The world’s largest LNG exporter is fostering innovation to achieve diversified growth.
Qatar is a destination that usually arouses the interest of investors. In just a few decades, this small desert country has turned into one of the richest countries in the world. Now it is using its financial power to reshape its economy once again, opening up countless new opportunities. According to the latest CEO survey conducted by international consultancy PricewaterhouseCoopers, 84% of Qatar’s senior business leaders are “optimistic” about the emirate’s growth in 2024, and 71% of them expect employment to increase – figures nearly double the global average. 68% of the CEOs surveyed expressed confidence in their companies’ revenue potential over the next three years, indicating bright prospects for Qatar.
By 2026, Qatar’s GDP growth is expected to reach 5.5%, up from 2.4% currently, placing it among the fastest growing economies in the world. In November, Standard & Poor’s reaffirmed its rating at AA/A-1+ with a stable outlook, noting that Qatar’s financial position and balance of payments remain strong, supported by its large hydrocarbon reserves and its leading position in the liquefied natural gas market. Global. The large assets accumulated in the sovereign wealth fund. Qatar’s sovereign wealth fund, the Qatar Investment Authority, is the eighth-largest in the world, with total assets of about $525 billion, according to data from the Sovereign Wealth Fund Institute, a US-based research platform.
Qatar’s economic strength rests on its vast natural gas reserves – the third largest in the world – a resource that the country knows will not last forever. Like many oil and gas-dependent Gulf states, Doha is striving to shift towards a “knowledge-based” economy. The authorities have developed plans and made strategic investments aimed at developing new industries, attracting foreign investment and creating a business-friendly environment outside the gas sector.
New technologies are a key component of this transformation, both in modernizing existing assets and positioning Qatar as a global digital leader.
“Digital transformation plays a central role, with artificial intelligence, cloud infrastructure and data-driven systems enhancing competitiveness across industries. This approach, supported by strong infrastructure, strategic partnerships and workforce development, positions Qatar to continue reducing its dependence on hydrocarbons and driving As a diversified, innovation-based economy in the region.
Modernizing the fuel sector
While Qatar positions itself as a future technology leader, hydrocarbons still dominate its economy, accounting for 90% of exports and 80% of revenues. Despite international pressure to limit the use of fossil fuels in order to limit global warming, Qatar was still among the world’s biggest polluters in 2023, with 52.5 tons of greenhouse gases and 43.5 tons of carbon dioxide per capita, according to the base. European Commission Emissions Data for Global Atmospheric Research (EDGAR).
Transformation investments lay the foundation for new financial technologies.
Qatar has set official targets to reduce greenhouse gas emissions by 25% by 2030, but this does not mean the extraction process will slow down. Instead, the North Field Expansion Project is set to more than double LNG production to about 126 million tons per year by 2030. To reconcile increased production with environmental goals, Qatar is leading in cleaner production technologies, including carbon capture and storage. (CCS), with plans to boost its carbon capture and storage capacity by 400% by 2035.
Like many of its neighbours, Qatar is expanding its renewable energy portfolio, through investments in solar facilities such as the Al Kharsaa solar farm and the upcoming Dukhan plant. By 2030, solar energy is expected to make up 30% of the national energy mix. These projects will not only support households and businesses, but will also contribute to the extraction of “clean” hydrocarbons.
Drawing on its expertise in liquefied natural gas, Qatar is also exploring alternative energy sources, including hydrogen, methanol and ammonia, which are fuels that do not emit any carbon when burned, as long as they are produced without using fossil fuels. Qatar Energy, the national oil company, is currently building the world’s largest “blue” ammonia (emission capture and storage) plant in Mesaieed Industrial City. The $1 billion ammonia-7 plant, in cooperation with Germany’s Thyssenkrupp and Athens-based Consolidated Contractors, is scheduled to produce 1.2 million tons per year by 2026.
Digital banking services
Another technological reform is underway in the financial sector. Recent regulatory changes by the Qatar Central Bank, including new e-KYC policies and cloud computing, are accelerating the pace of digital adoption. The institutional support provided by the QFC helps test new ideas through the National FinTech Strategy and the Digital Assets Lab. The launch of the Foran instant payment system has enhanced digital payments by enabling real-time transactions 24 hours a day, 7 days a week.
“These efforts and investments in digital transformation lay the foundation for growth in fintech. “The sector is particularly poised for digital payments and the expansion of Islamic fintech, making it an increasingly attractive market for innovation-driven companies,” says Farah Al-Nahlawi, principal researcher at MAGNiTT. It is a regional research network for startups.
Unlike in other markets where new players have disrupted traditional banks, local lenders in Qatar remain at the center of the game. However, they are collaborating with fintech companies to develop cutting-edge products and services. According to MAGNiTT, fintech accounted for nearly half of all deals in Qatar in the first 10 months of 2024, making it the most funded sector.
Building the digital economy
Qatar is also making significant investments in emerging sectors such as artificial intelligence applied in healthcare and education, sustainable agriculture with little water, and advanced robotics. Total spending on digital infrastructure in 2023 rose by 30% in 2023.
“Qatar is taking advantage of its high per capita GDP to turn challenges into opportunities, and build a resilient, technology-based economy,” Al-Safi comments, highlighting that the first real test for some of the new technologies was the 2022 FIFA World Cup. At that event, “it was The country is pioneering AI-based crowd management, eco-friendly stadiums and advanced digital security, setting a new global standard,” he says.
In everyday life, technology has profoundly impacted the delivery of government services, shopping experiences, and soon air travel, as Qatar Airways will be the first airline in the Middle East and North Africa to offer free internet powered by Elon Musk’s Starlink network.
“Qatar has made great strides in innovation,” Nahlawi adds, but most of the advanced technology is imported. Until Qatar can develop its own research and development, it needs to attract foreign talent.
“The Qatari government has implemented strong policies to attract foreign innovation, making the country a hub for global technology talent and investment,” Al-Safi notes, citing programs such as Start-up Qatar, the recent Doha Web Summit, and the Fund of Funds initiative to support startups. Attracting global investment capital. Qatar also facilitates entry visas for technology professionals. This strategy has yielded results, with Microsoft and Google establishing cloud and data centers in the country, for example. However, Qatar faces strong competition from its regional neighbors such as the United Arab Emirates and Saudi Arabia.
He added: “Qatar’s venture capital space benefits from strong government support, abundant capital availability, and advanced digital infrastructure, making it a promising environment for technology- and innovation-based startups. … However, the country’s small population limits its viability. Market Expansion Its venture capital ecosystem is relatively young, with a cautious investment culture that favors stable returns. While Qatar shows great potential, investors may need to adopt a regional focus to tap into broader consumer markets and startup networks and the technology sector is benefiting Finance in Qatar is one of the broader trends In the Gulf Cooperation Council countries in the field of digital adoption, where regional IT spending is expected to reach $184 billion in 2024.
As Qatar prepares for the future, its ambitious investment in technology will reshape its economic landscape.
“We expect strong demand for skilled professionals and an expanding digital ecosystem, promoting job creation, economic resilience and sustainable growth,” says Al-Safi.
Strong governance, clear vision and significant financial resources are key assets that Qatar can leverage as it seeks to achieve its goals for a technology-driven future. The next few years will be crucial in determining the extent to which these ambitions are achieved.
