Over the past decades, the State of Qatar has made immense socio-economic progress while retaining the unique cultural identity of the nation. In the recent times, Qatar is showing steady economic growth in the year 2019 achieving an average rate of 10.5 percent compound annual growth rate and will continue to do so as the developmental projects are in full swing accelerated by the funds from the government. Multi-billion dollar investment in Qatar’s infrastructural projects in a variety of sector such as transport health, education and industry perfectly align with the economic diversification plans of the state government. Considering the fact that Qatar’s economic development is projected to peak in 2030, with the national vision for 2030 set to transform Qatar into a modern state relying on sustainable development.
Emerging Stronger Despite the Blockade
Despite the economic blockade, Qatar’s remains one of the most competitive and powerful economies in the Middle East region. Delivering strong economic performance in challenging times, Qatar remains resilient reinforced by a robust regulatory framework, effective supervision, and strategic planning. More importantly, it has helped the country overcome the challenges while ensuring effective running of the financial system & maintaining smooth governmental operations even in times of uncertainty, Qatar has started has started converging on itself on devising strategic reforms to become self-sufficient, sustainable performer internationally.
Driving the growth in the region, Qatar excels as a regional outperformer with consistent growth and infrastructure development projects that enhance the country’s effectiveness and competitive advantage in a global level. The near-to-medium-term outlook for the Qatari economy is benefiting from increased oil prices and prudent macroeconomic policies, and the country’s effective business-friendly policies. The reason for Qatar’s position of strength is thanks to the wise and far-sighted leadership of the country. Qatar has an ambitious and long-term development plan under the National Vision 2030 to diversify its economy, with infrastructure spending related to transport, education, sports, healthcare, telecommunication, and hospitality is a key part of this plan.
Businesses That Are Seen as Drivers of Qatar’s Economy
With vast oil and natural gas reserves, Qatar offers massive mining & extraction avenues while serving as the major contributor to the economy with 58 percent share in the GDP, while services sector is the second biggest segment contributing around 25 percentage and manufacturing contributing the remaining 14 percent.
On the other hand, Qatar’s natural gas & oil reserves have been proven to sustain only for a medium run while operating at current production levels. Therefore, the government with its forward-thinking initiatives has been making efforts to diversify the economy into a sustainable long-term income model. This includes investments in the petrochemical sector, promotion of a business tourism sector and reforms in its financial sector. Actually, the award of the 2022 World Cup to Qatar has seen a boom of business interest in the area. Many exciting new projects are now being undertaken as part of this development while ranking 25th in the Global Competitiveness index 2018 Qatar has always encouraged businesses and companies to operate in the country.
Business Opportunities in Qatar Non-Hydrocarbon Sector
Above all, the State of Qatar encourages private sector growth and the non-hydrocarbon economy through privatization, outsourcing of public services and the development of industrial zones. Qatar is also experiencing growth in the service, utilities, manufacturing and industrial sectors with nearly 69 percent increase in the number of companies registered in the country’s QFC platform according to the report from Qatar Financial Centre Regulatory Authority (QFCRA). The majority of the new firms joining the QFC platform come from Europe, India, and Pakistan with a considerable number from USA and the Middle East & North Africa regions.
The newly registered Qatari firms operate in a wide range of business sectors including manufacturing, information technology, advisory and consulting, advertising and marketing, legal services and investment clubs. The country continues to attract new international investors and entrepreneurs to set up their operations as the business opportunities in Qatar are expanding and open to foreign investors and businesses.
Benefits of setting up business in Qatar Financial Centre
Specifically, the firms registered with the Qatar Financial Centre enjoy a range of benefits such as operating within a legal environment based on English common law, the right to trade in any currency, 100% foreign ownership, 100% repatriation of profits, 10% corporate tax on locally sourced profits, and an extensive double tax treaty agreement network with more than 60 countries. This growing interest from investors comes as Qatar is still under a blockade by certain Middle East nations since last year.
Future of your business in Qatar
Under the leadership of His Highness Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar, Qatar is working towards the stewardship of its natural resources and the development of a knowledge-based society, targeting sustainable growth that balances today's needs with those of future generations. Regarding sustainable development, part of Qatar's sustainable growth will come from actively diversifying its industrial and commercial base, while the country continues to invest in infrastructure, education, a world-class health system, and the creation and enhancement of cultural and art institutions. This combination of elements means that doing business in Qatar is a stepping-stone for your business to enjoy a prosperous future. If you are interested in known more about starting your business in Qatar feel free to contact us for any queries.