Capitalising on its strategic location between Africa, Asia and Europe, Qatar is taking steps to diversify its economy with the aim of achieving sustainable growth. Central to its plans is the Qatar National Vision 2030 (QNV 2030), which sets out the gulf state’s strategy for transformation through long-term economic, social and environmental development.

According to the International Monetary Fund (IMF), Qatar’s extensive public infrastructure investment programme, initiated in 2011, has been a key driver of the country’s economic diversification. It has added on average 5 to 6 percentage points annually to non-hydrocarbon real GDP growth. While Qatar is renowned for its vast natural gas reserves, the nation aims to reduce its dependence on hydrocarbons by fostering opportunities across diverse sectors. To achieve this, policymakers continue to liberalise the business environment for foreign investors, introducing incentives and exemptions, such as 100 per cent foreign ownership in many sectors. The government is also encouraging innovation and supporting entrepreneurship to make the state an attractive destination for businesses in the Middle East and beyond.

Diversification roadmap

A key element of Qatar’s diversification goals is the Third National Development Strategy (NDS3), which offers a roadmap to realising QNV 2030. NDS3 seeks to drive investment, and promote sustainable and socioeconomic development. The country’s foreign direct investment (FDI) objectives are an important part of this strategy, and include accelerating annual economic growth to an average of 4 per cent until 2030, and positioning Qatar among the top 10 destinations for global investors and businesses.

The state also aims to create high-skilled jobs, to boost labour productivity by an average of 2 per cent a year, as well as achieve an FDI target of $100bn. “NDS3 is a testament to our commitment to sustainable growth and innovation,” says Sheikh Ali Alwaleed Al-Thani, Chief Executive of the Investment Promotion Agency Qatar (Invest Qatar). “By harnessing our strengths in investment, infrastructure and human capital, we are poised to transform our economy, create a resilient future and empower business growth.”

Growth is an important element of NDS3, with a particular focus on expanding the manufacturing, logistics and tourism sectors. The manufacturing sector is the third largest non-hydrocarbon contributor to Qatar's GDP, with a market size of $18bn in 2023. The state’s logistics market, valued at $10bn in 2022, is projected to outpace its regional peers, with a growth rate of 7.1 per cent by 2027. This sector is bolstered by Qatar’s infrastructure, including one of the region’s largest ports, Hamad Port, award-winning airport Hamad International, and the national airline, Qatar Airways. 

Citizens of more than 100 countries have visa-free access to the country, and Qatar Tourism Strategy 2030 has set itself the goal of attracting more than 6mn international visitors a year. Notable events contributing to that goal include FIFA World Cup Qatar 2022, as well as annual draws including Formula 1 and Web Summit. Other key sectors designed to either boost resilience in the economy or enable investment include financial services, education, healthcare and food and agriculture. “Together, we are building a dynamic ecosystem that attracts global partners and drives impactful change, strengthening the position of Qatar as a leading player on the world stage,” says Sheikh Ali.

Information and communication technology (ICT) in Qatar is forecast to expand by 6.7 per cent between 2023 and 2028. The country is rapidly becoming a tech hub through investments in artificial intelligence, fintech and renewable energy solutions. It is already home to one of the world’s first 5G commercial networks, launched in 2018 by Qatar’s leading operator Ooredoo, as well as the first Microsoft global data centre region, and the first Google Cloud region in the Gulf and North Africa.

The way ahead

Qatar is investing in emerging technologies, infrastructure and innovation to support its aim of becoming a global business leader. In its Qatar Economy Watch 2024, PwC highlights ways in which the country is developing its business environment, improving capital access and creating a public-private ecosystem that offers innovative financial solutions. A vital aspect of this approach is Qatar’s provision of a digital, AI-driven smart ecosystem that makes it easier to set up and run businesses. “Qatar has consistently displayed resilience amid global inflation and macroeconomic challenges, driven by its long-term diversification strategies and investments in future-focused sectors,” says Bassam Hajhamad, Qatar Country Senior Partner and Qatar Consulting Lead, PwC Middle East. 

The state is also prioritising the development of local multi-skilled talent, supported by residency programmes, to deliver its aim of being a leader in innovation, sustainability and digital transformation. “We see immense potential for Qatar to continue benefiting from advances in areas such as renewables and green hydrogen, logistics, tourism, sports and AI,” says Hajhamad. “This will allow it to further cement its position as a global hub for sustainability and innovation.”