Qatar's Vision for Economic Prosperity
Qatar, today, is a country, which has been in the news for all the right reasons. A high economic growth rate, compounded by the second highest per capita income, a commendable presence in world sporting events and so on. And, surely and steadily it is inching its way to be a giant in the global market.
The focus of the present leaders of the country under the Emir HH Sheikh Tamim bin Hamad al-Thani is centered on developing policies and opening the economy to diversification and investments, thereby, promoting stability and prosperity in the country. The mandates of the state, according to His Highness, is to create an environment that enables diversification of income sources, creating room for economic independence in bilateral relations and fostering mutual respect. So, if you are looking for an investor-friendly hub, Qatar should feature in your list and here’s why.
With the diplomatic isolation in place, it seems the country has reworked its economic policies to be liberal and investor-friendly. Human development has taken the front seat in Qatar’s vision for the future. This presents a favourable platform for small and medium business owners from within and overseas to invest in Qatar. The focus is slowly shifting from public to private or semi-private enterprises to make way for sustainable development. This allows small and medium entrepreneurs to enjoy maximum participation in various sectors of trade and services under the new directive that has been drafted by the government. The inflow of capital from foreign investors will manifest in the economic development of Qatar.
With renewed focus on sectors like health, education and construction, the estimated expenditure this year has been over $25 billion already. The preparations for the 2022 FIFA World Cup has further channelled the concentration in these fundamental areas.
Diversification has been an issue of utmost importance with the state likely to spend about $29 billion on the private sector, small and medium enterprises, food security projects, development of free trade zones, economic zones. The 2018 budget includes promising statistics to boost the confidence of investors, both domestic and international. Special attention has been allotted to building new reservoirs and desalination plants to ensure water security.
With the establishment of Qatargas, the world’s largest gas exporter, capital markets have been optimistic about the performance of the stock markets. If all goes according to plan, Qatar will soon be the sole exporter of LNG to the world. Qatar is among one of the top producers of urea in the world and a leading source of helium and liquified natural gas. The country is sitting on an existing reserve worth over $340 billion.
Logistics and transportation have assumed prime significance as well. The government has sought to establish accessible and convenient channels of commute and travel within the country through the Lusail tram and metro projects, which will be completed in time for the World Cup. This will benefit businesses in creating a unified network. A major fraction of the economy’s robustness will be from the Hamad Port, one of the biggest ports in the Middle East with an estimated capacity of over 7.5 million containers. The agreements with international ports in Oman, China, Turkey, Pakistan, Taiwan, Kuwait, Singapore and Australia will boost trade along with the Hamad International Airport that has an estimated annual capacity of 50 million travelers.
There is an increased optimism in agriculture to meet local demands and achieve self-sufficiency even though the current production meets the demands of the local markets by a significant margin. The government seeks to achieve this through the Qatar National Food Security Programme, to be implemented between 2014 to 2024, by increasing the land area for agriculture to make way for over 2,000 farms for the production of fruits, vegetables and crops. To promote the business prospects in the country, prominent industries have come forward to help new entrants acquaint themselves with the new market dynamics and commercial outlets for foreign and domestic businesses. This will encourage and promote small and medium businesses to inculcate mutual respect and trade growth which will, in turn, benefit the various communities involved. The need of the hour for SMEs is to identify the opportunities that lay in the new regulatory environment of Qatar and partake in the emergence of this economy. The convenience of setting up a business in Qatar will translate into creating a business hub with benefits that surpass platforms offered anywhere else. Invest well, invest wise and invest at the right time to make most of your money. Reach out to us and we could help you build and make most of Qatar’s vision for a stronger and diverse economy.