DOHA: Qatar-France bilateral trade is expected to witness a sharp jump this year to reach over QR16.34bn (euros 4bn), registering a triple-digit growth compared to QR6.1bn (euros1.5bn) in 2014, according to a French Embassy official in Qatar.
The jump in bilateral trade volume is attributed to the exports of civil and defence aircraft to Qatar.
France and Qatar last month signed a huge and strategic contract worth $7.02bn (QR25.56bn) for the sale of 24 Rafale fighter jets, an accord French President Francois Hollande hailed as a mark of Gulf Arab regard for French regional strategy.
“As a result of this strategic deal for Rafale our exports to Qatar is expected to double this year compared to 2014, which already registered over 30 percent growth against the previous year,” said Eric Chavallier, French Ambassador to Qatar, adding, “Qatar-France relations are extremely good and improving everyday as they are decades old and deeply rooted.”
Chavallier, speaking to The Peninsula on the sidelines of Summer Break Dinner organized recently by Qatari-French Business Club, added: “Our relations with Qatar are multidimensional. Our areas of cooperation include economics, political, education, defense, culture, sports and environment.”
France’s main export to Qatar is Airbus for the rapidly expanding Qatar Airways (QA). More than 60 percent of QA’s fleet is consist of Airbus.
However, France’s exports to Qatar are diversifying very fast, especially in the retail sector, which include consumer goods such as food items, cosmetics, perfumes among others.
On the investment front, it is the second largest overseas investment destination of Qatar after the UK, with the total investment in France estimated to the tune of 30bn euros (over QR123bn), which is expected to grow further in the near future.
Qatar has invested in different sectors of the French economy, but its main investments are concentrated in the real estate, hospitality sectors, which also included portfolio investments in listed companies.
“France is a very open economy. We have carried out a lot of important reforms, both at domestic and EU levels, in various sectors, such public finance and labour to attract more foreign investment, including from Qatar,” added Jean-Alexandre, Economic Counsellor at the embassy.
“As the Qatari economy is booming, the level of imports from France is also expected to grow fast in the coming years.”
Currently over 100 French companies are working in different sectors of the Qatari economy, including oil and gas, construction, finance, insurance, water treatment and desalination.
According to Alexandre more French companies are looking forward to cooperate in the field of IT and cyber security for developing smart and sustainable cities in Qatar.
Both the countries are working to develop business capacities in Qatar through innovative French SMEs in different sectors, especially in the field of IT, sports, healthcare, biotechnology and agro-industry.
On the delivery schedule of Rafale jets, Chavallier declined to provide details, but added that the building process is “well-established and plans are well-prepared”. “A week ago I personally witnessed the people building the jets for Qatar and they are very happy about it.”
