Qatar’s Economy is one of the region’s strongest economies and one of the world’s most promising economies. Qatar maintained balanced growth rates despite global challenges, with Qatar’s GDP having expanded by over 12% in the third quarter of 2021 compared to the second quarter of the same year.
Over the past few years, Qatar has succeeded in reinforcing its economic standing on the world map, in accordance with the policies adopted by HH the Amir, and in line with the Qatar National Vision 2030, which aims to lay the foundations for a diversified and competitive knowledge-based economy.
“The State of Qatar pays considerable attention to national economic diversification and the goals laid out in the Qatar National Vision 2030 to transform the country into a sustainably developed knowledge economy”
HE Sheikh Mohammed bin Hamad bin Qassim Al Thani, Minister of Commerce and Industry, July 2022
Qatar recognises the importance of balancing its economic policies which aim to create a diversified national economy while strengthening its natural resources and wealth. As such, Qatar’s non-oil sector grew by 5.7% year-on-year in the first three quarters of 2018, the strongest growth period in three years. In addition, Qatar continued to focus on the energy sector as an important source of national revenue by working towards increasing natural gas production levels and supply 25% of the world’s total liquefied natural gas (LNG) which reinforces Qatar’s position as the biggest producer and exporter of LNG in the world.
These systematic economic policies have contributed to supporting all of the state’s sectors so that they become an active partner in reinforcing and strengthening the national economy and enhancing the investors’ trust in it.
In this context, Qatar provides a promising investment environment in the most important sectors for the national economy and has accompanied it with an administrative and legislative system that motivates business. This environment is characterised by:
1. Creating a Legislative Framework to develop business and attract investment
Qatar has taken significant measures to attract additional foreign direct investment. Businesses setting up operations in Qatar enjoy competitive benefits, including a legal environment based on English common law, the right to trade in any currency, 100% foreign ownership, 100% repatriation of profits and a 10% corporate tax on locally sourced profits.
As of late 2020, non-Qataris are also able to purchase real estate in nine areas in the country, which also grants them a right to live in Doha.
2. Advanced Business Environment
According to the 2019 World Economic Forum’s Global Competitiveness Report, Qatar ranks 2nd regionally and 29th globally for its overall competitiveness. It also ranks 1st regionally in the Report’s Global Entrepreneurship Index – largely due to policies that have created an advanced business environment.
These policies include adhering to all trade agreements, implementing flexible economic policy to facilitate business and investment, while also giving special privileges to non-Qatari foreign investors allowing them to provide up to 100% of capital for any project, and exempting them from income tax for up to 10 years.
According to the Report’s 2020 edition, Qatar ranks 9th in terms of Information and Communication Technologies (ICTs) adoption.
3. Promising Investment Opportunities in various sectors
Qatar’s adoption of open economic policies and diversified economy has made the investment environment more attractive by launching important partnership projects between the private and public sectors while providing promising investment opportunities in various sectors, including logistics, food security education, health and sports.
4. Developed Infrastructure
Qatar has increased government spending on infrastructure projects with the aim of strengthening the competitiveness of Qatar’s economy on the regional and international levels. Its major infrastructure projects include Hamad Port, one of the Middle East’s largest hubs, Hamad International Port, Doha Metro, Qatar Rail, a dynamic road network, and high-quality logistical areas, and financial centres that provide support for investors.