QC report states Qatar attracts $4.5bn FDI in five years
- 4 years ago
Qatar has managed to attract foreign direct investments (FDI) worth $4.5bn over the past five years, Qatar Chamber reported in its latest newsletter.
The chamber’s monthly economic newsletter for August 2020 highlighted the most prominent trends in the Qatari economy, as well as statistics related to foreign trade and trade of the private sector in May this year.
Citing a quarterly newsletter issued by the Arab Investment and Export Credit Guarantee Corporation for Q2 2020, the chamber reported that FDI inflow to Qatar in the past five years stood at $4.5bn.
The report, prepared by Qatar Chamber’s Researches and Studies Department, also discussed the impact of Covid-19 as well as digital transformation stating that Qatar ranked in a higher position in the field of ITC, both regionally and globally.
Qatar Chamber also cited the Global Economic Competitiveness Report 2019 issued by the World Economic Forum (WEF) wherein Qatar ranked eighth globally in "ICT Adoption Pillar" and ranked first internationally and in the Arab world in the "Internet User" indicator, and the spread of high-speed Internet services (broadband).
“All these factors enabled Qatar to succeed in managing the economic process appropriately without any difficulties during the precautionary measures adopted to curb the spread of the coronavirus,” the report stated.
In similar developments, the chamber’s newsletter also highlighted the Qatar-German Business Forum held virtually last month, which was attended top officials from both sides, as well as senior Qatari and German businessmen, and a large number of heads and representatives of Qatari and German companies.
During the video conference, Qatar Chamber chairman Sheikh Khalifa bin Jassim bin Mohamed al-Thani held a discussion with Arab-German Chamber of Commerce and Industry president Peter Ramsauer and Qatar’s ambassador to Germany Mohamed bin Jaham al-Kuwari.
Bilateral business meetings were also held during the online forum, as well as discussions between Qatari and German companies on the possibility of establishing commercial partnerships in in both countries’ markets.
Foreign direct investment flows into Qatar have generally followed an upward trend in the past several years, thanks to the country's political stability, stable currency pegged to the U.S. dollar, high quality infrastructure and one of the lowest corporate tax rates in the world (10%).
However, following the diplomatic crisis with countries such as Saudi Arabia, the UAE and Kuwait, Qatari economy experienced a negative impact. However, the trust of global investors remained still on Qatar’s economy even after the diplomatic tension that has taken place with its neighbouring states.
Furthermore, Qatar is also a key international investor, thanks to its large foreign exchange reserves. The largest contributors to FDI inflows are the United States, Japan, South Korea and Singapore, while the main sectors that attract foreign investments are oil and gas, construction, public works and financial services.
Source: Qatar Chambers
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