Bassam Hajhamad
Qatar is steadily redefining its significant role on the global economic landscape as international investors turn to the Middle East in the pursuit of solutions towards creating lasting value. Doha is among the centres of transformation that the world is watching and engaging with for long-term partnerships, with its newly launched National Development Strategy 2024-2030 (NDS-3) serving as a blueprint to deliver sustained diversification and multigenerational socioeconomic impact.
The country’s financial performance is proving to be a barometer of both its priorities and performance. Public spending in the first quarter of 2024 increased 5% year-on-year to cross $14.1 billion while revenues dropped 22% to reach $14.6 billion. The budgetary surplus of $549 million during the first quarter has been directed towards reducing public debt, Qatar’s Ministry of Finance said earlier this week.
The policy speaks of Qatar’s measured and long-term view to secure economic prosperity, with its priorities in alignment with those of policymakers and industry stakeholders around the world.
Solving tomorrow’s problems, today
Implementing high-impact investments towards building new capabilities and global partnerships, attracting and retaining top talent, advancing business ecosystems targeting future-focused sectors, and empowering the private sector, is crucial to this effort. PwC’s latest Qatar Economy Watch report outlines pathways for Qatar to leverage its competitive advantage for significant economic impact. Buoyed by the vision outlined in Qatar National Vision 2030, non-oil growth investments are steadily gaining traction in the country to unlock the strategic outcomes of NDS-3, including fiscal and environmental sustainability as well as the creation of a future-ready workforce.
Broadly, there is a deep-rooted recognition across the country’s public and private sectors alike that the next phase of Qatar’s development will be driven by addressing tomorrow’s challenges with diversified, knowledge-based, and environmentally sound answers.
This acknowledgment of tomorrow’s needs is driving diversified investments into sectors like artificial intelligence, for which Qatar already has solid regulatory foundations. Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Prime Minister and Minister of Foreign Affairs of Qatar recently announced a $2.47 billion incentive package to incubate AI innovation, as well as launched Al-Fanar, an Arab AI project to enrich linguistic models and enrich Arab identity with digital excellence.
Furthermore, amid the growing global confluence of technology solutions in future energy frameworks, Qatar Investment Authority, the country’s sovereign wealth fund, plans to make an anchor investment in the Ardian Semiconductor fund in recognition of the impact of semiconductors on accelerating digital and green transformations across the world.
Last week also, Golden Gate Ventures launched its first $100M fund led by Qatar’s most prominent families and investors to empower startups in key sectors such as alternative energy, green technology, artificial intelligence, and energy-related deep technology.
These developments may be new, but Qatar’s broader, overarching commitment to diversified spending is anything but, and targets efficiencies in sectors ranging from transport and logistics through to clean energy and tourism. In April, Qatar General Electricity and Water Corp (Kahramaa) launched an integrated strategy to accelerate the country’s renewable power generation capacity to 4 gigawatts by 2030 and distributed solar generation of about 200 megawatts.
More recently, the Ministry of Transport has confirmed plans to test air taxis and electric delivery aircraft from 2025 as part of the country’s wider push to integrate AI and future tech into its robust mobility network.5 The announcement came days after Invest Qatar and Boeing agreed to establish a permanent hub in Doha, Boeing Aerospace Doha LLC, to strengthen capacity in the local aerospace sector and grow the prospects for locally skilled industry talent.
Embracing a new era of growth
Qatar is entering a new era of transformation where both speed and quality are important to achieve its desired outcome. The FIFA World Cup 2022 has been a great example of this and very instrumental in boosting non-oil industries such as real estate, hospitality, sports, logistics, and healthcare, and Qatar is continuing its foray into becoming a hub for international sporting and mega events. The country’s role as a platform and Center of Excellence (CoE) to unite global stakeholders was evident at the recently concluded Qatar Economic Forum, a pivotal event that brought together global leaders from both the public and private sectors to foster meaningful dialogue and forge global partnerships that can catalyse transformation and economic progress not just within Qatar, but on both regional and global scales.
Its fourth edition, held last week under the theme of ‘A World Remade: Navigating the Year of Uncertainty’ resonated with stakeholders with a diverse range of priorities seeking to embed resilience and collaboration to build a more integrated economy. It also denoted Qatar’s and the wider region’s economic stability in the face of global uncertainties, made possible by forward-looking structural reforms, fiscal responsibility, and ambitious economic diversification plans.
Qatar’s robust infrastructure and regulatory framework have transformed it into an international host of repute over the past decade. This transformation has also laid the groundwork for sustainable and resilient growth in Doha, and as the leadership continues to leverage these critical enablers, there is immense potential for Qatar to cement its position as a global hub for sustainability and innovation. We are very confident and excited about what’s coming next for Qatar and the momentum we see around us.
Bassam Hajhamad is Qatar Country Senior Partner and Consulting Lead, PwC Middle East.
Bassam Hajhamad is Qatar Country Senior Partner and Consulting Lead, PwC Middle East.
