Qatar Economic Forum17 April 2006

Investing in Qatar: Energy City Qatar

Bob MooreCEO, Energy City-Qatar

Introduction

• We have just had the benefit of the excellent overview of the impressive performance of the Qatari economy and its future prospects from H.E. Youssef Kamal, the Minister of Finance and Acting Minister of Economy and Commerce • I am representing Mr. Esam Janahi, who cannot be with us today

• My fellow panelists who have just spoken before me have already made most of the key points that I would like to make

• In the time allotted to me I would like to focus on how our project, Energy City Qatar, fits into the country’s overall energy-based industrial development and diversification strategy and attracting FDI

• The executive summary of the answer consists of two points: – Creating an energy industry cluster, and– Generating synergies

• But, first, why did we choose Qatar?

Why Qatar?

• Open to foreign investment in the oil and gas sectors

• A very large number of energy sector projects already approved and under way

• Diversification of exports of energy and energy-intensive products as part of an industrial strategy aimed at maximizing the domestic value add of exports while also diversifying the range of export products

• Qatar is developing a vertically integrated energy industry and creating world class industry giants e.g. QP, as well as horizontal integration through developing synergies

• New small & medium-sized private sector projects are being encouraged to take advantage of the downstream opportunities

Energy City Qatar: An Energy Industry Cluster

• The US$ 2.6 billion Energy City Qatar is located in the fully integrated business, residential and entertainment development, Lusail

• Pioneering project to develop the Gulf’s first business centre for the energy industry

• Similar to Houston, Calgary, Stavangar, Aberdeen and Singapore

• A single point of access to markets and expertise – the full range of industry, marketing and financial services under one roof

Energy City-Qatar: An Energy Industry Cluster

• IMEX, Energy City Qatar’s trading component, will help develop for the first time, an energy trading base in the Middle East for its own products. This will enable better assessment of the market, risks and prices in addition to offering flexibility through futures and derivatives-based tools

• Energy City Qatar aims to establish a vibrant centre of excellence for the development of above ground resources in the hydrocarbon industry in the Middle East

• Energy City Qatar forms part of a new city development, Lusail, which in addition to being a major business and entertainment districts will be home to up to 200,000 residents

• Qatar’s oil and gas sector accounts for a major chunk of infrastructure investments in the Middle East. Energy City Qatar to act as a base for world infrastructure companies

Energy City-Qatar: Generating Synergies

• Unlike the production and export of crude oil and refined petroleum products, the exploitation of natural gas for exports requires significantly more investments in technology and infrastructure and R&D

• This is especially true in the case of GTL where the technological barriers are being pushed towards increasing the scale of the processing plants to benefit from economies of scale

• Energy City Qatar offers significant synergies for oil/gas sector arising from strategic location and single-point access to all major market participants, seismic, industry data, infrastructure etc. Benefits would include improved logistics, cost savings, proximity to sellers/buyers

• Energy City Qatar will turn Qatar into a major Business Centre of the energy industry

Thank You