File photo used for representation only.
The manufacturing industry has contributed over QR10bn to Qatar’s GDP in the fourth quarter of 2020, according to a tweet by the Ministry of Commerce and Industry (MoCI).
The infographics posted on the Ministry’s official Twitter handle also indicate that Qatar added 16 new factories to its manufacturing sector.
A recent KPMG report stated that Qatar’s efforts to promote local manufacturing are expected to boost production value for the sector by approximately 30 percent in the next few years. The growth in the industry would create over 100,000 job opportunities by 2025, the report added.
According to the ‘Industry Indicators First Quarter 2021’ infographics posted yesterday, QR10.254bn from manufacturing industries improved the 2020 Q4 GDP and added 1,038 workers.
In other indicators of the growing sector, the rate of compliance of factories with industrial requirements was put at 80 percent. Also, Industrial Development Services are delivered at an average time of four days.
Industrial-Manufacturing Production Index in January 2021 reached 108.6 while Industrial Production Index (IPI) was 107.1
Qatar’s diversification drive from a carbon-based economy into a more sustainable model has seen the rise of other sectors like tourism, fintech, banking, agricultural production, and, more importantly, the manufacturing industry.
Also, through the Qatar National Manufacturing Strategy 2018-2022, which aims to accelerate growth in the sector to develop and diversify the Gulf state’s economy, Qatar launched the comprehensive plan to provide the conditions necessary for a vibrant manufacturing sector.
In 2019, the government took new measures to encourage foreign direct investment (FDI), including legal changes to allow 100% foreign ownership of companies in most sectors, excluding financial services and insurance.
The strategy is based on nine enablers that would help redefine the manufacturing landscape in Qatar. It identifies seven strategic manufacturing sub-sectors: polymers, plastics, aluminium, additive manufacturing, food & beverage, pharmaceutical, and extreme environment services. Qatar currently has over 900 running factories, a significant increase of six percent from 2019.
