Frequently Asked Questions

Please browse our list of the frequently asked questions for answers to common queries. If you cannot find the answer to your question here, kindly use the email contact form.

  • When IQ was established and what was the economic rationale of forming the company?

    IQ was established by Father Emir His Highness Sheikh Hamad bin Khalifa Al-Thani on the 19th of April 2003 to fulfill two key macro-economic objectives, namely consolidate and manage a central component of State of Qatar’s economic diversification of the value added chain (downstream sector) and to serve as a mechanism to distribute wealth to Qatari nationals.

    Over a decade of operation, IQ was able to fulfil both of these mandates satisfactorily with an investment in excess of QR 26 billion in downstream assets, resulting in a significant boost to State's industrial development with increased production and sellable capacity, employment, technology advancements, and emergence new products, and distribution of dividends in excess of QR 44 billion together with issuances of additional bonus shares.

  • What is the current shareholding structure of the company?

    Qatar Petroleum (QP) is the major shareholder owning 51% of the issued capital, while 19% of the issued capital is held by the General Retirement and Social Insurance Authority. The rest of issued capital is held by domestic and international institutional investors, high network individuals and retailers.

  • What are the portfolio companies within the group and what are the major segments in which the group operates?

    IQ has control / joint controls over four large downstream entities operating in the State of Qatar. Through these entities IQ operates in 3 distinct segments – namely petrochemicals, fertiliser, and steel. The four major downstream entities on which IQ has control / joint control are:

    • Qatar Petrochemicals Company (QAPCO) – a producer of poly-olefins (ethylene) and poly-ethylene (LDPE and LLDPE);
    • Qatar Fuel Additive Company (QAFAC) – a producer of fuel additives including methanol and MTBE;
    • Qatar Fertiliser Company (QAFCO): a producer of nitrogen fertiliser including ammonia and urea;
    • Qatar Steel Company: a producer of long steel.
    Please refer to the “group companies” section for additional details.
  • Can you please provide the details of the Board of Directors?
    Please refer to the “Board of Directors” section for further details.
  • How IQ’s products are marketed and what are large markets for IQ’s products? Are the products sold on “spot” contracts or “long-term” contracts?

    Group’s petrochemical and fertiliser products are exclusively marketed by a wholly owned subsidiary of the State of Qatar, Qatar Chemical and Petrochemical Marketing and Distribution Company Q.J.S.C. (trading as “Muntajat”). Steel products are directly sold by the steel producer Qatar Steel Company.

    Group’s petrochemicals and fertiliser products primarily sold in the Middle East, Asia, the Far-East and the Americas. Steel products are predominantly sold in the GCC region with a strong presence in Qatar. Products are mostly sold in the spot market with few exceptions.

  • What are the key products produced and sold by the group? Can you please list down the production and sales volumes

    Plant

    Product

    Launch Year

     Total

    Production

    (IQ Share)

    Saleable

    (IQ Share)

    Petrochemicals

    RLOC

     

    Ethylene

     

    2010

     

    1,300

     

    302

     

    0

    QAPCO LDPE-1&2

    LDPE

    Pre-2009

    400

    320

    320

    QAPCO LDPE-3

    LDPE

    2012

    300

    240

    240

    Qatofin

    LLDPE

    2010

    540

    275

    275

    QAFAC

    Methanol

    Pre-2009

    1,000

    500

    390

    QAFAC

    MTBE

    Pre-2009

    610

    305

    305

    Fertiliser

    QAFCO 1-4

     

    Ammonia

     

    Pre-2009

     

    3,840

     

    2,880

     

    500

    QAFCO 1-4

    Urea

    Pre-2009

    5,760

    4,321

    4,321

    Melamine

    Melamine

    2010

    60

    27

    27

     

    Steel

     

    QS Phase 1

    DRI / HBI

    Pre-2009

    2,300

    2,300

    691

    QS Phase 1

    Billets

    Pre-2009

    600[1]

    600

    0

    QS Phase 1

    Re-bar

    Pre-2009

    1,500

    1,500

    1,500

    QS Dubai

    Re-bar

    Pre-2009

    300

    300

    300

    QS Dubai

    Coils

    Pre-2009

    240

    240

    240

    QS (EF5)

    Billets

    2013

    1,100

    1,100

    285

     

    [1] The capacity of Billets (QS Phase 1) was reduced to ~600k MT’s following the discontinuing EF 1&2. The company has decided to discontinue EF 1 & 2 after the commencement of operation of EF 5.

  • Who supplies the necessary feedstock and other raw materials?

    Natural gas feedstock is supplied by the parent company, Qatar Petroleum under long-term contracts at competitive prices. The iron ore required for the production of steel is procured from major miners in the global market.

  • Does the group have any future expansion plans?

    As previously communicated, Qatar Petroleum is conducting a number of detailed feasibility studies in order to take advantage of the ethane feedstock made available following the decision not to proceed with the previously proposed Al-Sejeel and Al-Karaana Petrochemical Project. These studies will be conducted in collaboration with QAPCO, Q-Chem and Ras Laffan Olefins Company Limited. At this point in time, it is too early to speculate on the possibility or nature of projects that may be approved following the completion these studies.

  • Are there any plans to grow through mergers and / or acquisitions? Or, to buy out any of the foreign partners in QAFCO, QAPCO or QAFAC?

    The Board of Directors remains open to all strategic growth options, whether organic or inorganic. With respect to the group's foreign joint venture partners, it is our belief that their participation in the joint ventures add value and is therefore to the advantage of all shareholders. There are no plans to change this shareholding structure in the immediate future.

  • Are there any plans to add further companies to IQ or divest of any businesses?

    There are no such plans at this stage.

  • What are the Qatarisation levels within the group?

    Total headcount within the group is over 5,400 employees, with Qataris comprising about 11.8%. All companies have targets and goals to increase the number of nationals.

  • Will you consider paying interim dividends?

    There are no such plans at this stage.

  • What is IQ’s Dividend Policy?

    As a holding company of some large downstream entities, our cash flows are pretty much linked to global economic performance and business cycles. Moreover, Industries Qatar has a formal written dividend policy.

    Nevertheless the Board always adopt a rational dividend payout practice that balances the needs and aspirations of shareholders with the necessity of maintaining adequate liquidity within the group for actual and potential investment requirements, and unexpected adverse trading conditions and the principles of financial prudence.

  • What were the dividends and EPS for the last few years?

    Please refer to the “investor relations” section.

  • How can shareholders collect their dividends if they have lost their old dividend cheque?

    Shareholders who have not yet claimed their dividends for the years from 2003 until 2016 should go to any branch of Qatar National bank along with their ID.

  • We witness changes in some of the expiring arrangements with QP related to Feedstock. Should we assume that the favorable/competitive Feedstock pricing terms are over?

    We wish to clarify that the supply of natural gas from Qatar Petroleum is secured and subject to long-term contracts. In other limited cases, the pricing formulae are also determined on a long-term basis.

    It is quite common for both the seller of feedstock (Qatar Petroleum) and the group companies to discuss and renegotiate the feedstock prices at the time of contract renewal. The prices may be adjusted depending on the economic expectations at the time of renegotiating the feedstock prices.

    In all cases, Qatar Petroleum recognizes the need for the group companies to get the feedstock at a competitive price so that IQ can continue to maintain its competitive advantage in the global market.

  • How frequent do you maintain your plants? What are the risks associated with your maintenance program?

    The group’s production facilities are on regular (preventive) maintenance in order to ensure product quality is maintained and, ultimately, contribute to extending plants’ production life, improved reliability and decrease environmental impact. The maintenance cycle depends on the age of the plants, the criticality of plant’s operations and the time of maintaining Qatar’s upstream sector.

  • What is IQ’s CAPEX Program over the next five years?

    With regards to CAPEX investments over the next five years (2017-2021), the total investment and maintenance CAPEX earmarked by the group is ~ QR 3.0 billion, which is only a fraction of the investments made by IQ in the past. With the oil and commodity prices remain somewhat depressed, the group will continue to focus on optimizing costs through the entire value chain, and improving the efficiency of the operating asset base. In addition, the group will also selectively invest in green field downstream projects, primarily in the domestic market.

    It should, however be noted that, If profitable investment opportunities are made available to the group within the planning horizon, these opportunities will be considered based on their merits. With the phasing of CAPEX over the next five years, group’s free cash flows and other financial metrics are to improve significantly, assuring greater liquidity and financial strength which will enable the group to have a very flexible financial strategy.

  • How can I buy IQ shares?

    IQ’s shares are traded in Qatar Exchange (www.qe.com.qa). In order to transact in IQ’s share, you will have to register with a broker who is registered with Qatar Exchange. The broker will place orders on-behalf of you, and the settlement will be made through the exchange. The broker will charge a commission for their services.

    There are number of sources which can be utilized to monitor the performance of your portfolio. These include Qatar Exchange website, android / apple applications for Qatar Exchange and other tailor made software developed by the brokerage houses.

    Please refer to the link below for further details: https://www.qe.com.qa/become-an-investor

  • What is IQ doing in the current market downturn to ensure it maximizes shareholder interest?

    The group has embarked on a number of initiatives to improve both financial and operational performance through optimizing costs and operations. These initiatives include detailed assessments of the group’s operational assets and the cost base with an objective of improving operational and cost efficiencies while ensuring Health, Safety and Environment are maintained to their highest levels. These initiatives once completed will add new synergies and opportunities within operations, administration, information technology and other functions of the group, and ultimately result in value addition to the shareholders.

  • What is the Zakat payable on the owned shares?

    The details ruling on Zakat related to share ownership can be found in the Zakat fund (www.zakat.gov.qa)

  • What is the dividend Purification ratio?

    The details ruling on Zakat related to share ownership can be found in the Zakat fund (www.zakat.gov.qa)

  • Where can I find the latest financial results?

    Financial results could be found in financial performance section of the website.

    Please refer to the “financial performance” section.
  • Where can I obtain Industries Qatar's annual report?

    The annual reports could be found in “publications” section of the website.

    Please refer to the “publications” section.
  • When is the General Assembly Meeting usually held?

    The Annual General Assembly Meeting is usually held during the first quarter of the following year. Dates are usually announced in the newspapers.

  • Are there any taxes on profits or bonus shares?

    At the company level, there is no tax liability arises on the bonus shares as they are paid out of retained earnings. Regarding the personal tax position, you have to refer your queries to the Public Revenue and Tax Department (known as “PRTD”);

  • Does the Company give cash dividends or bonus shares?

    Decision regarding the distribution of dividends are made by the Board of Directors. In most cases, dividend distribution comes in the form of cash. In the past, 10% bonus shares have been issued twice.

  • What was the profit proportion during previous years?

    The details of the profits earned in the past years can be found in the “financial performance” section of the website.

    Please refer to the “financial performance” section.
  • Where is the headquarters of Industries Qatar?

    Floor no. 42,

    Qatar Petroleum Headquarters,

    World Trade Center, West Bay, Doha,

    State of Qatar.

  • What are the contact details of Industries Qatar?

    Email: iq@qp.com.qa

    Tel:(+974) 4013-2080

    Fax: (+974) 4013-9750