The following is the economic bulletin prepared by the Qatar News Agency (QNA) within the framework of cooperation with the Federation of Arab Agencies (FANA).
Doha, June 21 (QNA) – Qatar’s hosting of the 2022 FIFA World Cup Qatar was a paramount milestone on the road to diversifying the country’s economy, which is one of the goals of launching the comprehensive vision for the development of the State of Qatar “Qatar National Vision 2030” in 2008, which aims to transform it into advanced country capable of achieving sustainable development and ensuring the continuation of a decent life for its people, generation after generation.
Qatar National Vision 2030 is based on four pillars, the third pillar, which is economic development, aims to develop a knowledge-based economy that is characterized by heavy reliance on research, development and innovation, excellence in entrepreneurship, and high-level education, while gradually decreases dependence on hydrocarbon activities.
This trend includes about 12 years of careful planning for the organization of the FIFA World Cup Qatar 2022, the first of its kind in the Arab world, where Qatar has spent about QR 730 billion on major projects and infrastructure projects serving the tournament, including the construction of tournament stadiums and training grounds, the construction of high-speed trains, subway networks, airports, ports, water, electricity, sanitation, parks, hospitals, schools, public transportation and other logistics business.
Over the aforementioned years, the financial allocations for these projects allowed Qatari companies and private investors to spend billions of riyals on commercial projects, such as: shopping centers, hotels, real estate, and recreational public squares, which had a positive impact on the Qatari economy in construction, trade, transportation, and real estate to tourism, attracting foreign investment, developing agriculture, and others.
Although those years witnessed many economic challenges as a result of the repercussions of the COVID-19 pandemic and the Russian-Ukrainian war, among others, the natural result of this planning was to enhance the competitiveness of the Qatari economy, diversify its resources, and provide it with a great capacity for growth and effectiveness in facing the increasing pressures on the global economic activity. The state’s gross domestic product then reached about QR 864 billion by the end of 2022, up from about QR 455 billion in 2010, and the contribution of the non-hydrocarbon sector exceeded about 63 percent of the total output during the year 2022, up from about 55 percent in 2010.
In 2022, the tournament year, the Qatari economy grew by 5.3 percent, outperforming the expectations of the International Monetary Fund (IMF) at 3.4 percent. The surplus of the state budget for the same year amounted to QR 89 billion (USD 24.4 billion), with the IMF expecting that the general budget indicators in Qatar will remain strong in the coming years.
In this context, economist Dr Abdullah Al Khater said in a statement to Qatar News Agency (QNA), that the FIFA World Cup Qatar 2022 played the main role in diversifying the Qatari economy over the past ten years, adding that the FIFA World Cup Qatar 2022 has created a real stimulus for the various economic sectors, and made it possible to set a clear vision. It also set the goals of everyone’s work in order to achieve them according to a specific timetable, harnessing all the capabilities of the state to come out with that impressive picture that reached all parts of the globe.
Dr. Al Khater indicated that the years of preparation for hosting the World Cup and the accompanying budget control are factors that have contributed to the establishment of huge infrastructure in roads, ports, airports, hotels and industrial establishments. It included various economic sectors, and was behind the emergence of sectors that led to economic diversification, such as the hospitality sector and its accessories, which strengthened the solidity of the Qatari economy and enabled it to deal with global economic shocks and challenges.
He pointed out that in addition to the Qatari economy benefiting from the infrastructure that was established in the World Cup, this sector was also able to go beyond the traditional dealings with tourists who came to the country to enjoy football matches, and consider him as a guest who requires a special quality of services.
Dr. Al Khater explained that the World Cup highlighted Qatar’s capabilities in many fields, and contributed to raising Qatar’s share of foreign investment, especially from large companies that have become familiar with the work environment in the country, and will undoubtedly have a pivotal role in the coming years in attracting more investments to the State of Qatar and the countries of the region.
It is remarkable that the impetus given by the tournament to the Qatari economy was accompanied by Qatars implementation of legislative reforms to create a business and investment climate in accordance with the best international standards;The Investment Law of 2019 permitted the establishment of foreign companies with 100 percent ownership in all sectors, with the exception of a few strategic sectors. In 2020, the government introduced new reforms regarding real estate ownership, granting non-Qatari eligibility to own real estate and invest in the sector, according to which, residents who invest in the real estate sector are granted many benefits such as residence, free health care, free education, and the possibility of investing in specific business activities.
In 2020, reforms were implemented in the labor market, and the minimum wage was applied. In 2021, the Qatari government agreed to increase the Non-Qatari Investors’ Ownership Percentage up to 100 percent in some companies listed on stock exchange.
In 2022, the Ministry of Commerce and Industry (MOCI), in cooperation with the Ministry of Interior and the Ministry of Labor, announced the launch of the service of issuing a commercial license for all commercial activities.
In the same year, the Ministry of Labor launched a new package of electronic services that includes 50 services, according to the Ministry’s plan to digitize all its services. In 2022, the Ministry of Commerce and Industry also launched the Industry Services Platform, which is an electronic interface that provides industrial sector investors with electronic services through the various stages of industrial projects.
Source: Qatar News Agency