Tribune News Network
Doha
Becoming an attractive destination for international capital after the domestic investment boom around the FIFA World Cup 2022 is a strategic objective for Qatar, according to Omar Alfardan, Managing Director of Commercial Bank.
In an interview with World Finance Magazine, Alfardan said, “Qatar is positioning itself as a gateway to larger regional markets by establishing trade and investment agreements with neighbouring countries. This strategy amplifies Qatar’s appeal to international investors.”
Qatar is aiming to create an ever more attractive business environment to boost foreign investment and domestic employment. The country is considered to have one of the least demanding tax frameworks in the world, and is in the process of enhancing its regulatory framework to offer a more transparent, predictable and welcoming environment for investors.
Technology also plays a key role in Qatar’s new economic ambitions. A growing number of incentives are in place for tech-start ups and research and development centres, in an effort to foster a thriving culture of innovation and entrepreneurship. Increasingly, the country is seeking to develop a knowledge-based economy, with new technologies at its core, and has set itself specific targets when it comes to training Qatari nationals and upskilling its workforce to prepare for both the challenges and opportunities of the future. Like many fast-growing economies across the globe, a complete and comprehensive digital transformation will be central to Qatar’s future development.
As climate change continues to climb up the global agenda, Qatar is making sustainable development a key priority. While its oil and natural gas reserves remain central to the nation’s economy in the short and medium term, Qatar is actively taking steps to reduce its reliance on hydrocarbons and embrace a more sustainable future. And the country isn’t just motivated by global sustainability efforts in this area - with 97 percent of the Qatari population living in urban areas along the coast, the nation is particularly vulnerable to rising sea levels, while its arid desert climate also places it at risk of extreme heat and drought. Transitioning to a more sustainable economy is therefore not just a moral imperative, but key to the country’s long-term survival.
“Qatar has made significant progress in recent years in advancing renewable energy and energy efficiency initiatives,” Alfardan tells World Finance. “This strategic commitment aligns with the nation’s goals to diversify its energy sources, reduce its carbon footprint and contribute to global sustainability efforts.”
In recent years, Qatar has launched several renewable energy projects, including the development of solar and wind power facilities, which harness the strengths of the country’s desert climate. The Al Kharsaah Solar Plant, located 80km west of the capital city of Doha, is now one of the largest solar plants in the word, capable of producing 10 percent of the country’s peak electricity demand. With its abundant sunshine and vast, unoccupied swathes of desert, Qatar is perfectly placed to benefit from solar power, and plants such as Al Kharsaah will be pivotal to its energy supply in years to come.
The nation is also emerging as a world leader in sustainable construction and urban planning.
“Qatar has made significant strides in advancing renewable energy and carbon reduction, positioning itself as a regional leader in sustainable development practices” says Alfardan. “These efforts not only contribute to Qatar’s environmental goals but also enhance its energy security, economic resilience, and its global reputation as a responsible and forward-thinking nation.”
Financing the future
As Qatar embarks on an exciting new chapter in its development, the nation’s banking sector will have an important role to play in supporting this ambitious economic journey. Strong, resilient and well-regarded by international investors, the Qatari banking sector is well placed to drive growth and prosperity as the nation looks to diversify its economy.
Growing the role of the private sector is key to the nation’s diversification efforts. Promoting entrepreneurship, supporting small and medium-sized enterprises (SMEs) and growing the start-up community are development priorities for Qatar, as it looks to transition to an innovation and knowledge-led economy. Quite simply, this cannot be achieved without the right support for the private sector.
“Supporting the next stage of Qatar’s economic journey is a priority for Commercial Bank, and we believe that the banking sector can play a pivotal role in this endeavour,” says Alfardan. “By facilitating investment, empowering SMEs, embracing digital transformation, promoting sustainability and fostering collaboration, we aim to be a catalyst for economic growth, innovation and prosperity in Qatar.”
Indeed, Commercial Bank is taking a multifaceted approach to supporting private sector growth in Qatar. It provides a broad range of tailored financial solutions for both local and international investors, with a view to helping businesses thrive and expand. Specialised investment advisory services, competitive lending terms and structured finance solutions all help to make Qatar a more attractive place to invest.
SMEs and small start-ups, meanwhile, require their own forms of targeted support. They are vital drivers of economic diversification and job creation, and therefore form the very foundations of the innovative, knowledge-based economy that Qatar wants to create. Through effective financial and non-financial support, Qatar’s burgeoning SMEs can flourish and grow.
“We are committed to empowering SMEs by providing access to capital, financial advice, and specialised banking solutions that cater to their unique needs,” says Mr Alfardan. “Through this targeted support, we hope to support a culture that fosters entrepreneurship and innovation, in line with Qatar’s economic diversification goals.”
Harnessing technology
Innovation is a defining principle of Qatar’s National Vision 2030. As the country looks towards its future, harnessing the benefits of technology will be crucial in order to reach its goals. Already, technology has transformed Qatari society, with the nation having the highest levels of social media usage in the world. Internet penetration has reached 99 percent in Qatar, and the gulf state is making a name for itself as one of the world’s leading countries for new technology adoption and investment. Its “smart city” infrastructure boasts 5G technology and fibre-optic networks as standard, making it quick and simple for businesses and individuals to stay connected online. Start-up hubs such as the Qatar Science and Technology Park continue to attract leading tech firms such as Microsoft, Siemens and Cisco, with foreign investment and international talent flowing into Qatar at an impressive rate.
Qatar’s tech transformation is well underway, and businesses need to make sure that they don’t get left behind as the nation races towards a digitally-driven future. By embracing new and emerging technologies such as Artificial Intelligence, data analytics and robotics, companies can enjoy enhanced efficiency and productivity, reduced operating costs and improved communication services, among other benefits. But unlocking these benefits and successfully integrating new technologies into a business is not necessarily an easy task. When it comes to finances in particular, it is essential that any digital transactions are as seamless as they can be.
Commercial Bank is committed to helping its customers reach their digital goals. Its powerful and convenient digital platforms enable businesses and individuals to carry out their financial transactions quickly and efficiently, while its investments in innovative banking solutions give customers a range of choices to suit their individual needs.
“We are committed to evolving alongside our changing customer needs and preferences,” explains Mr Alfardan. “We are continually enhancing our digital technology capabilities to ensure that we offer the right products. In this way, we can help our customers to reduce their reliance on traditional banking interactions, freeing up more time in their day. Our ultimate goal in this ongoing digital transformation is to provide an exceptional, personalised customer experience.”
From mobile payment solutions to biometric authentication methods, Commercial Bank is always looking for new opportunities to enhance the customer experience. Last year, the firm partnered with retail giant Lulu Group to trial the first cashierless check-out system in Qatar, all powered by Commercial Bank’s innovative payment systems. The first-of-its-kind project demonstrated the bank’s commitment to digital innovation, and to meeting the ever-changing needs of its customers. For its efforts in the digital space, Commercial Bank has been recognised with a number of awards, including being named the “Most Innovative Bank” in the Middle East by World Finance.
“In today’s rapidly evolving financial landscape, banks that fail to innovate and adapt risk losing ground to more agile competitors,” explains Mr Alfardan. “That’s why digital transformation is a central pillar of our five-year strategic plan. Our solutions blend advanced technology with a deep understanding of customer needs, ensuring a superior banking experience for every service.”
Showing resilience
The global economic outlook has remained gloomy for some time. Last year proved to be a particularly turbulent time for the world economy. Inflation remained persistently high, with food and energy particularly affected, and many developed economies found themselves teetering on the edge of a recession. While Qatar enjoyed a substantial economic boost from hosting the 2022 World Cup, its growth has moderated over the course of 2023, showing that no country is completely immune to global economic headwinds.
However, despite these ongoing macroeconomic challenges, Qatar is demonstrating remarkable resilience. Looking to build on the momentum of the World Cup, the nation shows no signs of slowing down when it comes to achieving its Vision 2030 missions, and the economic outlook for Qatar looks decidedly more upbeat than for many other countries in the developed world.
“We know that some economic volatility is expected to persist in 2023 and beyond,” says Alfardan. “Nevertheless, Commercial Bank’s strategic plan will allow us to effectively confront these immediate challenges and navigate the longer-term landscape.”
In fact, amid wider global economic uncertainty, Commercial Bank is experiencing significant growth in a number of key business segments. Its corporate banking division continues to thrive, and offers a comprehensive suite of financial solutions to meet the diverse needs of its customers. Likewise, the bank has experienced an increased appetite for its wealth management products and services, and is pleased to be able to assist its customers in their unique financial journeys.
“From early adulthood through to retirement and beyond, Commercial Bank works with its customers to proactively manage their finances, set realistic goals and make informed decisions,” Alfardan explains. “Our customised solutions support customers with a variety of aims - whether that be saving for education, purchasing a home, or planning to start a family. And with a long history in the Qatari finance and investment sector, Commercial Bank is a well-established expert when it comes to achieving financial goals.”
