IQ or the group was established in 2003 to fulfill two key macro-economic policy objectives.
The first objective was to consolidate and manage a central component of economic diversification of the value added chain (downstream) in Qatar. IQ is a core plank in the State’s economic diversification policy platform. IQ is achieving this by managing a group of sustainable, value added, hydrocarbon-focused companies, while facilitating growth in the selected downstream enterprises. Since its inception to date, IQ has invested in excess of QR 26 billion in downstream assets. This investment has contributed towards the State's industrial development in the form of increased production and sellable capacity, employment, technology advancements, and new products. IQ has also contributed significantly to the development of other related industries such as transportation, logistics, packaging and marketing.
The second was to serve as a mechanism to distribute wealth to Qatari nationals. This was primarily achieved via the discounted IPO price. The IPO was made to the public at a price of QR 16.5 per share, which was far below its fair value estimates. Secondly, the group has distributed more than QR 41 billion to-date (representing more than 60% of earnings) as dividend since its formation.
1. Pre-Incorporation History:
The oldest member of the group is QAFCO. Established in 1969, its inception marked the first significant step in the long road of State of Qatar’s industrial diversification program. Its first plant was inaugurated 5 years later, in 1973. Following this, in 1974, both QAPCO and Qatar Steel were incorporated. Qatar Steel commenced production in 1978, with QAPCO starting 3 years later, in 1981. The youngest of the group companies, QAFAC, was incorporated relatively recently, in 1991, with commercial operations beginning in 1999.
2. Post-Incorporation History:
Prior to 2003, QatarEnergy, the national oil company of the State of Qatar, had an interest in all of these group companies (with the exception of Qatar Steel, which was state-controlled). In April 2003, QatarEnergy underwent a re-organization whereby it assumed control of Qatar Steel, and also transferred all of its interests in the companies to Industries Qatar.
After an Initial Public Offering (“IPO”) later that year, IQ was successfully listed on the Qatar Exchange "QE".
The year 2003 also witnessed the acquisition by Qatar Steel of Qatar Steel Dubai Steel (August).
In 2004, QAFCO completed construction of QAFCO IV. Its first full year of operations, QAFCO IV significantly assisted IQ in posting record sales and profits. In addition significant investments have been made in various segments to-date to maintain IQ’s status quo as one of large industrial conglomerate in the GCC region.