Actualités
Foreign Direct Investment (FDI) key to Qatar’s economic development
Français à l'étranger, 28/06/2022
Sheikh Ali Al Waleed Al Thani, CEO, Investment Promotion Agency Qatar (IPA Qatar), on FDI’s role in developing and diversifying Qatar’s economy.
1. Qatar’s economic growth has largely been on the back of the hydrocarbon sector. How do you think foreign investment can add momentum to the rapidly growing ecosystem of Qatar’s development?
It is true that Qatar’s hydrocarbon reserves have contributed greatly to our economic development. However, it should be noted that it was foreign direct investment (FDI) that helped us establish our hydrocarbon sector and transform it into an engine of growth, and it is FDI that will support us to diversify our economy in line with Qatar National Vision 2030.
For Qatar, FDI isn’t only about investment of capital but also the nurturing of human capital by bringing new ideas and helping develop our young and educated talent pool for the information age.
As the world begins to transition into a green economy, we see great potential for collaboration with foreign investors to further grow and expand key sustainability sectors in Qatar such as agriculture, transportation, renewable energy production and waste management to achieve our ambitious sustainability targets.
2. Why should French businesses or entrepreneurs invest in Qatar?
Qatar provides a stable and resilient environment for doing business, underpinned by reliable long-term planning and a clear national vision. Our strategic location and significant investment in future-ready infrastructure alongside our excellent regulatory framework and the availability of free zones to do business make the country the ideal launchpad for global businesses.
Qatar is one of the world’s fastest growing international business hubs and has the fourth highest GDP per capita in the world. We are ranked third globally in the ease of finding skilled employees and the World Bank has forecast that we will achieve the highest GDP growth in the Middle East of 4.8% in 2022 and 4.9% in 2023. Qatar’s diverse population of nearly 2.8 million includes more than 85 nationalities with about 40 percent under the age of 30, providing a vibrant and energetic talent pool to help grow your business.
Beyond enormous economic potential, Qatar offers a great blend of Arabic heritage and modern culture, making it an equally attractive home for investors. With one of the world’s best healthcare and education systems and consistent ranking as the safest country in the world, Qatar is also a great place to raise families and build communities.
3. How can Invest Qatar help French investors to establish or expand their business in Qatar?
Our role is to help foreign investors achieve their ambitions by delivering the support, advice, and expertise they need. By leveraging an integrated system of business and licensing platforms, we support investors through their investment journey, from exploration and setup to expansion, in a way that is tailored to their unique goals and plans to ensure their long-term success.
Our recently launched website (invest.qa) and Invest Qatar Gateway (gateway.invest.qa) support new and existing foreign investors to establish long-term business relationships with Qatari entrepreneurs and companies. The website gives an overview of the business environment and is a valuable source of information about the support and resources available to grow your business in Qatar. Our Invest Qatar Gateway enables investors to find companies to partner with and facilitate introductions as well as providing access to commercial opportunities in the public and private sector in Qatar.
4. Which sectors have the most potential to support growing levels of foreign investment?
It is clear that the pandemic hastened digital transformation in economies worldwide. Qatar is no exception, and this shift has been aided by pre-existing efforts and investment made by the government in this area in recent years. These factors have supported several areas of growth, key among them is ICT. The industry’s development is gaining traction and attracting both local and foreign investors, especially in emerging segments such as artificial intelligence, data analytics, cybersecurity, machine learning and the internet of things.
Another promising area is the domestic food and agro-processing industry. We have seen remarkable development in this area in recent years, which bolstered Qatar’s self-sufficiency in food and, in turn, minimised the country’s reliance on imported food.
The health care sector is also attracting significant international interest, supported by Qatar’s advanced health care infrastructure. Building on this, there are opportunities for expansion in promising segments such as medical consumables and parts manufacturing and medical tourism.
Similarly, our logistics sector continues to be a regional leader. We have one of the largest seaports in the region and the World’s Best Airport in Hamad International Airport and Airline with Qatar Airways and Qatar Airways Cargo. These facilities have proven to be a key driver of growth for the local logistics industry and the broader economy. Moreover, Qatar is making strides in advanced manufacturing through the use of technology to increase productivity and sustainability. The value proposition of companies operating in this space is very attractive, thus presenting notable opportunities for investment.
5. Qatar and France have strong bilateral and trade relations. Does this also extend to investment promotion and attraction?
Qatar and France have had very warm relations for decades. Our two countries share special historical, political and cultural ties having recently marked 50 years of diplomatic relations.
In late March, IPA Qatar and Business France signed a Memorandum of Understanding (MoU) to facilitate the expansion of Business France’s presence in Qatar. The MoU aims to strengthen relations and boost cooperation between the two parties by setting the foundation for institutional collaboration.
Business France, as you would know, is responsible for helping export growth of French businesses and facilitating international investment in France.
The agreement, which follows a letter of intent signed in February 2020, underlines the two entities’ commitment to further broaden their partnership and facilitate the exchange of professional expertise, market information and research with regards to foreign direct investment promotion and attraction.
I am confident that this partnership will be another pivotal step towards increasing the presence of French businesses in Qatar. There are more than 400 French companies in Qatar operating across a wide range of industries. This agreement supports our efforts of fostering innovation and technology in our business environment, in addition to nurturing high-skilled talent and supporting the exchange of expertise and knowledge.
6. Finally, as Qatar gains more international visibility thanks to the hosting of the FIFA World Cup, what would be your message for international investors?
Qatar is an excellent launchpad to do business, backed by its strategic location, world-class infrastructure and connectivity, the availability of high-skilled talent, a competitive regulatory and tax framework, and excellent quality of life. Not only that, but Qatar offers stability and predictability for investors. With so many factors in flux nowadays, stability and predictability are of increasing importance. Qatar offers a strong and resilient economy, underpinned by a clear long-term national vision and a stable political and financial foundation.
