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 5% in the first six months of 2018 compared to the same period last 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.
“Qatar National Vision 2030 goals to achieve economic diversification and reduce dependence on oil and gas never mean […] neglecting the oil and gas sector, the basic source of our wealth. Economic diversification aims at achieving growth without being affected by fluctuations in the prices of these two sources, but it is necessary to constantly develop them, and preserve the wealth that God has bestowed upon us, for us and for our future generations”
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 they become an active partner in reinforcing and strengthening the national economy and enhancing the investors’ trust in it.
“Qatar has worked on balancing its strategies and plans to promote comprehensive development by embracing integrated economic policies that raise the contribution of the non-hydrocarbon sector to GDP. Qatar also continues to focus on the energy sector as an important source of national revenue while channeling these revenues into supporting all economic sectors, and transforming national industries and trade sectors into active partners in achieving the objectives of its National Development Strategy”
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.
2. Advanced Business Environment
According to 2018 World Economic Forum Global Competitiveness Report, Qatar ranks 2nd regionally and 30th globally for its overall competitiveness, and 1st regionally in the report’s Global Entrepreneurship Index – largely due to its policies which have created an advanced business environment.
These policies include adhering to all trade agreements, implementing flexible economic policy to facilitate business and investment, and 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.
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 the public sectors and 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.