By Bassam Hajhamad, Qatar Country Senior Partner & Qatar Consulting Lead at PwC Middle East

Qatar's rise to global prominence: National Development Strategy 3 (NDS-3) - A government roadmap for sustainability and prosperity

Blog
3 minute read
January 24, 2024

This was first published on Qatar Tribune.

As a nation that rose to global attention following the resounding success of the FIFA World Cup 2022 combined with its active and balanced geo-political role in the region and globally, Qatar has continued to captivate the world with its big ambitions. As part of its Qatar National Vision 2030 (QNV 2030), Qatar launched its third National Development Strategy (NDS-3) this month, to pursue a new age of progress and development by strengthening both physical and digital infrastructure, pushing forward its government excellence program, labour policy, national upskilling, and diversification strategy to advance key sectors like tourism and hospitality,with a focus on strengthening the private sector and attracting more Foreign Direct Investment (FDI).

In its recent Article IV mission to Qatar, the International Monetary Fund (IMF) signalled a favourable medium-term outlook, supported by the expansion of LNG production and accelerated transformation journey. By 2030, Qatar is aiming to become a top modernised and diversified society, underpinned by four pillars: human, social, economic and environmental, and continue leading on the following priorities:

Qatar views PPPs as a key strategy to meet its infrastructure development goals, and as such, the Qatar PPP market market is expected to grow in the coming years providing significant opportunities for local and international investors, across various sectors.

The development of the PPP regulatory framework in Qatar aims to facilitate PPP projects across various sectors and assess the feasibility and bankability of various public projects as PPP. The pipeline for the Qatar PPP market is ambitious, with several large-scale projects planned or underway across various sectors. To ensure appropriate institutional capacities are in place to support the PPP agenda, the State of Qatar established a PPP unit to serve as a centre of expertise to launch PPP projects and develop and implement PPP policies. In healthcare for example, PPPs involve the construction and operation of hospitals, clinics, and other healthcare facilities, as well as the provision of related services such as medical equipment and supplies.

Meanwhile in the education sector, Qatar continues to invest heavily in expanding its education infrastructure, following the successful delivery of the first PPP project. PPPs in this sector include the construction and operation of schools, universities, and other educational facilities, as well as the provision of related services such as technology and training. The hospitality sector is another area where Qatar presents significant opportunities for PPP investments. Following the FIFA World Cup, the country is expecting to see an increase in tourism and is investing in the development of new hotels, resorts, and other hospitality facilities. PPPs in this sector involve the construction and operation of these facilities, as well as the provision of related services such as food and beverage.

There are other sectors that provide opportunities for PPP investments in Qatar including transportation, energy, water, social infrastructure, and more. For instance, PPP projects related to car parks, power and water plants, wastewater treatment plants, food security initiatives, and LED lighting are among the areas where private sector investment is and can be leveraged in future even more.

Ensuring harmony between socioeconomic growth and the environment forms an important pillar of QNV 2030. Despite its dependence on hydrocarbons, the country is actively diversifying its local economy to reduce its reliance on fossil fuels, such as the development of the 800MW Al Kharsaah Solar Power Plant, capable of meeting approximately 10% of the nation's peak electricity demand, as well the transition of QatarPetroleum to QatarEnergy.

Additionally, efforts such as the construction of smart cities like Msheireb and Lusail, specifically designed to optimise sustainability and minimise emissions, alongside the implementation of a ban on single-use plastics, signal a shift towards more sustainable consumption habits. The country is aiming to reduce greenhouse gas emissions by 25% by 2030, tying this commitment into the larger global climate goals and the Paris Agreement.

Qatar-based public listed companies have long been encouraged to incorporate environmental, social and governance (ESG) reporting in their disclosures; the Qatar Stock Exchange published ESG guidelines back in 2015 and has indicated that a transition to mandatory reporting is likely.

With the increasing emphasis on sustainability, Qatar must prioritise the development of new skills among its workforce, explore sustainable finance avenues such as green bonds, and fulfil policy requirements for well-structured environmental initiatives.

Addressing these challenges demands a multifaceted strategy involving cooperation among businesses, financial institutions, and regulatory entities. This collaborative effort is essential to formulate holistic solutions that effectively drive the transition towards a more sustainable future.

As Qatar’s booming economy transitions to a knowledge-based one, it must focus on enhancing the skills of the local and expatriate population, particularly in areas such as digitisation, AI and sustainability. In sectors such as manufacturing, we estimate a skills gap of more than 20,000 workers by 2030, compared with 2022.

Qatar has made commendable strides in advancing its labour force over recent years, navigating unique circumstances with a clear vision. As it maintains its path of progress underpinned by digitalisation, sustainability and human development, this momentum will continue to inject the country with success.

At PwC, we continue to act strategically to support the Qatari government and private sector, and take pride in our significant contribution to various national initiatives. We anticipate more opportunities for collaboration in 2024 with the launch of NDS-3, the release of the new budget, and the stronger push to accelerate Qatar transformation. In the years to come, we remain committed to investing in Qatari talent, partnering with Qatari companies, and leveraging our global experience and network to solve local challenges and deliver the desired impact from NDS-3.