The Report: Qatar 2022
Qatar is leveraging its resources to become a knowledge-based, diversified economy fuelled by a dynamic private sector. As such, the country is investing in strategic areas such as agriculture, services, and research and development to further move the economy away from its dependence on hydrocarbons and attract greater foreign direct investment.
Country Profile
Since gaining independence in 1971 Qatar has developed into an economic, political and cultural powerhouse in the Middle East. With a relatively small population and substantial revenue generated from having the third-largest proven natural gas reserves globally, Qatar has one of the world’s highest GDP per capita, at nearly $62,000 at current prices and $103,000 in purchasing power parity in 2022, according to IMF estimates. The country is recognised in the international arena for many reasons, such as its extensive portfolio of investment abroad and substantial infrastructure projects at home, the latter of which led to the population growing by an estimated 50% between 2010 and 2020 due to an influx of foreign workers.
This chapter contains a viewpoint from HH Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar.
Explore chapterEconomy
As with other countries around the world, Qatar’s economy was affected by the Covid-19 pandemic and its wide-ranging effects in global markets, including disruptions to supply chains, a downturn in foreign and domestic travel, and a drop in international oil prices. Despite these pressures, the country was able to emerge from the crisis in a position to leverage the global recovery to support its diversification drive. The General Secretariat for Development Planning is charged with monitoring the implementation of Qatar National Vision 2030, and the country is rounding out its second National Development Strategy for 2018-22 this year. While uncertainties remain over the trajectory of the global and domestic recovery, as well as about the longer-term trend of oil and gas prices, a number of factors indicate that Qatar is on course for a strong performance in 2022 and beyond.
This chapter contains interviews with Sheikh Mohammed bin Hamad bin Qassim Al Thani, Minister of Commerce and Industry; Sheikh Khalifa bin Jassim bin Mohammed Al Thani, Chairman, Qatar Chamber; and Ahmad Al Sayed, Minister of State and Chairman, Qatar Free Zones Authority.
Trade & Investment
After weathering a succession of external shocks in recent years, Qatar’s trade and investment outlook is promising in the short and medium term. Years of low oil and gas prices, the 2017-21 economic blockade and the Covid-19 pandemic have all affected the flow of cross-border commrce and finance. The authorities are leveraging the 2022 FIFA World Cup to showcase Qatar’s wider economic opportunities, which benefit from the country’s strengthened regulatory regime, reformed administrative processes, and digitalised trade and investment operations. Qatar has actively sought foreign investment and amended laws to facilitate higher foreign ownership rates. Performance in the areas of trade and investment is set to improve further as countries around the world recover from the economic effects of the pandemic. This chapter contains interviews with Sheikh Ali Al Waleed Al Thani, CEO, Investment Promotion Agency Qatar; Fahad Rashid Al Kaabi, CEO, Manateq; and Abdulrahman Hesham Al Sowaidi, Acting CEO, Qatar Development Bank.
Explore chapterBanking
Well capitalised and supported by one of the world’s wealthiest economies, Qatar’s banking sector has successfully navigated a range of external challenges in recent years. It has emerged from the Covid-19 pandemic in an advantageous position to leverage the resurgence in local and international demand for a variety of financing options. Consisting of commercial, Islamic, investment and development banks, the sector benefits from the country’s onshore Qatar Financial Centre – which is governed by an independent legal and regulatory body – as well as a growing financial technology industry. The banking sector and the economy as a whole are set to benefit from expanding demand for Qatar’s energy exports, which supports government revenue and lending opportunities. This chapter contains interviews with Abdulla Mubarak Al Khalifa, Group CEO, Qatar National Bank; Abdul Hakeem Mostafawi, CEO, HSBC Qatar; and Joseph Abraham, Group CEO, Commercial Bank of Qatar.
Explore chapterIslamic Financial Services
Qatar’s Islamic banking industry is one of the world’s largest and most experienced, given than its first entity – Qatar Islamic Bank – was established in 1982. Four decades later, as business confidence and economic growth is returning after two years of slowdown, the sector stands ready for renewed expansion. It can build on the important role it played in response to the virus, when it supported many businesses and individuals navigating the economic fallout. However, the situation of recent years has had an impact on the sector: 2020, in particular, saw assets and profits decline. This came after several years of low oil and gas prices – a factor that constrained economic growth in Qatar and many other countries in the region. As a result, the local Islamic finance sector has followed the global trend of industry mergers, with market consolidation a widespread response to tough conditions. This chapter contains interviews with Bassel Gamal, Group CEO, Qatar Islamic Bank; and Khalid Al Subeai, CEO, Dukhan Bank.
Explore chapterInsurance
Faced with the changes associated with technological innovation, the global transition towards renewable energy and increasingly unpredictable weather patterns, the dynamics of the global insurance industry are shifting. While Qatar’s insurance market is growing, certain segments remain underdeveloped. The sector has traditionally been hindered by low insurance penetration and therefore has significant room for growth. Insurance products are becoming more popular due to several factors, including growing awareness about the benefits of insurance, the introduction of additional mandatory lines of coverage, a burgeoning financial technology ecosystem that makes products more affordable and accessible, the likelihood of increased inbound tourism and ongoing infrastructure development.
Explore chapterEnergy & Utilities
Qatar is undertaking a major long-term expansion strategy in the North Field to increase the production of liquefied natural gas (LNG). The project, which involves tens of billions of dollars worth of investment, seeks to boost the country’s LNG capacity by 64% by 2027. The move is in line with the goal to capture greater global market share and is expected to help Qatar consolidate its position as the world’s largest LNG producer amid intensifying competition. Qatar anticipates that natural gas will remain a key part of the global energy mix for decades to come and that it will play a central role in the global transition to a low-carbon energy system.
Explore chapterIndustry
The beginning of the 21st century heralded a period of rapid industrial growth for Qatar, fuelled by its abundant oil and gas wealth. The country is vying with the US for the position of the world’s largest producer and exporter of liquefied natural gas. Gas resources have been harnessed to develop strong downstream industries and related exports, but the instability in oil and gas prices since 2014 has highlighted the need for further diversification. With a relatively small domestic market, the expansion of exports will be crucial to economic growth. To this end, the establishment of industrial parks, free zones and port facilities encircling Doha and stretching along Qatar’s eastern coast has supported the development of the manufacturing and logistics ecosystem.
Explore chapterTransport
Qatar’s air and sea ports have long been central to the country’s economic expansion. Most recently, the 2010 announcement that the country would host the 2022 FIFA World Cup accelerated the government’s drive to upgrade transport infrastructure, prompting significant increases in public financing. There is also a renewed emphasis on sustainability in the sector, as the development of environmentally friendly infrastructure and services is a key component of Qatar National Vision 2030. Indeed, the more efficient movement of people and goods is at the heart of the country’s broader economic development plans, and the diversification of trade routes helped the sector and the wider economy manage recent disruptions. With the roll out of Covid-19 vaccines having facilitated a return to economic activity and travel worldwide in 2021, along with the lifting of the economic blockade early that year, Qatar’s transport sector appears well placed to build on its role as an engine for broad-based growth. This chapter contains interviews with Abdulla bin Abdulaziz bin Turki Al Subaie, Managing Director and CEO, Qatar Rail, and Minister of Municipality; and Neville Bissett, Group CEO, QTerminals.
Explore chapterConstruction
The construction sector is nearing the end of a decade of building, as developing infrastructure directly and indirectly related to the 2022 FIFA World Cup has taken centre stage since 2011. Focus is now shifting to legacy plans for stadia sites, as well as non-tournament projects that facilitate the goals of Qatar National Vision 2030. Recent milestones that will positively shape the sector in the coming years include the passage of the dedicated Public-Private Partnership Law and measures related to private sector labour protections, which should have a significant impact for construction workers. The growing emphasis on sustainability in building is also shaping activity, as is the use of digital technologies in the planning, construction and operation of infrastructure as smart city concepts move to the fore. This chapter contains an interview with Saad bin Ahmad Al Muhannadi, President, Public Works Authority (Ashghal).
Explore chapterReal Estate
A steady decline in sale and rent prices since 2016 was accelerated in 2020 amid the Covid-19 pandemic, which led to strong activity in property transactions. The lower prices – reflected in various indices – was not seen as cause for alarm in the sector, however, but a welcome market correction that is allowing Qatari properties to compete with other GCC markets on value. Healthy property trade continued into 2021. While the total value of real estate transactions was lower in 2021 than in 2020, the volume was higher. This was supported by new government rules on foreign property ownership and sustained low interest rates on mortgages. This chapter contains an interview with Sheikh Nasser bin Abdulrahman Al Thani, Managing Director, Quetaifan Projects.
Explore chapterICT
Qatar is prioritising the development of its ICT sector as it aims to transform into a knowledge-based economy in line with Qatar National Vision 2030. Human resource development is critical to the authorities’ goal of becoming a regional leader in ICT, and local talent stands to benefit from partnerships between educational institutions and global tech firms aimed at bolstering innovation. Growth in ICT will be driven by the country’s extensive pipeline of large-scale, government-led infrastructure projects in transport and energy, as well as by innovation in the financial services, retail and health sectors. Chief among these developments is the Lusail smart city project.
Explore chapterTourism, Culture & Sport
Travel and tourism was one of the hardest-hit sectors globally in 2020 and early 2021 as the Covid-19 pandemic swept around the world, and the situation in Qatar was no different. However, reflecting the gains made in the tourism industry in previous years, the opening months of 2020 saw a strong performance in terms of arrivals – so much so that when travel began to normalise in 2021, total arrivals for the first three quarters were still higher in 2020 than in 2021. Despite subdued sector activity for most of 2020 and 2021, Qatar has been gearing up for what is expected to be a banner year for tourism in 2022 – starting with a full cruise schedule at Doha Port for the 2021/22 season. This chapter contains interviews with Sheikh Faisal bin Qassim Al Thani, Chairman, Al Faisal Holding; Nasser Al Khater, CEO, 2022 FIFA World Cup Qatar; and Ahmad Al Namla, CEO, Qatar Museums.
Explore chapterEducation & Research
Decades of concerted investment in education have helped Qatar create a qualified workforce equipped with the skills needed to succeed in growing professions. The country’s literacy rate in 2019 was 99.2% of individuals 15 years old and above, while the gross enrolment rates for primary, preparatory and secondary education are all around 100% – a reflection of the mission to provide education for all. Education, research and training are key components of Qatar National Vision 2030. One goal of the vision is to increase the number of educational facilities from 354 schools in 2012/13 to 482 in 2018/19 and 524 in 2023/24. In line with the growth set out under the roadmap, the contribution of the education sector to GDP increased from 1.3% in 2012/13 to 3.3% in 2018/19.
Explore chapterHealth
A concerted effort to improve health care delivery in Qatar has created a system characterised by strong public and private investment, innovative technologies and a high standard of care. In the 2021 Legatum Prosperity Index, published by the UK think tank Legatum Institute, Qatar ranked 39th out of 167 countries and second in the MENA region in terms of health. The ranking was an improvement on 48th place in 2019, reflecting the health system’s successful navigation of recent challenges. Even as Qatar focused on a Covid-19 vaccine campaign in 2021, initiatives to further develop the sector continued apace, including efforts to address the increasing incidence of lifestyle diseases. This chapter contains an interview with Hanan Mohamed Al Kuwari, Minister of Public Health and Managing Director, Hamad Medical Corporation.
Explore chapterRetail
Qatar’s retail sector fared well in 2020 and 2021 despite the global slowdown. Although shopping outlets were forced to close in the spring of 2020 when governments around the world imposed lockdown measures to stem the spread of Covid-19, reopening began as early as that summer. In the months since, retail stores and malls in Qatar have welcomed customers with a range of health guidelines in place. A handful of new malls opened in 2021 and more are expected for 2022, encouraged by pent-up demand for goods and socialising, even as median monthly rents have fallen. Grocery retailers, in particular, were buoyed during the pandemic by online deliveries and minimal disruption to supply due to Qatar’s pre-pandemic drive to boost food security and diversify trading partners. This chapter contains an interview with Abdul Aziz Mohammed Al Rabban, Co-founder, Place Vendôme, and Chairman and Managing Director, Business Trading Company.
Explore chapterThe Guide
The Guide contains listings of accommodation options throughout the capital city for both business and leisure travellers. Helpful information is laid out on visa regulations and business etiquette, as well as on public and private transport options for navigating during your stay.
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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
