The rapid pace of technological evolution has seen the applications of the internet grow exponentially. Originating as a specialised military technology, digital connectivity has now become a part of the social and economic infrastructure in nearly all world economies. This widespread use of technology is bringing about the Fourth Industrial Revolution, comparable in its economic impact to the invention of the steam engine, which launched the first industrial revolution.
As a country looking to transition to a diversified knowledge-based economy, the last decade has seen Qatar work to stay ahead of this curve by investing in digital infrastructure and promoting the adoption of ICT across a range of sectors. With early initiatives such as the National Broadband Plan having successfully made the country one of the most connected in the region, the government is now looking to continue this trajectory by supporting digitalisation across all industries and creating an ecosystem for high-growth segments like financial technology (fintech).
Digitalisation
As part of Qatar National Vision 2030, the government is seeking to increase the level of digital engagement in both the public and private sectors. For the former, the Qatar Digital Government 2020 strategy aims to deliver 100% of state services digitally by that year. As of April 2018 Qatar offered some 2400 e-government services, 600 of which are accessible by mobile phones. Internally, the government is also seeking to digitalise its day-to-day operations. In September 2018 the Ministry of Transport and Communications (MoTC) introduced the Government Documents Digitisation Framework Agreement for the conversion, indexing and archiving of paper documents to digital formats. A public tender was launched for the agreement, open to all local companies capable of providing digital content management systems.
Other initiatives promote digitalisation in the private sector. Aiming to bring benefits to 5000 small and medium-sized enterprises (SMEs) by the end of 2019, the Digital Transformation for SMEs Programme was launched in 2018. The initiative looks to support these firms by giving them access to services through partnerships with the Qatar Development Bank (QDB), Microsoft and Ooredoo, among others. The MoTC hopes it will increase SMEs’ use of digital solutions such as e-commerce and smartphone integration.
5G Data
Among the headline ICT developments in 2018 was the first-stage rollout of Ooredoo’s 5G Supernet network in Doha in May. Even if 5G-compatible smartphones are not expected to be seen on the market before mid-2019, the service has been described as the world’s first commercial application of the technology. In January 2019 the Communications Regulatory Authority issued 5G licences to Ooredoo and Vodafone, committing them to establish 5G networks before the end of 2020 in all of the country’s densely populated areas, as well as other designated areas like along primary roads and in 2022 FIFA World Cup stadiums.
As well as adding to the country’s appeal for tech investors, the rollout of 5G is intended to enable a range of machine-to-machine applications that will pave the way for increased integration of smart technology into city infrastructure. Speaking at a media roundtable in February 2019 Adrian Wood, CEO of Siemens Qatar, noted that more than 200 buildings in the country had already been equipped with 550,000 sensors and 1m data points. Wood added that smart technology can be used to address issues related to traffic, city services optimisation, and water and energy consumption.
Fintech
With the worldwide banking industry experiencing disruption by a variety of fintech players and products, Qatar is aiming to keep pace with developments by nurturing a fintech ecosystem and ensuring financial industry regulations allow for emerging technologies. The value of fintech is growing rapidly, with global fintech investments reaching a peak of $111.8bn in 2018, up 120% from $50.8bn in 2017, according to the “Pulse of Fintech” report published by financial services provider KPMG in February 2019. This growth is dominated by the world’s major fintech regions, namely the US, Europe and China, which together accounted for $104.9bn of the $111.8bn invested in 2018.
Speaking in October 2018 Sheikh Abdulla bin Saoud Al Thani, governor of the Qatar Central Bank (QCB), said the Middle East region accounted for only 1.8% of global fintech start-ups in the past five years. Qatar is looking to redress the balance with The Second Strategic Plan 2017-22, created by the QCB, the Qatar Financial Markets Authority and the Qatar Financial Centre (QFC) Regulatory Authority. The plan includes investing in fintech infrastructure and creating an appropriate regulatory framework for the evolving financial sector.
Other measures likely to increase Qatar’s attractiveness as a destination for fintech companies include the establishment of the Qatar Fintech Hub and the Doha Fintech Hub. The former is an initiative by the QDB launched in May 2018. With the purpose of supporting the growth of the country’s fintech industry and developing relationships to advance the bank’s own fintech evolution, the organisation signed a memorandum of understanding (MoU) with Fintech Hub Lt of Lithuania in April 2018 to cooperate on various initiatives.
Plans are also under way to establish Doha Fintech Hub, with the QDB and the QCB meeting with Swedish fintech institutions in Stockholm in October 2018 to share industry knowledge, and discuss opportunities surrounding fintech and the opening of the hub.
Another body playing a role in developing the industry is the QFC, which signed an MoU with B-Hive, a Belgium-based fintech platform, in October 2018. The scope of the agreement includes collaboration on growing fintech-related communities by engaging with start-up support institutions, exploring potential joint projects focused on disruptive financial technologies and developing training programmes.
Cybersecurity
Cybersecurity is another aspect of ICT deemed central to Qatar’s long-term development, with high standards of protection crucial to ensuring continued investment in the country’s digital economy.
Launched by the MoTC in February 2019, the National Information Security Standards Framework will use licence certificates, documentation and accreditation to ensure that programmes, services and systems are in line with best practices for the protection of data. One of the framework’s key provisions is an audit certification programme through which organisations secure a trained auditor who issues a certificate stating compliance with national information security standards.
Qatar has also been carrying out annual cybersecurity drills since 2013. The latest, the 6th National Cybersecurity Drill, was executed in December 2018 and was the largest since the project’s inception, attended by 800 participants from 95 public and private institutions. Furthermore, Qatar was the first GCC country to enact a specific national law related to the protection of digital data when legislation was passed in December 2016.
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