Benefits of Making Business in Qatar | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN QATAR WWW.MERGERSCORP.COM

2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

3. BENEFITS OF MAKING BUSINESS IN QATAR WWW.MERGERSCORP.COM

4. Country Overview Occupying a small desert peninsula that extends northward from the larger Arabian Peninsula, it has been continuously but sparsely inhabited since prehistoric times. Following the rise of Islam, the region became subject to the Islamic caliphate; it later was ruled by a number of local and foreign dynasties before falling under the control of the ĀlThānī (Thānī dynasty) in the 19th century. The capital is the eastern coastal city of Doha (Al-Dawḥah), which was once a centre for pearling and is home to most of the country’s inhabitants. Radiating inland from its handsome Corniche, or seaside boulevard, Doha blends premodern architecture with new office buildings, shopping malls, and apartment complexes. Slightly smaller in area than the U.S. state of Connecticut, the Qatar peninsula is about 100 miles (160 km) from north to south, 50 miles (80 km) from east to west, and is generally rectangular in shape. It shares a border with eastern Saudi Arabia where the peninsula connects to the mainland and is north and west of the United Arab Emirates.

5. Executive Summary Most of Qatar’s area is flat, low-lying desert, which rises from the east to a central limestone plateau. Hills rise to about 130 feet (40 metres) along the western and northern coasts, and Abū al- Bawl Hill (335 feet [103 metres]) is the country’s highest point. Sand dunes and salt flats, or sabkhahs, are the chief topographical features of the southern and southeastern sectors. Qatar has more than 350 miles (560 km) of coastline; its border with Saudi Arabia is some 37 miles (60 km) long. There are no permanent bodies of fresh water. Qatar was originally settled by Bedouin nomads from the central part of the Arabian Peninsula. Qatari citizens, however, constitute only a small portion—roughly one-ninth—of the total population today.

6. Introduction – Doing business in Qatar Due to natural resource of gas and oil, the State of Qatar has one of the fastest growing economies and the highest per capita income in the world. Qatar is a world’s largest exporter of liquefied natural gas and a world leader in gas-to liquid production. Even though a majority of Qatar’s revenue is associated with its natural reserves, Qatar’s economic policy is focused on expanding and developing its non-energy related industries. As any entrepreneur knows, starting a business whether at home or overseas means taking on a certain amount of risk. To enhance your chances of success, you have to minimize risk wherever possible, by planning and investigating, by understanding all applicable laws and procedures, and by fully understanding your business, your clientele, and your surroundings. When setting up a business overseas, these steps can obviously be more difficult to follow. Having a local partner a professional you can rely on for guidance and support is invaluable.

7. Conducting business in Qatar To conduct business in Qatar on a regular basis, foreign investors are required to establish or register a legal presence from the following options: • Incorporating as a company under the Commercial Companies Law which allows full access to Qatar’s market and to work on an unlimited number of projects. A Qatari partner is required to own 51% of the capital of the company, except in the circumstances mentioned above. Various exemptions are available to attract foreign capital. • Obtaining a licence for a branch office or trade representation office which does not require a Qatari partner. The licence for a branch is granted in respect of a specific project for a government client. The existence of the branch office is dependent on the duration of a particular project: once the project is completed, the branch office must close unless it has secured additional qualifying projects. Branch offices are only permitted to perform a specific contract and may not engage in general commercial activities with the larger local market. The branch will be fully taxable unless granted a special exemption.

8. Taxation in Qatar In general, a Qatari LLC or registered branch pays tax on its taxable profits at a flat rate of 10%. Taxable profits are profits derived from sources in Qatar, calculated in accordance with the law, and exclude profits attributable to the profit share of Qatari nationals tax resident in Qatar. There are various exceptions to the 10% rate, notably that petroleum companies engaged in oil and gas operations are taxed at the rate specified in their development agreements, provided the rate is at least 35%.A single 5% with holding tax rate applies to payments made to non-resident entities for royalties and for services performed in Qatar without a legal presence. Companies incorporated in free zones are subject to different tax regimes. In general, companies within the QFC are subject to a 10% corporation tax on taxable profits that arise in or derive from Qatar. Companies within the QSTP are exempt from tax. Taxation in Qatar is regulated by Income Tax Law. Those individuals employed in Qatar pay no tax on income arising from their employment. However, foreign businesses in Qatar are subject to corporate income tax.

9. Trade Qatar is currently U.S.’s 57th largest goods trading partner with $6.0 billion in total (two way) goods trade during 2018. Goods exports totaled $4.4 billion; goods imports totaled $1.6 billion. The U.S. goods trade surplus with Qatar was $2.9 billion in 2018.Qatar is the 47th largest export economy in the world and the 42nd most complex economy according to the Economic Complexity Index (ECI). In 2017, Qatar exported $52.3B and imported $21.6B, resulting in a positive trade balance of $30.7B. In 2017 the GDP of Qatar was $166B and its GDP per capita was $128k.

10. Banking in Qatar Qatar National Bank (QNB) is the largest of the commercial banks in Qatar. It is headquartered in Doha, Qatar’s capital city. The first domestically owned commercial bank in Qatar, QNB was founded in 1964, growing into not just the biggest in Qatar but also the largest financial institution in the Middle East. QNB owns and operates subsidiaries in 31 countries. The bank is jointly owned by the Qatar Investment Authority and members of the public, each of which has a 50% ownership interest. The Commercial Bank of Qatar is the largest of the private banks in Qatar. It was set up by a Qatari businessman, Hussain Alfardan. Alfardan previously worked for Standard Chartered (then called Eastern Bank Limited) and saw the need for a private commercial bank in Qatar.

11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

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13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com