The Market

QATAR'S MANUFACTURING SECTOR IS POISED FOR A TRANSFORMATIVE ERA AS IT EMBARKS ON A PATH OF ACCELERATED GROWTH, DRIVEN BY THE GOVERNMENT'S STRATEGIC INITIATIVES AND ONGOING EFFORTS IN ECONOMIC DIVERSIFICATION. BY 2025, THE SECTOR IS EXPECTED TO EMPLOY OVER 101,000 PEOPLE, A SIGNIFICANT INCREASE FROM THE 85,000 EMPLOYED IN 2019. THIS GROWTH REFLECTS THE GOVERNMENT'S COMMITMENT TO EMPOWERING SMALL AND MEDIUM ENTERPRISES (SMES) AND EXPANDING NON-HYDROCARBON EXPORTS.

A recent KPMG report titled "Qatar Industrial Landscape 2.0: Resilient and Stronger" forecasts a 30% increase in the sector’s production value between 2019 and 2025. The number of manufacturing establishments is also projected to rise, with a compound annual growth rate (CAGR) of 1.2%, reaching 3,486 by 2025.

Economic diversification is at the heart of Qatar National Vision 2030, with a clear focus on reducing dependence on hydrocarbons and bolstering other sectors, including manufacturing. Despite a 16% contraction in 2020 due to the COVID-19 pandemic, which affected production and consumption, the sector is on track for a robust recovery. By 2025, manufacturing’s contribution to Qatar’s GDP is expected to rise from 7.8% in 2019 to 9.4%, signaling a stronger and more resilient economy.

The growth of the manufacturing sector is further supported by parallel developments in mining and quarrying, with an expected 6% CAGR in production value, largely driven by enhanced natural gas production capacity. This sector alone is anticipated to employ 40,000 workers by 2025.

In the high-tech sector of electric vehicle manufacturing, it has established a hub to pioneer and develop Plug&Play component research, developing and testing prototypes and provided an environment to test mobility vehicles and emerging technologies across buses, vans, and small vehicles. Qatar offers a breadth of incentives to foreign investors such as but not limited to tax exemptions, land allocation, regulatory exemptions, energy supply for manufacturing, and financial support, which can be tailored to meet your needs based on the requirements of your investment proposal.

A strong aviation sector, driven by Qatar Airways, the country’s award-winning airline, a focused National Manufacturing Strategy and unparalleled market access and connectivity position Qatar as an idea manufacturing destination for aerospace additive manufacturing.  Foreign investors looking for opportunities in the 3D manufacturing of aerospace parts can benefit from Qatar’s commitment to establishing advanced manufacturing value chains locally, regionally and globally. 

Qatar is inviting leading global prototyping and healthcare parts manufacturers to setup an additive manufacturing facility with the capabilities to prototype, fabricate and post process medical consumables and device parts.

The Qatari market for medical additive manufacturing boasts strong growth primarily driven by demand from healthcare. This is aligned with the rapidly growing healthcare sector as evidenced by the state’s spending on healthcare per capita being the highest in the MENA region, the 88% expected growth in the number of healthcare centers and facilities between 2020 and 2022. The market also has a robust ecosystem for manufacturing with significant access to base materials, and home to the first model factory in the GCC that offers hands-on training to help corporations achieve operational excellence. In addition, Qatar’s unparalleled market access and connectivity mean that local production will have access to significant local and regional demand. Overall, Qatar is an ideal manufacturing destination for medical additive manufacturing.

Qatar is a thriving economy that offers robust, competitive, and attractive business opportunities. Its rapidly growing healthcare sector along with the country’s robust business ecosystem, world-class infrastructure, strategic location, and unparalleled connectivity make it an ideal location for vaccine manufacturing.