Robust US-Qatar economic ties to open more investment opportunities

Qatar’s longstanding relationship with the US and their diverse partnerships across a wide range of sectors plays a vital role in developing the public and private sectors of both countries. Crowell & Moring partner Robert Hager, who is also chairman of the American Chamber of Commerce in Qatar, forecasts a vibrant and positive future for Qatari investments in the US and vice versa, as well as the role of US companies in delivering a successful FIFA World Cup in 2022. Crowell & Moring managing partner Charbel Maakaron, on the other hand, elaborates on the benefits of hosting a world-class event like the World Cup and what it means for Qatar. He also discusses commercial arbitration and other legislative developments in the State of Qatar, among other significant topics.Gulf Times: What’s your analysis on Qatar-US relations? Hager: I think the foreign and economic relations between the countries are probably the best they've ever been on multiple levels. First and foremost, the US-Qatar pact of security is very strong and Qatar has been a wonderful regional ally of the United States, and a facilitator of civility in the region, particularly with respect to the recent discussions in Afghanistan and the changes in the American position there and the movement; all of that happened in the good offices of His Highness the Amir and the foreign minister.Lately, investment has been diversified and I think we’ll continue to see that. In the past, we would always think of Qatar as oil and gas. But now, the incredible growth of Qatar Airways and the amount of transportation-related equipment that's come from the US is tremendous. The security and defence relationship has brought a lot of trade in that sector. Also, having six, very prominent American universities here is quite an achievement. All of these factors point to a long-term relationship between the two countries.How do you evaluate the economic relationship between the US and Qatar? Hager: I think it's growing in both directions and there has been a significant spike in the last two or three years. The Qataris are diversifying their international portfolio, which used to be very European-centric. Now they're looking at investment opportunities in the US and in multiple sectors such as technology, healthcare and infrastructure. We’re also seeing Qatari investments in the energy sector with the Golden Pass LNG project and petrochemical plants. But traditionally, it continues to be in real estate, so there's a lot of investment in New York and Washington for example.Do you represent American companies in Qatar and what kind of services do they require? Maakaron: We represent a host of companies and clients of different nationalities, including Qatari companies, government clients, and US companies. Our US clients tend to fall within the sectors that typically see growth in Qatar, such as education, defence, technology, hospitality, advisory, advanced industries, and financial services.The services that we provide correspond to the type of sectors where our clients operate. We are a full-service firm, so we help our clients from the moment they want to come to Qatar, setting up their business and establishing operations, handling their contracts and employment, dealing with third parties and customers, and making sure throughout this process that they remain compliant with the laws that apply to them, not just in Qatar but globally, including laws in the US that apply to businesses operating outside of the United States. We also assist companies if disputes arise and where required, help them to expand through acquisitions or investment, or otherwise exit a project or cease their operations.The World Cup is less than 500 days away. How do you feel about that and what opportunities do you think it would bring to Qatar? Maakaron: This type of event brings not just business opportunities; it also brings recognition. It gives Qatar and the Arab world the opportunity to demonstrate what we can deliver on an international stage. I am very proud of that and proud of Qatar for what it has achieved so far.As for opportunities, we're already seeing initiatives that will hopefully support the community and allow them to participate in the event in some way. One example is the MoU signed last year by the Ministry of Administrative Development, Labour and Social Affairs and the Supreme Committee for Delivery & Legacy, allowing the lease of residential properties to be used as accommodation for visitors during the World Cup. What role are US companies playing in supporting Qatar in hosting the World Cup? Hager: There are several companies that are involved in the delivery of the tournament. It's very encouraging that we've had that access. The fact that Qatar has some prominent US companies involved in this World Cup delivery is a testament to the US.What is the significance of the legal commercial arbitration mechanism and establishing a separate court for commercial disputes? Maakaron: This goes hand-in-hand with the legislative developments that we're seeing to advance and enhance foreign investment and economic diversification. Qatar recently approved a draft law to establish the Investment and Trade Court. We’re looking forward to seeing this implemented. This sends a very strong message that the rule of law prevails. Qatar wants to make sure that it supports the swift resolution of disputes in the appropriate forums, so commercial disputes go to commercial courts.Also, the specialisation of that court means that there is a strong focus on investment. Creating this court means that the government recognises its importance to the business sector. It also helps businesses and investors by giving them quicker access to dispute resolution, enhanced transparency, increased confidence, and speed in resolving disputes, which means fewer costs and less time.What’s your analysis of US investments in Qatar? Hager: We have over 120 US companies here and we will likely see an increase post-Covid. I think they've learned over the years that having a direct presence here is beneficial. It's a small market; you can get to know people very quickly. I believe we'll see more from US companies support the exports that are coming here, because many of the exports that we send here are our technology and require specialists and training to support its users.