Qatar: A Global Business Destination of The Gulf By Kateryna Bezsonova

In the middle of business risks, investors seek growth and stability. From appealing economic policies, including the world's lowest taxation rates, one country in the Gulf ticks all the boxes for having the best business propositions for local and foreign entrepreneurs - Qatar. 

What separates Qatar from other markets in the world? According to Yousuf Al-Jaida, CEO of Qatar Financial Centre, the key to the country's thriving economy is Qatar's market not being too saturated but rather growing. The country boasts one of the highest GDP growth rates, a positive indicator for entrepreneurs. 

Qatar's initiatives, including provisions for foreign company ownership to strengthen its business sector, are timely as all eyes are set on the Gulf for hosting the 2022 FIFA World cup. With over 5 billion people expected to tune in live and online for the globe's largest sporting event, there's no other time to showcase what Qatar can offer to businesses. 

The Business Landscape in Qatar

Entrepreneurs do not want limited business options, which is why Qatar's business landscape makes it a perfect match for businesses. Investors can easily incorporate their companies through different business setups in its Mainland and Free Zone jurisdictions. Depending on the business activity, entrepreneurs are assured of low tariff rates, flexible regulations for the workforce, exemption from import taxes, and freedom to capital repatriation. 

1. Progressive community for foreign investors 

To attract more foreign investors, the government of Qatar made significant revisions. In 2019, the State of Qatar allowed 100% foreign ownership in all economic sectors subject to specific legislation regarding commercial activities carried out by non-Qataris. Historically, foreign investors could only invest in Qatar provided a local sponsor or a Qatari national owned at least 51% of the business's share capital. After implementing the new provisions to attract more multinationals, the country's foreign investments continue to go on a positive trend. 

The latest IPA Qatar update for the second quarter of 2022 shows that Qatar has attracted 71% of investments into the Middle East, creating 6,680 jobs across 11 projects while securing assets worth $19.2 billion. Through these new provisions, the government is helping to increase the country's FDI by opening Qatar's business sector on a global scale.

2. Strong and Resilient Economy

In the middle of economic challenges, Qatar's economy demonstrated stability. Data released from the Ministry of Finance after a year of battling the pandemic's impact showed that the oil and gas sector's revenues had increased by 67%. During the same period, the country's GDP recorded a 1.5% increase compared to 2020. The country was also able to keep its impressive credit score as reputable credit rating agencies, including Standard & Poor, Moody, and Fitch, all gave Qatar a stable outlook rating at the end of 2021.  

3.Top Trading Country          

Qatar's global reputation as one of the best countries to do business also relies on strong economic ties with countries from the West and Europe. In 2022, Qatar became the world's largest exporter of liquefied natural gas after reaching a total of 7.5 million metric tons of exports, surpassing the United States. In the same year, Qatar recorded its highest exports since 2013 after the trade surplus reached QAR 96.3 billion, totalling 70.6% year-on-year average.

4. Business innovation embracing digitization 

In addition to the government's various initiatives to provide a progressive business economy, the country is embracing digital transformation. Currently, Qatar's central bank is carefully evaluating the pros and cons of issuing central bank digital currency (CBDC) as several countries worldwide are considering the launch of CBDC to pursue a massive digital transformation in the financial sector. Qatar's central bank is carefully evaluating the pros and cons of issuing the CBDC in the country.

Aside from FinTech, Qatar also develops other ICT-related sectors through major projects. One of which is its partnership with leading global tech company Microsoft. This year, the two parties signed a memorandum of understanding to launch future projects to attract more ICT start-ups while developing potential talents for the next generation's tech leaders.

5. Unrivaled support for start-ups and SMEs 

With 97% of SMEs representing Qatar's private sector, authorities are continuously launching various incubator and accelerator programs to foster businesses with huge potential to survive in the long run. One of the most successful in the country is the Qatar FinTech Hub (QFTH). The groundbreaking global incubator and accelerator program dedicated to developing the FinTech industry offers training, guidance, access to funding, and a tailored set of mentors to local and international start-ups. Since the launch of QFTH programs in 2020, 67 FinTech Startups, 25 registered in Qatar, have successfully graduated under this.