Qatar has several industrial cities which operate as single-site hubs where resources are pooled to help integrate upstream and downstream industries. The Ras Laffan, Mesaieed and Dukhan industrial cities are centred around the processing, refining and liquefaction of gas, or on the manufacturing of goods that require gas as a feedstock or for energy.

The government owns or is the majority joint venture partner in most of the businesses based in the industrial cities.

Dukhan Petroleum City

Dukhan, located 84 kilometres from Doha on the west coast, was the site of Qatar’s first commercial oil production plant, which was commissioned in 1949. The discovery of significant quantities of gas in the Khuff reservoir in 1958 led to the construction of the country’s first two major power plants, which were later integrated into the industrial city.

Qatargas shipped its first cargo of liquefied natural gas from Ras Laffan in 1996

State oil firm Qatar Petroleum (QP) took over operations at Dukhan, when Doha nationalised its oil and gas resources in 1974, and remains the site’s operator to this day. Dukhan now contains production facilities for the country’s three main oil producing fields and the Khuff gas reservoir, a power station, a desalination plant, about 1,900 housing units and a medical centre.

Ras Laffan industrial city

Ras Laffan Industrial City was established in 1996 as part of plans to develop the giant North Field gas reservoir, which has been key to Qatar’s economic development. It is run by QP. Doha’s strategy of working with international private sector partners for each stage of the development of the field has shaped the way the city has grown.

It is the home of Qatargas, a holding company involved in a series of joint-venture developments with the US’ ExxonMobil, France’s Total, the UK/Dutch Shell Group and Japan’s Mitsui. Qatargas was the first occupant of the industrial city and shipped its first cargo of liquefied natural gas from Ras Laffan in 1996. Other key occupants are Rasgas, a joint venture of QP and the US’ ExxonMobil, and North Field Alpha, a QP-run company that supplies the domestic market.

In 2007, a major gas-to-liquids (GTL) plant run by Oryx GTL, a joint venture of QP and South Africa’s Sasol began commercial production at Ras Laffan. In 2011, the $19bn Pearl GTL, a QP/Shell joint venture, started operating a second plant. It is the world’s largest GTL facility

Other facilities at Ras Laffan include a small condensate refiner, a petrochemicals plant and a new polysilicon complex being built by state-owned Qatar Solar Technologies.

Activity at Ras Laffan is limited to QP-led operations and joint ventures. Smaller investors in the industrial city work in the Ras Laffan Support Services Area, where land leases start at 15 years for spaces that are more than 6,000 hectares.

Mesaieed industrial city

Mesaieed Industrial City is run by a subsidiary of QP and was inaugurated in 2004, making it the newest of the industrial city schemes. It is the home of several downstream companies, including Qatar Fertiliser Company (Qafco), Qatar Petrochemical Company (Qapco), Qatar Steel Company, Qatar Vinyl company, Qatar Chemical Company (Q-Chem) and the Qatalum aluminium smelter, all of which are state-owned or public-private joint ventures.

The city encourages investment by offering a variety of incentives, including zero export duties and corporation tax.

Doha Industrial Area

More low-key than the QP-sponsored industrial cities, Doha Industrial Area was originally just a plot of land set aside for firms that needed space for warehouses and light manufacturing. Today, it is a key part of the government’s plans to boost the number of small to medium-sized enterprises in Qatar and is directly connected to a key gas pipeline. Since 2001, it has been undergoing an expansion by the Ministry of Energy and Industry. The first phase was completed in 2005 and a second phase including roads and utilities is under way.

Foreign firms can rent land at a cost of QR5 ($1.37) a square metre, rising to QR10 a sq m after the first three years and increasing 5 per cent annually thereafter. It is overseen by the Ministry for Industrial Estates, and Mirage International Property Consultants handles enquiries from companies interested in setting up in the area.