Qatar 'set to welcome new era in economy'
COMMERCIAL NEWS
Qatar is getting ready to welcome a new era in its economy as it diversifies its economy in light of the milestone Fifa World Cup 2022, according to experts.
“Qatar is diversifying its economy and attracting foreign direct investment supports this ambition. The country is positioning itself as a hub for regional distribution,” said Jeroen Nijland - Director of Investor Relations Department and Special Advisor of Invest Qatar.
Nijland was speaking at an informative panel discussion on how Qatar is diversifying its economy after the FIFA World Cup, organised by OCO Global and CBD Corporate Services in conjunction with Invest Qatar and the British Business Group Dubai & Northern Emirates (BBG).
Panelists were Jeroen Nijland, Kathrin Lemke - Manager at OCO Global Qatar, and Adam Stewart – Knight Frank Partner – Head of Qatar. The event was moderated by Helen Barrett, Partner at CBD Corporate Services and Deputy Chair of BBG.
The GCC state is particularly interesting as a business location for companies operating in the Financial Sector, Fintech, Insurtech, IT, Cloud Systems, Cybersecurity, Agrofood and Agro Tech (including vertical farming), Sports, Media/Gaming, commented Nijland.
“It is imperative to have access to industry-specific information and conduct feasibility studies when expanding into Qatar, there are a lot of things to take into account such as finances, culture, and legality,” said Lemke.
As Qatar steers towards a technology-driven economy, smart cities are being built upon the latest wired and wireless communication networks to offer advanced infrastructure.
“Real estate has seen a positive effect due to the World Cup yet remain affordable relative to other GCC countries,” said Stewart.
“With the ever-changing legislations and policies, Qatar’s corporate landscape is a hotbed for foreign investors who want to set up or expand into the region,” commented Barrett.
Key takeaways from the discussion:
Real estate, events, tourism
- Real estate: more possibilities for foreign ownership and mortgages
- Hospitality and tourism also stimulated after FIFA 2022 Qatar World Cup was announced. A new tourism policy with multiple initiatives has been implemented by the government to attract 7M tourists by 2030
- Qatar going to host the Asian Games in 2030, Formula 1 Grand Prix, Expo 2023 which will further attract tourism and FDI
New projects
- North Field Expansion, expected to increase Qatar’s liquefied natural gas (LNG) production capacity by 64% from 77 million tonnes per annum to 126 million tonnes per annum
- World's largest "blue" ammonia plant, expected to produce 1.2 million tons per annum
- Public Private Partnership (PPP) projects
- Metro expansion
Legacy of recent investments
- $200 billion has been invested in this past decade - 5% of which was related to stadiums, and 95% for infrastructure (roads, port, airport, metro, etc)
- As a result, world class (digital) infrastructure is now available in Qatar
Business climate
- In addition to this world class infrastructure, attractiveness of Qatar as a regional business location is supported by number of recent reforms:
o Labour market reforms (Kafala system was abolished, minimum wage introduced, and no localisation requirements)
o Full foreign ownership exists for almost every activity type with a few exceptions
o Trade and Investment Court has been established
o Provisional commercial licence for all commercial activities introduced
- Talent: Qatar ranks high in availability of talent and possibilities to attract talent
- Corporate tax is levied at a competitive 10%
Foreign direct investment
- United Kingdom is the second biggest investor in Qatar, the first being the USA
- Relations between Qatar and UK continue to strengthen
Real estate
- The FIFA World Cup has had a positive effect across all major market sectors (residential, hospitality, retail, and offices)
- Residential rents have increased by 30% year on year in some districts as there is no cap set by the authorities
- A $200,000 property purchase secures temporary residency for the term of ownership. A $1 million purchase buys the benefits of permanent residency, including free schooling and healthcare
- Prime office rents, which halved since 2015, are now affordable relative to other GCC countries
- Smart developments, such as Lusail City and Msheireb Downtown Doha, have been built as Qatar steers towards a technology-driven diversified economy. - TradeArabia News Service
