PARIS — Qatar’s logistics sector plays a key role in the country’s economic growth, says the chief executive of Invest Qatar.
“One of the key boosts for Qatar is its strong logistics sector, which plays a key role in the country’s sustained growth and planning efforts,” Sheikh Ali Alwaleed Al Thani told Al-Monitor.
Thani noted that the Gulf state ranks seventh globally for logistics capabilities in Agility’s Emerging Markets Logistics Index, and that the Qatar Free Zones Authority has been a “key driver” by attracting the world’s top logistics companies and embracing innovative technologies such as AI.
“These initiatives will strengthen Qatar’s logistics infrastructure, attract new market entrants and consolidate its position as a global logistics leader,” he added.
According to Mordor Intelligence, Qatar’s cargo and logistics market is expected to be worth $9.5 billion in 2024 and grow to $13.49 billion by 2030.
The country is home to Qatar Airways Cargo, one of the world’s largest cargo airlines, and is driving growth in the logistics market.
Qatar is the world’s second-largest exporter of liquefied natural gas after the United States, and the country’s logistics market has had to grow along with it. Qatar’s logistics market is one of the fastest growing in the country, growing by 26% in 2022, despite the COVID-19 pandemic.
He said a notable headwind globally is the tight labour market and fierce competition for talent given the stringent projects that require a large number of manpower. According to Invest Qatar, the labour shortage has had a major impact on the logistics industry, leading to higher costs for sea freight. To attract and retain talent, Qatar has implemented strategies such as the Mustakhel Visa programme, which aims to attract international talent and fill labour gaps.
“These multifaceted efforts underscore Qatar’s proactive approach to remaining competitive and promoting long-term economic stability,” Thani added.
The International Monetary Fund projected in April that Qatar’s gross domestic product will grow by 2% in 2024 and 2025, before accelerating thereafter (5.8% in 2026 and 7.5% in 2027). According to the World Bank’s Spring 2024 Gulf Economic Update, GCC regional economic growth is expected to recover to 2.8% in 2024 and 4.7% in 2025.
Discussing these figures, Thani said, “This projected recovery is not only dependent on the hydrocarbon sector, but is also driven by the strong expansion of the non-oil economy.” The World Bank’s Spring 2024 Gulf Economic Update states that growth in the GCC non-oil economy will increase by 2.4% in 2024, driven by the region’s growing tourism sector.
The CEO stressed that he does not view attracting investment to Qatar as a zero-sum game, and that GCC growth is good for Doha as well.
“GCC countries are actively reducing trade barriers, upgrading trade infrastructure and diversifying their economies through strengthening intra-regional trade and global economic integration,” Thani said, adding that Qatar is constantly exploring opportunities for multinational companies to establish a presence in the country and the wider region.
“This is possible through a rigorous reform agenda, a business-friendly environment, robust financial institutions and a range of synergistic resources which together form a robust and business-friendly environment for foreign investors,” he added.
Thani said Qatar’s stable economy, access to natural resources and talent and knowledge ecosystem are part of its appeal to foreign investors, adding that the country has the world’s first commercial 5G network, contributing to its strong digital infrastructure.
Thani noted that since Qatar hosted the 2022 FIFA World Cup, the country, and the Middle East, has become more prominent in attracting investment and changing perceptions of the region.
He added that the tournament promoted the development of Qatar’s knowledge-based economy, including through the growth of the country’s tourism sector, in line with Qatar National Vision 2030.
The Gulf countries’ Third National Development Strategies 2024-30 aim to accelerate economic growth to an average of 4 percent per year and increase inward foreign direct investment to $100 billion by 2030.
In 2022, Qatar is expected to attract approximately $29.1 billion in inward direct investment, with a total of 135 new projects implemented in 2022.
