Overview
National Focus
Government Digital Economy/Growth/Transformation Plans or Strategies
The new National Development Strategy 3 (NDS3) launched in January 2024 establishes the strategic priorities and overarching framework for the next phase of Qatar’s development from 2024-2030, pursuant to Qatar’s National Vision 2030. The ultimate goals of NDS3 include achieving a 4% compound annual growth rate in non-hydrocarbon GDP and a 2% annual growth in labor productivity.
The Qatar Ministry of Communications and Information Technology (MCIT) continues to lead the country’s National Vision and has recently published Qatar’s National Digital Agenda 2030 (NDA2030), which aims to serve as a roadmap to the development of the country’s digital economy by building on Qatar’s technological evolution, sustainability, and economic diversification initiatives.
In alignment with NDS3, the NDA2030 is intended as a roadmap to a knowledge-based economy and digitally empowered society. Infrastructure, innovation, regulations, government services, economy and society are all included in this roadmap with the goal of contributing approximately USD 11 billion (40 billion QAR) to the non-hydrocarbon GDP of Qatar and create additional 26,000 jobs in Qatar’s ICT sector by 2030.
Qatar considers their infrastructure, coupled with their geographic location between the markets and customers of the Mediterranean, West Asia, East Africa, and the wider Indian Ocean a significant competitive edge. Their new focus on hyperconnectivity, hypercomputing and hyper automation is meant to become the cornerstones of their value proposition, supported by the development and attraction of skilled human resources in Qatar.
Qatar Digital Agenda 2030
Projected Digital Economy Growth
The NDA2030 is focused on strengthening Qatar’s digital infrastructure to become a regional technology hub. Qatar’s goal is to become a leading digital economy, supporting innovation, entrepreneurship, and digital transformation across all sectors. The digital strategy focuses on six pillars: hyper-connectivity, hyper-computing, hyper-automation, digital innovation, digital economy, and digital infrastructure. Key actions include: enhance digital infrastructure, increase digital literacy and skills, and promoting e-government services quality of life for citizens and residents.
Pillar One
Focuses on the advancement of connectivity infrastructure and commercialization of cloud data center capabilities and delivering advanced supercomputing capabilities to meet the growing demand of both the public and private sectors for the AI development and adoption, while reducing the ICT carbon footprint.
Qatar’s data center infrastructure grew in recent years by strategic partnerships with global hyperscalers such as Microsoft and Google, which have expanded their cloud computing infrastructure within the country. Going forward, Qatar plans to double its national cloud data center capacity and commercialize Qatar-based cloud capabilities, positioning itself as a leader in data center services.
Qatar intends to invest further in high performance computing (HPC) capabilities to accelerate scientific research and enhance technological advancements, expanding cloud-native HPC capabilities optimized for AI use cases within the country, to enhance applied R&D and enable new revenue streams. Qatar Computing Research Institute, Qatar Center for Quantum Computing and National Biomedical Informatics Center are already driving advanced computational research and innovation.
Pillar Two
Qatar ICT services exports reached USD 1.1 billion (4.1 billion QAR) in 2022, or about 3.7% of the total service exports. With Qatar’s plan to become a net exporter of digital services in the future, it will establish a digital export support program to support tech companies in their global expansion, including by facilitating access to funding, offering advisory services and delivering training.
Qatar plans to develop a cross-border digital economy framework to establish clear standards for international digital trade agreements to enable international data flows and foster cooperation while protecting the privacy and security of data.
Pillar Three
Focuses on support of domestic applied research, attracting foreign direct investments into R&D, streamlining the commercialization of digital-related intellectual property and creating a supportive ecosystem for technology start-ups and entrepreneurs from all over the world.
Plans include establishing national applied programs for emerging technologies such as Artificial Intelligence (AI), Metaverse, Blockchain, or Internet of Things (IoT). With a key objective to commercialize intellectual property created in Qatar, the nation aims to develop a dedicated framework for monetizing digital assets.
Supporting SME development, Qatar has introduced incubation centers such as the Qatar Business Incubation Center, the Digital Incubation Center or TASMU Accelerator which offers up to $50,000 in seed funding, flexibility to work from anywhere in the world and 100% retained ownership of the business. These initiatives are expected to enhance the expansion of local technology start-ups with the potential to scale.
Pillar Four
In 2008, the online government portal Hukoomi was established as a one-stop gateway providing access to all the e-services available in the country. Additionally, in 2011, the Ministry of Interior published the Metrash2 mobile application, which became the most frequently used means of communicating with the government, overtaking physical channels. Since then, Qatar has achieved notable advancements in digitizing its services, successfully transitioning over 1,500 services to online platforms.
Qatar aspires to be a leader in digital government, leveraging automation and AI to enhance all services, including the development of a GenAI-powered chatbot embedded in the Government Contact Center. In addition, there are plans to implement the Qatar Digital Pass, a next-generation national authentication service serving as a single sign-on feature for electronic government services and platforms, digitally storing personal biometric data, digital signatures, verified documents, and credit/debit cards.
Pillar Five
Focuses on strengthening existing ICT and data regulations, in order to benefit from digital transformation, and to mitigating potential negative impacts to society. Published in 2023, the National Data Classification Policy facilitates secure information exchange, strengthens data practices, and enhances data protection measures. Further plans are in place to develop regulations for data sharing, metadata management, data storage and operations, data architecture and data quality.
Pillar Six
Focused on the need to expand the ICT workforce, Qatar plans to develop programs to source digital talent from abroad. In 2022, the Ministry of Communication and Information Technology, in collaboration with Microsoft, launched Qatar’s National Skilling Program, with the goal to train 50,000 people across all demographics by 2025 in advanced digital skills.
Qatar is now working on a program to attract digital talent by introducing a dedicated, fast-track visa tailored for highly skilled digital professionals, and an e-residency program allowing access to digital services, conduct business, and engage in various activities within the digital ecosystem without physical presence. The goal is to attract and develop digital talent, educate the broader population on digital technologies and engage people in the digital economy.
The implementation roadmap is divided into four stages:
Market Challenges
Regulatory environment
Data privacy
In November 2016, Qatar issued the Personal Data Privacy Protection Law, which introduced provisions to ensure the protection of individuals rights with respect to privacy and that of their personal data. The law, aimed at businesses, requires companies to enhance the considerations when it comes to process personal data. It also ensures the competency of data processors by introducing requirements for organizational training, implementing precautions to protect personal data from loss, damage, modification, disclosure or unauthorized access.
The law also restricts how personal information may be processed, and regulates how direct marketing activities can be performed by requiring explicit consent from individuals. When data services are provided to minors, or the personal data of children is processed, organizations must outline the scope of the data processing operation and obtain consent from a parent.
The government agency responsible for the supervision of Data Privacy in Qatar is the National Cyber Governance and Assurance Affairs, a division of the National Cyber Security Agency (NCSA).
AI regulation
The State of Qatar is rapidly advancing in the adoption of Artificial Intelligence. Its regulatory environment has started to be put in place: In 2019, the Ministry of Communications and Information Technology (MCIT) published Qatar’s National AI Strategy. In June 2024, NCSA launched the Guidelines for Secure Adoption of Artificial Intelligence (AI). The use of critical emerging technologies such as AI is perceived to be critical for the future development of Qatar, its rapidly adoption aims to fulfil the national development goals established in Qatar’s National Vision 2030.
Cyber Security
As part of its NDS3, Qatar aims to become a leading country in the region and the world in cybersecurity. NCSA is leading this effort and has become an active regional and international actor in the sector. In September 2024, the NCSA presented the National Cybersecurity Strategy for 2024-2030, the strategy is developed around five pillars: Cyber Resilience; Legislation, Regulations, and Law Enforcement; Data-Driven Economy; Workforce Talent Development; and International Cooperation.
Cross border data flows
In June 2022, the Cloud Policy Framework was published by the Communications Regulatory Authority (CRA), part of the Qatari Ministry of Communications and Information Technology. The framework defines a set of policies and regulatory recommendations to promote best practices and to establish a cloud-friendly environment for foreign and domestic investments in data centers and cloud services. It indicates from an operational perspective, date is no longer necessary for data to be stored locally, but it promotes the use of more efficient and secure principles, such as the use of encryption, anonymization, and security certifications.
Online harms regulation
In September 2014, Qatar issued its Cybercrime Prevention Law to define, identify, denounce and prosecute crimes in the cyber space such as cyber blackmail, identity theft, hacking, phishing, cyber bullying and online harassment. These conducts are considered serious offenses and if prosecuted have severe fines and legal consequences for offenders.
Standards development
As part of the GCC Customs Union, Qatar works with other member states toward unifying custom standards and conformity assessment regimes. Nonetheless, each member state applies its own existing standards until a uniform GCC standard is set and locally ratified. The Embassy commercial team has received periodic concerns of European standards being favored over U.S. standards.
Market entry
The Qatari government established business incubators and free economic zones to attract foreign direct investment. The Qatar Financial Centre (QFC) and the Qatar Science and Technology Park (QSTP) provide environments for international companies and institutions to operate under certain free zone-type conditions. The criteria and limitations to operate in these environments are stringent. Foreign investors interested in setting up in the QFC must only carry out permitted activities. On the other hand, the QSTP is restricted to entities engaged in research and development activities in Qatar. Interested parties must submit applications for assessment of eligibility to establish a corporate presence in either area. In addition, Manateq, a national initiative encompassing special economic zones, industrial zones, logistics parks, and warehousing parks, aims to attract enterprises with various infrastructure incentives. Recommended industries for each zone vary, but generally include construction, building materials, metals, chemicals, plastics, petrochemicals, food manufacturing and storage. The Qatar Free Zones Authority, established in 2018, is accepting investment applications in two free economic zones, which are co-located with Qatar’s primary airport and seaport. Recommended industries for these zones include logistics, consumer products, light manufacturing, ICT, pharmaceuticals, maritime industries, and plastics. Incentives include tax exemptions, zero customs duties, full repatriation of profits, and potential access to a $3 billion government-backed fund for strategic investments in the free zones.
Public Sector Procurement
Procurement Law 24/2015 aims to promote a fair, transparent, simple, and speedy tendering process. The law removed the Central Tendering Committee and created a Government Procurement Department within the Ministry of Finance which has oversight responsibility over most government tenders; the Qatar Investment and Trade Court also plays that role. The law also called for the forming of committees for tender disputes resolution, allowing two-stage tendering, and providing performance bond waivers for SMEs. Nonetheless, there are some persistent concerns regarding transparency in procurement by government entities, particularly due to a lack of clarity in the conditions and criteria of tenders, improper notification or explanation to non-qualifying companies, and the inability of bidders to formally challenge awards. Qatar gives preferential treatment to suppliers using local content in bids for government procurement. Bids for government contracts that contain goods with Qatari content are discounted by 10 percent. Participation in tenders with a value of QAR 5,000,000 ($1.37 million) or less is limited to locally registered contractors, suppliers, and merchants. The Government Procurement Department also created a website, Government Procurement Services, to consolidate all tenders with the goal of providing relevant information to interested bidders; unfortunately, not all government tenders are posted on this portal. Qatar is not a signatory to the WTO Agreement on government procurement.
Digital Trade Barrier
The Qatari Government requires a license for telecommunications and VoIP services providers; however, it grants licenses only to companies intending to charter in Qatar. The Telecommunications Law 34 of 2006 makes it illegal for any person to provide telecommunications services to the public for a direct or indirect fee without a license issued by ictQATAR for that purpose.
This requirement serves as a barrier for foreign or Internet-based communications service providers. Ooredoo and Vodafone Qatar are Qatar’s only VoIP and telecommunications service providers, and both are majority-owned by state-controlled entities.
Digital Trade Opportunities
Cross-Sector Enabling Technologies
The Qatari ICT ecosystem comprises important structural elements including state-of-the-art infrastructure (fiber optics, high-speed internet, 5G mobile network, and other ICT hardware). The Qatari ICT market is currently estimated at $6.25 billion in value and will continue to grow in the future given the Qatar Digital Strategy, creating an opportunity rich environment for U.S. businesses to enter the ICT sector. There is international competition in the market, with Chinese firms playing a significant role in 2022 Men’s FIFA World Cup stadium construction and now competing in other sectors ranging from electric vehicles to the ICT sector.
Human-Machine Interfaces
Qatar’s Human Machine Interface (HMI) market is thriving due to the increasing demand for efficient human-machine interaction across sectors like manufacturing, utilities, and healthcare, with increased integration of HMI technologies indicating a positive trajectory. The HMI market in Qatar is growing due to automation adoption and the need for intuitive interfaces. Key sectors like oil and gas, manufacturing, and utilities are driving this growth. Emphasis on user-friendly interfaces, real-time data visualization, and process optimization is driving the market’s growth in Qatar.
The Qatari HMI market faces challenges due to rapid technological advancements, user interface design, and seamless integration. The demand for intuitive interfaces in industrial applications demands continuous innovation, compatibility issues, and robust cybersecurity features. Addressing these challenges is crucial for successful HMI adoption in the Qatari industrial landscape.
Artificial Intelligence
Qatar’s AI market has grown significantly in recent years. The AI market is estimated at over $400 million and is expected to grow rapidly in the next five years. Qatar aims to leverage its fossil fuel economic advantage to transition into a knowledge-based economy. Qatar has recently announced $2.4 billion incentive package to bolster AI capabilities and move toward a
comprehensive digital transformation by investing in technology, innovation, and AI. In addition, significant investments from multinational companies in the sector are strengthening the capabilities and drawing global tech leaders to Qatar.
5G Mobile Telecommunications
Information communication technology (ICT), internet access, 5G and 6G
There are two telecommunication service providers in Qatar:
- Ooredoo Group: A Qatar-based telecom giant with a strong presence in local and regional markets.
- Vodafone Group: An international telecom powerhouse with a significant role in Qatar.
With the launch of “5G Supernet” Qatar in 2018, Ooredoo became the first company in the world to introduce a live, commercially viable 5G network. In 2020, Vodafone went on to launch the 5G network. Qatar’s highly developed telecom sector provides near-universal fiber broadband and 5G coverage. Qatar is ranked first in the world for mobile internet speeds nearly 335 Mbps and the entire population is covered by 5G and fiber connectivity. Qatar is ranked among the top globally in the International Telecommunication Union, Information and Communications Development Index.
Qatar’s impressive connectivity not only provides a solid backbone for nationwide digital transformation but has attracted the world’s global hyperscalers to expand their infrastructure across the region. At the start of 2023, there were 2.68 million internet users in Qatar with a 99 percent internet penetration, and 4.89 million mobile phone connections equivalent to over 180 percent of the total population.
Qatar’s telecom regulator Communication Regulatory Authority (CRA) has set the 3G services shutdown by the end of 2025, aiming to optimize utilization of current radio spectrum resources to support and enhance the performance of 4G and 5G networks.
Qatar’s smartphone market is experiencing a surge in demand for high-end devices, driven by country’s affluent population and their preference for the latest technology. With Qatar being at the forefront of technological advances and given the strong GDP per capita, demand for 5G services is predicted to be strong in the future.
Ooredoo and Nvidia signed an agreement to install thousands of Nvidia Tensor Core GPUs in its AI data centers. To take advantage of the expanding opportunities in generative AI and accelerated computing, this partnership intends to offer GPU-as-a-Service to government and enterprise customers in several Middle Eastern countries. The business is also making investments to grow its data centers. Ooredoo is reportedly investing heavily to increase its data center capacity by 20–25 megawatts, with plans to triple this capacity by the end of the decade, per media reports.
Wi Fi 6E
Qatar’s Communications Regulatory Authority (CRA) designated the lower half of the 6 GHz band (5925–6425MHz) for RLAN use in 2022, including Wi-Fi. The State of Qatar will benefit economically from opening the entire band (5925-7125 MHz).
Specific Industry Sub-sectors:
Quantum Technologies
Qatar is investing in quantum computing, a technology that has immense potential for solving complex problems faster and more efficiently than classical computers. This advancement is impacting cryptography, drug discovery, finance, logistics, scientific research, and supply chains as it develops further. The government has invested $10 million towards Qatar Center for Quantum Computing at the Hamad Bin Khalifa University. Ooredoo Group has invested $0.75 million to support the initiative. Qatar’s investments demonstrate its commitment to advancing technological research and development.
Cybersecurity
In preparation for the 2022 FIFA Men’s World Cup, Qatar made significant investments in cybersecurity to support the event, which elevated the cyber-profile of the country and allowed it to host a successful and safe world-class event. Qatar’s Cybersecurity Framework was published in 2018. Despite its relatively small population, the Qatari market remains as some of the fastest growth in cybersecurity spending in the GCC in 2023-24. Qatar’s implementation of e-government and digitization solutions will facilitate public sector investment in cyber-solutions. The Qatari cybersecurity market was estimated at over $1.1 billion in 2023 and is expected to reach $1.6 billion by 2027.
Communications and Networking Technologies
Qatar’s communications and networking technologies market is expected to grow due to factors such as ICT modernization, IoT adoption, and the growing demand for mobility solutions. The market was valued at US$13.30 billion in 2023 and is expected to reach US$25.12 billion by 2028. The communication services market is projected to reach US$2.5 billion in 2024, with mobile data dominating. The consolidation and modernization of IT infrastructure is essential for streamlining operations and improving efficiency. Network infrastructure includes routers, broadband access, enterprise telephony, and infrastructure firewalls.
Digital Economy-related trade events
World Summit AI MENA 2024
Date: December 10-11, 2024
Venue: Doha Exhibition and Convention Center
Quantum.Tech
Date: January 13-15, 2025
Venue: Marsa Malaz Kempinski, The Pearl-Doha
Qatar Web Summit 2025
Date: February 23-26, 2025
Venue: Doha Exhibition & Convention Center