40% of upfront costs paid
Minimum investment $7m
Japan leads Qatari FDI
Qatar is offering $1 billion of incentives to encourage local and international business investment in the gas-rich Gulf state.
Under the programme, Qatar will cover up to 40 percent of local expenses for five years, according to a statement on Wednesday.
Business setup costs, construction, office leases, equipment and employee-related expenses can be claimed, Invest Qatar, a state body, said.
The minimum investment required to access the fund’s capital will be QAR25 million, or around $7 million. There will also be job creation targets.
Invest Qatar unveiled the programme at the Qatar Economic Forum in Doha this week.
The scheme will cover four areas: advanced industries, such as pharmaceuticals, automotive and electronics; logistics, such as infrastructure projects; technology, including cybersecurity, cloud computing and AI; and financial services designed to strengthen Qatar’s financial ecosystem.
Each area is based on Qatar’s Third National Development Strategy, which aims to maintain the state’s leadership in hydrocarbons while also diversifying the economy.
Qatar is working to meet a target of securing $100 billion in foreign direct investment (FDI) by 2030. But in 2024 it attracted only $2.74 billion in FDI through 241 projects, which created 9,348 jobs.
The gas industry and some non-oil sectors accounted for a large portion of the total. Around 95 percent of that was directed to “greenfield” FDI, according to Invest Qatar.
Greenfield FDI is when a company sets up in a foreign country, building its facilities from the ground up.
Electric power generation accounted for 40 percent of FDI, or $1.1 billion. The retail and wholesale trade sector followed with a 14 percent share. Water, sewage and waste management sector accounted for 10 percent.
Japan contributes half of Qatar’s overall FDI, followed by the UAE, the US, India and Lebanon.
