The United States has emerged as the biggest source of foreign investments in Qatar in 2021. The total amount of foreign investments from the US to Qatar was QR895m last year, according to report released by the Investment Promotion Agency Qatar (IPA Qatar).
“In 2021, most of the foreign investments originated from the Unites States (22 percent), with a total investment of QR895m. Switzerland accounted for 14 percent of the total FDI flow, followed by Cyprus and Kuwait. Other countries that invested in Qatar include India, Germany, Canada, UK, France, and UAE among others,” noted the Invest Qatar Annual Report 2021.
Cyprus accounted for 11 percent of the total Foreign Direct Investment (FDI) flow while Kuwait’s share in total FDI was 8 percent in 2021. Canada also had a share of 8 percent in Qatar’s FDI while India’s share was 7 percent during the year.
Investors are flocking to Qatar attracted by its robust economy. Qatar’s economic diversification and climate mitigation strategies offer ample opportunities for sustainability-conscious investors who want to balance profit and environmental prudence.
In line with its National Vision 2030 and in order to accelerate the economic diversification objectives, the state has set ambitious sustainability targets.
Qatar is also one of the most stable, resilient, and competitive economies in the world - powered by a rigorous diversification agenda, a vibrant environment for innovation, and a business-friendly ecosystem. It boasts a world-class climate for business and investment.
Leading forecasts show the economy is poised for a solid and robust recovery in 2022. The International Monetary Fund (IMF) has projected a growth of 3.9 percent for Qatar’s real Gross Domestic Product (GDP) in its World Economic Outlook, which was released last month.
Since the onset of the pandemic, Qatar faced a number of challenges, but—thanks to prudent and timely social and economic measures taken—it has shown resilience and has emerged stronger from the aftermath of the pandemic. A rapid and equitable vaccination rollout in tandem with social distancing measures has brought the spread of the virus under control.
According to the World Trade Organization (WTO), merchandise trade was severely impacted by the pandemic and declined 7.4 percent in 2020, representing the biggest annual decline since the financial crisis in 2009. In 2021, global merchandise trade recovered fast and increased 22.4 percent in value, exceeding its pre-crisis level and reaching an all-time high. The strong recovery, according to UNCTAD, largely resulted from the easing of the pandemic restrictions, but also from economic stimulus packages and sharp increases in the price of raw materials.
Thanks to the reopening of global economies, restored energy demand, and the surge in energy prices, Qatar’s exports have also increased back to pre-pandemic levels, and goods imports have remained stable, resulting in a strong recovery in Qatar’s trade surplus.
According to UNCTAD, global foreign investment flows showed a strong rebound in 2021, up 77 percent to an estimated $1.65 trillion, from $929bn in 2020, surpassing their pre-Covid-19 level. Developed economies witnessed the biggest rise, capturing more than 80 percent of the total FDI increase. Conversely, FDI inflows in the developing economies increased by 30 percent, with a growth acceleration in East and South-East Asia, and a recovery above the pre-pandemic levels in Latin-America & Caribbean.
