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To the recipients… Here is the economic bulletin of the Qatar News Agency “QNA”… within the economic file of the Federation of Arab News Agencies “Fana”.
Doha, June 21 / The State of Qatar’s hosting of the FIFA World Cup “Qatar 2022” was an important milestone on the road to diversifying the country’s economy. It is capable of achieving sustainable development and ensuring the continuation of a decent life for its people, generation after generation.
Within the four pillars of Qatar National Vision 2030, the third pillar, “Economic Development”, aims to develop a knowledge-based economy that is characterized by heavy reliance on research, development and innovation, excellence in entrepreneurship, high-level education, and gradually decreasing 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, as Qatar spent about 730 billion riyals on “major projects” and infrastructure projects serving the tournament, including the construction of stadiums. Tournament, training grounds, construction of high-speed trains, subway networks, airports, ports, water, electricity, sewage, parks, hospitals, schools, public transportation and other logistics.
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 resonated in all arteries of the Qatari economy, from construction, trade, transportation, and real estate. To tourism, attracting foreign investment, developing agriculture and others.
Although some periods of these years were accompanied by economic challenges as a result of the repercussions of the “Covid-19” pandemic, the Russian-Ukrainian war, and 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 the face of increasing pressures on activity. The impact of the country’s gross domestic product reached about 864 billion riyals by the end of 2022, up from about 455 billion riyals in 2010, and the contribution of the non-hydrocarbon sector exceeded about 63% of the total output during the year 2022, up from about 55% in 2010.
In 2022 (the year of organizing the tournament), the Qatari economy grew by 5.3%, outperforming the expectations of the International Monetary Fund at 3.4%. The surplus of the state budget for the same year amounted to 89 billion riyals ($24.4 billion), with the IMF expecting it to remain indicators The public budget in Qatar will be strong in the coming years.
In a statement to Qatar News Agency (QNA), Dr. Abdullah Al-Khater, an economist, considered that the FIFA World Cup Qatar 2022 played a major role in diversifying the Qatari economy during the past ten years, saying: “The FIFA World Cup Qatar 2022 created a real incentive for various economic sectors, and made it possible to develop a clear vision, and defined 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 this dazzling picture that reached all parts of the globe.
He added that the years of preparation for hosting the World Cup and the accompanying budget control are factors that contributed to the establishment of huge infrastructure in roads, ports, airports, hotels and industrial institutions, which included various economic sectors, and the main lever for the emergence of sectors that became a locomotive for economic diversification such as the hospitality sector and its appurtenances. 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, during the events that took place in various regions of the country, to go beyond the traditional dealings with tourists visiting the country to enjoy football matches, to consider it as a guest who requires a special quality of services. It enabled the establishment of new standards that will have a major role in attracting guests to Qatar or tourists wishing to visit the country during the coming period.
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 major companies that have become familiar with the work environment in the country, and will undoubtedly have a pivotal role in attracting more investments in the coming years. To the State of Qatar and the countries of the region.
The impetus given by the tournament to the Qatari economy coincided with the implementation of legislative reforms by Qatar 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% ownership in all sectors, with the exception of a few strategic sectors, and 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 has many advantages such as: accommodation, 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 ownership percentage of non-Qatari investors to 100% in some companies listed on the stock exchange. In 2022, the Ministry of Commerce and Industry announced, in cooperation with the Ministry of Interior and the Ministry of Interior. Labor announced the launch of the service of issuing a commercial license (under construction) 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 a service platform.
