Image used for representation only.
Doha: Qatar in just a few decades has transformed into one of the world’s wealthiest countries. Now, it is using its financial power to reshape its economy once more, unlocking a myriad of new opportunities, a recent report by Global Finance Magazine said.
The country’s economic strength is grounded in its vast natural gas reserves — the third largest globally. Like many Gulf states, Doha is striving to transition towards a “knowledge-based” economy, the report added.
“While Qatar is positioning itself as a future tech leader, hydrocarbons still dominate its economy, accounting for 90% of exports and 80% of revenue. It has set goals to reduce greenhouse gas emissions by 25% by 2030. The country is pioneering cleaner production technologies, including carbon capture and storage (CCS), with plans to boost its CCS capacity by 400% by 2035.
“The authorities have created blueprints and made strategic investments that aim to develop new industries, attract foreign investment and create a business-friendly environment beyond the gas sector. New technologies are a key element in this transformation, both in modernising existing assets and in positioning Qatar as a global leader in the digital sphere.”
The country is expanding its renewable energy portfolio, with investments in photovoltaic facilities such as the Al Kharsaah solar farm and the coming Dukhan plant. By 2030 solar power is expected to constitute 30% of the national energy mix. These projects will not only support households and businesses but will also contribute to “clean” hydrocarbon extraction, it said.
Drawing on its LNG expertise, Qatar is also exploring alternative energy sources, including hydrogen, methanol and ammonia — fuels that emit no carbon when burned, as long as they are produced without using fossil fuels, it added.
“Another technological overhaul is taking place in the financial sector. Recent regulatory changes by the Qatar Central Bank (QCB), including new e-Know-Your-Customer and cloud computing policies are speeding up digital adoption. Institutional support from the Qatar Financial Centre (QFC) is helping to test new ideas with a National Fintech Strategy and a Digital Assets Lab.
“The launch of the Fawran instant payment system has further boosted digital payments by enabling real-time transactions 24/7,” the report said. “These efforts and investments in digital transformation are laying a foundation for growth in fintech.
The sector is especially poised for digital payments and Islamic fintech expansion, making it an increasingly attractive market for innovation-driven companies,” it added.
The report highlights that Qatar is also making substantial investments in emerging sectors such as artificial intelligence applied to healthcare and education, sustainable farming with little water, and advanced robotics. Overall digital infrastructure spending in 2023 surged 30% in 2023.
“In daily life, technology has already deeply impacted the delivery of government services, shopping experiences, and soon, air travel, as Qatar Airways will be the first MENA airline to offer free internet powered by Elon Musk’s Starlink.
“As Qatar prepares for the future, its ambitious investment in technology is set to reshape its economic landscape. Strong governance, a clear vision and substantial financial resources are key assets that Qatar can leverage as it pursues its goals for a tech-driven future.
The next few years will be crucial in determining the extent to which these ambitions will be realized,” it said.
