The U.S. Department of State’s Investment Climate Statements provide information on the business climates of more than 170 economies and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses.

Topics include Openness to Investment, Legal and Regulatory systems, Dispute Resolution, Intellectual Property Rights, Transparency, Performance Requirements, State-Owned Enterprises, Responsible Business Conduct, and Corruption.

These statements highlight persistent barriers to further U.S. investment. Addressing these barriers would expand high-quality, private sector-led investment in infrastructure, further women’s economic empowerment, and facilitate a healthier business environment for the digital economy. 

Executive Summary

Qatar is one of the world’s largest exporters of liquefied natural gas (LNG) and has one of the highest per capita incomes in the world. Qatar’s gross domestic product (GDP) reached $236 billion in 2022, an increase of 4.2 % year-on-year in real terms, owing to higher hydrocarbons sales and the output of economic activities related to Qatar’s hosting of the 2022 FIFA Men’s World Cup.
 
According to the International Monetary Fund’s (IMF) projections, Qatar’s real GDP is projected to increase by 1.9% in 2024. This positive outlook is driven mainly by QatarEnergy’s ambitious plans to expand LNG production by more than 85 % starting in 2026-2027. Qatar’s government projects a budgetary surplus of $300 million in 2024, based on a conservative oil price assumption of $60 per barrel.

The government remains the dominant actor in the economy, though it encourages private investment in many sectors and continues to take steps to encourage more foreign direct investment (FDI). The primary driver of Qatar’s economy is the energy sector, which has attracted tens of billions of dollars in FDI. 

In line with the country’s National Vision 2030 goal of establishing a knowledge-based and diversified economy, the Government of Qatar (GoQ) introduced reforms to its legislation governing foreign investment, foreign property ownership, and public-private partnerships in 2018, 2019, and 2020 respectively. These reforms notably allow up to 100 % foreign ownership of businesses in most sectors and real estate in newly designated areas.

Significant opportunities for foreign investment exist in infrastructure, healthcare, education, tourism, energy, information and communications technology, and the service sector. The government allocated $16 billion for major projects in most of these sectors in 2024. Measured by the amount of inward FDI stock, manufacturing, mining and quarrying, finance, and insurance are the primary sectors that attract foreign investors.
 
The government provides various incentives to attract local and foreign investments, including temporary exemptions from customs duties and certain land-use benefits. The corporate tax rate is 10 % for most sectors, and there is no personal income tax. One notable exception is the corporate tax of 35 % on foreign firms in the extractive industries, including but not limited to those in natural gas extraction.

The GoQ has established measures to improve its human trafficking legislation, address forced labor, and set a minimum wage, but the country continues to face challenges that may affect foreign businesses. These challenges include slow monitoring and judicial systems for labor disputes, restrictions on free expression and peaceful assembly, a prohibition on collective bargaining for foreign nationals, discrimination against women in law and practice, reports of “pay-when-paid” contracting, and cases of forced labor.

To curb corruption and anti-competitive practices, the GoQ created a regulatory regime consisting of various enabled government agencies, including the Transparency Authority, the National Competition Protection Authority, and the Anti-Monopoly Committee. To improve transparency, the government streamlined its procurement processes in 2016, creating an online portal for all government tenders. Nonetheless, personal connections reportedly play a significant role in concluding business deals.

In recent years, Qatar has significantly bolstered its U.S. investments through its sovereign wealth fund, the Qatar Investment Authority (QIA), and its subsidiaries, notably Qatari Diar. QIA has allocated over $45 billion to U.S. investments; it opened an office in New York City in 2015. The U.S.-Qatar Strategic Dialogue, currently in its sixth iteration, works to further strengthen strategic and economic partnerships and address obstacles to investment and trade.

View the complete 2024 Qatar Investment Climate Statement.