Business & Money | Sunday 20 November, 2016 12:49 am |

Doha Bank hosted a customer meet “Bilateral Opportunities between Japan and GCC” on 18th November 2016 at Hotel New Otani, Tokyo. The event was attended by Mr. Omran Taryam, the Head of Economic Section, Embassy of the United Arab Emirates, Mr. Abdulla Jassim Al-Zeyara, Counsellor/Deputy Chief of Mission, Embassy of the State of Qatar, Mr. Talal AL SIYABI, First Secretary, Embassy of the Sultanate of Oman, Mr. Yousef Altarkit, Second Secretary, Embassy of the State of Kuwait. Mr. Mahmood Abdulaal, Deputy Head of Mission, Embassy of The Kingdom of Bahrain, Senior Japanese government officials from Ministry of Economy, Trade and Industry (METI) and Ministry of Foreign Affairs,  Corporates and Bankers in Japan who have relationships with GCC.

Dr. R. Seetharaman, CEO of Doha Bank gave insight on global economies. He said “The recent IMF outlook had given global growth of 3.1 percent in 2016.  A more subdued outlook for advanced economies following the June U.K. vote in favor of leaving the European Union and weaker-than-expected growth in the United States. As a result, the 2016 growth forecast for advanced economies has been marked down to 1.6 percent. Emerging and developing economies expected to grow by 4.2 percent this year. Japan economy revised upwards in 2016 and 2017 to 0.5 percent and 0.6 percent respectively. As global growth remains sluggish, the prospect of an extended shortfall in private demand leading to permanently lower growth and low inflation becomes ever more tangible, particularly in some advanced economies where balance sheets remain impaired.”

 

Dr. R. Seetharaman gave insight on GCC economies. He said “According to recent IMF forecast, GCC GDP at current prices in 2016 is expected to be $1.371 trillion with a current account deficit on nominal GDP at 4 percent. The Growth in GCC economies in 2016 are as follows: Saudi – 1.2 percent, UAE -2.3 percent, Kuwait - 2.5 percent, Oman – 1.8 percent, Bahrain – 2.1 percent and Qatar economy- 2.6 percent.” Dr. R. Seetharaman gave insight on GCC – Japan bilateral relationships. He said “The value of two-way trade between Japan and the GCC was at $96bn in 2015. Japan is looking into other fields of trade and knowledge exchange, which include food exports from Japan, where manufacturers are increasingly turning towards the production of halal food, as well as cooperation in production of medical devices and in renewable energy.

 

 

Dr. R. Seetharaman highlighted on Qatar economy. He said “Qatar has budgeted for revenues of 156 billion riyals and expenditures of 202.5 billion riyals in 2016 and post a deficit of 46.5 billion riyals. Health, education and infrastructure are the major areas which are going to give thrust by Qatar this year. Major infrastructure expenditures, would include railways, the new Doha port, several large roadways and the expansion of electricity, water and sewage networks. The government came up with $9bn bond issue this year. The government is also taking steps to increase nonoil revenues, focusing on indirect taxes and levies.  Qatar has increased stamp duty and plans to levy additional taxes on alcohol, tobacco and energy drinks starting in 2017. Qatar plans to start applying VAT in 2018. Non hydrocarbon as a % of Real GDP will increase from 51.6 percent in 2016 to 54.4 percent of real GDP.”

Dr. R. Seetharaman gave insights on Qatar- Japan historical bilateral trade. He says “ Qatar become a nation in 1971 and Japan and Qatar started formal relations in 1972.Qatar’s foray into the global LNG market was realized with the shipment of the first output from a Qatar gas plant in October 1996 to Japan’s Chubu Electric Power. In Sept 2016 Japan and Qatar agreed to strengthen security relations between the two countries amid tensions in the Middle East. Japan has issued multiple visas for Qatari passport holders, effective Oct. 3, as part of efforts to promote people-to-people exchanges between the two countries. In early January 2016, Qatar closed a $5.5 billion syndicated loan, arranged by six banks including three Japanese lead lender. Japan Bank for International Cooperation (JBIC) is playing a vital role in financing the energy related projects in the region and has a tie up with Qatar petroleum since 2008. Japanese construction companies have been awarded contracts worth more than $2.1 billion in the last 10 years in Qatar. In Feb 2015 Prime Minister Abe and H.H. Sheikh Tamim attended the signing of a tax treaty and memoranda of cooperation that signify close friendship of the two countries. The US$100mn fund was launched as per a generous initiative by the Father Emir Sheikh Hamad Bin Khalifa Al Thani  The fund is supporting several sectors such as fisheries, health care, education, technology, scientific research and entrepreneurship.

Dr. R. Seetharaman gave insight on Qatar – Japan bilateral relationships. He said “Qatar’s foray into the global LNG market was realized with the shipment of the first output from a Qatar gas plant in October 1996 to Japan’s Chubu Electric Power.  Qatar and Japan bilateral trade exceeded $17bn in 2015.In Sept 2016 Japan and Qatar agreed to strengthen security relations between the two countries amid tensions in the Middle East. In Qatar, Japanese companies are broadly engaged in the construction of infrastructure projects in preparation for the 2022 FIFA World Cup. Japanese banks drew on close commercial ties to Qatar when they lent funds that helped Doha pay 2015’s down payment for Rafale fighter jets and missiles worth $6.8 billion. GCC projects in execution in 2016 is more than $39bn out of which Qatar had projects worth more than $12bn. In Qatar Construction and Water were the key sectors in 2016. He referred to recent exciting developments between Japan and GCC such as Doha Metro led by Mitsubishi Heavy Industries, Facility D IWPP led by Mitsubishi Corp and Hitachi Zosen and Msheireb Downtown Doha Project led by Obayashi. He also stressed very high respects to Japan from GCC in relation with world top class Japanese technology and engineering capabilities on non-hydrocarbon sectors promising in GCC onward. Amidst low oil prices, Qatar and Japan can synergize relationships in non- hydrocarbon sector.”