The world’s biggest exporter of liquified natural gas leverages innovation to pursue diversified growth. 

Qatar is a destination that usually piques investors’ interest. In just a few decades, the small desert nation 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. According to international consulting firm PwC’s latest CEO survey, 84% of Qatar’s top business leaders are “optimistic” about the emirate’s growth in 2024, and 71% expect to increase hiring—figures nearly double the global average. An impressive 68% of surveyed CEOs expressed confidence in their firms’ revenue potential over the next three years, signaling a bright outlook for Qatar.

By 2026, Qatar’s GDP growth is expected to reach 5.5%, up from the current 2.4%, which would place it among the world’s fastest-growing economies. In November, S&P Global Ratings reaffirmed its AA/A-1+ rating with a stable outlook, noting that Qatar’s “fiscal and balance of payments positions remain strong, underpinned by its large hydrocarbon reserves, leading position in the global liquified natural gas market, and substantial assets accumulated in the sovereign wealth fund.” Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), ranks as the world’s eighth-largest, with assets totaling approximately $525 billion, according to data from the Sovereign Wealth Fund Institute, a US-based research platform.

Qatar’s economic strength is grounded in its vast natural gas reserves—the third-largest globally—a resource the nation knows will not last indefinitely. Like many hydrocarbon-dependent Gulf states, Doha is striving to transition toward a “knowledge-based” economy. 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 modernizing existing assets and in positioning Qatar as a global leader in the digital sphere.

“Digital transformation plays a central role, with AI, cloud infrastructure and data-driven systems enhancing competitiveness across industries. This approach, supported by robust infrastructure, strategic partnerships and workforce development, positions Qatar to continue reducing its reliance on hydrocarbons and lead as a diversified, innovation-driven economy in the region,” comments Yazen El Safi, technology partner at PwC Middle East.

Modernizing The Hydrocarbon Sector

While Qatar is positioning itself as a future tech leader, hydrocarbons still dominate its economy, accounting for 90% of exports and 80% of revenue. Despite international pressures to reduce the use of fossil fuels in order to curb global warming, Qatar was still among the world’s top polluters in 2023, with 52.5 tons of greenhouse gases and 43.5 tons of CO2 per capita, according to the European Commission’s Emissions Database for Global Atmospheric Research (Edgar).

Qatar has set official goals to reduce greenhouse gas emissions 25% by 2030, but that does not mean slowing down on extraction. Instead, its North Field Expansion project is set to more than double liquified natural gas (LNG) output to around 126 million tons per year by 2030. To reconcile increased output with environmental goals, Qatar is pioneering cleaner production technologies, including carbon capture and storage (CCS), with plans to boost its CCS capacity by 400% by 2035.

Like many of its neighbors, Qatar 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.

Drawing on its LNG expertise, Qatar also is 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. QatarEnergy, the national oil company, is currently constructing the world’s largest “blue” ammonia plant (meaning emissions are captured and stored) in Mesaieed Industrial City. The $1 billion Ammonia-7 facility, in collaboration with Germany’s ThyssenKrupp and Athens-based Consolidated Contractors Company, is set to produce 1.2 million tons annually by 2026.

Digital Banking

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.

“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,” notes Farah El Nahlawi, lead researcher at MAGNiTT, a regional startup research network.

Unlike in other markets where new players have disrupted traditional banks, local lenders in Qatar remain at the center of the game. They do, however, partner up with fintechs to develop cutting-edge products and services. According to MAGNiTT, fintech accounted for nearly half of all deals in Qatar in the first 10 months of 2024, making it the most funded sector.

Building A Digital Economy

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.

“Qatar leverages high GDP per capita to transform challenges into opportunities, building a resilient, tech-driven economy,” comments Al Safi, highlighting that the first real-life test for some of the new technologies was the 2022 FIFA World Cup. At that event, “the country pioneered AI-driven crowd management, eco-friendly stadiums and advanced digital security, setting a new global standard,” he says.

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.

“Qatar has taken significant strides in innovation,” adds El Nahlawi, but most of the cutting-edge technology is imported. Until Qatar can develop its own research and development, it needs to attract foreign talents.

“Qatar’s government has implemented robust policies to attract foreign innovation, positioning the country as a hub for global tech talent and investment,” observes Al Safi, citing programs like Startup Qatar, the recent Web Summit in Doha, and the Fund of Funds initiative to attract global venture capital. Qatar also facilitates visas for tech professionals. This strategy has yielded results, with Microsoft and Google establishing cloud and data centers in the country, for example. However, Qatar faces strong competition from regional neighbors such as the UAE and Saudi Arabia.

“Qatar’s venture capital space benefits from strong government support, ample capital availability, and advanced digital infrastructure, making it a promising environment for tech and innovation-driven startups. … However, the country’s small population limits market scalability, and its VC ecosystem is comparatively nascent, with a cautious investment culture that prefers stable returns. While Qatar shows great potential, investors may need to adopt a regional focus to tap into broader consumer markets and startup networks,” says El Nahlawi. Qatar’s fintech sector benefits from broader GCC trends in digital adoption, with regional IT spending projected to reach $184 billion in 2024.

As Qatar prepares for the future, its ambitious investment in technology is set to reshape its economic landscape.

“We anticipate strong demand for skilled professionals and an expanding digital ecosystem, fostering job creation, economic resilience, and sustainable growth,” says Al Safi.

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.