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International Update

Qatar Has Space to Innovate

by Alexis Elmore

Economic, human, social and environmental development reflect the four pillars that have guided Qatar’s National Vision 2030 since its inception 16 years ago.

The concept of becoming a sustainable, advanced society has been at the heart of every decision carried out by the country’s leadership, including the development of the $45 billion Lusail Smart City and the $7.4 billion Msheireb Downtown project.

Lusail City is a nearly 9,400-acre urban development project located north of the country’s Lusail settlement. Across four islands the site features 19 multi-purpose residential, mixed-use, entertainment and commercial districts and 22 top-rated hotels, fit to support a population of 450,000 residents.

Technology is the driving force behind the sustainable city model, equipping citizens and businesses with integrated information and communications infrastructure, a city-wide wi-fi and fiber optic network, real-time environmental monitoring and intelligent transportation systems. AI and data analytics are used daily to enhance urban living and business operations.

Meanwhile, Msheireb Downtown in Doha bridges heritage with innovation, representing what the developers call the first smart downtown in the world. Powered by smart grids and renewable energy solutions, the district has become a cultural hub for tourism, business and residents alike.

“Both cities can serve as blueprints for future urban living, demonstrating how modern technology can coexist and enhance cultural heritage,” says Invest Qatar Investor Relations Senior Manager Fahad Al-Kuwari. “This strategic focus on smart cities showcases how innovation can drive sustainable growth and resilience. It provides a model that other nations can adapt to their unique contexts while respecting their cultural identities.”

Having completed the first two phases of its National Development Strategy, the country has now entered the final stretch with the launch of the Third National Development Strategy (NDS3) in 2024. Lessons learned and roadblocks identified throughout the initial phases have cleared the way for NDS3 to be the most aggressive approach in delivering transformative outcomes.

Over the next seven years NDS3 will tackle seven strategic national outcomes — sustainable economic growth, fiscal sustainability, a future-ready workforce, cohesive society, quality of life, environmental sustainability and government excellence. Over the first year of its deployment NDS3 will address issues like unclear mandates in implementing new policies, integration of the planning and budgeting process and more, introducing major policy reform to remove such roadblocks and move projects and initiatives ahead without delay.

The economic growth model aims to advance Qatar’s energy sector as a leading gas producer, while exploring low-carbon energy projects. In addition it will look to diversify industry clusters by strengthening its manufacturing, tourism and logistics sectors and enabling growth within IT, financial services and higher education. As IT and AI technologies are at the forefront of initiatives like smart cities, Qatar looks to expand private-sector adoption of these technologies by supporting entrepreneurship and programs such as the National Applied Programs for Emerging Technology and a new National Data & Analytics Program.

To spark further innovation, NDS3 will create incentives targeting private-sector-led R&D, developing academic research activities and creating regulations that promote R&D ecosystem development. Building upon this landscape provides tech companies with a unique advantage to bring operations to Qatar and develop solutions catered to target areas such as climate, agriculture, health care and emerging information technologies.

“Tech companies find Qatar appealing due to the supportive regulatory environment, access to state-of-the-art facilities, and a thriving ecosystem that encourages collaboration and growth,” says Al-Kuwari. “Moreover, Qatar’s strategic location and connectivity provide tech companies with access to broader regional markets, making it an ideal hub for their operations.”

One such tech firm is Quantiphi, a Google Cloud partner and self-described “AI-first digital engineering company” which in May announced the signing of an agreement with the Qatar Free Zones Authority (QFZ) to establish a global technology hub in Qatar’s Free Zones. The announcement noted the agreement was inked one year after the Google Cloud region in Doha was launched in 2023.

“The expansion to Qatar, a country known globally for connecting stakeholders in artificial intelligence, entrepreneurship and innovation, underscores Quantiphi’s commitment to strategic growth, partnership and continued adaptation to global market needs,” said Ritesh Patel, co-founder of Quantiphi. “Qatar is an optimal location for Quantiphi’s continued expansion because it is regarded as a technology leader within the Gulf Cooperation Council (GCC), an alliance between Saudi Arabia, Kuwait, United Arab Emirates, Bahrain, Oman and Qatar.”

A Citizen-Driven Future
Also in May, Qatar Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani announced incentives totaling $2.5 billion would now go toward accomplishing programs catered to AI, technology and innovation.

“This significant funding is a critical cluster of the NDS3, which aims to develop Qatar’s digital economy and long-term strategic capabilities in AI and other emerging technologies,” says Al-Kuwari. “The IT and digital services cluster drives the private sector’s adoption of new technologies, establishes a National Data and Analytics Program, supports digital transformation for SMEs and enterprises, promotes Qatar-based cloud services globally, enhances regulations and develops a cybersecurity legal framework.”

Fanar, a Generative AI Arabic Language Model (LLM), is one example of how the country is driving digital transformation for companies, institutions, researchers and students in Qatar. The new program will bridge the gap between the Arabic and English languages, creating a highly accurate dataset of up to 300 billion words. The goal is for users to generate accurate information and streamline tasks for Arabic users, while providing accurate translations for English-speaking companies to engage Arabic speakers.

NDS3 additionally introduced a new $1 billion Fund of Funds program in early 2024. The program is the first of its kind in the country, primarily focusing on Qatar’s tech and health care industries. Its goal is to remove barriers for entrepreneurs who need venture capital (VC) funding by providing indirect investment or direct co-investment through fund managers.

 

By empowering entrepreneurs, Qatar is fostering a culture of innovation that propels advancements across diverse sectors.
Fahad Al-Kuwari, Investor Relations Senior Manager, Invest Qatar

 

“Entrepreneurs bring fresh perspectives, agility and creativity, which are essential for addressing contemporary challenges and seizing new opportunities,” says Al-Kuwari. “By empowering entrepreneurs, Qatar is fostering a culture of innovation that propels advancements across diverse sectors.”

Qatar has identified that there is a gap between entrepreneurs and obtaining VC and support to get started, as there has been no dedicated capital pool for companies past seed funding. Even so, the country recently was ranked No. 5 globally for entrepreneurship by the Global Entrepreneurship Monitor’s 2023-2024 report.

Rain, Rain, Go Away
The new Tasreef Project in Dubai is one of the largest infrastructure investments within the United Arab Emirates (UAE). Over the course of one year, this project will introduce the sustainable infrastructure needed to create a long-term solution for the country’s rainwater drainage network.

“Today, we approved an integrated project to develop Dubai’s rainwater drainage network at a cost of $8.16 billion,” said UAE Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum at the time of the project’s announcement. “The largest rainwater collection project in a single system in the region, the initiative will increase the capacity of the drainage network in the emirate by 700%, ensuring the emirate’s readiness to face future climate-related challenges.”

Sheikh Mohammed, the current ruler of Dubai, said the Tasreef project would begin its first steps immediately and will be built out in phases until completion, slated for 2033. This work builds upon a number of drainage projects that have been launched since 2019, soon covering all areas of Dubai, and increases the network’s capacity by 20 million cubic meters of water per day.

The timeline directly supports the UAE Water Security Strategy 2036, which aims to address water scarcity challenges and increase national water storage capacity. The UAE is largely composed of desert land with coastal areas bordering the Persian Gulf to the north. Mid-April 2024 brought precipitation levels twice the annual average, bringing 100 millimeters of rain in a single day, resulting in extreme flooding in Dubai.

To account for climate change challenges that may arise in the future, implementing tunnel boring machines will be vital to the initiative. The excavation machines will provide the monitoring and data analysis to safely guide decisions that enhance the drainage and sewer systems.

“We have directed the immediate implementation of the project, which will be completed in phases by 2033,” said Sheikh Mohammed. “Dubai continues to drive infrastructure and urban advancements, enhancing safety and security for everyone living in the emirate.”