Seizing Qatar’s Wealth of Opportunity

Qatar is preparing for a year like no other. The Gulf state will make sporting history in 2022 as the first Middle Eastern nation to host the FIFA World Cup. But as the eyes of the world turn to Qatar, they are not solely focused on “the beautiful game,” as international investors and companies look to establish operations in the country and take advantage of its business-friendly environment and excellent trade links.

The Qatar Financial Centre (QFC) has been key in opening up Qatar’s economy to international interests and is one of the region’s top business and financial platforms. QFC offers broad assistance for businesses launching operations in Qatar, helping them to obtain licenses and find office space, get advice on investment and tax relief, smooth out the immigration process and much more.

By stimulating business investment, QFC has had a dramatic impact on diversifying Qatar’s economy beyond its core production of natural gas and petroleum. Welcoming some 1,100 firms to its platform—rising 78% in 2020 when 364 firms registered—QFC has made huge strides toward achieving the goals of Qatar’s National Vision 2030 roadmap.

“QFC has helped transform Qatar’s economy and turn the Gulf state into a destination for international investment,” says Yousuf Mohamed Al-Jaida, Chief Executive Officer, QFC. “QFC is contributing to a diverse, sustainable, knowledge-based economy where foreign firms find it easy to do business. Every firm operating on the QFC platform has access to a plethora of benefits, including a team that works closely with our clients to understand their business needs, discuss their aspirations, and help them unlock the doors to success.

"Whether launching in the sports, entertainment, technology, financial or any other sector, gaining a license to operate in Qatar is fast, efficient and transparent using QFC’s online portal. A completely automated process means clients can obtain licenses within three to five days. QFC also offers post-licensing services including networking and business support opportunities to help clients settle into the country and move forward.

"Driven by our motto, ‘In Business Together,’ QFC is a customer-led platform committed to creating an environment where businesses can take advantage of all the growth opportunities that Qatar has to offer.”

Untapped business and investment opportunities

In the year ahead, QFC is focusing on attracting businesses in sectors including media, sports, digital innovation, and financial services. Qatar is an increasingly popular location for global businesses for many reasons. The nation’s legal system is based on a combination of English Common Law and international best practice, making regulations transparent and easy to understand. Registered firms are allowed up to 100% foreign ownership, and transactions can be conducted in any currency. Qatar has double taxation agreements with more than 80 countries, while corporate tax on locally sourced profits is just 10%, and there is no personal income tax or wealth tax.

In light of these investment-friendly policies and following a series of administrative and regulatory reforms in recent years, opportunities are blooming. Qatar is opening up its real estate market to real estate investment trusts (REITs), allowing global and local investors to take advantage of the nation’s growing property market.

To accelerate the market for REITs, QFC is hosting a Ministry of Justice real estate authentication and registration field office to allow investors to easily access these key services. REITs are expected to play a significant role in powering Qatar’s investment economy in years to come.

The future of fintech

Another priority for QFC is to encourage the launch of trade finance platforms in Qatar. These platforms, which are expanding globally, provide finance for importers and exporters, allowing them to buy and sell internationally traded goods seamlessly and securely—for instance, by financially guaranteeing a buyer’s purchase.

Using the latest technology to connect buyers and sellers, the platforms deploy track-and-trace digital IoT devices on cargo shipments and pair them with immutable blockchain ledgers. This creates highly efficient trading platforms that can operate with many different institutions; these digital processes are replacing the paper-based trade finance systems of traditional banks. The launch of open-trade finance platforms in Qatar will allow operators to take advantage of the country’s transport and logistics links and its growing status as an international trading hub.

QFC is also looking to expand Qatar’s bourgeoning fintech sector, which offers substantial opportunities in a market that is far from saturated and is expected to benefit from ICT spending of $9 billion by 2024, according to the Qatar Fintech Report 2021. As part of this effort, QFC is working with local institutions such as the Qatar Central Bank and Qatar Development Bank to create a globally competitive fintech sector. This has moved beyond payment and remittance technology and is attracting leading companies in growth areas such as Islamic fintech and regtech, which employs information technology to boost regulatory processes.

Qatar is well placed to become a global hub for Islamic finance, a growing sector that has a global value of $2.4 trillion. Islamic finance is a promising area of expansion facilitated by QFC, which plans to launch innovative new products in banking, asset management and insurance.

Qatar is a world leader in Islamic banking, with strong domestic Islamic financial institutions that are forging global links, and QFC has set up a dedicated internal team to help Islamic fintechs. A crucial piece of the puzzle is connecting Islamic fintechs with an engaged customer base that is confident in the security of the systems in place, and also offering customer-centric finance innovations and easy-to-use interfaces. Qatar is a nation that readily adopts new technology, and its young population has access to fast, secure internet connectivity.  

“QFC’s range of initiatives and partnerships in Qatar and globally enables firms to do business across multiple sectors,” says Al-Jaida. “QFC continues to strongly build on its track record of inviting businesses from around the world to use its platform as a springboard for their growth in Qatar and expansion to the wider region.”

Qatar is on a path to achieve its Nation Vision 2030 strategy and create a successful, modern, environmentally friendly economy that works for all. Over the coming decade, QFC will be a powerful force breathing life into these ambitions.