Qatar and Hungary to sign economic cooperation
Business Intelligence Middle East | 10 April 2008
Qatar and Hungary to sign economic cooperation
Author: BI-ME staff
QATAR. Hungary and Qatar are expected to sign a slew of agreements, including investment protection and double-taxation avoidance, this year to strengthen economic relations.
Moreover, Budapest said it would be beneficial for Doha to engage in more bilateral trade as Hungary still uses its currency the Forint rather than Euro, which has strengthened considerably against several currencies including the Qatari Riyal.
Hungary also offered its expertise in the areas of oil and gas technologies, biotechnology, ICT (information, communication and technology), automotive, shared services, while sought the GCC’s help in overcoming its “weakness” of being unable to commercialise the research and development.
“I believe this year we can finalise the whole package [of agreements],” Hungary’s Vice Minister of Economy and Transportation Abel Garamhegyi told media on the sidelines of his delegation’s meeting with the Qatar Chamber of Commerce and Industry (QCCI), lead by its board member Mohamed Johar Saeed al-Mohamed.
Hungary, a European Union member, is currently negotiating with Qatar on agreements relating to economic co-operation, avoidance of double taxation and investment protection.
Garamhegyi, who also holds the position of State Secretary for International Economic Relations, said Hungary had drafted a framework for economic co-operation agreement with Qatar, which could ensure building up of security and trust between the two countries.
Stressing that the economic cooperation agreement was not to replace or over-write the existing business relations between the companies of two countries, he said the primary goal was to facilitate business between businesses in the two countries.
“The governments [of Hungary and Qatar] are showing goodwill, but the actual job is in the hands of companies”, he said recalling his meeting with the Qatar’s Energy and Industry Ministry officials.
Subsequent to the Euro-Atlantic integration, Hungary is aiming to extend the horizon of its economic and trade activities beyond the European continent and the Gulf region constitutes a significant area of cooperation both in bilateral terms and within the framework of the EU-GCC ties.
Garamhegyi said Qatar, whose economy is booming, has been using latest technologies, most of which developed in Hungary, but sourced from elsewhere.
“You [Qatar] should find the source of technology and you are not supposed to pay the extra fee,” he said, indicating that Qatar could benefit from an overall reduction in project costs.
Stressing that Hungary looks forward to working closer with Qatar in enhancing bilateral economic and trade relations, he said strengthening of co-operation in the energy and related activities were of prime importance.
Garamhegyi said Hungary’s oil and gas company MOL had signed an agreement with Qatar Petroleum (QP) in 2006 for technology transfer to the latter.
Hungary, which imports 80% of its liquefied natural gas requirements from Russia, is also eyeing Qatari gas once the LNG terminal comes online in Croatia.
Asked whether Hungary is open to diversify its gas sources, Garamhegyi said Budapest is open to it but the major problem is on the supply route.
“We can use only LNG from Qatar but it is dependent on when the Croatian terminal will be ready,” he said.
“With an unfavourable [Eurozone] exchange rate, it is better to deal with us rather then dealing with the eurozone,” Garamhegyi said, adding that the country would not be switching over to the Euro before 2011-2012.
Others present on the occasion included Gergely Varkonyi, officer in the Hungarian Ministry of Economy and Transport, Szandrocha Kamilla of the Hungarian Investment and Trade Development Agency and Ferenc Csillag, Hungarian Ambassador to Qatar.
