Qatar’s prioritisation of its ICT sector is rooted in its ambition to become a knowledge-based economy, in line with the overarching economic development plan, Qatar National Vision 2030 (QNV). This strategy is a cornerstone of its economic diversification plans and growth, with spending on ICT set to reach $6.2bn by 2026, compared to $5.6bn in 2023, according to US-based digital market intelligence firm International Data Corporation. This underscores the pivotal role that the intersection of technological and human capital development is expected to play in the country’s efforts to position itself as a regional and global ICT leader. Qatar plans to achieve this status by undertaking collaborative ventures between the government, local education institutions and international technology entities.
Building upon this foundation, Qatar has implemented a series of strategic initiatives and projects within its ICT sector, particularly regarding its ambitions to develop an IT and digital services cluster under the Third National Development Strategy 2024-30 (see analysis). These efforts encompass a wide range of areas, including e-government platforms, infrastructure and talent development, entrepreneurship and international partnerships to boost connectivity. By focusing on these key areas, Qatar consistently performs highly in several international metrics, including mobile coverage and penetration, internet usage and 5G connectivity.
Structure
Overseeing the evolution of Qatar’s ICT sector is the Ministry of Communications and IT (MCIT), the remit of which is to make sure that the sector’s evolution continues in line with broader national development requirements, boost investment in the sector, implement e-government programmes and promote the government’s ICT-related capabilities. The MCIT came into existence in October 2021 as part of a ministerial reshuffle under Amiri Decree No. 57, which divided the previous Ministry of Transport and Communications into the Ministry of Transport and the MCIT. The ministry and its associated departments, including the Digital Society and Digital Competencies Department, and the Central Government Services Department, are focused on supporting ICT growth in the public, education, health care and cybersecurity sectors, while simultaneously fostering digital inclusivity and streamlining government services, in parallel with the country’s broader national development objectives.
Oversight
The sector’s regulatory framework falls under the remit of the Communications Regulatory Authority (CRA), which plays a key role in shaping the country’s ICT sector, primarily by balancing the rights of consumers with the needs of ICT and digital media providers. The authority regulates telecommunications organisations, while also developing initiatives such as the June 2022 Cloud Policy Framework. This blueprint is geared towards nurturing a robust cloud-computing industry in Qatar that aligns with international laws and best practices, and establishing an attractive environment for foreign and domestic investment in data centres and cloud services.
A third player is the Qatar Financial Centre (QFC), whose collaboration with MCIT and other entities is central to the development of the country’s digital ecosystem. It has alliances with firms such as Microsoft – with which it signed a memorandum of understanding (MoU) in October 2019 to work together on a number of initiatives in support of smart programmes to boost the country’s competitiveness. Furthermore, its collaboration with local telecoms provider Ooredoo, announced in November 2021, focuses on various initiatives in sectors ranging from digital innovation and smart cities, to cloud solutions and blockchain. These partnerships have contributed to substantial knowledge exchange and innovation in the broader ICT sector. In November 2023 QFC signed an MoU with Vodafone, the country’s second-largest telecommunications provider. The agreement between the two entities aims to enhance the provision of mobile and fixed services to QFC-licenced firms to enable their use of internet-of-things (IoT) and cybersecurity solutions. This in turn is anticipated to strengthen the capacity and agility of such companies in their workplace operations.
Performance & Size
Qatar’s ICT sector, bolstered by the surge in remote work and digital reliance during the Covid-19 pandemic, has exhibited continuing growth since 2020. Its estimated value was $11.8bn in 2022, and the sector is expected to reach a market size of $24.4bn by 2027, demonstrating a compound annual growth rate (CAGR) of 15.6%, according to UK data analytics firm Global Data. This is underpinned by investment in technologies such as IoT, cloud computing and artificial intelligence (AI), as well as network expansion and government initiatives as Qatar leverages the sector to be a catalyst for broader economic advancement, delivering government services and improving general well-being.
The ICT Development Index, which is published annually by the UN International Telecommunication Union (ITU), measures the level of ICT access, usage and skills across countries, scoring their progress across various metrics that demonstrate the extent of their digital adoption and integration. In the 2023 edition, Qatar finished with the fourth-highest universal score (98.7) out of the 169 participating countries, trailing only the UAE, Singapore and Hong Kong. Its ICT Development Index score of 97.3 placed the country third overall, behind Kuwait and Singapore.
According to the index, 99.6% of people in Qatar own a mobile phone. The country also scored 100% in the price of mobile data and voice high-consumption plans as a percentage of gross national income per capita, and fixed broadband internet traffic per subscription in GB was 140.2. The percentage of households with internet access at home, individuals using the internet and population covered by at least a 3G mobile network were 95%, 99.7% and 100%, respectively, according to the index’s findings. Qatar also recorded a penetration rate of 144% in mobile broadband subscriptions per 100 people.
Online reference library Data Reportal’s 2024 report on Qatar, which was published in February of that year, contained similar results for the country. According to their statistics, the internet penetration rate was 99%, with 95.2% of the population active on social media. By their calculations, there were 4.8m cellular mobile connections in the country for a penetration rate of more than 174%.
Policies & Initiatives
In terms of policy, while Qatar’s digital initiatives are very much consistent with the QNV’s goals, they are more specifically aligned with the Qatar Digital Government Strategy 2021-26, which aims to enhance public services through the adoption of advanced technologies like AI, machine learning, big data analytics, blockchain and cloud computing. The strategy focuses on improving efficiency and accessibility in government operations to elevate the standard of living for Qataris and augment the country’s international competitiveness.
In February 2024 the MCIT launched Digital Agenda 2030, the national blueprint for the country’s digital transformation through to 2030. The agenda is centred around six key pillars: digital infrastructure, digital economy, digital innovation, digital government, digital technologies and digital society. Comprising 23 strategic programmes, the strategic roadmap is expected to generate roughly QR40bn ($11bn) cumulatively by 2030 and create 26,000 jobs in the sector. Moreover, Digital Agenda 2030 emphasises empowering individuals and communities, as well as enhancing digital skills across society.
One such example of this initiative is the Hukoomi e-government portal, which is designed to streamline access to government services and information for citizens, residents and businesses. Launched in 2008, the portal aims to boost public engagement and operational efficiency in the delivery of government services. It facilitates various online transactions, ranging from visa applications to business registrations, to bolster transparency and efficiency across the board. As of March 2024 the platform offered nearly 2300 services to users, 1500 of which were entirely digital. To boost the ease and security of information sharing between government entities, departments and ministries are interconnected via a central unified government network overseen by the Qatar National Broadband Network (QNBN).
Other key public sector policies include the Smart Qatar Programme (TASMU), which the government describes as a digital response to QNV to boost the digital transformation of the country’s public services in five priority sectors: transport, logistics, environment, health care and sports. Each of these sectors has its own goals, such as reducing delays in the road network by 20% and cutting import costs by 50%. Landmark projects are under way, such as the Lusail City project north of the capital, Doha, which combines an advanced digital infrastructure with sustainable living. On the technological front, Lusail City is expected to integrate smart technologies such as IoT and 5G connectivity with intelligent infrastructure such as smart grids, smart metering and integrated traffic control systems.
Mobile
In 2022 Qatar was home to an estimated 2.46m active smartphones, according to business consultancy Grand View Research. Android devices had the largest market share, accounting for 59.7% of all devices, although the share of ioS is expected to grow at a CAGR of 2.3% from 2023 to 2030, with market revenue in total for smartphones projected to surpass $2.3bn by the end of the period.
In terms of operators, Ooredoo, which is partly owned by the Qatari government, has been the country’s largest mobile telecommunications provider since its founding in 1987, when it was primarily focused on fixed-line services under the banner of Qatar Public Telecommunications. By 1998 it had evolved into a shareholder company, adopting the name Qatar Telecom, or Qtel, and its evolution culminated in 2013 with a rebranding to Ooredoo.
In 2023 the company reported revenue of nearly QR7.3bn ($2bn) in Qatar alone, down 8% compared to 2022, when the country played host to the FIFA World Cup. However, the customer base – excluding the impact of the FIFA World Cup – increased by 2% to 3m compared to the previous year. As of May 2023 the government of Qatar held a 52% stake in Ooredoo, while other Qatari government entities controlled 17%. In addition, the Abu Dhabi Investment Authority has a 10% stake, with the remaining 21% split between public and other shareholders.
Vodafone Qatar, which switched on its mobile network in the country in 2009 and listed on the Qatar Stock Exchange the same year, is the second-largest operator. The company’s annual report for 2023 disclosed total revenue of QR3.1bn ($850.9m) for the year, up 6.1% from the year before when excluding the impact of the 2022 FIFA World Cup.
Enhanced Coverage
The expansion of Qatar’s 5G coverage began as early as 2018, when Ooredoo Qatar inaugurated the world’s first live, commercially available 5G network. By the third quarter of 2023 the country’s 5G network served 98.6% of the population, with an estimated 1m active 5G users. Collaboration between Ooredoo Qatar and Sweden-based Ericsson, as well as Vodafone Qatar and China-based Huawei, has been key in the rollout of 5G services, enhancing the country’s wireless network infrastructure, and contributing to developments in radio, core and transport technologies. As a result, by 2029 it is projected that the majority of mobile connections will be on 5G. All 2G networks have already been closed, as have the major 2G and 3G platforms, with all such platforms expected to be gone from Qatar by 2025. In addition to providing faster internet for consumers, 5G also has a broader application, as the technology has wide-reaching implications across multiple economic sectors, which aligns closely with the country’s broader diversification efforts.
Network Expansion
The expansion of Qatar’s digital infrastructure remains a crucial focus area for policymakers and operators. With initiatives aimed at augmenting connectivity and accessibility, key strides have been made in expanding IT and telecommunications networks. For instance, in February 2019 Ooredoo, in partnership with Ericsson, announced plans to install over 1200 network stations across the country to make the telecoms provider’s supernet 5G compatible, helping meet growing demand for high-speed internet services. In June 2023 the firms announced a five-year extension to their partnership to broaden radio access network coverage in the country to boost both coverage and capacity, improve power consumption efficiency and the country’s network slicing capabilities, and strengthen cybersecurity to bolster IoT capabilities across the network.
In September 2023 Ooredoo became the world’s first mobile service provider to deploy 50 GB-capable passive optical networks (50G-PON), a fibre-based access connection that offers network speeds of up to 50 Gbps on a single connection. The technology is likely to be a key part of Qatar’s digital ecosystem, as it gives users access high-bandwidth latency-sensitive applications such as 8k-interactive video applications, sophisticated digital collaboration and coordination software, 3D cloud design and high-spec AI software. While the 50GPON technology will be available to businesses and individuals, it will initially be available for business-to-business customers.
Internet
Qatar’s internet penetration rate is one of the highest globally, with 99% of the population having internet access as of the start of 2024. Broadband internet, particularly fibre-optic connections, has been extensively deployed to 100% of households, contributing to high-speed internet access for both individuals and businesses.
The QNBN aims to provide ultra-fast broadband connections to all households and businesses, resulting in the expansion of fibre-optic internet across the country to 100% of households. Penetration for non-fixed internet services was also high. Mobile subscription users per 100 people were estimated at 144, although the number of total subscriptions in the country at the beginning of the 2024 was 4.8m, which equates to a penetration rate of 174.2%. In terms of connection speeds, Qatar’s average mobile internet connection speed was 286.4 Mbps in February 2024, the fastest average speed in the world, while its fixed internet connection speed was 136.9 Mbps, the 34th-fastest average speed in the world.
Accelerators & Incubators
A key part of QNV is its diversification agenda to transition the country towards a knowledge-based economy. While this is expected to result from the government’s collaborative policies between its institutions, the private sector and academia, a key element is ensuring bottom-up growth fostered by the start-up ecosystem.
As such, Qatar’s entrepreneurial landscape, and its start-up accelerators and incubators, are set to play a pivotal role in fostering innovation and driving economic growth across the entire economy. Initiatives from organisations such as Qatar Science and Technology Park (QSTP) – itself a part of Qatar Foundation Research, Development and Innovation – and the Qatar Development Bank (QDB) have been instrumental in providing comprehensive support ecosystems for entrepreneurs. For instance, in August 2021 QSTP and QDB announced a partnership to utilise their incubation facilities to support start-ups, entrepreneurs and SMEs through workshops, boot camps and pitch sessions. QDB’s flagship programme, the Qatar Business Incubation Centre, provides a framework for aspiring entrepreneurs, offering tailored mentorship, funding and networking opportunities.
Statistics underscore the impact of these initiatives, with Qatar witnessing a significant surge in start-up activity in recent years. According to the 2023/24 report published by the Global Entrepreneurship Monitor (GEM), Qatar’s entrepreneur ecosystem scored fifth overall in the organisation’s 2023 Natural Entrepreneurial Context Index, and the report also ranked Qatar the third-most supportive for female entrepreneurs out of the 46 countries covered. The survey conducted by GEM as part of its report’s findings found that 68.7% of respondents in Qatar believed there were good opportunities to start a business in their area, while 62.4% said it was easy to start a business in the country.
In addition, during Web Summit Qatar 2024 in February of that year, Prime Minister and minister of foreign affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani announced an investment of $1bn in mutual capital funds from the Qatar Investment Authority, the country’s sovereign wealth fund, to be directed towards enabling local and regional entrepreneurs. This initiative could help bolster the decline in investor participation in start-ups in the MENA region witnessed in 2023 following three continuous years of expansion. With the number of venture investors in the country dropping during that year, there was a shift in the venture-capital investment landscape, with accelerators more than doubling their share of investment from 16% in 2022 to 31% in 2023, and corporates representing 23% of total investors.
Cloud
Qatar has made significant strides in cloud computing through strategic alliances, infrastructure expansion and targeted initiatives. For instance, Qatar expanded its cloud infrastructure with the opening of a new Google Cloud region from Google’s Centre of Excellence in Doha’s Ras Bufontas free zone in May 2023, which is expected to contribute $18.9bn cumulatively to the country’s economy from 2023 to 2030, and create 25,000 new jobs through to 2030. This is in line with the government’s broader efforts to diversify the economy, particularly focusing on economic, social and human development. The launch follows the August 2022 inauguration of Microsoft’s data centre region, when the company became the first hyperscale cloud provider to deliver enterprise-grade services. Their presence is projected to generate $18bn in revenue and create 35,000 jobs.
Aside from the expected boost to economic growth and employment opportunities, Google and Microsoft’s regions are set to bring many long-term benefits. In an increasingly security-conscious environment, they have boosted confidence in the use of the cloud in Qatar, as it is no longer necessary to move data outside the country for cloud storage. More broadly, Google and Microsoft’s presence is expected to stimulate demand for their different service offerings, such as AI and predictive analytics, and support a wider digital transformation.
As with many markets, one challenge that remains is improving cloud penetration for small and medium-sized enterprises (SMEs). However, following a partnership between QDB and Microsoft announced in May 2023, SMEs and QDB-affiliated start-ups will gain access to Microsoft’s suite of services, as well as Microsoft Cloud and Microsoft Learn. This complements government efforts to boost digitalisation for SMEs in the cloud computing space.
Machine Learning
Qatar’s investment in AI is similar to the recent growth seen in cloud computing following the launch of the National AI strategy in October 2019 and the inauguration of the Qatari Centre of AI (QCAI), which focuses on developing AI applications in critical sectors such as health care, energy and education. As such, the value of the AI market is expected to surpass $645m in 2030, with a CAGR of more than 15.3% from 2024 to 2030, according to German data analytics firm Statista. A key example is the provision of AI solutions by Ericsson and Ooredoo to users of Microsoft Cloud Datacentre, combining this with 5G technology to optimise the user experience through improving network performance and enhancing the subscriber experience, while also reducing operating costs for users.
AI in Qatar is transforming government operations and how citizens interact with the government, with entities like e-government gateway Hukoomi using Azure OpenAI Service and GPT to improve its citizen services. The Ministry of Labour uses AI models to provide labour-market insights for informed policy decisions. Additionally, a collaboration between the QCAI at Hamad bin Khalifa University and Sidra Medicine is exploring the use of the technology in improving genomic and personalised medicine.
Cybersecurity
Given the growth in Qatar’s ICT sector, the cybersecurity segment has experienced substantial development commensurate with the risk of cyberattacks on the country. A pivotal development was the May 2014 launch of the National Cybersecurity Strategy by the Qatar National Cybersecurity Committee, which aimed to enhance the country’s cyber resilience through improved regulatory measures, strategic partnerships and capacity-building initiatives in order to protect its digital frontiers.
The Cybersecurity Framework, introduced in 2018, was updated in 2022. It was specifically designed to safeguard government institutions, critical infrastructure and businesses in the lead-up to the 2022 FIFA World Cup. More recently, in February 2024 the National Cyber Security Agency in Qatar updated its Qatar National Cybersecurity Strategy for the period 2024-30, focusing on innovation, research and development to keep pace with evolving cyber threats and technological advancements (see global analysis).
In addition, since 2015 Qatar’s National Cyber Security Agency has been preparing institutions by conducting cybersecurity drills. As such, according to cybersecurity organisation Trend Micro’s figures, the organisation blocked more than 23m cyberattacks in Qatar in 2022, including 4.1m malicious emails and nearly 8m malware attacks.
Outlook
Qatar’s focus on its ICT sector is a crucial component of its broader economic diversification strategy to transition to a knowledge-based economy. Key initiatives such as the Qatar Digital Government Strategy 2021-26, Digital Agenda 2030 and TASMU underscore the country’s efforts to leverage technology in order to improve public services and enhance economic competitiveness. The expansion of its digital infrastructure, including partnerships with international organisations such as Google and Microsoft, reflects Qatar’s efforts to further adopt cloud computing and AI technologies.
Additionally, significant advancements in cybersecurity – demonstrated by the launch of the National Cybersecurity Strategy and the National Cyber Security Agency – highlight the country’s commitment to safeguarding its digital assets. As Qatar positions itself as both a regional and international digital centre, the convergence of transformative technologies and strategic partnerships is expected to drive sustained growth and innovation across various sectors, shaping its digital landscape in the years to come.
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