According to Zawya article published on April 16, 2023, the Prime Minister noted that he presided over the QIA and witnessed that the major investment funds always followed the QIA’s decisions based on their conviction that such decisions were made after a proper assessment.
Prime Minister and Minister of Foreign Affairs H E Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani has said that Qatar has made great strides in the diversification of the economic base, with the hydrocarbon sector’s contribution to the GDP having decreased significantly compared to other sectors.
Commenting on the country’s economic diversification and preparedness to confront an expected global economic recession in an interview on Qatar TV on Thursday, he said that Qatar is part of the world, and it experienced the global economic crises such as the Asian Financial Crisis in 1997 and 1998, the 2008 international financial crisis that started in the US and the COVID-19 crisis.
“Qatar is perceived internally and externally as a rich country that benefits a lot from its natural resources, but the State of Qatar has economically outperformed the world in terms of inflation rates,” His Excellency said, alluding to the International Monetary Fund’s (IMF) 2022 report that put the global inflation rate at 8.8 percent, while Qatar’s was almost at five percent.
Qatar’s GDP in 1992 was about QR23bn, and it reached QR864bn in 2022, which means that the size of the economy has grown 38 times, he added.
“Qatar, which was on the verge of bankruptcy in the mid-1990s, would not have achieved this economic growth without investing in its gas resources as part of its 2030 vision that depends on the diversification of its economy and income sources.”
He said that the country’s economic diversification is divided into two parts: diversification of the economic base and that of its sources of income. “Qatar has made great strides in the diversification of the economic base, with the hydrocarbon sector’s contribution to the GDP having decreased significantly compared to other sectors,” His Excellency said, highlighting that the hydrocarbon sector makes more than 50 percent of the GDP amid a significant increase in the contribution of other sectors.
He hailed the Qatar Investment Authority as a tool for diversifying the country’s sources of income and an insurance policy for future generations. The State invests its current surpluses for the future.
“During the COVID-19 crisis, a barrel of oil reached $18, causing a significant decline in the country’s revenues; the QIA was initiated to be an insurance policy for future generations, and the State is heading towards diversifying economic sectors and encouraging foreign investment,” His Excellency added.
The next stage is transitional regarding the diversification of income sources, he said, highlighting that the third and final development plan aimed at reaching better achievements in the future will be launched within two months to achieve Qatar Vision 2030.
Dismissing critiques against Qatar’s foreign investments, Prime Minister and Minister of Foreign Affairs H E Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani said that the QIA invests internally and externally to fill a gap in the economy in which the private sector is still ready to invest in.
“The role of the QIA is to fill this gap until the private sector has the readiness and ability to invest in this sector; here the QIA’ role must decrease so as not to be a competitor to the private sector, and this is what we aspire to. As for foreign investments, they are based on purely commercial decisions and the principle of profit and loss,” he added.
Highlighting the QIA’s super excellent economic performance that competes with other funds, His Excellency highlighted the QIA’s 2008 purchase of shares in Volkswagen, followed by the 2009 purchase of Harrods financed by the profits of the Volkswagen deal.
“This single deal is an example, and the value of Harrods today is many times its value in 2009, which is a great overall achievement.”
The Prime Minister noted that he presided over the QIA and witnessed that the major investment funds always followed the QIA’s decisions based on their conviction that such decisions were made after a proper assessment.
Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani said that the FIFA World Cup Qatar 2022 helped accelerate the pace of implementing the state’s project related to Qatar National Vision 2030, adding that it also made a number of different political and economic achievements.
His Excellency said that the infrastructure projects established by the state for the World Cup were part of Qatar National Vision 2030, and that the competition made a vital contribution in speeding up the completion of these projects.
He pointed out that opinion polls in magazines and international websites have proven this success achieved by Qatar in hosting the tournament, noting that the opinion polls proved that the tournament in Qatar achieved the highest viewership and the highest success rate recognised by the whole world.
His Excellency also pointed out that The Economist magazine prepared a report on the economic and financial benefits of countries from hosting the World Cup, in which it said that no country hosted the competition for financial gains, but that what Qatar achieved in terms of economic and tourism growth was only possible by organising an event of this size.
He highlighted that hosting the World Cup was a starting point and not the final destination, adding that there are big and ambitious plans in line with the directives of H H the Amir, particularly in terms of economic openness and in tourism.
Regarding the steps to further develop and improve the services provided to citizens and residents, His Excellency affirmed that the directives of Amir H H Sheikh Tamim bin Hamad Al Thani are clear to the government, and these directives were reflected in all His Highness’ speeches in the Shura Council.
He stressed that the government’s mission is to implement these directives, manage the State and its resources, achieve the highest and best efficiency and best productivity from the available resources, and provide remarkable services.
His Excellency Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani highlighted the several initiatives devised in 2022 and 2023, such as the Qatar Government Excellence Award that urges government departments to provide the best level of services.
He also highlighted the Sharek platform, which will be launched soon to enable beneficiaries to evaluate the government performance and to accelerate the government agencies’ performance using artificial intelligence.
“Such initiatives aim to permanently and continuously improve the level of services,” he said.
Commenting on the share of Qatari nationals in the country’s labour market, he pointed out that almost 90 percent of them are employed in the government, showing a shared responsibility — citizen is a beneficiary of a service in one place, and a service provider in another.
Regarding the plans set by the state to deal with the huge number of graduates, Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, said that Qatar is a small country and government institutions have a limited absorption capacity, adding that last year, 7,127 citizens and job seekers were employed, of whom 5,200 were employed in the government sector, and around 1,900 in the private sector.
He went on saying that it would be unsustainable if the focus was only on employing citizens in the government jobs, as at some stage the government sector will suffer saturation or disguised unemployment, adding that in order for the government to provide the best level of services, it should provide job opportunities every year, open up to the private sector which must have a contribution to employing Qataris, and this is a very important factor.
“In addition, there should be personal initiatives from citizens, for them to be investors, creators, or developers of specific ideas to enter into the field of business and entrepreneurship,” he added.
He stressed that the education sector is the main tributary of all competencies that work in the country and work on pushing forward its development.
“For H H the Amir it is the most important sector,” he said adding that schools and teachers, to the State of Qatar and the Qatari society, have a great status, and the profession of the teacher is considered to be one of the noblest professions, and there are programmes which the Ministry of Education has established to attract Qataris to the teaching profession.
On the state’s support for national products and companies, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani said: “We have seen great progress in the national product and in the entrepreneurial spirit of the national companies in the State of Qatar. The state has played a role in stimulating and supporting national production. In the coming years, instead of being a participant and filling a gap through the QIA, we aspire for the state to be an organiser, policy-setter and stimulus for these sectors.”
He stressed that the State of Qatar has the best technology infrastructure in the region and seeks to make the most of it, in addition to maximising the benefits of investments, by diversifying the economy, encouraging the national products, developing ongoing programmes to improve the level of services for investors, setting clear incentive programmes, and setting clear policies and systems for investors to be dealt with smoothly by the investors and by the state.
Responding to a question about the plans of state ministries to continue and invest the great momentum achieved by Qatar in hosting the World Cup, what is the government’s priority during the next stage, and the level of satisfaction with government performance, His Excellency said: “The World Cup was a starting point, not a final destination. Today, the investment of all this success lies with us as a government, private sector, and people. As for the plans that we are focusing on today, as I mentioned, there are three main axes; First, attention to the education and health systems so that they exhibit the best performance and addresses all the problems and challenges they face. The other point is focusing on improving government performance and providing the best level of service, being a major auxiliary factor for the economy and for the growth of the state.”
Regarding the extent of satisfaction with government performance, His Excellency said: “They are doing a great job... but we always aspire for more and for the better... there are challenges and there are shortcomings in some of the services provided today... we wish the government of Qatar to always excel in providing the best level of service to all.”
In response to a question about the retirement law and its executive regulations, which concerns a large segment of Qatari citizens, when it will be issued, and whether there will be any change to it, he said: “We place the executive regulations of the retirement law among the main priorities that must be completed as soon as possible. We directed the concerned authorities to expedite the completion of legal procedures. In the coming weeks, we hope to issue the executive regulations after the Eid holiday. We consider it to be one of the first steps that will provide the necessary requirements for retirees according to the law, and there are no amendments. According to the new law, the minimum pension is considered one of the best in the world, and it may equal the maximum pension in other countries.”
Responding to a question about income tax and value-added tax, His Excellency said: “Until now, there is nothing in the government agenda on the issue of income tax, and it is not in our plans.”
As for the value-added tax, he explained: “It is an expenditure tax, not an income tax, and this is within the obligations of the Gulf system. Until now, the matter of when it will be applied has not been studied, but it is something that exists and will be applied on a specific segment of goods, and in the end it is directly related to spending, and does not deduct anything from the citizen’s income.”
In response to a question about Qatari coordination to create a unified Arab position to stop the Israeli violations of the courtyards of the blessed Al Aqsa Mosque, he said: “Many contacts took place at the time of the events with some brothers in the Arab countries, and there is always consultation and coordination between us and them. The position is always unified regarding these violations.”
Asked about the rise in gas prices and the State of Qatar’s announcement of an expansion in gas projects, the budget surplus and its impact on citizens, and the possibility of an increase in salaries, he said: “As for the issue of investment in gas expansion, it will be accompanied by great opportunities mainly for the private sector. Almost two years ago, the In-Country Value programme was launched to localise industries related to oil and gas by the private sector to serve this sector within the country.
“This programme is being worked on by Qatar Energy and is progressing at a good pace, and now we are seeking to support and expand this program, and there are opportunities in this field.”
With regard to the surpluses achieved by the state, he said: “We are facing two options today, and there are examples from many countries, whether oil-producing or those that have resources, there are countries that tend to liquidate wealth and others tend to develop wealth.
“In the end, I don not think that any of the people of Qatar would accept that we be only a rentier or consuming country. We want to add and always provide more and develop this income, and this has proven its effectiveness.
“The size of economy has grown 38 times, and this is a great achievement, we seek to further double it for Qatar to compete with global economies, if we just seek to increase direct income, this income will be gradually depleted.”
He explained that the State of Qatar fulfils its commitments, whether in the education, relief or health sectors. The Education Above All Foundation and the Educate A Child programme contributed to the education of nearly 10 million children around the world; this shows what Qatar can achieve and how it can contribute to achieving change, he added.
Regarding the government’s plan to provide job security for Qatari employees in the private sector in light of the challenges the private sector faces including promotions, vacations, professional development and job security, His Excellency said that the state shoulders the responsibility to provide services to citizens and residents, and the citizens shoulder the responsibility of maintaining their job security by developing themselves continuously so as not to lose their jobs.
He added that the state provided the main tools by offering a structure for retirement and a way to organise retirement and social insurance — guarantees that are supposed to provide part of job security. The State also provided education at the highest level so that the citizen is always competitive, but in the private sector, just as it is high-risk, it is also high in revenues, His Excellency said, highlighting that the spirit of risk is essential for revenues.
In response to a question about the mechanism for replenishing the Sovereign Fund during the coming years, he said that there is a financial framework mechanism that depends mainly on surpluses, where the Sovereign Fund shall be one of the aspects of disbursing these surpluses, pointing out that Amir H H Sheikh Tamim bin Hamad Al Thani, directed, when announcing the gas expansion, that the gas expansion revenues shall be invested for future generations, and after it enters into production, it will be a major tributary to the fund. Qatar sets interim targets, and hopes to be one of the five largest sovereign funds soon, His Excellency said.
Responding to a question about health insurance for citizens and pressure on appointments in health centres, he said that applying new health insurance programme usually encounters errors and defects, indicating that health insurance ultimately aims to provide health services to citizens and residents in a balanced manner with the state’s spending on the health sector.
