Transport, logistics sector ‘best positioned’ to benefit from digitalisation

The transportation and logistics sectors stand to gain from the digitalisation efforts being implemented in the country, according to HE the Minister of State and Qatar Free Zones Authority chairman Ahmad al-Sayed.In an interview with Oxford Business Group’s (OBG) ‘The Report: Qatar 2022’, al-Sayed said the emergence of new technologies has generated more economic activity online and enabled a significant increase in the demand for logistics, e-commerce, and cloud data services.This result, according to al-Sayed, has redoubled QFZA’s efforts to boost the transport and logistics segments through an investment attraction approach.“In transportation, segments that have benefited from digitalisation are mainly related to innovative mobility solutions and autonomous vehicles. This segment is well established to facilitate the movement of goods and people within closed environments.“Digitalisation benefited logistics by improving tracking, tracing, and creating transparency for critical products like pharmaceuticals and food through the blockchain and telematics. This is supported by the ongoing investment in smart government and digital incubators, among other initiatives,” he explained.The minister also said Qatar is also investing in key emerging technologies, including artificial intelligence, blockchain, cloud computing, and aerospace.“With the presence of tech giants, such as Google and Microsoft in Qatar’s free zones, and the creation of e-commerce and logistics regulations, we will be able to contribute significantly to the development of the startup ecosystem,” he further said.On supporting industrial growth and how Qatar intends to attract investments and capitalise on emerging opportunities, al-Sayed said: “The recent push by Qatar to diversify away from hydrocarbons will ensure long-term sustainable growth. At the same time, the government is leading various projects to localise some key industries.“The pandemic highlighted the necessity for digital transformation to drive industrial growth. We have therefore worked to increase opportunities in our digital ecosystem for local and international companies working in the industrial and emerging technology sectors.”Al-Sayed pointed out that the country also considers research institutions and incubators looking to attract local and global talent as “good drivers” for the growth of industries.“In this sense, to attract investment, Qatar has offered companies the necessary supporting laws, legislations and licensing, quality transport infrastructure, robust telecoms connectivity, and a developed education system that forms the basis for a skilled domestic workforce,” he stressed.On key developments and most promising projects taking place in Qatar’s free zones, al-Sayed said: “To date, we have attracted around 250 investors, including technology leaders like Google, Microsoft, and Thales; logistics players, including DHL, UPS, Gulf Agency Company, and Gulf Warehousing Company; and vehicle manufacturers, including Volkswagen, Gaussin, and Yutong. This has helped to create more than 3,100 new skilled jobs, leading to total employment of 6,400. Moreover, the leasing area in the free zones has reached approximately 700,000sq m and will reach more than 1mn sq m by the end of 2022.”The minister added that QFZA will establish a new diamond centre that will serve as a cornerstone for the growth and development of the high-potential gem and jewellery trading industry in the region after Qatar joined the Kimberley Process in 2021.