Doha, Qatar: Qatar’s manufacturing sector is a major driving force in the country’s economic diversification backed by Qatar National Vision 2030 which aims to develop an economy that is less dependent on hydrocarbons.
The economy is bolstered by a thriving banking sector, with Qatar Financial Centre home to a strong lineup of international banks and financial institutions. The special economic zone offers tax breaks and other incentives to businesses giving the state both local and global appeal, the recent edition of Forbes magazine highlighted in a report on how the GCC state of Qatar is demonstrating that it not only has a vision but also the capabilities to bring it to life.
Manufacturing too is a growing industry, driven mainly by cement, refined petroleum goods, chemicals, fertilizers and basic iron and steel. The industry promises to play a vital role in the development of Qatar’s infrastructure and economy as the country grows from strength to strength.
Qatar witnessed robust growth in its manufacturing sector as 40 new factories were registered from January to September in last year. According to Ministry of Commerce and Industry data the registered operating factories stood at 957; the number of local products were 1,639; permits issued for industrial projects totaled 487 and the total investments in factories reached QR1.39bn in 2023.
The report further said that the country has made tangible sustainability progress, with the carbon-neutral FIFA World Cup a prime example. In November 2023 the eighth edition of Qatar Sustainability Week took place with aim of engaging the community in sustainability-related activities to achieve the global sustainability goals of Qatar National Vision 2030.
The Qatar Foundation has also launched several sustainability initiatives that range from developing solar capabilities to turning rubbish into art and taking a stand on single-use plastics. The foundation’s efforts are channeled through multiple entities, including the non-profit research and advocacy center Earthna, Hamad Bin Khalifa University, and the Qatar Environment and Energy Research Institute, among others.
Advanced technology will be critical to Qatar’s national campaign for sustainability and for the growth of the economy at large. To bolster its tech capabilities, the country launched a new AI digital center in partnership with Microsoft in June 2023.
The center located at the National Museum of Qatar is part of the National Skilling Program, which aims to create a skilled workforce for the country’s rapidly growing economy.
The report noted that while economic diversification continues apace, gas will remain central to a national economy that the IMF expects to grow at 2.49 percent in 2024.
In November 2022, Qatar signed long-term supply agreements, including the first Qatar-German LNG supply contract and a record-breaking deal with China.
The Landmark $60bn agreement for purchases of LNG will see QatarEnergy send Sinopec four million tones of the gas per year starting in 2026.
The China contract is set to last for 27 years, hinting that hydrocarbons will continue to drive Qatar’s economic growth for decades to come.
Yet, the forward-looking GCC nation is demonstrating that fossil fuel revenue does not come at the expense of sustainability or ambition as it brings its national vision to life.
