A recent paper published by PwC has provided an “overview of the journey to value creation” within the Qatari industrial manufacturing industry.
Entitled ‘Driving value creation in the Qatari industrial manufacturing industry’ the paper identifies four key areas to drive positive transformation in industrial manufacturing including building supply chain resilience, championing technological innovation, optimising investment strategy and aligning with Qatar National Vision 2030 as a catalyst for growth and change.
Qatar, the paper noted, was well positioned to weather supply chain disruptions due to its ambitious diversification programme. Qatar’s Tawteen programme and Qatar Vision 2030 are driving forward localisation opportunities as the world adapts to new market realities.
The pandemic has further amplified the need for supply chain transformation and localisation, with organisations casting an eye on supply chain partners to identify new synergies, unlock deal value and explore strategic acquisitions that would further boost the resilience of the sector. As such, additional vertical integration is likely to occur in the sector.
According to PwC, lockdowns and work restrictions have emphasised the need to automate factories for enhancing resilience by reducing the need for human operators present onsite. Manufacturers in the country are recommended to maintain sight of emerging technologies to transform operations, enhance efficiencies and ultimately create new value levers, such as 3D printing for more flexible production of parts and components.
Qatar has a cost advantage with 3D printing raw materials due to its strong local petrochemical industry.
Recovery through building resilient supply chains and championing technological advances can only be achieved through a robust investment strategy, the report said. Investment leaders need to ensure they have a robust value creation strategy, and clear objectives (ROI, sector focus, etc.) provided by the shareholders which set the framework of the investment strategy, whether organic or inorganic (M&A), whilst optimising operations and balance sheets.
“Qatar abounds with investment opportunities, driven in part by the strong local demand for large infrastructure projects in the country and the upcoming FIFA 2022 World Cup. Export opportunities could also be seized by virtue of Qatar’s developed air and marine port infrastructure,” PwC said.
Aligning with QNV 2030 as a catalyst for growth and change rest on the four pillars of economic, environmental, social and human development. The Qatar Development Bank (QDB) has launched initiatives such as ‘Jahiz’, which aims to support SMEs by providing ready-to-operate industrial facilities for leasing.
Given economic development and diversification priorities, and the increasing focus on ESG both on both the world stage and in capital markets, a prosperous industrial manufacturing sector would prove crucial in pivoting away from an oil and hydrocarbon economy, and to ensure a more sustainable and resilient economy to weather future crises.
Kamal Fayed, Transaction Services partner and PwC’s Deals practice lead in Qatar, said, “PwC’s comprehension and understanding of Qatar stretches beyond tax and taps deeper into a fundamental appreciation of the unique value proposition of the vast and developing sectors in this vibrant country. Industrial manufacturing is a key growth sector within the country and is at the heart of Qatar National Vision 2030, which aims to develop a competitive and diversified economy.”
“During the course our research for this paper, we uncovered valuable insights and recommendations that may prove valuable in reshaping Qatari industrial manufacturing and in seizing opportunities that are presented in a post-pandemic world. The value chain across many organisational structures has received a shock; however there is considerable opportunity here for the country, as ‘glocalization’ affords new deal opportunities in Qatar.”
Qatar, the paper noted, was well positioned to weather supply chain disruptions due to its ambitious diversification programme. Qatar’s Tawteen programme and Qatar Vision 2030 are driving forward localisation opportunities as the world adapts to new market realities.
The pandemic has further amplified the need for supply chain transformation and localisation, with organisations casting an eye on supply chain partners to identify new synergies, unlock deal value and explore strategic acquisitions that would further boost the resilience of the sector. As such, additional vertical integration is likely to occur in the sector.
According to PwC, lockdowns and work restrictions have emphasised the need to automate factories for enhancing resilience by reducing the need for human operators present onsite. Manufacturers in the country are recommended to maintain sight of emerging technologies to transform operations, enhance efficiencies and ultimately create new value levers, such as 3D printing for more flexible production of parts and components.
Qatar has a cost advantage with 3D printing raw materials due to its strong local petrochemical industry.
Recovery through building resilient supply chains and championing technological advances can only be achieved through a robust investment strategy, the report said. Investment leaders need to ensure they have a robust value creation strategy, and clear objectives (ROI, sector focus, etc.) provided by the shareholders which set the framework of the investment strategy, whether organic or inorganic (M&A), whilst optimising operations and balance sheets.
“Qatar abounds with investment opportunities, driven in part by the strong local demand for large infrastructure projects in the country and the upcoming FIFA 2022 World Cup. Export opportunities could also be seized by virtue of Qatar’s developed air and marine port infrastructure,” PwC said.
Aligning with QNV 2030 as a catalyst for growth and change rest on the four pillars of economic, environmental, social and human development. The Qatar Development Bank (QDB) has launched initiatives such as ‘Jahiz’, which aims to support SMEs by providing ready-to-operate industrial facilities for leasing.
Given economic development and diversification priorities, and the increasing focus on ESG both on both the world stage and in capital markets, a prosperous industrial manufacturing sector would prove crucial in pivoting away from an oil and hydrocarbon economy, and to ensure a more sustainable and resilient economy to weather future crises.
Kamal Fayed, Transaction Services partner and PwC’s Deals practice lead in Qatar, said, “PwC’s comprehension and understanding of Qatar stretches beyond tax and taps deeper into a fundamental appreciation of the unique value proposition of the vast and developing sectors in this vibrant country. Industrial manufacturing is a key growth sector within the country and is at the heart of Qatar National Vision 2030, which aims to develop a competitive and diversified economy.”
“During the course our research for this paper, we uncovered valuable insights and recommendations that may prove valuable in reshaping Qatari industrial manufacturing and in seizing opportunities that are presented in a post-pandemic world. The value chain across many organisational structures has received a shock; however there is considerable opportunity here for the country, as ‘glocalization’ affords new deal opportunities in Qatar.”