Several data released recently have demonstrated the strength of Qatar’s economy. According the figures released by The Planning and Statistics Authority, Qatar’s foreign merchandise trade balance, which represents the difference between total exports and imports, in April showed a surplus of QR4.3bn.
In March, Qatar’s foreign merchandise trade balance showed a surplus of QR7.6bn. The total value of exports of goods, including exports of goods of domestic origin and re-exports, in March 2020 reached at QR15.9bn. The US was the leading country of origin of Qatar’s imports with about QR1.4bn, a share of 17.2 percent of the imports, followed by China with QR800m almost, a share of 9.5 percent, and Germany with QR700m, a share of 8.1 percent.
Conducive policies and supportive infrastructure have played key role in boosting exports. Qatar has made substantial investments in recent years on mega projects, including 5G coverage expansion and metro systems, and a range of other infrastructure works. The transport network projects, combined with Qatar’s geographic position, make the Free Zones a particularly attractive proposition for the logistics sector.
The Free Zones are particularly focused on bringing in international companies that make up the New Economy and specialize in technologies like the Internet of Things, cloud services, cyber security, and industrial intelligence that are contributing to the fourth industrial revolution.
Thales has recently inked an agreement with Qatar Free Zones Authority (QFZA) to establish a center for digital competencies that will provide its cross-sector services for companies across the region. QFZA is keen to capitalize on this momentum to welcome still more US technology companies to join their compatriots in the Free Zones.
Qatar has created an extremely welcoming regulatory environment for foreign companies in the Free Zones that allows for 100 percent foreign ownership and the opportunity to establish strategic partnerships with the Qatari private sector and Doha Venture Capital, to help drive these companies’ regional and global expansion. QFZA also offers considerable perks like 20-year tax holidays and no customs duty on imports.
The legal frameworks put in place by Qatar have proven robust enough to attract leading tech companies Google and Microsoft - both of which have a fearsome reputation for guarding their intellectual property - to establish data centers in the Free Zones.
The arrival of Google and Microsoft is a major achievement for QFZA, who has worked extremely hard to make sure the infrastructure and regulatory environment is at the standard needed to bring in the world’s leading companies. In a short period of time Qatar has become sought after destinations for global companies and investors.
