QATARI TEXTILES AND APPAREL PRODUCTION

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.

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Production
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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