H E Sheikh Ali Alwaleed Al Thani, Chief Executive Officer of the Investment Promotion Agency Qatar (IPA Qatar), participating during a session on “Investing Across Borders” at the Qatar Economic Forum Powered by Bloomberg, yesterday.
Qatar which has been intensifying its economic diversification efforts aims to beat the World Bank’s forecast of 3 percent GDP growth this year and 4.1 percent growth next year, H E Sheikh Ali Alwaleed Al Thani, Chief Executive Officer of the Investment Promotion Agency Qatar (IPA Qatar) said during a session on “Investing Across Borders” at the Qatar Economic Forum Powered by Bloomberg yesterday.
Speaking during the event, Sheikh Ali said the country has already set a benchmark in foreign direct investments (FDI) despite the COVID-19 pandemic. It may be noted that about 40 percent decrease was expected in global FDI last year, based on market estimates.
“In Qatar, we beat that benchmark. In the last quarter of 2020, we had a positive inflow of around $500m. The reform agenda of Qatar’s economic diversification is at the centre of that. We look at ways to diversify our economy from hydrocarbons, while also building up adjacent industries,” Sheikh Ali said.
According to the World Bank, Qatar’s real GDP growth for 2021 is expected to be 3 percent, with the same rate of growth for both oil and non-oil GDP,driven by domestic and foreign demand as vaccinations roll out, and with the end of the diplomatic rift in the region. Strengthening energy prices and final preparations for the FIFA World Cup 2022, as well as expected bumper tourist receipts from what could be the world’s first post-COVID mass audience sporting event, should also lead to 4.1 percent growth in 2022.
“We aim to beat that, especially in the heart of our diversification efforts. And foreign direct investments play a large part. Qatar very recently adjusted its legislation. The country has opened up completely all sectors for foreign direct investment, and developed even new platforms to service and to register licensed investors such as the Qatar Free Zones Authority (QFZA),” Sheikh Ali said.
He added that the Qatari government plans to expand upon all the infrastructure investments that it has already undertaken. “We look to build that for the future. As the World Cup projects are gearing up to completion, we look to expand upon all the infrastructure investments that we’ve made and to develop adjacent opportunities around these assets,” said Sheikh Ali.
He added that Qatar also looks towards emerging trends in terms of digitally dominant experiences. “There are many emerging startups and a lot of companies that look to Qatar to scale up and expand in the region in this particular sector. We also have cyber security, especially with the upcoming World Cup, there are a lot of opportunities around cyber security. Also, sportstech and media as well. We’re very much agnostic in terms of how we welcome investors and are open to them. Qatar is a liberal economy, so we prioritise our sectors based on overall emerging trends and themes. Here is where we see the opportunity,” Sheikh Ali added.
Asked on whether the country would now be more welcoming to cryptocurrencies, which are increasingly growing to be an accepted investment in other parts of the world, he said cryptocurrencies are currently on Qatar’s radar.
“As I’ve mentioned, we very much look toward emerging technologies, that underpins cryptocurrency. So in terms of blockchain and fintech, Qatar has done a lot. We see the Qatar Financial Centre (QFC) adopt a series of regulations that help grow fintech in Qatar. We look towards developing opportunities on that. In terms of cryptocurrency, we see it as a globally emerging trend, and Qatar has yet to take part in that. But that is very much on the radar,” he added.
Sheikh Ali went on to highlight Qatar’s new public-private partnership (PPP) law, and stressed the value of PPP investments in the Qatari economy.
“We believe that public-private partnerships are essential, especially in an economy like Qatar. And the PPP program is structured mainly around infrastructure projects like public schools and water sewage treatment. We find this opportunity to anchor foreign investment in Qatar. We are now looking to expand this program across different sectors, and we believe this is a lucrative opportunity and an anchor for investors to base out and expand their operations in Qatar and scale up and expand in the region as well,” Sheikh Ali added.
