II. LEADING TRADE PROSPECTS FOR U.S. BUSINESS: American business involvement in the Qatari market since the early 1960's consisted principally of providing a wide range of products, including automotive and spare parts, as well as oil field supplies. In recent years, however, American technology, products and services were imported by various sectors of the Qatari market, including those which were previously dominated by European suppliers. Such sectors are electricity and water, oil and natural gas development and enhancement of recovery of these resources. Import of goods of U.S. origin which were reported at only US$ 45 million in 1975, reached US$ 175 million in 1982 and peaked in 1992 at US$ 230 million. U.S. engineering services rendered to the State-owned QGPC in 1990/91 reached the highest ever level of US$ 200 million, well above the US$ 100 million level in 1992. Initial findings indicate that leading U.S. items exported to Qatar in the above mentioned peak years included passenger cars, oil/gas field equipment and supplies, medical equipment and supplies, pharmaceutical products, computers and foodstuffs. Although the oil boom in Qatar is clearly over, the next several years will witness further government spending on further phases of development of LNG and gas-intensive industrial projects, which utilize gas as fuel or feedstock. The projects will generate significant economic opportunities for foreign engineering firms through to the year 2010. GOQ spending on such projects will have a locomotive effect on the entire economy. The following areas represent best prospects: Liquefied Natural Gas (LNG): Major projects; With financial loans from Japan worth about US$ 3 billion, Qatar is currently spending about US$ 5 billion on developing its first LNG facility at Ras Laffan, north of Doha. Known as Qatar Gas, the Qatar Liquefied Natural Gas (LNG) Company is, in fact, a partnership between the State-owned Qatar General Petroleum Corporation (QGPC) (65 percent), Mobil Oil (United States), (10 percent), Total (France) (10 percent), Marubeni and Mitsui (Japan) (7.5 percent each). Still in the early stages of implementation, the second LNG facility, known as Ras Laffan LNG Company, is expected to cost about twice as much as the Qatar LNG project. U.S. firms interested in following up on the Ras Laffan LNG project, a partnership between QGPC (70 percent) and Mobil Oil (30 percent), should immediately consider appointing local agents for any of the project's upstream/downstream contracts or sub-contracts. The project's scope of work includes, but is not restricted to, drilling operations, well-head jackets, platforms, piping system (offshore/onshore), catering, LNG plant, tanks, tankers and related projects. Further stages of development of the North Gas Field are under consideration. LNG projects loom over all other projects in Qatar. It is strongly recommended that all offers presented to QGPC on LNG projects be associated with some kind of finance package. It was due to carefully studied finance schemes that the Qatar LNG project was awarded to Japanese energy related firms. Moreover, the Japanese firm Chubu Electric has already signed a selling purchasing agreement (SPA) with QGPC to purchase 4 million metric tons of LNG per year for 25 years as of 1997. Electricity and Water Desalination: Subcontracts are due to be invited in May/June 1994 for civil works on the 1,100 million Ras Abu Fontas B Power station/water desalination station. The main contractor is Asea Brown Boveri (ABB) of Italy/Switzerland/Germany. Project engineering consultant is Ewbank Preece of U.K./Australia. The project calls for producing 600 mw/hr of power and 12 million gallons of desalinated water per day. U.S. firms interested in reaching sub-contracts for various aspects of this project should immediately start entering into the Qatari market by establishing local representation arrangements. Qatar Steel Company (QASCO): QASCO is expected to decide by the end of the year 1994 whether to proceed with a US$ 250 million expansion of its Umm Said plant. Doha International Airport: GOQ is likely to announce within the next few months whether a new international airport will be built. It has also to decide whether to build the new airport on the same premises as the present Doha International Airport, or to build the new airport at another location in the country. In July 1992, GOQ awarded the new airport's engineering consultancy contract to the French firm Aeroports de Paris (ADP) at a cost of about QR 52 million. The contract was awarded on the basis that the new airport would be built on the premises of the present one. The U.S. firm Turner Steiner was selected by GOQ as project manager. Health care projects: 1. Hospitals and health centers: A new paediatric hospital, 350 beds, is scheduled to be built at an estimated cost of QR 135 million. A Qatari-Lebanese firm, Dar Al-Handasa, was awarded a contract in mid-1993 for detailed design work. No progress is reported to date. 2. Al-Ahli private hospital: A license was given by GOQ in June 1992 to a group of local investors to establish this hospital which will be the first private facility of its own in the country. No progress is reported to date. 3. Expansion of the State-owned Hamad General Hospital (660 beds): The expansion plans include laboratory and respiratory therapy building, accident/emergency building, oncology cancer treatment center, warehouse extension and laundry/central sterilization extension. 4. Health clinics: The Ministry of Public Health has plans for establishing six additional health clinics to service six suburbs of Doha and nearby locations. Infrastructure: Ras Laffan Industrial Area: Government sources anticipate that this project may cost up to US$ 3 billion. Ras Laffan area, north of Doha, is now witnessing major changes. The LNG export port is now under construction. Other natural gas intensive industries are scheduled to be established in that area. No further information is available. Private small projects under consideration: Pharmaceutical products, footwear, paper bags for cement and gypsum, gypsum boards, amino resins, graphite electrodes, ceramic tiles, aluminum foil, sodium sulphate. Government Buildings: Three major construction projects for GOQ use are planned. The buildings will house the Ministry of Education, the Ministry of Municipal Affairs and Agriculture, and the Ministry of Labor and Social Affairs. As with several other projects, the future of these will depend upon the perennial problem of availability of finance. Major projects: Qatar will remain an attractive market for U.S. products, which include: All health care items, house/office furniture, computers, telecommunications, electrical/electronic equipment and foodstuffs.