The Report: Qatar 2020
Qatar has demonstrated considerable resilience in recent years, successfully developing new homegrown industries while at the same time strengthening its global ties. Although Covid-19 has introduced significant economic uncertainties in 2020, a rapid response from Qatar's authorities to curb the effects of the virus should stand the nation's economy in good stead over the medium and long term.
Country Profile
Prior to 2010 Qatar was primarily known for its vast gas reserves; however, the country’s global profile received a major boost in 2010 when it won the bid to host the 2022 FIFA World Cup in November and December of that year. Backed by sustained levels of economic growth, Qatar is channelling its resources into transitioning to a knowledge-based economy. The country has been working to translate recent economic growth into greater activity and sustainability throughout the private sector. As such, it has been investing in strategic sectors such as agriculture, services, and research and development to further diversify its economy and attract greater foreign direct investment. This chapter contains a viewpoint from HH Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar.
Explore chapterEconomy
The Qatari government has created a clear roadmap with Qatar National Vision 2030, which focuses on economic diversification and growth with a retention of the country’s key cultural values at its heart. Although much of the focus in recent times has been on infrastructure preparations for the 2022 FIFA World Cup, it is the period following the tournament, when new liquefied natural gas and petrochemicals cargo starts to be shipped, that will have a more significant lasting impact on Qatar’s broader development. This chapter contains interviews with Ali bin Ahmed Al Kuwari, Minister of Commerce and Industry; Sheikh Khalifa bin Jassim bin Mohammed Al Thani, Chairman, Qatar Chamber; Ahmad Al Sayed, Minister of State; and Chairman, Qatar Free Zones Authority; and Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank.
Explore chapterTrade & Investment
Qatar’s wealth of hydrocarbons puts it at the centre of global trade, with its liquefied natural gas feeding factories in China and powers stations in Japan, while its helium is used in everything from MRI scanners to aircraft parts. Qatar's rapid economic growth in the past two and a half decades should help the trade sector weather the challenges it faces in 2020. On the home front, investors are working to develop industrial segments that can draw on Qatar’s multiple economic strengths to make innovative products that can leverage its modern port and airport infrastructure to develop new overseas markets. This chapter contains interviews with Fahad Rashid Al Kaabi, CEO, Manateq; and Ali Al Waleed Al Thani, CEO, Investment Promotion Agency.
Explore chapterBanking
Against a backdrop of sluggish global economic growth and ongoing tensions in the region, Qatar’s banking sector is proving to be strong and resilient, with growth in assets and profits reported by nearly all of the country’s listed institutions at the end of 2019. With a strong pipeline of major development project financing over the short term, against a backdrop of strong and sustained growth in recent years, Qatar’s banking sector can anticipate profits and success well into the future. A merger involving one of its oldest conventional lenders to form the country’s third-largest Islamic bank suggests a considerable appetite for sharia-compliant facilities. This chapter contains interviews with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; Abdulla Mubarak Al Khalifa, Group CEO, Qatar National Bank; and Joseph Abraham, Group CEO, Commercial Bank of Qatar.
Explore chapterCapital Markets
Qatari capital markets continue to play a major role in the national economy despite a gradual slowdown brought about by the slowing pace of infrastructure investment in the run-up to the 2022 FIFA World Cup. Nonetheless, the Qatar Stock Exchange enjoyed a strong year in 2019, following on from the previous year, in which it was the best-performing market in the GCC, with returns of around 20%. The global geopolitical context remains an important determinant of Qatari capital markets activity, both in terms of China-US trade tensions, the exit of the UK from the EU and the ongoing spread of the Covid-19 virus. This chapter contains an interview with Rashid bin Ali Al Mansoori, CEO, Qatar Stock Exchange.
Explore chapterIslamic Financial Services
Sharia-compliant banks are the dominant players in Qatar’s IFS sector, and the merger between Barwa Bank and International Bank of Qatar is a crucial step in increasing the sector’s share of the country’s overall banking market, which has experienced a decline in recent years. Although conventional players still dominate both the banking and insurance sectors, recent growth figures indicate that there is an increasing appetite for sharia-compliant banking and takaful (Islamic insurance), particularly in the domestic market. Looking ahead, the QCB’s decision to standardise and centralise sharia regulations looks set to boost confidence and encourage growth. This chapter contains interviews with Bassel Gamal, Group CEO, Qatar Islamic Bank; and Abdulbasit Ahmed Al Shaibei, CEO, Qatar International Islamic Bank.
Explore chapterInsurance
It was the domestic oil boom that first gave impetus to the Qatari insurance sector in the 1950s, when protection against risk in such operations became essential. Foreign insurers dominated the landscape in the early years, but the arrival of the first domestic insurer in 1964 heralded a change in direction that saw local providers begin to take control of the market. The future of the sector seems bright, with Alpen Capital estimating that Qatar’s insurance market will expand by a compound annual gross rate (CAGR) of 2.4% from 2019 to 2024. Insurance density, meanwhile, is expected to grow at a CAGR of 2.2% to $1280. Economic advancement, population growth and infrastructure development are all set to drive this expansion.
Explore chapterEnergy
As of early 2020 Qatar’s energy sector was on the threshold of major expansion plans that will allow it to benefit from growing global demand for cleaner sources of power generation. Although operations surrounding the North Field Expansion have been postponed until at least 2021, upon commencement of the project the country’s total output of liquified natural gas and polyethylene is predicted to increase by approximately 64% and 82%, respectively, over a period of around seven years. This is likely to provide a major boost for international oil companies, as well as engineering firms, shipbuilders and local Qatari businesses. This chapter contains an interview with Khalid bin Khalifa Al Thani, CEO, Qatargas.
Explore chapterUtilities
With GDP growth expected to stay around the 2% mark for 2020 and 2021, the utilities sector is likely to see sustained demand growth and a stable pace for planned infrastructure development. The Al Karshaah solar project should remain the most closely watched project in the power sector, and coupled with potential photovoltaic developments at the QEERI facility, Qatar may transform into a world leader in solar technology. Government bodies are working hard to ensure there is sufficient generation capacity and transmission infrastructure to support the smooth running of the 2022 FIFA World Cup, and the expansion and diversification of the country’s industrial sector. This chapter contains an interview with Essa bin Hilal Al Kuwari, President, Qatar General Electricity and Water Corporation.
Explore chapterIndustry
Qatar’s industrial sector has the potential to play a pivotal role in economic diversification, with both heavy and light manufacturing in a position to benefit from major milestones ahead. Industry, along with the domestic economy overall, has developed resilience and a level of self-sufficiency since the June 2017 blockade imposed by several Arab countries. An abundance of natural gas reserves has allowed the country to develop value-added and energy-intensive segments, especially as the country shifts towards cleaner and renewable sources of energy. This chapter contains an interview with Ramez Al Khayyat, Vice-Chairman and Group CEO, Power International Holding.
Explore chapterTransport
The transport sector has played a key strategic role in the growth of Qatar’s economy, and in the decade since the country won the bid to host the 2022 FIFA World Cup, tens of billions of dollars have been pumped into its infrastructure. With significant new investment in its seaports and airport, the transport sector’s international gateways are set to see a step change in the volumes of cargo and passengers they are able to handle. Within the country, a system of movement that originally evolved to suit drivers, cars and lorries is rapidly being transformed into a multi-modal urban transport network that is fit for future needs. This chapter contains interviews with Abdulla bin Abdulaziz bin Turki Al Subaie, Minister of Municipality and Environment and CEO and Managing Director, Qatar Rail; and Abdulrahman Essa Al Mannai, President & CEO, Milaha.
Explore chapterConstruction
Despite some concerns for Qatar’s construction industry surrounding a narrowing pipeline for 2022 FIFA World Cup-related projects and a more general global economic slowdown, there is much reason for optimism within the sector in the years ahead. While Qatar’s economy continues to rely on hydrocarbons revenue, the construction sector is playing an important role in increasing diversification. Qatar’s 2020 budget demonstrates that there will be plenty of investment opportunities going forward, especially regarding infrastructure projects. Though the tournament’s flagship projects, such as stadiums, are nearing completion, Qatar still has a solid line-up of infrastructure and hospitality projects to prepare itself for the large influx of visitors in 2022. This chapter contains an interview with Saad bin Ahmad Al Muhannadi, President, Public Works Authority.
Explore chapterReal Estate
The real estate market in Qatar saw a boom between 2013 and 2017, and after some turbulence in recent years, has begun a period of recovery, with 2019 reflecting stabilisation. As developers continue to fulfil requirements for the 2022 FIFA World Cup, the real estate pipeline is likely to reach its peak between 2020 and 2022, after which new supply will fall back to earlier levels. There are promising signs of fresh demand, driven in part by greater affordability which will absorb the new supply and allow the sector to return to higher growth. While new hydrocarbons projects are expected to reinvigorate the economy, the effect that Covid-19 will have on the country’s real estate industry remains to be seen. This chapter contains an interview with Abdulrahman M Darwish, CEO, KBM Group Qatar.
Explore chapterICT
The year 2020 presents exciting prospects for the Qatari ICT sector. Vodafone and Ooredoo have committed to roll out 5G in all densely populated areas, along primary roads and motorways, and at venues associated with the 2022 FIFA World Cup by the end of 2020. In anticipation of this, stakeholders will be closely monitoring the opening of Lusail City. Investors will also be looking for further opportunities from the Smart Qatar Programme, also known as TASMU, after the Ministry of Transport and Communications awarded 11 multimillion-dollar contracts under the programme at the annual Qatar IT Conference and Exhibition in November 2019. The flagship project to develop the TASMU Central Platform was awarded to a consortium of firms, of which Oooredoo was the main partner. This chapter contains interviews with Mohammed Ali Al Mannai, President, Communications Regulatory Authority; and Ghada Philip El Rassi, Board Member, MEEZA.
Explore chapterTourism, Culture & Sport
Tourism is one of the most promising prospects for growth as Qatar aims to shift its economy from one dependent on hydrocarbons to one that is more diversified and sustainable. Efforts aimed at attracting visitors from a wider range of countries, international marketing campaigns and liberalised visa reforms have helped the sector maintain momentum despite the blockade. The 2022 FIFA World Cup will be an opportunity for the country to show off its culture, heritage and architecture to not only the 1.5m fans in attendance, but the 3.4bn-strong television audience as well. It will be necessary for the authorities to leverage this attention to encourage individuals from near and far to visit and enjoy the country’s diverse set of offerings.
Explore chapterEducation & Research
Qatar’s education sector has a rich mixture of state and independent kindergartens, schools and universities bolstered by continued investment aimed at serving a growing population and supporting the country’s economic development. Education administrators pay close attention to international standards and indices that measure student learning outcomes and are working through a five-year reform programme to enhance the performance of schools and universities. Dedicated efforts by the government focused on improving learning outcomes and global rankings among primary and secondary school students, in addition to the influx of an array of international universities, are set to ensure the sector’s sustained growth over the medium term. This chapter contains an interview with Abdul Sattar Al Taie, Executive Director, Qatar National Research Fund.
Explore chapterHealth
The development of new facilities is set to continue in the coming years, with a raft of new hospitals and clinics under way across the country in order to meet growing demand for medical services. Another key focus in 2020 will be on the government’s ongoing plans for a national health insurance scheme. The role that this new law envisions for private sector operators will be a determinant of investment and growth potential, particularly as pressure on the public sector continues to rise with the growing incidence of non-communicable diseases and the more recent threat posed by Covid-19. This chapter contains an interview with Hanan Mohamed Al Kuwari, Minister of Public Health and Managing Director, Hamad Medical Corporation.
Explore chapterRetail
In response to the blockade imposed by some of its neighbours in June 2017 Qatar has expanded its trading relationships, particularly with Iran, Turkey and Russia. The country has also promoted its own domestic industries to help surmount limitations on imports. As a result, the retail sector has shifted towards locally produced goods, especially in food and luxury segments. The supply of retail space has risen, supporting Qatar’s reputation as a regional shopping centre. While there are issues such as an oversupply of commercial space, the change in the foreign direct investment law and the 2022 FIFA World Cup position Qatar well for medium-term growth. This chapter contains interviews with Bader Al-Darwish, Chairman and Managing Director, Fifty One East; and Khaled Sam Hosn, CEO, Mall of Qatar.
Explore chapterTax
On December 13, 2018 Qatar repealed the decade-long Income Tax Law (Law No. 21 of 2009) and issued the new Income Tax Law (Law No. 24 of 2018). Executive regulations (ERs) implementing Law No. 24 of 2018 were published on December 11, 2019. Highlights have been prepared based on the ERs accompanying Law No. 24 of 2018. The new ERs contain substantive changes covering the determination of taxable income, withholding tax application, exemption of Qatar/GCC natural persons, subsidiaries of listed entities and transfer pricing. The effective date of these new ERs was the day after their issuance in the Official Gazette: December 12, 2019. This chapter contains a viewpoint from Sultan Hassan Al Dosari, Chairman; and Alamgir Khan, Deputy Chairman, Grant Thornton Qatar.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Qatar, and contacts for important government offices and services. It also contains useful tips and information for first-time or regular business and leisure visitors alike.
Explore chapterTable of Contents
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HH Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar: Viewpoint
Sheikh Mohammed bin Hamad bin Qassim Al Thani, Minister of Commerce and Industry: Interview
Abdulla Mubarak Al Khalifa, Group CEO, Qatar National Bank (QNB): Interview
Abdulla bin Abdulaziz bin Turki Al Subaie, Managing Director and CEO, Qatar Rail; and Minister of Municipality: Interview
Nasser Al Khater, CEO, 2022 FIFA World Cup Qatar: Interview
Ahmad Al Sayed, Minister of State; and Chairman, Qatar Free Zones Authority (QFZA): Interview
Qatar Tribune PRINT: QA emerges as lifeline for international travellers amid Covid-19
Qatar Tribune PRINT: OBG’s new report to map out Qatar’s evolving tax framework
The Peninsula Qatar PRINT: Qatar ideal investment destination, says Sheikh Khalifa
Qatar Tribune PRINT: Key projects boosting trade in Qatar, says Sheikh Faisal
