Interview: Sheikh Khalifa bin Jassim bin Mohammed Al Thani, Chairman, Qatar Chamber, on the importance that infrastructure plays in attracting foreign direct investment
How are the private sector and public-private partnerships (PPPs) supporting Qatar’s economic diversification and development?
SHEIKH KHALIFA BIN JASSIM BIN MOHAMMED AL THANI: The private sector has been an important contributor to economic growth and development, solidifying Qatar’s position as a global business and investment destination. Additionally, Qatar has been a pioneer in developing non-energy businesses such as health care, advanced technology, education, transport and logistics, IT, education, aviation, food, agriculture and construction. Consequently, Qatar has successfully established itself as a destination of choice for several industries.
Based on mutual trust and cooperation, PPPs have been an effective tool in advancing the economy. To bolster these diversification efforts, in May 2020 Qatar introduced the PPP Law, which provides dedicated legislation aimed at encouraging private sector participation in the provision of public assets and services. It also encourages the public sector to seek out PPPs to deliver infrastructure projects and achieve economic growth. Several sectors, including health care, education, sport, real estate and infrastructure will benefit from the PPP Law. To encourage investors, the Qatar Chamber provides a range of business support services, including training, advice, market research and organising programmes that create networking opportunities.
What key initiatives on the national level have allowed Qatar to increase its competitiveness as a foreign direct investment (FDI) destination?
SHEIKH KHALIFA: The government has targeted increased FDI inflows by introducing several key measures over the past several years. These include the establishment of advanced infrastructure, legislative reforms, communication facilities, streamlined licensing procedures, lowered tax rates, a sophisticated banking system, reduced Customs duties and favourable government support for businesses. Realising that infrastructure is the most important factor for attracting FDI, and for the industrial and overall economic development of any country, the government has built an advanced infrastructure system – including highways, roads, railways, ports, airports, warehousing and storage facilities, and ICT facilities, alongside sanitary, sewerage and water treatment systems – in less than 15 years. Efforts to further bolster FDI have been very successful, as the government has allocated large tracts of land equipped with advanced facilities ready to receive medium and heavy industries supported by storage, transport and shipping facilities considered among some of the best in the world.
Which strategies can Qatari small and medium-sized enterprises (SMEs) use to scale operations and increase their global competitiveness?
SHEIKH KHALIFA: The government places a strong emphasis on supporting entrepreneurship and SMEs by having them involved in various activities such as trade missions, investment conferences, visits and meetings with potential foreign investors in Qatar or abroad. Such activities give local business leaders direct access to global markets. SMEs also benefit from the Qatar Development Bank initiative to grant short-term financing at zero-profit rates to Qatari companies that previously benefitted from the National Response Guarantee Programme and completed the repayment of their loans.
Digital transformation has revolutionised the way Qatari businesses operate, enabling them to expand into new markets and open up opportunities to thrive in the international trade landscape. Innovation and digital transformation are included in Qatar National Vision 2030, the country’s ambitious plan for transformation into a knowledge-based economy, which displays commitment to sustainable development.
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