17 November, 2022
FIFA World Cup 2022: a spotlight on the next big investment opportunity in Qatar
This year, the world of soccer will be marked by an event destined to become part of the history of the sport. For the first time FIFA World Cup, the most watched sporting event of the world, will be played in winter. It will start on November 20th, with the opening match between Qatar and Ecuador, and the final scheduled for December 18th.
But this is not the only important news related to this event.
For the first time, the host country of the FIFA World Cup will be the State of Qatar, a country whose standing by the rest of the world has grown in the last few years. Qatar is also a country that can offer great prospects and opportunities.
Overview of the Qatari Economy
Starting with a quick overview of the country’s socio-economic background, Qatar is the country with the highest GDP per capita in the world. The small country has recorded the highest average growth rate in the Gulf Cooperation Council (GCC). This is thanks to the presence of large oil fields in its territory, and immense gas reserves underground, making it the world’s third largest natural gas reserve. It is estimated to have almost 15 % of all the reserves in the world.
Although not very large, Qatar has the second-highest population growth rate in the world. This is due to the continuous influx of immigrants, including many Italians, who are attracted by the multitude of earning opportunities it has to offer.
Creating a 21st Century Economy
Despite the fact that Qatar’s economy is primarily sustained by the energy sector, the government has committed a substantial amount of resources to transform the nation and create a more diverse and sustainable economy. Their efforts include promoting the inflow of private and foreign investment in a multitude of sectors such as financial services, welfare, education, tourism, sports, and more.
The upcoming World Cup is estimated to bring more than $20 billion into Qatar’s coffers in the short term. The long-term benefits provided by the investments in infrastructure, will grant significant opportunities for development and expansion of the business and tourism sectors, generating more investment opportunities.
Investment Opportunities for Italians
In addition, Qatar’s has a cultural inclination to embrace the participation of foreign companies that are ready to enter into joint ventures with local companies and to become economic operators in its markets. Consider the incentives that the Doha government has provided in recent years to encourage the establishment of joint venture companies. These include concessions on the price of gas, electricity, annual rent of industrial land, more elasticity in the provision of loans for the purchase of machinery or commodities, no tariffs on the import of machinery, plant and spare parts, and no quantitative restrictions on the latter.
In other words, the state has undertaken a series of economic measures and maneuvers that have created an attractive legislative, regulatory and institutional environment that can offer multiple investment opportunities.
Legal Support for Investors
If the aforementioned information has convinced you to think of Qatar as a possible target for your investments, after thanking the World Cup for turning the spotlight on this opportunity-filled country, it would be best to rely on LEXIA Avvocati’s Foreign Direct Investment & Corporate Services Team, whose expertise in the field and in-depth knowledge of the target market can provide you with all the basic information on the country’s economic scenario. We can help you devise a proper strategy for operative action on the ground and assist you in every legal aspect of the procedures. Contact us!
