By *Saoud Al-AHBABI 

The organisation of the Football World Cup at the end of 2022 has had beneficial effects on the Qatari economy, with growth fluctuating between 4.2% in 2022 and 1.6% in 2023, according to the IMF. In 2023, soaring hydrocarbon prices led to a very large trade surplus (41% of GDP) and budget surplus (10.8% of GDP). The outlook remains good, as Qatar begins the transition from a growth cycle of more than ten years, driven by infrastructure projects, to a new phase centred on the production and export of hydrocarbons, while attempting to diversify its economy. The impact of the war between Israel and Gaza has not been confirmed at this stage, but it will have to be considered in the long term.

• The Qatari economy has benefited greatly from preparations for the World Cup and the surge in hydrocarbon prices.
• In the medium and long term, the outlook for the real economy is good, thanks to massive investment and revenues from the hydrocarbon sector.

In 2023, with an estimated real GDP of USD 194 billion and an average population of 2.8 million, including almost 300,000 nationals, Qatar will have one of the highest per capita incomes in the world (nominal GDP/capita of USD 81.9K in 2023). The emirate is the 2nd largest producer of hydrocarbons in the Arabian Peninsula in terms of tonnes of oil equivalent, the 5th largest producer of natural gas and the 3rd largest exporter of liquefied natural gas (LNG) in the world, behind the United States and Australia. The Qatari economy derives its wealth from hydrocarbons, which in 2022 accounted for 37% of real GDP (excluding the petrochemicals industry), 87% of exports (USD 114 billion, 75% of which from gas, mainly liquefied natural gas (LNG)) and 85% of government revenue.

Le taux d’inflation est resté à un niveau bas 2,8% en 2023, contre 4,9 % en 2022, l’énergie étant massivement subventionnée et les prix des biens de première nécessité monitorés par le Ministère du Commerce.

In 2022, Qatari real growth (4.2% of GDP) was mainly driven by non-hydrocarbon activities, notably major infrastructure projects. 2023 marks the end of a long investment cycle that has been driving growth for the past 10 years. The IMF has revised the real GDP growth rate downwards to 1.6% and 1.9% in 2023 and 2024 respectively. It should be stronger from 2025 (+3.4%), stimulated by the gradual start-up of LNG megaprojects (+64% of liquefaction capacity by 2027).

The inflation rate has remained low at 2.8% in 2023, compared with 4.9% in 2022, as energy is massively subsidised and the prices of essential goods are monitored by the Ministry of Commerce.

• A budget surplus and a current account balance bolstered by high revenues from hydrocarbons.

In 2023, the budget surplus will represent 10.8% of GDP, slightly lower than in 2022. While the vulnerability of Qatari public finances to the volatility of hydrocarbon prices is a structural phenomenon, the assumption that this volatility could have a negative impact on Qatari public finances is very low for 2024.

The authorities are executing a prudent budget, and the budget surplus will be used to finance debt repayment. In 2023, public debt will have fallen to 39.4% of GDP (compared with 42.5% in 2022) and will remain on a downward trajectory (37.4% of GDP in 2024 according to IMF forecasts).

Qatar also has a comfortable borrowing capacity on the capital markets. The main agencies have upgraded their ratings of Qatar. In January 2024, Moody’s raised its sovereign credit rating from « Aa3 » to « Aa2 » and revised its outlook to stable. These developments confirm the prospects for a virtuous and prudent economy and policy in terms of public finance management.

The current account balance has been in surplus since 2017. It represented 17.6% of GDP in 2023 and should remain at a comfortable level in 2024 (15.8% according to the IMF)1 .

Central bank reserves are on the rise, representing 32% of GDP in November 2023 and should continue to grow until 2026 (+44.6% of GDP). External debt is down to 112.7% of GDP in 2023, but remains at a high level, although it is monitored by the Central Bank of Qatar.

The banking system is solid, despite certain vulnerabilities that need to be monitored.

The Qatari banking system stands out for its solidity in terms of capitalisation, profitability and asset quality, and for the results of its banks (a good health that is particularly important given the regional dimension of Qatari banks, QNB being the leading bank in the MENA region in terms of assets). The banking sector contributes 7-8% of GDP. The Central Bank of Qatar has put in place effective tools to reduce recourse to external financing and to monitor bad debts, which are rising slightly (3.8% of loans in 2023). Current investments in the hydrocarbon sector, aimed at increasing LNG liquefaction capacity by 64%, are very significant.

An ongoing cycle of massive investment in hydrocarbons and a strategy to diversify the economy that calls for major structural reforms.

Through its National Vision 2030 strategy, Qatar has set itself the goal of diversifying its economy, aiming for annual growth of 4% excluding oil and gas by 2030. The objectives set out in the national strategy are highly ambitious, and call for reforms in the labour and capital markets to develop human capital (+46% of the working population specialised by 2030) and attract talent and FDI. Information and communication technologies (+7.8% average annual growth rate by 2030), R&D (+1.5%), manufacturing (+3.4%), financial services (launch of 35 fintechs), tourism (target of 6M visitors by 2030) and logistics (+6.6%) are among the main sectors set to support the diversification of the Qatari economy.

On the strength of its wealth, Qatar is developing a soft power strategy to increase its capacity to influence the world. This strategy was put in place by Emir Hamad Ben Khalifa Al-Thani, who came to the throne in 1995 and handed over to his son Tamim Ben Hamad Al-Thani in 2013. Qatar is also very active diplomatically. For example, it has been actively involved in the Arab world since the 2011 spring revolutions.It sent fighter jets and special forces to help the Libyan insurgents. It has also been funding and arming Syrian rebels against the regime of Bashar Al-Assad since 2011.

Qatar also has an intense investment policy around the world. Its sovereign wealth fund, the Qatar Investment Authority, has a portfolio of assets worth €60 billion in 33 countries. Qatari investments are particularly significant in Western Europe. Qatar has acquired shares in several French industrial groups. In June 2013, it held a €7.6 billion stake in CAC 40 groups: it owned 13% of Lagardère, 7% of Vinci, 5% of Total, 4.7% of Veolia Environnement, 2% of Vivendi and 1% of LVMH. In France, it has also made property investments worth 4 billion euros. Qatar now owns several luxury hotels, including the Royal Monceau and Concorde Lafayette in Paris and the Carlton and Martinez in Cannes. The Le Printemps retail chain is also in the process of being bought out.

The small emirate has also made its mark on the media scene with the Al Jazeera news channel. Watched by 200 million viewers worldwide and 50 million in Arab countries, it supported the 2011 revolutions in Tunisia, Egypt and Libya.

Finally, Qatar is seeking to increase its global influence through sport. It has been chosen to organise the 2022 Football World Cup. The Qatar Investment Authority also bought Paris Saint-Germain football club in 2011 to turn it into one of Europe’s biggest clubs. Qatar also launched two sports channels in France in 2012, BeIn Sport and BeIn Sport 2, which have almost 1.5 million subscribers.

However, Qatari investments in France, including a proposed fund for the suburbs, have been controversial, giving the impression that the small emirate is trying to buy France. Yet the small emirate is far from being the leading investor in France. Qatar is outstripped by many countries, notably its neighbours the United Arab Emirates and Saudi Arabia. France receives less than 10% of Qatari investment worldwide, compared with 27% for the United Kingdom.

The global partnership between France and Qatar

The GDP Cat Effect – Business news from the Arabian Peninsula – Week of 11 to 17 March 2024

Through a detailed analysis carried out by Invest Qatar in partnership with Business France, the raport    looks back at the historic partnership between France and Qatar, which began with the emirate’s independence in 1971.

Today, cooperation between France and Qatar focuses on the economy, energy, culture, education, health, transport, the environment, food safety and the development of public-private partnerships. As explained in the report, a multitude of institutional and private players from both countries are working on these cooperative ventures, within the framework of various strategic committees and events.

Business France is the national entity responsible for supporting French companies in their international activities, and foreign companies in their investments in France. The Business France office in Qatar, located within the French embassy, organises prospecting for French exporters and investors in Qatar, and informs them about market access conditions and ways of increasing their visibility in the country. The Qatar Investment Promotion Agency (IPA Qatar or Invest Qatar) was launched in 2019 with the aim of facilitating foreign investment in Qatar, in particular by sharing information on the Qatari market and supporting foreign investors.

Invest Qatar and Business France signed a memorandum of understanding in March 2022 to strengthen investment relations between the two countries.

Qatar News Agency published an article on 27 February 2024[1] describing the relationship between France and Qatar as long-standing and that the bilateral partnership is strategic and comprehensive. According to QNA, a number of experts and officials have confirmed that relations between the State of Qatar and the French Republic are deeply rooted and strong, based on mutual respect and characterised by diversity and inclusiveness.

In statements to the Qatar News Agency (QNA), they said that the visit of His Highness Sheikh Tamim bin Hamad Al Thani, the Emir of the country, to France demonstrates the strength of relations between the two countries, and the concern of their leaders to steer them towards new horizons, particularly in the commercial and economic fields, noting that Qatari investments in France and French investments in Qatar form the basis of the economic partnership and an important tribute to the economies of the two countries. They added that France occupies an advanced position in the list of commercial partners of the State of Qatar and that areas of partnership also include the energy, technology, trade, real estate and political sectors, thanks to coordination and common understanding in the following areas regional and international issues.

In this context, Mr Mohammed bin Ahmed bin Towar Al Kuwari, First Deputy Speaker of the House of Qatar, stressed the importance of His Highness Sheikh Tamim bin Hamad Al Thani’s visit to France in February 2024 to support the joint cooperation relations between the two countries at all levels. He said, in a special statement to the Qatar News Agency (QNA), that there is great interest on the part of the leaders of the two countries in developing bilateral relations towards broader horizons, noting that His Highness the Amir’s visit to France will strengthen these relations and open up new horizons for cooperation between the two countries, particularly in the commercial and economic fields, which will have a positive impact on trade and investment exchanges, cooperation and partnership relations between the two countries’ commercial sectors.

He pointed out that trade relations between the two countries have undergone remarkable development in recent years, and that France is considered to be one of the most important trading partners of the State of Qatar, in addition to the fact that there are numerous cooperation agreements and memorandums of understanding signed between the two parties in many areas of cooperation.

The First Vice President of the Qatar Chamber pointed out that there are many successful Qatari investments in France in various sectors, as Paris is considered a preferred destination for the Qatari investor and many French companies operate in the Qatari market in various sectors where they can increase their investments in Qatar, benefiting from the availability of good infrastructure, investment climate and investment opportunities in all sectors He added that the private sector in Qatar and France can play an important role in the development of these relations by establishing business ventures, commercial alliances and investment projects, calling on Qatari and French companies to take advantage of the investment benefits and facilities granted to foreign investments in both countries and to exploit the opportunities available to enter into joint economic alliances.

In the same context, economic expert Dr. Abdullah Al Khater told QNA: Qatari-French relations are long-standing and complex, both at the official and investor levels, and are characterized by a strategic dimension, and have witnessed diversification after the signing of many cooperation agreements and memorandums of understanding, including the strategic dialogue agreement between the two countries, highlighting the great agreement between the two countries in their visions on many Arab, regional and international issues.

In June 2023, the second strategic dialogue between Qatar and France was held in Doha, which constitutes an important mechanism for strengthening the fruitful and constructive cooperation between the two friendly countries, as the strategic relations between the two countries are characterised by total harmony and convergence of positions and continuous coordination.

Al Khater added that His Highness the Emir’s visit to Paris demonstrates the strength and solidity of the Qatari-French partnership, as it should address the partnership relations between the two countries, as well as regional and international issues, stressing that this visit comes at a delicate time in the history of the region, particularly with regard to developments in the Gaza Strip, and what this requires, is the need to work seriously and persistently to put an end to the war, stop the bloodshed, spare civilians the consequences of the armed confrontation, and prevent the conflict from spreading, in order to ensure the achievement of security and stability in all the occupied Palestinian territories, in accordance with the resolutions of international legitimacy and the principle of the two-State solution.

He emphasised that France gives high priority to energy security, in particular clean energy, underlining the effective partnerships in the energy sector with the State of Qatar, as well as its interest in global energy challenges.

It should be noted that in October 2023, two companies affiliated to Qatar Energy and Total Energies signed two long-term sale and purchase agreements to supply up to 3.5 million tonnes per year of liquefied natural gas from Qatar to France will be delivered to the Fos Cavaou LNG terminal in the south of France from 2026 for a period of 27 years.

Total Energies is a partner in the North Field LNG expansion projects, with a 6.25% interest in the North East Field project and a 9.375% interest in the South North Field project.

According to the latest data from the Planning and Statistics Authority, the volume of trade between the State of Qatar and the French Republic last year amounted to approximately 8.5 billion riyals, and exports Total imports from the State of Qatar to France amounted to 5.143 billion riyals, while Qatar’s total imports from the French Republic recorded 3.353 billion riyals, while the balance surplus increased amounted to 5.143 billion riyals. Commercial: approximately 1.79 billion riyals in 2023. According to the same data obtained by the Qatar News Agency (QNA), exports from the State of Qatar to France mainly represented gas, oil and other hydrocarbons gas, amounting to 3.245 billion riyals, in addition to various other exports such as rare gases, hydrogen and other non-metals, vinyl chloride polymers, petroleum oils, oils obtained from bituminous mineral materials non-crude, ethylene polymers in their primary forms and others.

The State of Qatar’s imports from the French Republic were concentrated in spare parts for regular planes, helicopters and drones worth 335 million riyals, in addition to gold jewelry worth 202 million riyals, in addition to liquid, frozen perfumes and other products and merchandise.

Investments by the State of Qatar in France

For several years now, Qatar has invested massively in France via its sovereign fund, the Qatar Investment Authority (QIA). His entry into the capital of Total, the leading French company, with a 2% stake, was the detonator. Since then, the investment fund has continued to shop in France. He is thus a shareholder in large French companies such as Veolia or Lagardère and at the head of some of the most beautiful Parisian palaces. It is also present in sport with the Parisian football club and the Arc de Triomphe equestrian prize.
In order to analyze the role played by Qatar in France via the cooperation agreements signed between the two countries, it is essential to see the real figures of Qatari investment in France through the articles studied in this paragraph.

The website euronews.business[2], addressed, in its article of February 28, 2024, entitled “France in the running for billions of euros of investments from Qatar by 2030”, the strategic dimensions of Qatari investments in France announced during the official visit of the Emir of Qatar Sheikh Tamim bin Hamad Al-Thani to France on February 27 and 28, 2024.

A new strategic partnership will bring 10 billion euros to the French economy between 2024 and 2030, according to a new agreement signed on Tuesday by the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, and French President Emmanuel Macron. The two leaders sealed the deal as Qatar’s emir began his two-day visit to France, the first state visit since he ascended the throne in 2013.

Qatari investment will benefit start-ups and investment funds in Europe’s second largest economy, targeting sectors such as aerospace, artificial intelligence, energy transition, semiconductors, digital, health , hotels and culture, according to the press release from the French presidency. “These investments will strengthen the strategic partnerships between our two countries,” declared the emir in a speech reported by AFP.

During the visit, the two leaders will discuss the situation in the Middle East, with Sheikh Tamim playing a key role in the ongoing diplomatic efforts to achieve a ceasefire in Gaza and the release of hostages.

The French-speaking Capital site published on July 17, 2022, in its article entitled “Qatar is a major investor in new French projects”[3] a report in which it confirms that Qatar is moving towards a doubling of its investments in France at the end of this year and during the first half of next year, as part of Doha’s desire to participate in the objectives of the « Choose France » summit, which was held at the Palais de Versailles on February 11 2021, in the presence of representatives of the Qatar Investment Authority (QIA), who expressed great interest in injecting more funds into the expected projects that will be launched in the capital, Paris, and other French cities in the period to coming, especially since these projects will involve many sectors, including industry and technology, considered one of the most important areas in which Qatar seeks to double its investments in this area in the future.

This same report reveals that, according to what the French newspaper “Le Figaro” announced, “Choose France” aims to mobilize around 6.7 billion euros to launch fourteen active projects in a group of important sectors, so as to contribute to the creation of around 4 thousand permanent jobs in France, which can be gradually increased. If these projects are expanded in the coming period, he indicated the most important players ready to be present at this stage, led by the Qatar Sovereign Fund, which will play the role of main investor, in addition to the group “ STMicroelectronic”, the Italian group Iveco, the British pharmaceutical giant GlaxoSmithKline, and the American Collins. For aviation, add to this the German Forwerk, manufacturer of Thermoex, Global Fondateurs and the Spanish group Amadeus operating in the tourism sector.

The report highlights the willingness of Qatari entities to play an important role in the next round of investment in France, revealing that officials from the Qatar Investment Authority met with French President Emmanuel Macron in the context of their presence at the summit, which given the participation of up to one hundred and eighty entities, an opportunity that was exploited by representatives of the Qatar Fund Sovereign expressed its willingness to increase the volume of investments from Doha to Paris and other French cities, d ‘especially since the projects announced in « Choose France » are in line with Qatar’s future vision aimed at diversifying projects and focusing strongly on sectors of the future such as those linked to technology and energy, in order to to strengthen our investments in old areas, mainly real estate and hotels.

The site « simplywall »[4] published a report in which it revealed the list of the largest foreign investors of the French hotel group Accor, where the Qatar Investment Authority comes in second position with a share of shares amounting to 11%, behind the « Jinjiang International ». Holdings Co », which holds 13% of the total shares followed by Harris Associates L.P., which holds approximately 9.1% of the shares of the leading French group in the world of hotels, present in 92 countries on five continents, and owns approximately 3,600 luxury hotels, spread across various major world capitals, and is known to attract millions of visitors on a regular basis, every year for many tourist reasons or other factors.

The report confirms the great role that these Qatari investments have played in improving the performance of the French group founded 56 years ago, in particular the investments coming from the Qatar Sovereign Fund, which is one of the most focused entities projects related to the hotel sector, whether by owning hotels, directly in the form of what is happening in the British capital, London, or in Italy and in the city of Milan in particular, where it has managed to conclude numerous agreements during the recent period, in addition to its focus on entering into direct partnerships with active players in this sector, notably Accor, which is considered as Qatari capital is one of the most important elements of its balance sheet of all these positive figures during the recent period, in addition to the Casada group, which constitutes Doha’s investment arm in different African capitals, in the hotel sector in particular, and which recently launched a new project involving on the construction of two hotels and a luxury shopping center in Ivory Coast.

Qatari investments in France create 60,000 jobs [5] and 300 French companies are established in Qatar, including 70 wholly-owned companies.

The visit of His Highness Sheikh Tamim bin Hamad Al Thani, the Emir of Qatar, to France confirms the depth of the close relations and strategic partnership that exists between Doha and Paris on solid and solid foundations due to the common interests existing between the two friendly countries and peoples. These relationships periodically experience new stages that strengthen and move them forward, thereby protecting this partnership against any external challenge or attempt to disrupt it.

Latest estimates indicate that Qatari investments in France have reached more than $40 billion, an increase of around 30% in 2017 alone, with the two countries having signed numerous agreements in recent years, including worth 12 billion euros during the mandate of President Emmanuel Macron and his visit to Doha in December 2017, including the contracts signed by the two countries to operate and maintain the “Doha Metro” project and the “Doha Tramway” project. Lusail » for the next 20 years, since the contract was signed with the « RATB » and the « SNCF » of French institutions, world leaders in the field of transport, allows us to benefit from the efficiency of the 400,000 workers who work in both institutions, in addition to the resulting benefits for the French economy. This is in addition to major strategic energy projects between Qatar Petroleum and France’s Total, most of which span 25 years.

The State of Qatar is the largest investor in France among countries in the region and contributes to some of the most important French companies: for example, but not limited to, Qatar acquires 100% of Paris Saint-Germain, 100% of the Élysée Building, 85.7% of Royal Monceau, and Total 2.%, Veolia 5%, Lagardère 16.75% and Vinci 5.5%. Despite the recent drop in oil and gas prices, Qatari investments in France have seen continued growth and have concerned many sectors such as energy, real estate, hospitality, financial services, communications and sport. These investments, in the hotel sector alone, have enabled the creation of 1,500 direct jobs in France and thousands of indirect jobs. The Qatar Investment Authority’s investments amount to 25 billion euros ($30 billion), or 11% of the value of the agency’s investments, to which are added private investments amounting to 10 billion of dollars. Qatari investments in France help create around 60,000 jobs.

Overall expectations confirm that the volume of Qatari investments in France will increase at a rapid pace during the next stage, with French investments in the Qatari market increasing – and at the same time – gaining a significant share of the opportunities offered by the Qatari economy in light of the preparations for the realization of the projects for the 2022 World Cup. Qatar’s relations with France are the oldest compared to the rest of the countries of the European Union, since the first agreement on commercial cooperation and d The investment between the two countries was signed in 1974 which was one of the first agreements signed with a friendly country and marked the beginning of strong relations of friendship and cooperation which saw a steady increase in the volume of trade and investment between the two countries.

The latest French ministerial estimates indicate that the year 2018 was marked by an increase in French exports to Qatar and vice versa, with exports reaching their highest levels in the last ten years in 2017. France’s exports to Qatar recorded an increase of 500% in 2017 compared to the same period of 2014 – and an increase of 460% during the first six months – to reach 8.6 billion euros, this which has been a constant trend for several years, both in terms of projects, commercial exchanges, consumer goods and equipment. France is one of the most important strategic partners of the State of Qatar, since the total number of French companies operating in the State of Qatar has reached 300 companies, including 70 100% French companies, and 230 companies established in Qatari partnership.

Regarding the volume of Qatari investments in European countries, the site swissinfo.ch published a study which concluded that France is the second European country in which Qatar invests after the United Kingdom, with 25.3 billion euros in 2019, according to a study published by the Franco-Qatari association “Cadran” with the Higher Institute of Business Studies in Paris. Of this total amount, 7.1 billion is invested in real estate (excluding hotels and private investments). The study estimates the FIFA World Cup host country’s assets at around €5.3 billion in the industrial and construction sectors, with « significant contributions in leading national companies » such as Vinci, Total, Suez and Airbus.

Qatar’s share in retail trade amounts to 4.2 billion euros, in transport and tourism at 3.4 billion euros and in communications and media at 2.3 billion euros, according to the same source.

The study indicates that real estate investments amounting to 7.1 billion « do not include real estate investments made by individuals », explaining that « the valuation of Qatari company securities and collectibles in France in end of 2021 is equivalent to that of 2019.” Trade between the two countries, driven by “French exports” and military equipment “and Qatari exports of gas and petroleum derivatives”, has increased at a rate of 16% per year since 2000.

Omar Akar, president of the Qatari-French Economic Association “Cadran”, established in 2015, said in a statement that he hopes that “this activity will continue and strengthen in the years to come, in particular thanks to the momentum given by the new partnership which began between our companies within the framework of the World Cup[6].

Conventions and partnerships between Qatar in France

This paragraph studies the chronological order of the signing of the conventions signed between France and the State of Qatar since 1974 as shown schematically in Table 1. Secondly, it analyzes the main areas of Qatari presence and participation in the different investment sectors in Paris and other cities[7].

Table 1, below, shows the chronological diagram of the conventions and partnerships signed between France and Qatar between 1974 and 2022 in different areas. According to this diagram, the first framework agreement related to economic and financial cooperation was signed in December 1974, three years after the independence of the State of Qatar and in March 2022, the two countries signed the memorandum between Invest Qatar and Business France during the Franco-Qatari Strategic Dialogue. This timeline also shows several key dates in which multiple conventions were signed.

The remainder of this paragraph analyzes the main areas in which the multiple partnerships already signed between the two countries are implemented, as follows:

1-Commercial relations

Economic relations between Qatar and France are very strong, both commercially and financially, several agreements and treaties have been signed between the two countries, and trade between the two countries has experienced an upward trend since 2014 The volume of bilateral trade between France and the State of Qatar has regularly exceeded more than a billion dollars per year since 2015 and amounts to almost 1.7 billion dollars in 2021. Qatar is a partner. France’s key sales representative in a wide range of areas, from energy to transport, including logistics, luxury and food. Trade between the two partners will continue to grow in the years to come as the global economy recovers. Graph 1 describes the total volume of trade between France and the State of Qatar in millions of US dollars covering the period from 2015 until 2022.

According to the Planning and Statistics Authority (PSA) of Qatar, trade between Qatar and France amounted to approximately $1.7 billion in 2021, including $923 million in exports to France, while Qatar’s imports amounted to almost $767 million. The value of trade, and in particular French imports to Qatar, has increased over the last twenty years. The largest share of Qatar’s exports to France is mineral fuels, followed by chemicals, machinery and transport equipment, and manufactured goods.

Qatar was France’s third largest importer in the Middle East region in 2020. France’s market share in Qatar stood at 3.4% in 2020, placing France 8th among suppliers of the Qatar.11 Qatari imports from France amounted to almost USD 767 million in 202112. Machinery and transport equipment, chemicals, manufactured goods and food products make up the majority of Qatar’s imports in coming from France.

Imports from France to Qatar are driven by orders for capital goods, including machinery and transport equipment such as aerospace (Dassault, Airbus), followed by industrial materials, a category that includes chemicals and medical products, as well as synthetic products such as rubber and metals and minerals needed for urban infrastructure and oil and gas pipelines. Imports of food products from France are also increasing and can be explained by the presence of supermarket chains such as Carrefour and Monoprix in Qatar. Cooperation in this area is intensifying as Qatar seeks to strengthen its food security.

2-Investment relationships

Investment relations between the two countries are expected to further improve, especially after the recent signing of the Memorandum of Understanding in March 2022 by the Qatar Investment Promotion Agency (Invest Qatar) and Business France. This agreement facilitates the expansion of the Business France office in Qatar and aims to strengthen relations, stimulate cooperation between the two countries and lay the foundations for institutional collaboration.

Prior to the agreement, Business France supported 11 French Tech companies in the Middle East in 2021, as part of the French Tech Tour Middle East. During this immersive program, four companies benefited from key insights by meeting members of IPA Qatar, the Qatar Science & Technology Park incubator and the Ministry of Communications and Information Technology. Separately, the Qatar Financial Center (QFC), one of the largest and fastest growing onshore business and financial centers in the world, participated in the Qatar-France Business and Investment Forum. The event focused on explaining investment mechanisms in the French economy and highlighting selected investment projects in France.

Qatari FDI in France

France remains the second European destination for Qatari investments abroad, with Qatari investments in France estimated at more than $25.5 billion. According to figures from the Banque de France, the stock of Qatari foreign direct investments (FDI) in France has constantly increased since 2011, reaching $4.3 billion in 2021.

French FDI in Qatar

French companies are very present in Qatar. According to the latest figures from the Banque de France, the stock of French FDI in Qatar has been increasing since 2008, reaching $1.16 billion in 2021. Furthermore, French companies are very involved in Qatar’s major projects, particularly in the areas of infrastructure, transport and energy, and have mobilized strongly to support Qatar in its preparation for the 2022 World Cup.

To date, more than 120 French companies are registered in Qatar, including more than 80 franchises in the fields of oil and gas, infrastructure, construction, public works, engineering, energy, logistics, financial services and technology. The number of French companies setting up in Qatar is constantly increasing. Most CAC 40 companies are present in Qatar, and the number of French SMEs has increased in recent years. In Qatar, French investments take the form of subsidiaries or joint ventures of French multinationals. There is strong sectoral diversity in financial activities, industry, telecoms, transport, tourism and distribution. In addition to these subsidiaries, French brands are also strongly represented through local companies, in the form of franchises, in numerous sectors such as hotels, restaurants, jewelry and watches, major fashion houses, distribution. specialized and mass distribution.

3-Energy

Qatar and France have long-standing trade relations and have developed significant opportunities for cooperation, particularly in the energy sector. Oil and gas form the backbone of Qatar’s economy, which is one of the world’s largest exporters of liquefied natural gas (LNG). Qatar has the third largest natural gas reserves in the world after Russia and Iran. One of the main players in the Qatari market is TotalEnergies, a global multi-energy company operating in Qatar since 1936. TotalEnergies, one of QatarEnergy’s main partners, is present in all branches of the country’s energy sector, including exploration, production, refining, petrochemicals, lubricants and renewable energy. TotalEnergies’ involvement in the local community complements its extensive operational portfolio in Qatar, which includes education, sports and culture. In terms of R&D, the TotalEnergies research center in Qatar is located in the Qatar Science and Technology Park (QSTP).

TotalEnergies is also one of the founding partners of Qatargas, the largest LNG company in the world, created in 1984 and present since the beginning of the LNG industry in Qatar, with participations in Qatargas, then Qatargas 2 in 2005. In June 2022, QatarEnergy awarded TotalEnergies a 6.25% stake in the 32 million tonnes per annum (Mtpa) North Field East (NFE) LNG project. This project involves the construction of four new LNG trains with a capacity of 8 million tonnes per year, which is expected to increase Qatar’s total LNG export capacity from 77 million tonnes per year to around 126 million tonnes. tonnes per year by 2027. ENF will set a benchmark in the sector with its low-cost, low-emission carbon capture and sequestration (CCS) facility. This pioneering model will be partially powered by renewable energy, which will reduce greenhouse gas emissions by 25% compared to similar LNG installations.

4-Technologies

Qatar offers enormous opportunities for growth and investment in the technology sector. The state, represented by the Ministry of Transport and Communications, launched the Smart Qatar (TASMU) program, which aims to harness the power of technology and innovation to make Qatar a smart country and open up new opportunities to the private sector. Qatar is also working hand in hand with multinationals to accelerate its digital transformation and improve the technology ecosystem. It is worth noting that Qatar is the first country to commercially deploy 5G and holds a world record of 100% internet penetration, demonstrating the considerable progress made by the country as a forerunner in global digitalization initiatives. French know-how in the field of new technologies and innovation is also highly appreciated in Qatar.

In March 2022, Thales inaugurated the Thales headquarters and the Qatar FreeZones Authority (QFZA) digital skills center, in the presence of H.E. Minister of State, Ahmad bin Mohamed Al-Sayed, also Chairman of Qatar Free Zones Authority, and Patrice Caine, Chairman and CEO of Thales, accompanied by Frédéric Sallet, Managing Director of Thales Qatar, as well as members of QFZA and the general management of Thales13. Building on the strategic collaboration agreement signed last year between QFZA and Thales, the new center will serve as a hub for digital innovation in the sectors of digital security, mobility, artificial intelligence and of cybersecurity.           By encouraging partnerships, facilitating the development of local digital skills and creating skilled jobs, the center will support the continued growth and development of Qatar’s technology sector. In 2019, the Qatar Financial Center (QFC), one of the largest and fastest growing onshore financial and business centers in the world, signed two memorandums of understanding with Paris EUROPLACE and Finance Innovation, to to support the growth of Qatar’s booming digital industry. Paris EUROPLACE is responsible for the promotion and development of the Paris financial center. Finance Innovation was launched by the French Ministry of Economy and Finance in 2007 to stimulate the Paris financial center and has 480 member organizations and companies.

5-Cultural exchanges

French-Qatari cultural relations are long established and offer opportunities for exchange in the fields of art, architecture, design, music and fashion. Within the French Embassy in Doha, the Cooperation and Cultural Action Service (SCAC) is responsible for linguistic, audiovisual, cultural, technical and scientific university cooperation. Its action is based on cooperation projects set up with Qatari university and institutional partners. He also supervises artistic programming and is responsible for French schools. As a cultural and linguistic institution, the French Institute of Qatar (IFQ) is the essential link in the French-speaking world in the country.

A notable example of French-Qatari cultural collaboration is the Qatar National Museum, dedicated to the history of Qatar, which was designed by the world-renowned French architect « Jean Nouvel ». Shaped like a desert rose, the museum was inaugurated in November 2019, in the presence of H.S.H. the Emir of Qatar and H.E. the French Prime Minister during his official visit to Qatar. As such, Qatar and France organized the Qatar-France cultural year in 2020, extended until 2021, with events illustrating the richness of cultural exchanges between the two nations, such as performances by the Qatar Philharmonic Orchestra. Qatar with a French conductor. Highlights of the Year of Culture in 2020 include: the exhibition, the Picasso Studios and the Christian Dior: Designer of Dreams exhibition. More recently, in 2022, the exhibition « Once upon a time was a bag », which explores the history of the Hermès brand from its origins to the present day, transcending eras and generations, was held at the National Museum of May 28 to June 11 and presented around fifty exceptional pieces.

In addition, numerous programs are organized in the field of visual arts with major events such as the 2023 Paris Moderne exhibition at the National Museum. On the other hand, Qatari cinema was highlighted with screenings of works from the Doha Film Institute at the 2021 and 2022 Cannes International Film Festival, and at the Clermont-Ferrand short film festival.

6-Health

Franco-Qatari partnerships in the field of health are emerging and experiencing significant growth. France is known for its world-class healthcare system and plays a pioneering role in the medical field. French healthcare manufacturing companies are ready to work with Qatari partners, especially those manufacturing pharmaceuticals, medical electronic devices, e-health systems and innovative mobility solutions for people with disabilities. The current nature of collaboration between Qatar and France in the health sector includes French teams traveling to Qatar to understand the medical needs of the economy and develop methods for advancement. For example, the French company Sanofi, specializing in pharmaceuticals and life sciences, is working to strengthen Qatar’s health infrastructure in the management of communicable and non-communicable diseases through training programs and launch of treatments for diabetes, asthma and rheumatoid arthritis. Another example of cooperation in the health sector is the signing of a memorandum of understanding between Hamad Bin Khalifa University (HBKU), a member of the Qatar Foundation (QF), and the Pasteur Institute to work closely collaboration in the field of biomedical research.

Opportunities are focused on new technologies applied to the medical field: artificial intelligence, analysis tools and robotics. Qatar aims to leverage public-private partnership projects to build new healthcare units and increase the number of beds to 5,700 by 2023, to become a leading medical tourism destination in the Middle East . On the other hand, France is ranked among the leaders in terms of access to health care by the OECD, thanks to its unique social protection system which insures 67 million people and allows them easy access to health care. health and medicines. The French Federation of Health Industries has a turnover of 93 billion dollars. It is the third largest export sector (35 billion USD), with 6.9 billion USD of annual investments in R&D and 30,000 public researchers. By becoming new global hubs for health technologies, the enhanced collaboration between France and Qatar will play an important role in promoting local innovation ecosystems and in the exchange of knowledge and expertise between the two countries .

7-Transport

Qatar has experienced rapid economic and industrial growth over the past decade. This growth is characterized by an increase in population and the urgent need to develop major infrastructure and transportation projects. In line with its national vision, Qatar is committed to modernizing and strengthening its transport and infrastructure network. In 2021, the Ministry of Transport and Communications (MOTC) met with a delegation of French business leaders to discuss aspects of transport and ICT cooperation between Qatar and France and ways to strengthen them , as well as benefit from the investment opportunities available in these areas. Qatar has relied on recognized French expertise in the field of transport and railways to build a transport ecosystem meeting the highest standards of safety, comfort and reliability. French companies are heavily involved in the country’s major projects, such as the Doha Metro and the Lusail Tram, in preparation for the 2022 World Cup.

One of the most significant examples is Qatar’s first-ever metro line, the « Red Line », inaugurated in 2019, which stretches 40 kilometers from Al Wakra in the south to Lusail in the north and connects the airport Hamad International in the center of the city. The Red Line was designed and built by Vinci Construction, through its joint venture with Qatar Diar, QDVC, which also oversaw the mammoth infrastructure projects related to the Lusail Tram. For the Doha Metro, Alstom, Keolis and RATP, through their joint venture RKH, a contract worth more than $3.01 billion was also signed in 2017. Thanks to its wide range of innovative solutions, another large French company, Saint-Gobain, is very present in this metro project. Among the materials installed, Saint-Gobain supplied 115,000 m² of Kimmco-Isover glass wool for the insulation of stations and air conditioning systems; 26,000 m² of Gyproc plasterboard for drywall, shaft walls and ceiling systems; 14,000 tonnes of Weber mortars for floor coverings, tile fixing and coatings. Alstom was awarded the contract in 2014 to supply a turnkey tram system for the Lusail tram by Qatar Rail. The Lusail Tram is a tram service allowing you to easily get around the new town of Lusail. The first 5.5 km and six stops of the Lusail Tram Orange Line were inaugurated on January 1, 2022. Once completed, the network will include four lines and 25 stations above and below ground. The Lusail Tram will be connected to the Doha Metro through two interchange stations in Lusail. Thus, major French companies in the transport and rail ecosystem (Egis, Systra, Arep, Thales etc.) are involved as key partners in the development of the construction of the Doha metro and tramway, highlighting the quality and the density of collaboration in this area and indicating the presence of future opportunities for partnerships in the maintenance and expansion of the network. The construction of new urban centers and transport infrastructure in Al Rayyan, Al Wakrah, Al Shamal and Al Daayen offers promising opportunities for French newcomers. Likewise, the GCC railway which is to connect Doha and Riyadh from its first stage embodies the dynamism of the transport sector in Qatar. On the other hand, the business environment in Qatar has allowed French SMEs to establish themselves through business partnerships. The French SME Flowbird participated in the Millipol 2022 exhibition. It is the world leader in urban mobility and offers flexible transport and parking solutions.

Overview of the Qatar Economy

Qatar’s economy is among those experiencing the highest growth rate in the world with a rate equal to 20.9%. The country joined the WTO on January 13, 1996.

Oil and natural gas are the cornerstones of Qatar’s economy and account for more than 70% of total state revenue, more than 60% of gross domestic product and approximately 85% of export earnings. Qatar has the third largest proven natural gas reserves in the world. Since at least the beginning of the 2010s, it has been the fourth largest exporting country.

The State of Qatar is an independent country stretching 100 km long and 200 km wide in the Persian Gulf, with a coastline of 563 km. The peninsula is located in the heart of the Middle East and is home to an approximate population of 2.6 million people, made up of a vibrant mix of diverse ethnicities and nationalities. Since the 1970s, Qatar has become a major economic player, regionally and globally. Since His Highness Sheikh Tamim bin Hamad Al-Thani became the Emir in 2013, the country has further accelerated the development of its national infrastructure and the modernization of its health and education systems, as part of the Qatar National Vision 2030 (QNV 2030).

Qatar is a major business hub in the MENA region and is always looking for ways to increase its participation in the global economy and improve the prosperity of its citizens. To this end, Qatar has developed ambitious plans, including QNV 2030 and two editions of the National Development Strategy (NDS 2011-16 and 2018-22). Envisioning the future of Qatar’s economic goals, the National Vision Development Plan is based on four main pillars: human development, social development, economic development and environmental development. Qatar’s Second National Development Strategy (2018-2022) outlines several objectives aimed at advancing Qatar’s economy, supporting its growth and creating high standards of living for the population. To implement these strategies, Qatar plans to leverage its advanced and strong governance, social protection, technological innovation, global partnerships and sustainable development efforts.

Additionally, Qatar has modern and up-to-date connectivity resources, including state-of-the-art railway and metro systems that ensure efficient domestic connectivity, 5G infrastructure, as well as diplomatic connectivity. The country is also blessed with exceptional educational and research infrastructure and is the GCC leader in education, according to the United Nations Development Program (UNDP) Human Development Index (HDI). The Qatar Foundation funded 2,300 projects between 2007 and 2018, helping to make Qatar a global research pioneer. Qatar is one of the richest countries in the world based on its GDP per capita. Over the past two decades, Qatar’s economy has grown by leaps and bounds. In 2021, Qatar’s nominal GDP was USD 179.6 billion, compared to USD 97.8 billion in 2009 and USD 17.76 billion in 2000. Qatar’s GDP per capita, PPP (constant 2017 dollars), was $85,000 in 2021, the fourth highest in the world and the highest in the MENA region.

The energy industry accounted for 29% of nominal GDP in 2020, the largest contribution to GDP. The construction sector comes second, accounting for 14% of GDP in 2020, and the financial services sector, including insurance services, will account for 10% of GDP in 2020. Qatar is working to diversify its economy and strengthen non-oil activities. Diversification efforts are reflected in the growth of the industrial, service and tourism sectors, which are expected to expand thanks to the hosting of the World Cup. Qatar’s growing services sector ecosystem is supported by its national champions in aviation (QatarAirways), media (Al Jazeera), telecommunications (Ooredoo) and financial services (Qatar National Bank (QNB), and Qatar Islamic Bank (QIB)). Furthermore, the Qatar Investment Authority (QIA) has played a crucial role in promoting Qatari investments by investing Qatar’s resources abroad to achieve financial returns and strategic benefits.

In terms of exports, Qatar recorded USD 86.7 billion in total merchandise exports in 2021, of which 86% were mineral fuels and 13% were manufactured goods. The country recorded USD 18.4 billion in total services exports in 2021, with 62% in transportation and 23% in travel. In 2021, the country imported USD 26.9 billion worth of goods and USD 34.3 billion worth of services. In total, Qatar recorded net trade in goods and services of USD 44.4 billion in 2021, making it an exporting country with the thirteenth most positive trade balance in the world, according to the World Bank.

Qatar aims to become a leading country in terms of business environment and foreign investments. Foreign direct investment flows into Qatar have generally followed an upward trend in recent years, due to the country’s political stability, a stable currency pegged to the US dollar, high-quality infrastructure and one of the lowest corporate tax rates in the world. Additionally, Qatar continues to implement new laws aimed at liberalizing the business environment for foreign investors and introducing additional incentives and exemptions. Under the Foreign Investment Law (Law No. 1 of 2019), Qatar has allowed foreign investors to own up to 100% of the country’s companies. The hosting of the 2022 FIFA World Cup in Qatar has attracted a large number of foreign investors and provides several opportunities for foreign investment across sectors. According to the UNCTAD World Investment Report 2021, the total stock of inward FDI in Qatar stood at $27.5 billion in 2021, including $1.17 billion in French FDI. Foreign investments in Qatar created approximately 4,342 jobs through 84 new projects in 2021. The main sectors attracting foreign investments are oil and gas, construction, public works and financial services.

Portrait of the French economy

France is one of the most modern countries in the world and the seventh largest economy in the world in nominal terms for 2022, and the tenth largest economy in PPP terms, representing 3.3% of global GDP. French culture continues to have enormous appeal around the world, with remarkable performances in the fields of art, cinema, gastronomy, sport and tourism. France is the number one tourist destination in the world, with 80 to 90 million visitors each year. France has also played a very important role in international affairs and is one of the founding members of the European Union and the Eurozone. France thus has direct access to the European market and EU partners, reinforced by its strategic geographical location and its quality transport infrastructure, which make it a hub facilitating access to other countries. This is also made possible by the fact that France has the world’s second-largest high-speed rail network and the world’s largest exclusive economic zone (EEZ). Furthermore, France is a permanent member of the United Nations Security Council and has nuclear weapons, which gives it a preponderant place in world geopolitics.

Overall, France has several major assets, including high-quality transport and telecommunications infrastructure, a key geographical position in Europe, a strong internal market of more than 67 million consumers (the second largest market in Europe ) and, in 2021, the fourth largest exporter of goods and services. The country’s nominal GDP stood at US$2.9 billion and GDP per capita (PPP) was US$45,000 in 2021. In terms of the composition of the French economy, the service industry holds the largest share, representing 70% of GDP in 2021, and constitutes the largest contribution to GDP. Industry and construction represent 17% of GDP, and agriculture, fishing and forestry 1.6% of GDP. The French economy is well diversified and supported by a solid industrial and services ecosystem, with national champions driving its growth in aeronautics and armaments (Dassault, Airbus, Thales), automobiles (PSA, Renault) , luxury (LVMH, Kering), financial services (BNP Paribas, Axa), and business services (Capgemini).

Areas of Opportunity for Foreign Direct Investment (FDI)

With fifty years of economic and political relations between Qatar and France, His Highness the Amir of Qatar and His Excellency the President of the French Republic have constantly expressed their desire to advance strategic partnerships between the two countries in order to jointly overcome regional and global challenges. Both states also committed to further explore opportunities for co-investment, co-development and the provision of a wide range of services as part of their national strategies, which could crucially transform key sectors of their savings for the future.

In the years to come, the close investment relations between France and Qatar are expected to strengthen, particularly in the wake of Qatar’s National Vision 2030 and the France 2030 Investment Plan. France2030 Investment Plan offers several significant opportunities to deepen trade and investment relations with Qatar and contribute to the Qatar National Vision 2030 (QNV 2030). The France 2030 plan emphasizes technological innovation and digital transformation that generate more sustainable, smarter and more secure economic growth opportunities. Strengthening investment and trade relations between the two countries in this area would lead to greater social, environmental and economic development in both countries. The overall increase in trade with France in traditional (chemistry and finance) and non-traditional (education, tourism and digital) sectors would help support QNV 2030’s goal of developing a diversified economy in Qatar. Given the past successes and future aspirations of Qatar and France, numerous investment opportunities continue to exist in many areas, including internal security, energy, technology, cultural exchange, education , healthcare, transport, environment, public-private partnerships (PPP) and food security. We wanted to develop these sectors in the following pages of the report in order to inform our potential readers, CEOs, business leaders or export managers, of cross-business opportunities.

Franco-Qatari cooperation in internal security and defense

Cooperation between France and the State of Qatar in the field of internal security is characterized by its great vitality. In 1996, this cooperation was initiated by the signing of an MoU between the Interior Ministries, and in 2003, a new partnership was established between the new Lekhwiya – the Qatari Internal Security Force (ISF), and the French National Gendarmerie, for a transfer of expertise across the entire security spectrum (counter-terrorism, specialized intervention, crisis planning and management, biker training, etc.). This important partnership has opened the way to new opportunities for cooperation with the country’s other security forces (public security, civil protection, Amirian Guard and military police).

Indeed, thanks to its network of highly specialized companies in the field of civil defense and internal security, the French internal security and defense industry is among the main solution providers. In France, the sector includes around 4,000 SMEs and large companies which employ around 130,000 people. France recorded growth of more than 5% in this sector in 2021, thanks to its steady development and massive investments in innovative technologies such as cybersecurity, anti-drone systems, optronics, video surveillance equipment , crisis management and contactless identification, to name only the main key sectors.

Cooperation between the two countries aims to exchange information and good practices in order to facilitate contacts between specialized services. France’s support is also reflected in training offered to Qatari prosecutors by the Ministry of Justice and the National School of the Judiciary. The two countries expressed their desire to deepen cooperation in security and defense. The March 2021 agreement on cooperation regarding the organization and security of the 2022 FIFA World Cup is a striking example. The French internal security service, which has jurisdiction over Qatar and Kuwait, has been located at the French Embassy in Doha since 2003. The security service advises the French Ambassador to the State of Qatar on all matters issues relating to internal security and the various services of the Ministry of the Interior. This security service also coordinates bilateral cooperation in security and governance as well as multilateral cooperation, particularly in its technical, operational and institutional aspects.

*Doctoral researcher at la Lumière University, Lyon 2.

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