Qatar’s Rising Inward Investment: A Focus on Professional Services
Updated: Sep 15
Contents
Qatar’s stock of inward foreign direct investment (FDI) reached QR172.2 billion, approximately $47.2 billion, at the end of March. This marks a 3.3 percent increase from the previous quarter, according to a survey published by the National Planning Council on 9 August, in collaboration with the Qatar Central Bank. Meanwhile, Qatari investment abroad rose by 3.5 percent during the same period, reaching QR221.7 billion. This leaves the country’s outward investment roughly QR49 billion larger than its inward position.
The headline figures are impressive. However, the composition of these investments tells a deeper story. Five sectors account for over 90 percent of the inward stock: mining and quarrying at 45.3 percent, financial and insurance activities at 31.9 percent, manufacturing at 13 percent, information and communication at 2.8 percent, and professional, scientific, and technical activities at 2 percent.
Two figures stand out: 45.3 and 2.
A Target Denominated in Dollars
Qatar’s Third National Development Strategy aims for $100 billion in foreign direct investment by 2030, positioning itself among the world’s top ten business environments. To achieve this, a robust promotional strategy has been implemented. This includes a $1 billion incentives programme launched in May 2025, which covers up to 40 percent of eligible local investment costs over five years. Additionally, Invest Qatar has representatives stationed in key cities such as London, New York, Paris, Mumbai, and Istanbul.
In 2025, the agency reported $3.4 billion in project capital expenditure across 373 projects, generating 15,051 jobs. Notably, more than half of this spending was directed towards greenfield ventures, with nearly half of all projects classified as medium to high technology.
While project capital expenditure and balance of payments stock are different measures, they both indicate a positive trend. Qatar is increasingly attracting mid-sized, knowledge-intensive projects, while its capital base remains anchored in hydrocarbons and finance.
The Competition Next Door
These projects are highly competitive. In 2025, Saudi Arabia recorded SR133 billion in FDI inflows and has attracted over 700 multinationals to relocate their regional headquarters to Riyadh. This is supported by a 30-year zero corporate income tax policy on qualifying headquarters activities. According to UNCTAD’s balance of payments measure, the UAE led GCC inflows in 2024 with $45.6 billion, followed by Saudi Arabia at $15.7 billion. For companies planning to enter the Gulf market, this competitive landscape often dictates the order of entry, with the first market entered typically becoming the regional base by default.
Enter Once
This competitive environment is the gap that Licorne Gulf Holding, a Doha-headquartered investment group led by founder and president Irina Duisimbekova, has strategically focused on. The firm’s position is that dual entry into markets is more advantageous than sequential entry. They employ a mirrored 51/49 joint venture structure in both Qatar and Saudi Arabia. “The companies that win in the Gulf won’t be the ones that enter first,” Duisimbekova noted on LinkedIn this month, adding an important operational instruction: “Standardize the backbone early, or pay for the mess later.”
Licorne Gulf’s pipeline reflects this strategy. The firm has signed joint ventures in Qatar with cybersecurity firm Erium, biotech company Nudra, and the San Francisco accelerator Peachscore. On 31 March, it agreed to a green channel with the ZGC-GCC Innovation Partners Program, initiated by China’s Ministry of Science and Technology, to facilitate the entry of Chinese technology companies into Qatar. The group claims to have committed over $600 million to the technology sector in 2025 through direct investments, joint ventures, and post-listing services, a figure they have publicly stated but which remains unverified.
What a Builder Cannot Move
It is essential to acknowledge a significant limitation. A venture builder can increase the number of companies operating in a market, but this does not necessarily change the share of capital they represent. Qatar’s 45.3 percent mining weighting reflects the scale of investment in the North Field, and hydrocarbons will likely continue to absorb the largest investments for the foreseeable future. Sectors like cybersecurity, biotech, and applied AI ventures may not significantly alter a stock measured in tens of billions of dollars, especially when Qatar’s target is set in dollars.
This brings us back to the 2 percent figure. Professional, scientific, and technical activities are where knowledge transfer is genuinely reflected in the national accounts. This category is the smallest of the five sectors reported by the National Planning Council. The council’s secretary general, Abdulaziz bin Nasser bin Mubarak Al Khalifa, has emphasized the need to accelerate investment growth in non-hydrocarbon sectors. This focus on composition rather than volume presents a more complex challenge.
The Path Forward
As we look ahead, the challenge remains clear. Qatar must diversify its investment landscape to reduce reliance on hydrocarbons. The focus should be on nurturing sectors that promote knowledge transfer and innovation. This will not only enhance the economy but also position Qatar as a leader in various industries.
Investors and businesses must remain agile and informed. The landscape is evolving, and opportunities are emerging in sectors previously overlooked. By fostering partnerships and embracing innovation, we can create a sustainable future for Qatar’s economy.
In conclusion, Qatar's investment landscape is vibrant and full of potential. The emphasis on professional services and technology sectors is crucial for sustainable growth. As we navigate this complex environment, let us remember that collaboration and strategic planning are key to unlocking new opportunities.
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