Industrial Growth A Driving Force For Economic Diversification In Qatar

(MENAFN- The Peninsula) Deepak John | The Peninsula

Doha, Qatar: Qatar's manufacturing sector is a major driving force in Qatar's economic diversification efforts as Qatar National Vision 2030 aims to develop an Economy less dependent on hydrocarbons.

Highlighting the performance of the manufacturing sector during the first half of the year Khalid Al Buainain, a businessman and an industry expert, said the increase in the total number of industrial establishments is a clear indication of the development happening in this sector.

Speaking to Qatar TV, Al Buainain said,“Before we think about advanced or heavy industries, we should be self-sufficient in basic industries. Thankfully, we are now seeing self-sufficiency in areas such as bottled water, paper tissues, detergents, and consumables (consumer goods). There are even factories for nuts, tea, oils, and sugar, indicating a level of self-sufficiency. Given Qatar's size, some factories can be sufficient on their own so, these factories have started to fill these gaps, leading to the emergence of national industries."

He further explained, given the demand for any product to be manufactured in Qatar, whether industrial or food-related, medium-sized or small industries, every factory or investor in the industrial sector must consider two main factors. "The first factor is the local market, that is what will I produce, and is this product already available in the market or not. And the second is export."

During the first half of this year, 967 firms and 481 licensed industrial facilities were registered according to data by Qatar Industrial Portal.

The figures and indicators confirm the industrial sector's leadership in growth and production during the past decade as it has maintained a continuous rate of growth for several years.

Meanwhile in the first half the total investments in registered firms reached QR229.868bn and in licensed firms amounted to QR3.248bn.

Underscoring the governmental initiatives to support Qatari products, Al Buainain said these include marketing, showcasing, and holding annual exhibitions. Qatari products were showcased at the Made in Qatar exhibition held in Oman, Kuwait, Saudi Arabia, and other locations to promote these industries, he added.

Exhibitions are crucial and in Qatar there are entities that support these initiatives. Recently, we participated in an exhibition in Uzbekistan with over 2,000 companies from around the world, he added.

He noted that there is certainly a specific vision regarding the future of Qatari industry. The launch of a strategy aims to define what we want to achieve in the industrial sector in the country, similar to other sectors that have defined strategies.

The decision aims to support supportive activities on the lands of the industrial zone affiliated with the Ministry of Municipality, whether they are commercial, industrial, logistical activities or for workers' housing purposes.

Qatar's manufacturing industry is of central importance to the government's economic diversification drive, with high-value production lines receiving substantial public and private investment in recent years.

Qatar's Third National Development Strategy (NDS-3) outlines a targeted approach to industrial development between 2024 and 2030.

It underscores the value of specialised, high-productivity clusters where Qatar either excels or could develop considerable advantages.

More specifically, the NDS-3 advocates for the chemical industry to expand into conventional and blue gas based petrochemicals. It also proposes the expansion of plastics production.

In order to capitalise on the current environment, the government continues to refine regulatory frameworks to attract foreign and domestic investment for its industrial diversification agenda.

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