Qatari Business Beyond 2017

Qatari Business Beyond 2017

An independent viewpoint by Ruknudin Abdulla, Doha

5th June 2017 has changed everything what G.C.C. was initially about unity in Political, Economical, Social, Technological, Legal and Environmental aspects. The member countries of the council enjoyed unique prosperity because of their economic diversity. This article shares a viewpoint on Qatar's future business landscape as an impact of Qatar-Gulf crisis. 

Qatar being the richest in per capita, largest LNG exporter, having strong sovereign fund investments and cash rich, enjoyed a quality lifestyle making maximum number of millionaires in the world. But neighboring brothers failed to understand the tiny Qatar of its intellectual and political strategic capability.

More than 90% of the items we see in Qatar are imported from all around the world. U.A.E. and Saudi Arabia being strong regional supply-chain partners. By imposing a land, sea and air blockade by neighbours, they not just announced a diplomatic war but also an economic war by cutting down the artery of supplies.

Let me not get into the reasons and logics of blockade as it is complex, lacks clarity and facts are misrepresented. There are plenty of discussions and debates for and against taking place in the courts of media. The sole purpose of this article is to share how Qatar would benefit if they capitalize on the present situation.

Qatar National Vision 2030 emphasis on four pillars: Human development, Economic development, Social development and Environment Development. Developed in 2008 with an aim of ‘ Qatar into an advanced society capable of achieving sustainable development’ by 2030. The Emir, leaders and governments have succeeded in adopting the QNV 2030 at institutional level. However,  success at individual level was lower for various reasons, which has been a stress point.

The blockade has triggered the nationalism and patriotism not just in Qatari but also among expats. A time for individuals to realize, realign and reassure to QNV 2030. As an impact many citizens and residents cancelled the summer holidays to address the crisis. The expected inflation, scarcity and uncertainty didn't pull back Qataris or its residents. “Glorious Tamim” portrait of Emir created by Qatari artist Ahmed bin Majed Al Maadheed was accepted by the country and its people irrespective of ages as a symbol for unity and support in the moment of uncertainties.

The courage, wise Qatari leadership took and passed on to its community was at vast. This resulted in massive commitments mainly in food security. A Qatari businessman had announced to airlift 4,000 cows to Qatar to assure milk supplies urgently. The government announced a hashtag ‘Own your factory in Qatar within 72 Hours’, and invited potential investors which accepted by 9,349 applicants. 

Qatar Government is opening the economy for foreign investments and professionals. The landmark decisions for providing visa-free entry for nationals of 80 countries and also introducing Permanent Resident status indicate a positive approach towards freeing up the economy to be self-sufficient and to diversify away from Oil & Gas. The state of art logistics infrastructure of Qatar is ready to take up the challenge. 

There are numerous downsides of the blockade; many business entities had a big fiscal and operational shock. Dubai has been a strategic trading partner, and many businesses relied on Dubai for immediate supplies. The blockade created a demand for material across all the industries, which resulted in a stress. However, the strong efforts by the Government and Business community have opened up supplies from alternative markets on a war footage and government relaxed the customs clearance formalities for a seamless flow of goods.

Those specialized companies who have invested in warehousing and building up stock would take the direct benefit of the situation. Businesses which are unorganized and purely depended on neighboring countries would cease operation or need change their business model for survival. Qatari based professional service providers are expected to gain market share, because of limited access from Dubai.

In the long run, the imports of foods will have a diminishing tread as the local companies are gearing up production capacity as part of food security and sustainability. Opening advanced food warehousing, processing units and distribution sector will definitely change the taste buds and choices of the residents in coming years.

E-Commerce, Security, Textiles, Manufacturing, Professional training, Tourism, Information technology are expected to have a boost in coming years. There is a disruption in the market, but once the new supply chain completed a full cycle; we expect the market would become stable.

We all know, the success story of Singapore, after Malaysia’s decision to expel Singapore from its Federation. If Qatar stay focused and continue to strategically approach current situation, undoubtedly the business and lifestyle in Doha would be flourished like Hong Kong, Singapore, New York and Tokyo in the near future.