By Pratap John, Gulf Times

@T= In an initiative aimed at putting Qatar on the global automotive industry map, a new company, which will establish a multi-billion riyal cluster of units to design and manufacture key components in the country, has been launched. Initially, the company, called Qatar Ag, will target investments in lithium-ion battery and aluminium component manufacturing. Investments in these areas will leverage Qatar’s “inherent advantages”, including low-cost materials and energy, financial strength and central location. Company chairman Ghanim bin Saad al-Saad said Qatar Ag saw a “great opportunity” for the country in the global automotive industry. Qatar Ag’s vision is to build an “industrial automotive cluster” in the country by 2020. The initiative is in line with Qatar’s 2030 Vision of diversifying its economy and creating knowledge-based industries and skilled jobs in the country. The company has adopted the slogan “A new driving force in the automotive industry”. Qatar Ag will invest or co-invest in multiple ways, both within Qatar and outside. The company said it was considering joint ventures, technology licensing, R & D partnerships and venture and equity investments. “In specific situations, we will also consider full acquisitions via both equity and debt investments,” Qatar Ag said. Al-Saad said: “We took the initiative to start Qatar Ag after two years of research and analysis, during which we sought inputs from executives from the global auto industry, Qatari industrial companies, and global financial, industry, and technical experts. “We confirmed that the auto industry offers multiple industrial investment opportunities, including component manufacturing in Qatar. We are inspired by the Qatar National Vision 2030 of becoming a diversified industrial economy and society, based on the four pillars of human, social, economic, and environmental development.” He said the global automotive industry was currently going through a “dramatic restructuring and shift”. The transformation is also happening from a technical perspective, al-Saad pointed out. Hybrid and electric vehicles are being adopted because they are more environmentally friendly and fuel-efficient. Even though commercial production only started in 2010, extensive government support from around the world is expected to speed up adoption so that by 2020 nearly 40% of all passenger vehicles will be of hybrid or electric type. Governments are subsidizing consumers and supporting manufacturers of electric vehicles and components like lithium-ion batteries and others. Qatar Ag CEO Ahmed M Sorour said that over the last two years, Qatar Ag had established a team of financial, industry and technical experts to help identify, evaluate and assess multiple opportunities in key automotive industry segments. A company release said it “would partner with leading technology firms to ensure a Qatar presence and develop a global footprint for lithium-ion battery upstream and downstream manufacturing”. “Over time, these businesses, along with Qatar Ag’s partners, are expected to achieve a share of up to 10% of the global market,” it added. “Our initial analyses indicate that, given the energy and other advantages in Qatar, the country can achieve a 5-10% net cost advantage over many developed countries,” Qatar Ag said.