Foreign direct investment (FDI) is considered a powerful engine for economic growth. Inward FDI not only serves the long-term financial interests of foreign investors, but also plays a significant role in the growth dynamics of receiving countries.
In this context, Qatar has taken some bold initiatives to attract foreign direct investments such as fast-tracking procedures and providing incentives that benefit investors.
At a recent business event in Washington DC, Sultan bin Rashid al-Khater, undersecretary of the Ministry of Commerce and Industry, said Qatar has developed legislations regulating the business environment to allow foreign investors up to 100% ownership in all sectors.
Additionally, non-Qatari investors and commercial companies are now allowed to invest in the realty sector and own properties in several vital economic and tourism areas across the country.
The country has recently approved a draft law regulating public and private partnerships with the aim of offering new opportunities to the private sector and involving companies in the implementation, construction, financing and operation of the State’s various facilities.
“Qatar has also streamlined procedures and regulations for the issuance of commercial and industrial licences and the development of services and infrastructure to meet all investors’ needs,” al-Khater said.
Stressing that Qatar has emerged stronger and more economically independent than in the past, the senior Qatari official said the blockade has presented an opportunity for the country to make its economy more accessible to the world and establish new shipping routes with its major trade partners.
Qatar’s economy also witnessed a significant boost as new national companies went public and as many as 823 Qatari businesses were established in food production, services, and manufacturing industries.
Qatar is also expanding industrial cities to feature 769 industrial land plots as work continues to complete 337 projects in the manufacturing sector and create promising investment opportunities in non-oil sectors.
Last month, the World Bank noted that Qatar was among the top 20 countries that have undertaken business environment reforms for 2020. As a result the country was ranked 77th globally on the ‘Ease of Doing Business 2020’ index.
The World Bank’s Ease of Doing Business 2020 report has been based on some 10 indicators and Qatar’s global valuation rose in three key indicators including the ease of registration of property ownership, where Qatar ranked first in the world.
According to the report, Qatar made significant improvements in three business areas last year, namely getting electricity connection, registering property and access to credit, measures which reflected in the country improving its rankings in the WB index for respective groups.
The improvement in Qatar’s ranking resulted from several important reform policies undertaken and enhanced co-operation with many ministries, public entities, and the private sector with the aim to position Qatar as the region’s preferred business and financial hub.
Earlier this year, the ministerial group for stimulating and co-operating with the private sector in the economic development projects signed an agreement with the World Bank Group to conduct an investment climate assessment and an evaluation on the business regulation environment in Qatar aimed at promoting and expanding growth driven by the private sector.
