % of its GDP. It must therefore import almost all the consumables and manufactured items required by its economy. Consequently more than one tenth of its import bill goes to processed foodstuffs and live animals. Imports of machinery, basic manufactures and transport equipment make up the rest.
South African enterprises need encouragement to make urgent efforts to capture a portion of this food and basic manufactures market. South Africa cannot rely on a single investment project, such as the SASOL plant at Ras Lafan, for the fostering of sound economic relations with Qatar.
Future trade and investment possibilities
Qatar has limited fresh water and must rely on expensive desalination for its water needs. Like Kuwait, it has decided to obtain water from Iran via a pipeline to be built from the Karoun River in Iran across the Gulf to the Qatari shore.
As in the case of Kuwait, South African enterprises need encouragement to seek participation in this major project. This will be a far bigger project than the Iran-Kuwait pipeline, which will only extend some one hundred kilometres. A distance of over five hundred kilometres separates Qatar's closest point to the mouth of the Karoun River. There should be space for South Africa in a project of such magnitude given our extensive expertise in such projects.
South African products, services and technology that could succeed in Qatar
The following goods and services have been identified by market research as being competitively placed to establish niches in the Qatari market.
NEPAD and African development
As one of the main considerations now for South Africa's foreign policy, NEPAD and the NEPAD objectives will in the future inform all South Africa's important bilateral relationships. In the case of Qatar, South Africa needs to brief the Qatari authorities on all aspects of NEPAD and its implementation and how NEPAD seeks fundamental transformation of political and economic governance within the new Africa Union. In seeking the partnership of Qatar for African development, it will be necessary to explain to the Qataris that NEPAD is a process and not an event that will play a significant role in the future of our bilateral relations.
State of Qatar
Country Profile
Official name - State of Qatar
Independence - 3 September 1971 (From the UK)
Head of State - Amir Sheikh Hamad bin Khalifa Al-Thani (Since
1995)
Form of Government - Under the constitution Qatar is defined as "an independent sovereign Arab state." The Amir appoints a Shura (Consultative Council) which debates legislation.
Land area - 11 437-sq km
Capital - Doha (population 190 000)
Population - 525,000
Religion - Muslim (95%)
Languages - Arabic, English
Ethnic Groups - Arab (40%), Pakistani (18%), Indian
(18%), Iranian (10%), others (4%)
Defence - Army 8,000/Navy 700/Air Force 800
Country comparison
South Africa Qatar
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Historic overview of Qatar
Qatar, like all the countries of the Arabian Gulf, was under Turkish rule and control for several centuries. A protection treaty with Britain in 1916 made it possible for Qatar to escape from Turkish control and establish a state.
Britain withdrew from Qatar in 1968. Attempts by Qatar to associate itself with Bahrain and the Trucial States in a proposed federation came to nothing and in April 1970 the then ruler, Sheikh Ahmad Al-Thani, announced a provisional constitution. Qatar became independent on 3 September 1971.
The Al-Thani family has governed Qatar efficiently, if autocratically over the years. A palace coup in February 1972 replaced Sheikh Ahmad with his cousin and Prime Minister, Sheikh Khalifa bin Hamad, who was in turn deposed by his son, Sheikh Hamad in June 1995.
International relations of Qatar
Possibly the most noteworthy characteristic of Qatar is its strongly independent and individualistic foreign policy. Although a member of the GCC, Qatar differs from the collective policies of the GCC and the rest of the Arab fraternity of nations on a number of important issues.
Since 1994 Qatar has taken its own stand on key issues of foreign policy contrary to the positions of its Gulf Arab neighbours. In 1994 Qatar declined to support a final communiqu=E9 issued by all the other GCC members, demanding an immediate cease-fire in the Yemeni civil war, arguing that it was not their place to interfere in the domestic affairs of another country.
Similarly, Qatar made early contact with the Israeli Government without waiting for the peace process to be firmly established. In January 1994 discussions took place for the supply of natural gas to Israel. In September of that year, Qatar even revoked certain aspects of the economic boycott of Israel. In the same month the Israeli Deputy Foreign Minister Yossi Beilin made an official visit to Qatar. An Israeli Trade Office was established in Doha in October 1995. In the same year the Qatari Foreign Minister expressed his country's support for the cancellation of the direct economic boycott of Israel, even if a settlement of Israeli-Arab differences was not achieved. A memorandum of intent was signed by the two countries to allow Israel to purchase Qatari liquefied natural gas. In April 1996 Israeli Prime Minister Shimon Peres visited Qatar.
Furthermore, unlike the other Arab Gulf states Qatar's relations with Iran never soured and it was consequently able to play a mediating role in the d=E9tente reached between Iran and the Arab Gulf states in the latter nineties.
Qatar's independent foreign policy is often a point of discord between it and the mainstream of Arab states. When an interest is perceived important, Qatar will differ with leading Arab states such as Egypt. Friction rose in November 1997 when Qatar was pressed by Arab countries, led by Egypt, to cancel the Middle East and North Africa economic summit in Doha (this was the fourth in a series of meetings gathering Israeli and Arab leaders to discuss the development of economic links in the region). The Amir ruled out cancellation and the conference proceeded with the participation of Israel. Tension rose between Egypt and Qatar, which resulted in the expulsion of Egyptian workers from Qatar.
Qatar's independent foreign policy is conducive to promising relations with newcomers to the Gulf markets, such as South Africa. With limited attachments tying it to the USA (as in the case of Kuwait and Saudi Arabia) and the GCC countries in general, it promises to be a lucrative market for South African goods and services. If the quality of the South African product is good and the price is right, Qatar has demonstrated it will go ahead of its own free will.
Kuwait and Saudi Arabia cannot ignore the US's influential role, since their existence as sovereign states is largely dependent on American troops and military equipment. Qatar has no such problems. As far as is known Iraq has no designs on it, while Qatar need not fear any Iranian designs.
Issued by: Department of Foreign Affairs