Purchase OBG Publications

Qatar’s air and sea ports have long been central to the country’s economic expansion. Most recently, the 2010 announcement that the country would host the 2022 FIFA World Cup accelerated the government’s drive to upgrade transport infrastructure, prompting significant increases in public financing. There is also a renewed emphasis on sustainability in the sector, as the development of environmentally friendly infrastructure and services is a key component of Qatar National Vision 2030. Indeed, the more efficient movement of people and goods is at the heart of the country’s broader economic development plans, and the diversification of trade routes helped the sector and the wider economy manage recent disruptions. With the roll out of Covid-19 vaccines having facilitated a return to economic activity and travel worldwide in 2021, along with the lifting of the economic blockade early that year, Qatar’s transport sector appears well placed to build on its role as an engine for broad-based growth. This chapter contains interviews with Abdulla bin Abdulaziz bin Turki Al Subaie, Managing Director and CEO, Qatar Rail, and Minister of Municipality; and Neville Bissett, Group CEO, QTerminals.

The beginning of the 21st century heralded a period of rapid industrial growth for Qatar, fuelled by its abundant oil and gas wealth. The country is vying with the US for the position of the world’s largest producer and exporter of liquefied natural gas. Gas resources have been harnessed to develop strong downstream industries and related exports, but the instability in oil and gas prices since 2014 has highlighted the need for further diversification. With a relatively small domestic market, the expansion of exports will be crucial to economic growth. To this end, the establishment of industrial parks, free zones and port facilities encircling Doha and stretching along Qatar’s eastern coast has supported the development of the manufacturing and logistics ecosystem.

Qatar is undertaking a major long-term expansion strategy in the North Field to increase the production of liquefied natural gas (LNG). The project, which involves tens of billions of dollars worth of investment, seeks to boost the country’s LNG capacity by 64% by 2027. The move is in line with the goal to capture greater global market share and is expected to help Qatar consolidate its position as the world’s largest LNG producer amid intensifying competition. Qatar anticipates that natural gas will remain a key part of the global energy mix for decades to come and that it will play a central role in the global transition to a low-carbon energy system.

Faced with the changes associated with technological innovation, the global transition towards renewable energy and increasingly unpredictable weather patterns, the dynamics of the global insurance industry are shifting. While Qatar’s insurance market is growing, certain segments remain underdeveloped. The sector has traditionally been hindered by low insurance penetration and therefore has significant room for growth. Insurance products are becoming more popular due to several factors, including growing awareness about the benefits of insurance, the introduction of additional mandatory lines of coverage, a burgeoning financial technology ecosystem that makes products more affordable and accessible, the likelihood of increased inbound tourism and ongoing infrastructure development.

Qatar’s Islamic banking industry is one of the world’s largest and most experienced, given than its first entity – Qatar Islamic Bank – was established in 1982. Four decades later, as business confidence and economic growth is returning after two years of slowdown, the sector stands ready for renewed expansion. It can build on the important role it played in response to the virus, when it supported many businesses and individuals navigating the economic fallout. However, the situation of recent years has had an impact on the sector: 2020, in particular, saw assets and profits decline. This came after several years of low oil and gas prices – a factor that constrained economic growth in Qatar and many other countries in the region. As a result, the local Islamic finance sector has followed the global trend of industry mergers, with market consolidation a widespread response to tough conditions. This chapter contains interviews with Bassel Gamal, Group CEO, Qatar Islamic Bank; and Khalid Al Subeai, CEO, Dukhan Bank.

Well capitalised and supported by one of the world’s wealthiest economies, Qatar’s banking sector has successfully navigated a range of external challenges in recent years. It has emerged from the Covid-19 pandemic in an advantageous position to leverage the resurgence in local and international demand for a variety of financing options. Consisting of commercial, Islamic, investment and development banks, the sector benefits from the country’s onshore Qatar Financial Centre – which is governed by an independent legal and regulatory body – as well as a growing financial technology industry. The banking sector and the economy as a whole are set to benefit from expanding demand for Qatar’s energy exports, which supports government revenue and lending opportunities. This chapter contains interviews with Abdulla Mubarak Al Khalifa, Group CEO, Qatar National Bank; Abdul Hakeem Mostafawi, CEO, HSBC Qatar; and Joseph Abraham, Group CEO, Commercial Bank of Qatar.