Qatar says diversification and resilience will strengthen economy despite regional risks

Doha, Qatar - Qatar aims to bolster its economy through domestic production expansion, data infrastructure development, and foreign investor attraction, acknowledging that regional security risks may impact investor sentiment, according to Commerce and Industry Minister H.E. Sheikh Faisal bin Thani Al-Thani. Speaking at the Qatar Economic Forum: UNGA Special Edition, powered by Bloomberg, Sheikh Faisal emphasized that Qatar does not anticipate the Strait of Hormuz losing its significance due to the ongoing importance of maritime trade.

The minister highlighted that Qatar focuses on diversifying economic activity, moving away from goods dependent on the strait.

Qatar is employing a customer-driven approach to technology investments, avoiding favoritism towards specific suppliers. The country has established data-center projects in the Maldives and Indonesia, involving Sintes, a national data-center champion, which involves constructing two facilities utilizing Chinese and American technologies separately, catering to diverse customer needs.

Sheikh Faisal emphasized that technology requirements vary based on the end-user, stating "The customers determine what sort of chips and what sort of racks." Qatar's outward investments are part of a long-term strategy to develop new national champions in selected sectors, with financial returns being the primary consideration but resilience increasingly factored in, especially in sectors like food, healthcare, and medical devices.

Manufacturing is a priority under Qatar's national development strategy, with the aim of establishing a domestic production base for locally made goods. The government has seen a 12 percent increase in Qatari manufacturers' exports. Sheikh Faisal noted that manufacturing exports have increased by 12 percent, with the objective being to facilitate private-sector investment by providing a local partner for international companies seeking to establish a presence in Qatar.

Despite regional security concerns, Qatar continues to attract interest from international businesses, with over 5,000 foreign-owned companies established in the past three months, representing a 60 percent increase compared to the same period a year earlier. More than four key projects, amounting to nearly $15 billion in foreign direct investment, are under discussion, with the involved companies committed to proceeding.

Brookfield Corporation CEO Bruce Flatt, also speaking on the panel, noted that the Middle East, particularly Qatar, has undergone significant economic development over the past two decades, citing capital availability and a growing emphasis on resilience as factors making the region an important destination for long-term investments.