Post-war reconstruction across Iran and the broader region represents the single “most significant” demand opportunity for Doha’s manufacturing sector in the short-term, according to KPMG in Qatar.
Qatar also has an immediate opportunity to deepen pharma trade ties with Saudi Arabia, reducing its dependence on Hormuz sea-freight, KPMG said in a report.
In the medium to long term, Qatar has to unlock the agritech potential to drive food security, build construction sector resilience through modular manufacturing, and accelerate attraction of foreign investments.
“The same geographic position at the heart of the Gulf that makes Qatar vulnerable to the current war is also the key enabler for post war recovery,” it said.
Several manufacturing industries will continue to benefit from structural competitive advantages and numerous projects nearing completion are expected to partially offset current disruptions, it added.
“By leveraging these experiences and drawing on regional precedents, Qatar is well-positioned to accelerate recovery across key manufacturing sectors. These foundations not only support recovery but also create a pathway for Qatar to emerge as a more resilient, diversified and a globally competitive industrial economy,” it said.
Quoting International Energy Agency that found more than 40 Middle East energy assets have been ‘severely damaged’, KPMG said this might create demand for Qatar’s raw material, energy sources or even support for the repair.
“This situation is likely to create strong demand for Qatar’s raw materials, energy products, and industrial support services. With a robust industrial base in aluminum and petrochemicals, Qatar is well-positioned to supply the critical inputs needed for rebuilding energy and industrial infrastructure,” it said.
Seeking resilience in pharma supply chain; the report said with both land borders remaining open, Qatar has an immediate opportunity to deepen pharmaceutical trade ties with Saudi Arabia via the Abu Samra crossing and with the UAE, reducing its dependence on Hormuz sea-freight and suspended air cargo routes.
Strengthening these intra-GCC supply relationships provides Qatar with a more resilient near-term pharmaceutical supply chain, while domestic manufacturing capacity is being scaled up, it said.
On the potential to drive food security, the report said Qatar is a strong candidate for agritech transformation, ranking second in the GCC on the Global Food Security Index, achieving 100% self-sufficiency in poultry and dairy.
Qatar hosts more than 50 establishments/partnerships with leading technology firms and R&D centers through Qatar Science and Technology Park. Government investment in ensuring food security and farm sustainability projects provides substantial opportunities for potential investments in Qatar’s agritech sector.
The global agritech market, valued at $26bn in 2023 and projected to reach $67bn by 2031 at 13% compound annual growth rate (CAGR), “presents a timely opportunity for unlocking agritech potential in Qatar to drive food security”, KPMG said.
Saudi Arabia’s Red Sea Farms and the UAE’s Pure Harvest Smart Farms, demonstrate that tech-enabled, climate-controlled agriculture is commercially viable in Gulf conditions.
On construction sector resilience, the KPMG report said by 2035, it is expected that most buildings will be constructed using manufactured structures. Government and private sector could focus on this emerging market to develop local factories produce building modules, steel structures, and precast
components.