The industrial sector with 
its two branches, basic and manufacturing, is by far one of the most important sources of national income and financing, and it provides a wide range of investment opportunities. The State has been directing substantial resources to this sector, seeking to encourage and support it through direct investments and other measures. The State established industries based on its main natural resources namely oil and gas.
The oil and gas industry gave rise to several related industrial processes in the form of joint projects. The most important of these projects are:
Qatar Petrochemical Company (QAPCO)
Qatar Petrochemical Company (QAPCO) was established in 1974 as a joint stock company shared by QGPC (80%), the French Company Elf Atochem (10%) and the Italian Company Enichem (10%).
The plant, 
which started production in 1981, has three main production units: the Ethylene unit, the Polyethylene unit and the Ethane extraction unit in which 150 million cubic feet of Ethane-rich gas, fed from NGL plants, are treated.
Efforts have been continuing since 1994 to expand QAPCO's annual production capacity. Contracts worth QR1.4 billion have been signed with French, Italian and Norwegian companies to implement an extension project, which started production in 1998. QAPCO is currently the biggest producer of Ethylene and Low Density Polyethylene in the Middle East with an annual production capacity of (360) thousand metric tons, and (70) thousand metric tons respectively.
Qatar Petrochemical Company Ltd. (Q-Chem)
Q-Chem was formed in 1998 as a joint venture between QGPC and the American Phillips Petroleum Company. The facility in Mesaieed Industrial Area will be a world-class petrochemical plant producing high density and low density polyethylene using Phillip's proprietary loop slurry technology. The foundation stone of the project was laid in December 1999. Production is scheduled to begin in 2002, and is expected to reach over one billion metric pounds a year of Ethylene and Polyethylene in addition to 100 million metric pounds of Hexyne.
Chemical Fertilizers Industry (QAFCO3)
Established in 1969 and based 
in Mesaieed, Qatar Fertilizer Company undertakes the production and marketing of ammonia and urea. The Company's shares are divided between Qatar General Petroleum Corporation (QGPC) and the Norwegian Norsk Hydro Company at the ratio of 75% and 25% consecutively. The company operates two plants, one for ammonia and one for urea. Production at the first unit started in 1973, and at the second unit started in 1979.
After the new extension project, (QAFCO 3), was inaugurated in 1997, annual production capacity increased to 1.3 million metric tons of ammonia and 1.6 million tons of urea.
Natural Gas Liquids Plants (NGL)
The Natural Gas Liquids Plants (NGL 1) AND (NGL 2) process associated gas produced from Dukhan onshore field and the two offshore oil fields, while (NGL 3) processes gas produced from the North Gas Field. NGL plants produce propane, butane and NGL condensates.
Natural Gas Liquids Project (NGL 4)
The NGL 4 is an extension and an enhancement of QGPC's existing highly successful NGL business. It aims at upgrading facilities at both Dukhan and Mesaieed and includes new Fractionation and Treating Facilities at Mesaieed and related infrastructure. Implementation work started in 1999 and is scheduled to start production in January 2002.
Qatar Vinyl Co. (QVC)
It is Qatar's first downstream petrochemical venture currently under construction and is designed to produce ethylene dichloride, vinyl chloride monomer, and caustic soda from the ethylene produced by QAFCO.
Qatar Fuel Additives Company (QAFAC)
This project is designed to produce 825 thousand tons of Methanol liquid, of which 600 thousand tons are earmarked for exportation. The balance shall be used as feedstock for the production of 610 thousand tons of MTB. QAFAC's shareholders are: QGPC (50%), Chinese Petroleum Corporation CPC (20%), lee Chang Yung Chemical Industry Corporation lCYCIC (15%) and International Octane ltd. IOl (15%). The project was inaugurated in Mesaieed in October 1999. A new company under the name of Qatar Clean Energy Company (QACENCO) is also established recently to produce methanol and MTBE (an octane baster).
National Oil Distribution Company (NODCO)
Established in 1986, NODCO operates Mesaieed Oil Refinery, distributes the Refinery's output in the local market and exports the surplus.
The first refinery established in Qatar was inaugurated in 1974. Another refinery with a daily output capacity of 50 thousand barrels was added due to the steady increase in local consumption of petroleum products. An extension project has been launched to increase the existing daily output capacity from 62,000 to 137,000 barrels by mid 2001.
The main non-oil and gas associated industries are:
Qatar Steel Company (QASCO)
QASCO was established as a joint venture between the government of Qatar (70%) and two Japanese companies, Cobi Steel Ltd. (20%) and Tokyo Boeki Ltd. (10%). Currently the government holds 100% of the Company's shares. QASCO produces coated and uncoated, plain and deformed re-enforcing steel bars. An internal expansion to the factory raised annual production capacity to 140 thousand tons of re-enforcing steel bars.
A joint venture between QASCO (31 %) and a consortium of Gulf and Canadian companies was set up to establish a hot briquetted iron plant that is expected to produce about 2 million tons.
Qatar National Cement Company (QNCC)
Production at QNCC started in 1969 with an annual output capacity of 100,000 tons. After the implementation of two extension projects in 1974 and 1976 the company's annual output capacity increased to 300,000 tons of ordinary cement and 30,000 tons of unslaked lime. The plant also produces slaked lime. In order to meet the increasing demand on cement for urban construction purposes, a fully-fledged cement plant was established and inaugurated by His Highness the Emir in 1997. It has a design daily output of 2,000 tons of clinker and 670,000 tons of ordinary and salt resistant cement.
Organic Fertilizer Plant (QFP)
Commissioned in 1977, this plant processes on daily basis 70 tons of refuse, of which 65% to 70% are produced as organic fertilizer. A good amount of iron scrap is also extracted. In 1985, the second organic fertilizer plant was operated raising the daily output capacity of both plants to about 300 tons.
The Role of Private Sector
The State has provided incentives to encourage the investments of the private sector in industrial development projects. It developed the required infrastructure for such projects, issued required laws and legislation concerning foreign investments in domestic economic activities and supported consultant firms specializing, in particular, in planning and developing small and medium scale industrial zones.
In service of the same objectives, Law No 19 of 1995 and its by-laws on the industrial organization were issued and, in 1997, the Doha Securities Market was commissioned. The Qatar Industrial Development Bank was established in accordance with a decree issued in 1997 with the aim to support and enhance industrial and economic development by means of providing required finance for small and medium-scale industrial projects. The Bank is expected to contribute in diversifying the productive base and satisfying society's needs for various commodities through industrial production.
The establishment of Qatar Industrial Manufacturing Company
in 1998 was a true embodiment of the vital organizational partnership between the public and the private sectors. The company aims to invest its capitals in different industrial fields inside and outside the country.
The Company has set up 7 subsidiaries: Qatar Gypsum Co., Qatar Jet Fuel Co., Qatar Metal Coating Co., Modern Detergent Co., National Paper Co., Qatar Food Co., Qatar Sand Treatment Plant in addition to cosmetics and shampoo products manufacturing.
The private sector has implemented several manufacturing projects in the field of food, vegetable oils, detergent, plastic, paints and furniture production.
