Economic Performance

At Qatar Steel, we recognise that maximising netbacks and increasing value creation are crucial market drivers. To achieve this, we focus on cost leadership, providing exceptional services, building robust marketing, sales, and distribution capabilities, and capitalising on the development of sustainable steel products. These factors enable us to remain competitive, meet evolving customer demands, and drive sustainable growth in our market.

In 2023, Qatar Steel continued its positive trajectory, experiencing a 16% increase in net profit. This growth was primarily attributed to a QAR 610 million reversal of impairment, which had been recognised in a prior period.

We saw an increase of 6% on EVD, which is an indication of the financial value generated and distributed among stakeholders through purchases, wages, and more. This signifies the company’s commitment to integrating sustainability and responsible business practices.

Taxes

Qatar Steel ensures full compliance with tax laws and regulations through its Finance Department. Taxation risks are included in Qatar Steel’s Enterprise Risk Management Framework which is reviewed monthly by the Risk Management Committee. The Board of Directors holds responsibility for overseeing the companywide risk management framework. This entails the reporting of all risks, starting from the functional level, then progressing to the Risk Management Committee level, followed by the Board audit committee level, culminating in reporting to the Board of Directors. The Company’s strategy incorporates compliance with all legislation including the evolving taxation legislation. Regular review is conducted by the Finance Department in consultation with tax consultants as appointed by the IQ Group to ensure compliance and incorporate taxation risk into the business and sustainable development strategies of the organisation.

Qatar Steel’s risk register is re-evaluated on a regular basis. Any emerging risks identified are evaluated, documented, and controlled.

As an example, although VAT is not applicable yet in Qatar, Qatar Steel had assessed VAT impact on the business and implemented measures to the extent possible, based on the current available guidelines and practices in the GCC, for the company to be prepared as and when VAT law is implemented in Qatar.

The tax calculations are done internally on a monthly basis and signed off by the Finance department. These are reviewed and audited by external auditors on a semi-annual and annual basis. An external consultant is appointed by the IQ group to assist with compliance and submission of Qatar Steel’s tax returns.

Qatar Steel complies with the applicable tax laws in the State of Qatar. Qatar Steel’s financial statement is audited annually and approved by the general assembly.

Where needed, independent tax consultants are appointed to provide support in meeting Tax Authority (GTA) requirements. Any concerns about tax compliance are raised to the GTA after aligning with Industries Qatar, and QatarEnergy tax teams. Where required, Qatar Steel engages stakeholders to create awareness of tax laws and regulations and also ensures suppliers are aware of the tax laws and regulations that Qatar Steel has to comply in respect of Qatar Steel’s contract with them. All concerns are discussed well ahead of time with our suppliers during the contract drafting stage. Qatar Steel communicates proactively with the GTA through its tax advisers, IQ, and QatarEnergy representatives for any clarifications or concern.

The Company’s consolidated financial statements include subsidiaries and affiliates who are tax residents in Qatar, UAE, Bahrain,and Saudi Arabia.