What’s the Foundation of Qatar’s Economic Resilience?
The reason for the boosting of the region’s long-term prosperity and investment potential are future-focused reforms, strong global relations, and robust digitization.
Despite the slow rate of economic growth since 2020, according to the IMF World Outlook Report (April 2022), the economy is growing at an advanced rate. As per the forecast of the IMF that the global economic rate will slow to 3.6% in 2023 as compared to 6.1% in 2021, it has again made a forecast of 6.5% GDP growth for GCC countries in 2022. The facts point to Qatar being part of a region that is economically resilient demonstrating clear signs of long-term affluence.
Knowledge-based economy
The country has shifted the main focus of the economy. The country ranks among the most encouraging economies globally. This is due to the path discovered by His Highness Sheikh Tamim bin Hamad Al-Thani, Amir of the State of Qatar, to gain the Qatar National Vision 2030. The key objective of the vision is to create a diversified, knowledge-based national economy.
With extensive reforms across new flexible regulations, digitization, and workforce inclusion policies the country’s economic strategy is comprehensive.
The country has set clear development goals with momentum given Qatar’s National Vision (QNV) 2030. The country is all set to reduce greenhouse gas emissions to 25% by 2030 following the National Climate Change Plan.
The primary goal of the $30 billion North Field East LNG project is Cleaner energy. It is the largest LNG initiative in the world.
According to Invest Qatar’s Economic Outlook, Qatar’s trade flow is on the rise. The region recorded 111% Q2 growth in 2022 compared to Q2 2021. It is the highest trade flow since 2014.
In May 2022, survey data from over 450 private businesses reported record output levels in all non-energy sectors, with a markable rise in the construction and manufacturing sectors.
As per Mr. Al-Khulaifi, there will be a significant development in the industrial sector. In 2021, the investments in operating manufacturing factories exceeded 235 billion QAR [$64 billion] and the percentage that was directed towards the petrochemical, iron, and aluminum industries stood at 69%.
The foreign investors are given up to 100% ownership of the invested capital, tax exemption for up to 20 years, plus possible repatriation in the state’s free zones,
There is also the freedom to export to local markets, access investment funds, and form joint ventures with local state-subsidized companies.”
Strong international relations
International organizations are flourishing in the region with strong global relations. Due to its physical location, world-renowned Weil Cornell Medicine Qatar is a center of medical excellence and is benefiting a lot.
Located at the junction of the world is highly profitable. Also Qatar’s progressive policy in relation to migrating skilled professionals. The country recruits talents from Europe, Asia, the Indian sub-continent, the Americas, Oceania, and MENA.
The aim of the college is to take a position of a global leader by developing new academic programs that produce the next batch of leaders in healthcare and policymakers, by cooperating with national, regional, and global institutions and stakeholders.
The region is making its picture of a knowledge-based reputation by inviting innovation-driven talent. According to GEM (Global Entrepreneurship Monitor), Qatar is in the top 10 countries for entrepreneurs to flourish. Qatar FinTech Hub grew 33%, within two years of its launch in 2017. And now it is attracting hundreds of global firms to its incubator and accelerator programs with Qatar Business Incubation Center as the largest in the Middle East now. $100 million in venture capital was made available in funding to high-potential start-ups by Qatar Development Bank.
The region is focused on upskilling its workforce in emerging sectors as Qatar variegates its economic interests.
Qatar’s Ministry of Communications and Information Technology partnered with Microsoft to launch a new upskilling program in 2022. The program is committed to enhancing the digital skills of 50,000 workers by 2025 as Part of the new Digital Center of Excellence.
Global investor platform
Because of its rapid and robust digitization, Qatar supports the region’s resilient economy, creating an attractive investment landscape. The Single Window Platform provides access to more than 22 government agencies. This makes possible investment procedures, especially issuing commercial and industrial licenses, allowing investors to establish companies at any time and from anywhere around the world.
The country is also implementing a system that increases companies’ confidence to invest and offers them more opportunities to succeed. And this program has boosted FDI flow and provided a dynamic business environment that protects and supports foreign investors.
