It is crucial to learn about the barriers to market entry as well as local requirements if you are interested in learning about Qatar investment challenge and how to enter the country’s market. The hydrocarbon sector is a great sector that is trusted by the Qatar economy.
Qatar’s oil and gas sector is another sector that can be trusted. This sector has contributed to at least 80% of the total revenues of Qatar’s government since 2014. This sector also has consistently contributed to 90% of Qatar’s total exports.
Investments in Qatar
The ongoing multi billion dollar investment, especially in Qatar’s infrastructure has generated much steadier growth of GDP since 2018, in the non-hydrocarbon sector. The infrastructure investment includes the lodging facilities, the 2022 FIFA World CUP’s new stadiums, and highways.
However, this kind of investment is included in investment that is not generating revenue. This investment is unlikely to significantly offset the existing reliance on the hydrocarbon sector. However, Qatar is now focused on diversifying and investing in sectors that are based on knowledge.
Qatar wants to focus on investing in healthcare, education, as well as ICT in order to support the visionary goal it has. The country generally encourages the foreign investment. Qatar has enacted several key reforms to foster the foreign direct investment or FDI.
Qatar Investment Challenge in FDI
The former investment law for foreign investment in Qatar limited foreign ownership and investment of local entities. Foreign investors can only have up to 49% of the capital. But the government is now working hard to attract many more foreign investors and companies to the Qatari market.
In January 2019, a new law for foreign investment was approved. This law allows 100% foreign ownership in so many sectors, with protection from the expropriation, full profits repatriation, and some other benefits for the foreign investors or companies that enter the Qatari market.
Unfortunately, the new laws released by Qatar’s government remain largely unproven. The processes for the foreign investors to start the business also remains laden with red tape and sluggishness. In the 2020 report, Qatar was in 108th rank of 190 world’s economies for the ease of starting new business.
Qatar’s government has taken some initiatives in order to encourage many more foreign investors to do business as well as invest in the country over the last few years. The cabinets approved PPP Law, public private partnership law, in April 2019.
This law was signed on June 1, 2020, by the Amir of Qatar. This law established a framework and provided increased opportunities for foreign firms to start gaining access to the infrastructure sectors of the country, especially in the sectors of education, healthcare, and also waste management.
The ICT sector or information and communications technology has also been one of the key focuses of the government since 2017, when the government announced a program called Smart Nation. This program allocated over USD 1.5 billion for the ICT Solutions in logistics, transport, and various sectors.Behind Qatar investment challenge there are opportunities. In fact, Qatar is transforming into a country that is the most digitally connected in the world. Learn more about the country’s challenges and opportunities before expanding to Qatar.