This first appeared in Qatar Tribune
1. In your view, what are the most significant opportunities for growth and innovation within Qatar’s economy, and as we look forward to 2025, what are PwC Qatar's strategic priorities, and what economic trends do you anticipate for the coming year?
Qatar is looking ahead to an era of transformation and growth, which is underpinned by its Third National Development Strategy (NDS-3). The journey so far has been remarkable, from being a predominantly hydrocarbon-based economy to now standing on the cusp of a diversified and knowledge-based one.
Our latest CEO Survey reinforces this momentum as findings from Qatar reveal that business leaders in the country have a confident economic outlook for their territory, and 87% expect to see revenue increases in 2025highlighting their optimism and strategic foresight.
As we look back at 2024, we see a continued growth in the technology sector, high levels of M&A activity in the real estate sector, and growth in the banking sector and tourism.
Digital transformation and technology:
Qatar has been prioritising digitalisation in both public and private sectors. The expansion of the tech ecosystem, including fintech, artificial intelligence (AI), blockchain, and cybersecurity, presents significant opportunities for innovation. This can be attributed to Qatar’s strategic focus on AI, that aims to enhance its integration across industries. The plan involves establishing an AI economic cluster and identifying specific AI applications to promote its adoption in various sectors. This approach is designed to drive technological advancement and boost economic competitiveness.
Moreover, our CEO Survey shows that the desire to reinvent is stronger than ever, driven by AI and climate opportunities. That being said, CEOs in Qatar are also highly optimistic about revenue growth, with 87% expecting an increase over the next 12 months, compared to 74% of their global peers. This confidence is driving business leaders to reinvent and strengthen their business models, with 73% of Qatar's CEOs keen to enhance the way they do business in the next 10 years or less. The sentiment is driven, in part, by the megatrends of AI and climate, alongside factors, such as regulatory change, and the blurring of industry boundaries as competition increases over new domains of growth in the region.
M&A - Real Estate:
Early 2024 has witnessed a resurgence in M&A activity, strengthened by the country’s third National Development Strategy (NDS-3). This reflects Qatar’s strong economic outlook as the country transitions from a hydrocarbon-based economy to a diversified, knowledge-driven one.
Notable deals include Gulf Drilling International’s $338m acquisition of Seadrill Ltd. In line with the growing demand for clean energy and reducing reliance on fossil fuels, energy companies and private equity firms are increasingly targeting acquisitions in the renewable energy space. In real estate, transactions worth QR8.16bn highlight the country’s growing appeal for investors, while investments in infrastructure, digital technologies, and entrepreneurship demonstrate Qatar’s economic resilience. Below are some of the key drivers that are expected to drive M&A activity within Qatar in the coming months.
Moreover, we find that industry convergence is aiding the reinvention agenda based on our CEO Survey findings. In the last five years, 33% of businesses in Qatar have begun competing in new sectors. Within M&A, economic diversification, outbound investments and a focus on renewable energy are driving dealmaking in Qatar. M&A activity saw a rebound in early 2024, fuelled by the country’s third National Development Strategy - we now see nearly half (47%) of CEOs in the country planning to make at least one acquisition in the next three years.
This shift indicates a growing appetite for strategic expansion, driven by opportunities to diversify portfolios and capitalise on emerging sectors aligned with Qatar's economic transformation agenda.
Banking sector:
According to our latest Banking Sector report, Qatari banks have distinguished themselves through product innovation, advanced supply chain logistics, and trade finance solutions. Strategic investments in digital assets, voice-enabled services, augmented reality, and blockchain technology are setting new benchmarks in the financial sector’s digital evolution. The expansion of portfolios to include green bonds and sukuks has attracted substantial interest, reinforcing Qatar’s commitment to sustainability and regulatory resilience.
Tourism:
As Qatar positions itself as a global tourism and business hub, the tourism and hospitality industry is expected to continue its expansion. According to our latest Qatar Economy Watch, Qatar has become a leading destination for sports and
tourism, leveraging strategic investments in top-notch sports facilities, like the FIFA World Cup 2022 stadiums and the Lusail International Circuit, and enhancing its tourism sector offering. This reflects the country's commitment to using sports and tourism as engines for national branding and economic diversification. The successful combination of sports mega-events and cultural experiences has
showcased Qatar's ability to host international spectators and contribute to its developmental journey.
2. From PwC’s perspective, how are global economic trends influencing Qatar’s economy, and what strategies are being adopted to stay competitive?
Qatar has consistently displayed resilience amidst global inflation and macroeconomic challenges. This can be credited to long-term diversification strategies and investments in future-focused sectors. For example, the resurgence of mergers and acquisitions (M&A) activity in 2024, underpinned by NDS-3, reflects Qatar’s strong economic outlook as the country transitions from a hydrocarbon-based economy to a diversified, knowledge-driven one. This has been driven by strategies including strong outbound investments, growing number of IPOs on the Qatar Stock Exchange, influx of FDI, and increased push for PPPs and privatisation.
Qatar has also strategically invested in digital infrastructure such as cloud services and high-speed connectivity, and has strengthened its cybersecurity measures for data protection. This is boosting Qatar’s competitiveness on a regional and global scale, establishing a robust and future-ready digital ecosystem.
3. In your opinion, what are some key lessons learned from the economic landscape of 2024 that will shape PwC Qatar’s approach in 2025?
We recognise that navigating a complex and rapidly evolving global environment requires us to leverage Qatar's unique strengths and address emerging challenges head-on. Moving forward, we will continue to support our clients amidst the rapid transformation Qatar is undergoing, by equipping them with the necessary information and capabilities.
Simultaneously, we will invest in upskilling and equipping our workforce to provide cutting-edge expertise in these critical areas – for example our recent agreement with OpenAI that enables PwC to scale AI capabilities and drive accelerated impact for organisations in the region.
Aligning with QNV 2030 and NDS-3 remains paramount to our operations, and moving forward we will continue supporting the diversification of the Qatari economy and contributing to human capital development within the country.
