VZCZCXYZ0017
RR RUEHWEB

DE RUEHDO #0972 2771237
ZNR UUUUU ZZH
R 041237Z OCT 07
FM AMEMBASSY DOHA
TO SECSTATE WASHDC 7128

UNCLAS DOHA 000972 
 
SIPDIS 
 
SIPDIS 
 
STATE/EEB/TPP/ABT FOR GARY A. CLEMENTS 
STATE/NEA/ARP FOR ASHLEY BAGWELL 
COMMERCE/ITA/OTEXA FOR MARIA D'ANDREA 
USTR FOR CAROYL MILLER 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KTEX QA
SUBJECT: QATARI TEXTILES AND APPAREL PRODUCTION 
INSIGNIFICANT 
 
REF: SECSTATE 114799 
 
¶1. (U) Textiles and apparel production is not a significant 
part of Qatar's hydrocarbon-based economy.  Until recently, 
there were a handful of textile factories in Qatar, many of 
which were started by investors from the Asian subcontinent 
as a means to avoid textile quotas from the global multifiber 
system in their home countries. 
 
¶2. (U) According to Ahmed Ahen, Director of the Economic and 
Trade Organizations Department at the Ministry of Economy and 
Commerce, the end of quotas as part of the multi-fiber 
arrangement on January 1, 2005 caused many of these investors 
to move elsewhere, often to their home countries or Africa, 
as there was no longer a need to avoid the arrangement's 
quota system.  Ahen believed there were about 23 factories 
active in textile production prior to 2005.  According to 
Ihab Rashid at the Qatar Chamber of Commerce and Industry, 
the last shipment of textiles to the United States was in 
March 2007, and there is now only one factory in Qatar making 
apparel for local consumption.  According to 2006 statistics, 
textile exports only accounted for one-tenth of one-percent 
of Qatar's economy. 
 
¶3.  (U) In keeping with Qatari law, the expatriate investors 
had Qatari partners and sponsors for the laborers.  There 
were no labor displacements for the local population as 
Qatari citizens would not take textile jobs, thus virtually 
all of the laborers were imported from other countries. 
Beginning in 2005, workers in the industry began to be 
repatriated to their home countries. 
 
¶4. (U) Using Qatar as a production point for textiles is no 
longer useful or competitive and neither the GOQ or private 
industry has shown an inclination to revive the textile 
industry.  Post provides available statistics below as 
requested reftel. 
 
---------- 
Production 
---------- 
 
At current (nominal) prices 
GDP (USD Billion) 
2006        52.7 
Q1 2007     12.3 
Q2 2007     13.9 
 
Manufacturing (USD Billion) 
2006        3.9 
Q1 2007     1.0 
Q2 2007     1.1 
 
2006 Domestic Textile Exports: 98.4 million USD 
2006 Domestic Textile Exports to the U.S.: 10.8 million USD 
2006 Share of Total Textile Production Exported to the U.S.: 
11 percent 
RATNEY