From HydroCarbon to Hightech: Mapping the Economic Transformation of Qatar

Selected Issues Papers, February 21, 2024

Source details

Canonical URL: From HydroCarbon to Hightech: Mapping the Economic Transformation of Qatar

Authors: Chandana Kularatne, Ken Miyajima, Dirk V Muir
Publication date: February 21, 2024
Purpose: Identify key structural reforms needed for Qatar’s transition from a state-led, hydrocarbon intensive growth model toward a more dynamic, diversified, knowledge-based, sustainable, and private sector-led growth model; quantify potential economic impacts of reforms; inform design of a comprehensive reform agenda as Qatar finalizes its Third National Development Strategy to achieve National Vision 2030.

Qatar’s existing growth model has delivered rapid growth and substantial improvements in living standards over the past several decades.
Labor market reforms could bring substantial benefits, particularly reforms related to increasing the share of skilled foreign workers.
Reforms to improve the business environment, such as improving access to finance, could have large growth impacts.
A comprehensive, well-integrated, and properly sequenced reform package that exploits complementarities across reforms could boost Qatar’s potential growth significantly.

Labor market reforms:
- Increase the share of skilled foreign workers.
- Reform measures that enhance labor market participation and skills composition.
Business environment improvements:
- Enhance access to finance for firms, including Qatari small and medium-sized enterprises.
- Implement reforms that lower barriers to private-sector-led growth and foster innovation.
Reform sequencing and integration:
- Design a comprehensive, well-integrated, and properly sequenced reform package to exploit complementarities across reforms for maximal growth impact.

Subject areas: Climate finance, Education, Environment, Gender, International organization, Labor, Labor force participation, Labor market reforms, Monetary policy, Women
Keywords: Climate finance, Economic diversification, economic transformation, emission reduction target, Global, growth impact, growth model, Labor force participation, Labor market reforms, private sector development, Qatar, Qatari small and medium-sized enterprises, sequenced reform package, structural reform, Women