Qatar’s artificial intelligence (AI) market is projected to grow at a compound annual growth rate (CAGR) of 28.66% from QR1.56bn in 2024 to QR7.07bn in 2030, “highlighting potential investment opportunities,” Qatar Development Bank (QDB) stated in a report.

This surge is driven by robust government support and SME innovation, stated the ‘Qatar’s AI Sector SME Industry Series 2024’ report, which cited the Ministry of Communications and Information Technology (MCIT) as a key player in “[creating] a supportive environment for AI innovation.”

“Key market indicators used to analyse and forecast the size of the AI market include GDP, telecommunications, exchange rates, and macroeconomic forecasts aligned to Qatar’s business cycle,” the report explained.

The report highlights machine learning as the dominant technology in Qatar’s AI landscape, “offering SMEs tools for analytics, insights, and optimisation,” while generative AI (GenAI) is expected to capture 30% of the market share by the end of the decade.

“GenAI is rapidly growing and is expected to become prominent after 2026, with major potential in content creation and personalised marketing. It impacts all AI verticals by enhancing machine learning, NLP, and automation, driving innovation across industries,” the report stated.

QDB emphasised that SMEs are well-positioned to capitalise on high-opportunity segments such as AI-powered products and model development. “Qatar offers a multifaceted support system for AI SMEs, providing essential resources for their success,” the report noted.

According to the report, SMEs benefit from a comprehensive support system that includes financial assistance, advisory and mentorship services, infrastructure and technological resources, as well as education, training, and networking.

“In addition to retail banking institutions, QDB offers support through technology financing, including ‘Minha for Digital Transformation’ for emerging firms and ‘Technology and Digitalisation Solution Financing’ for mature set-ups. Furthermore, the Qatar Science and Technology Park (QSTP) provides funding for innovative digital projects, depending on their specific nature and development stage.

“Additionally, QDB and its subsidiaries, such as Qatar Business and Incubation Centre (QBIC), offer comprehensive assistance to SMEs throughout their development journey in enabling sectors. QSTP and MCIT also support SMEs in the AI space, including prototype development and mentorship through QSTP’s XLR8 programme, as well as incubation via MCIT’s Digital Incubation Centre,” the report stated.

The report added: “Qatar supports AI through initiatives, such as the Ooredoo-NVIDIA AI collaboration, QSTP’s advanced labs for AI development, Microsoft’s data centre region, and Google’s cloud region, in partnership with MCIT and the Qatar Free Zones Authority (QFZA).

The report pointed out that local institutions play a key role in AI training and research, with Qatar Computing Research Institute (QCRI) at Hamad Bin Khalifa University (HBKU) and Qatar University leading initiatives in AI research.

“The Ministry of Education plans to integrate AI into the national education system, while the HBKU-Huawei AI ICT Hub supports growth and innovation among SMEs. Networking opportunities in the market are facilitated by events, such as the Qatar Web Summit, and the MCIT National Skilling Programme focuses on advancing digital upskilling initiatives.