Executive summary
Qatar, newly released from a regional blockade and having performed admirably during the COVID-19 pandemic, is setting its sights on greater things for 2021 and beyond.
ALTHOUGH COVID-19 will define 2020 and 2021, Qatar will also remember the period for the lifting of an economic blockade imposed on it by Saudi Arabia, the UAE, Bahrain, and Egypt. The Al Ula Declaration was signed during the 41st Gulf Cooperation Council Summit in Al Ula, Saudi Arabia, making it a historic moment of reunion for GCC leaders, including Saudi Crown Prince Mohammed bin Salman and Qatari Amir Sheikh Tamim bin Hamad al-Thani. However, despite the milestone that the deal represents for Qatar, the country managed to overcome the impact of the blockade, developing stronger trade ties beyond the GCC and developing new levels of self-sufficiency, a direction it has no plans to alter.
GROWTH THE ONLY WAY
According to official estimates, Qatar will be one of the countries least affected by the COVID-19 pandemic-linked recession. GDP is also set to grow 2.7% in 2021 following a contraction of 2.5% in 2020, the IMF said in a statement in mid-December following virtual meetings held with Qatari officials. Some even suggest that figure could reach 3% following the lifting of the blockade. Resilience, self-sufficiency, and economic diversification are no longer buzzwords for Qatar, but philosophies it has come to own. Today, FDI attraction, an industrial renaissance, and the empowering of SMEs define Qatar’s economic story.
BUSINESS HUB
Qatar is not only working to attract new industries and companies and usher them into its business community, but also wants to become an intermediary for the international trade of goods and services. Qatar is well located to act as a spoke between the East and West and also as the main gateway into Sub Saharan and East Africa—It boasts world-class ports and free zones, one of the topfive airports in the world, and modern digital and physical infrastructure. Going forward, the country hopes to attract companies in the food and beverages, pharmaceuticals, chemicals, and financial services sectors.
THE TIME FOR PPPs
In 2020, Qatar rolled out PPP Law No. 12, providing for PPP models that can suit different kinds of projects and expanding the concept into new sectors, especially the so-called social sectors. In fact, the first PPP award has been assigned for the design, build, finance, and maintenance of eight public schools across Qatar for a 25-year term. The new PPP legislation builds on Qatar’s attractiveness for business and paves the way for more private-sector involvement in strategic projects. In all, the new PPP provisions should further contribute to attracting FDI and facilitate the finding of project sponsors and lenders.
LNG IS KING
The oil and gas sector still occupies a predominant role in Qatar’s economy, with the state-owned company Qatar Petroleum (QP) announcing plans to expand the North Field by tendering EPC con
tracts to develop four LNG trains, which will contribute to increasing LNG production by 43% from 77 to 110 million tons per year by 2024. This tender was supposed to be awarded in the first half of 2020; However, the COVID-19 crisis obliged QP to delay its plans. The first production facility will not be ready until 2025, when Qatar will reinforce its position of dominance in the world LNG market. The expansion of the North Field, one of the largest oil and gas projects seen in the GCC over the last decade, will generate substantial revenues for Qatar and will have significant benefits for all sectors of the Qatari economy during the construction phase and beyond.
GO BIG ON INFRASTRUCTURE
Qatar has taken important steps toward diversification and economic resilience. The two first free zones inaugurated by Qatar Free Zones Authority, Ras Bufontas and Umm Alhoul, are now fully operational, while Hamad Port has entered into the final stage of development. Elsewhere, Qatar has finally signed a deal with its GCC neighbors that ends more than three years of blockade, opening new paths for growth and development. However, the country will not forget the lessons learned during these challenging times: “Made in Qatar” products and services have become a matter of national pride and the concept will continue to be a significant pillar of growth and diversification. Following these trends and capitalizing on newly available industrial capacity and the advantageous fiscal, financial, digital, and knowledge ecosystems offered by various institutions, new industries and factories will likely pop up regularly going forward.
SMART QATAR
The development of world-class digital infrastructure in Qatar has changed the country inside out. Smart solutions now permeate life in the country, from public transport applications to smart digital government, hospitality, real estate, and healthcare solutions, to name a few. Msheireb Downtown Doha, within the heart of Doha old downtown, is the most radical expression of this reality, having become one of the world’s smartest cities, boasting a closed-loop tram circuit of 2.12 km, and with self-powered trams and onboard CCTV and WiFi.
LET THE GAME BEGIN
Even with the delays caused by the COVID-19 pandemic, the 2022 FIFA World Cup is right on track. Final delivery of stadiums, hospitality offerings, and residential options have not been hindered by the events of the past year. Indeed, COVID-19 has only helped to bolster investments in healthcare, transport infrastructure, and security that should enable a strong showing when fans begin to arrive in the country.
BECOMING GREENER & BETTER FED
Food security has almost been achieved in many areas, such as dairy products and derivatives; however, this is not the only goal in this regard. The rise in the quality of products and the improvement of eating habits is the next level to be aligned with the 2030 Qatar National Vision and its development pillars. Warehouses to grow fresh fruits and vegetables, eco-farms, and healthy products factories are distributed all over the country, and with these new feeding trends also comes obvious concern for the environment. The reuse of treated wastewater, solar energy solutions, measures to prevent desertification, smart factories, animal well-being, and other measures are on the rise in the country. The digital transformation that the country is enjoying in recent times is also helping to make everything smoother and more efficient.