Qatar has become an attractive destination for global investors. The country has attracted over QR4bn Foreign Direct Investment (FDI) capital expenditure in 2021, according to a report released recently by The Investment Promotion Agency Qatar (IPA Qatar). Growing foreign investments in Qatar illustrates the trust of global investors in the country’s economy.
Qatar’s economic diversification and climate mitigation strategies offer ample opportunities for sustainability-conscious investors who want to balance profit and environmental prudence.
In line with its National Vision 2030 and in order to accelerate the economic diversification objectives, the state has set ambitious sustainability targets.
Qatar is also one of the most stable, resilient, and competitive economies in the world - powered by a rigorous diversification agenda, a vibrant environment for innovation, and a business-friendly ecosystem. It boasts a world-class climate for business and investment. Leading forecasts show the economy is poised for a solid and robust recovery in 2022. The International Monetary Fund (IMF) has projected a growth of 3.9 percent for Qatar’s real Gross Domestic Product (GDP) in its World Economic Outlook, which was released last month.
As per the report, last year also saw the launch of 82 new FDI projects. Business services and Software & IT accounted for more than 50 percent of the total projects, with 26 and 21 new projects each, respectively. Other sectors that attracted several projects include communication, financial services, and industrial equipment. Last year also witnessed 1,100 new foreign commercial establishments across the businesses licensing platforms, which contributed to creating roughly 4,200 jobs in the market.
According to UNCTAD, global foreign investment flows showed a strong rebound in 2021, up 77 percent to an estimated $1.65 trillion, from $929bn in 2020, surpassing their pre-COVID-19 level. Developed economies witnessed the biggest rise, capturing more than 80 percent of the total FDI increase. Conversely, FDI inflows in the developing economies increased by 30 percent, with a growth acceleration in East and South-East Asia, and recovery above the pre-pandemic levels in Latin-America & Caribbean.
Since the onset of the pandemic, Qatar faced a number of challenges, but thanks to prudent and timely social and economic measures taken, it has shown resilience and has emerged stronger from the aftermath of the pandemic. A rapid and equitable vaccination rollout in tandem with social distancing measures has brought the spread of the virus under control. Qatar will continue to remain the preferred destination for global investors.
