Page 52 - QBG

National Economic Strategy

At the policy level, a number of steps are being taken to promote greater economic stability. These include:

• Efficient and forward-thinking budgeting at the national level.
• Reforms to Qatar’s central banking system.
• Building strong links between the public and private sectors through a public investment program.
• Establishing a debt management function at the Ministry of Finance.
• Creating broader financial liquidity by diversifying investments.
• Improving Technical Efficiency.

Using resources more effectively at the institutional level has been shown to have a trickle-down
effect on financial prosperity and productivity. To that end, Qatar has committed to a $65 billion
investment in infrastructure development through 2016.

Included in this will be projects to promote the following:

• Increasing water conservation.
• Reducing energy usage.
• Expanding the capacity of transportation and shipping networks.
• Reforming land-use policies.
• Fostering Economic Diversity.

A diverse economy is more capable of creating jobs and opportunities for future generations
and is less vulnerable to the boom and bust cycles of oil and natural gas prices. As of 2009
hydrocarbon revenues accounted for 50% of Qatar’s GDP and 98% of its exports. Creating
growth and opportunities for a future beyond this reliance will involve significant shifts to the
culture and institutions of Qatari society.

Building a strong entrepreneurial culture will be a major initiative in the coming years. Currently,
small- and medium-sized businesses constitute only 15% of Qatar’s economy. Enterprise Qatar,
a newly-launched initiative, has been created to increase this number by providing performance-based
grants and vouchers to nascent businesses.

Creating highly-skilled jobs is another priority; the current proliferation of labor-intensive, low-wage
jobs limits opportunities for Qatari citizens. Building a culture of research and development
will attract foreign investment and provide additional outlets for skilled Qataris who would
otherwise emigrate or go into the public service. Recently, Qatar has committed 2.8% of its
GDP to support research initiatives. These include:

Qatar Foundation, which expands access to education and supports knowledge-based enterprises
Qatar Science and Technology Park -- an innovative, multi-disciplinary research environment
which encourages collaboration across traditional research boundaries.

2022 and Beyond :

Hosting the FIFA World Cup in 2022 will present many new economic and cultural
opportunities for Qatar. While the direct economic impact will be minimal for the period
between 2011-2016, a sizable investment in infrastructure and capacity-building will be
required in the years to follow. In the immediate future, institutional arrangements for overseeing
and managing World Cup-related activities will be established, as will an investment framework
to support the required expansion of Qatar’s infrastructure.

Overall, Qatar’s economic prospects remain strong, both for the period of 2011-2016, and for
the years of increased development leading up to the 2022 World Cup. Critical will be leveraging
the ongoing profits of a hydrocarbon-based economy and the added international focus of hosting
a major sporting event towards a more stable and sustainable society for all Qataris.

Official Sponsor 51Qatar Business Guide
2016 - 2017