Qatar has the fifth largest economy in the Arab World (After Saudi Arabia, Egypt, UAE and Iraq). The country’s GDP has been growing steadily between 2010 and 2014, increasing from $125 billion to more than $206 billion in four years. Qatar’s economy is driven primarily by the oil and gas industry. It holds the third largest gas reserves in the world (estimated at 12% of the global total in 2021) behind Russia and Iran. The Emirate’s economy is thus heavily concentrated in the gas industry, which represents two-thirds of its GDP and almost 80% of export earnings. Qatar’s liquefied natural gas (LNG) industry has attracted tens of billions of dollars in foreign investment and made Qatar the world’s largest exporter of this commodity.

The country enjoys one of the highest GNI per capita in the world (about $65,000 according to IMF projections for 2022) and has a high-spending consumer population. By boosting its liquified natural gas (LNG) capacity by about 40% in the coming years, Qatar’s wealth will keep increasing.

Although economic diversification represents a long-term challenge, Qatar has a large resource base that can be used to boost development of non-hydrocarbon sectors.

Source: 1. seco, 2. OECD, data for 2021 (oecd), 3. OECD, data for 2022.

Qatar is hosting the World Cup which serves as a vehicle to achieve the Qatar National Vision 2030 (QNV 2030), a government initiative to transform Qatar into a global society and provide a higher standard of living. According to this plan, the projects to be performed are intended to promote post-tournament sustainability. The World Cup is expected to positively contribute to the country’s domestic economic activity, the construction sector in particular is booming.

Investment climate in Qatar

Among the major advantages of Qatar’s investment climate are the country’s competitive economy, national currency (that is characterized by a very stable exchange rate), high quality infrastructure, and a very favourable tax environment. In addition, Qatar has two economic zones that offer special benefits to foreign businesses – the Qatar Financial Center (QFC) and the Qatar Science and Technology Park (QSTP). Qatar’s well-developed financial sector can also be regarded as an advantageous feature of the country’s investment climate. The country has big interest in attracting high-tech products and services to its market. Among the main disadvantages of Qatar’s investment climate are relatively small market size and strong reliance of the economy on the public sector. (Reserve your copy of the Doing Business Guide for Qatar link).

Qatar-Switzerland Economic Relations

Qatar and Switzerland will celebrate 50 years of diplomatic ties in 2023. Culturally, the two are worlds apart, but both are small countries that play an outsized role in international politics and business.

According to State Secretariat for Economic Affairs (SECO) Qatar is Switzerland’s 5^th largest trading partner in the Middle East (the United Arab Emirates tops the list) (or 63^rd place internationally), with a trade volume totalling CHF708 million ($715 million) in 2021 (trade was down a whopping 52% compared to 2020). According to SECO the volume of trade for the first nine months of the current year already amounts to around two billion francs. Historically trade volume has increased considerably with an upward trend during the last two decades.

Source: Swiss Federal Office for Customs.

The flow of goods mainly goes in one direction, from Switzerland to Qatar. Imports from Qatar, on the other hand, are negligible, in particular because Switzerland is not a buyer of the main Qatari export resource: gas. The two countries have created the necessary framework conditions for increased economic exchanges through a set of agreements such as investment protection, double taxation, free trade (through the GCC and the EFTA) and air transport.

Benefiting from a free trade agreement (through the Gulf Cooperation Council and the European Free Trade Association), a double taxation agreement and an investment protection agreement, economic relations between Switzerland and Qatar come under comprehensive bilateral framework conditions.
Watches and jewellery, precious metals and pharmaceuticals accounted for most exports to the emirate (Federal Office for Customs).

Source: Swiss Federal Office for Customs.

Source: Swiss Federal Office for Customs.

In a sign of the importance it attaches to doing business in Qatar, the Swiss Business Hub, which offers help to Swiss companies looking to establish a presence in foreign markets, has its Middle East office in the Qatari capital. Some 30 Swiss firms in Qatar employ around 1,000 people in the country. The majority of Swiss companies present in Qatar are suppliers in the field of infrastructure and energy. The customer base includes the oil and gas sector, the petrochemical industry as well as water and wastewater management. There we can find for example Endress + Hauser, the specialist in measuring instruments, Nestlé, industrial group ABB, Holcim, Georg Fischer for Watches, Sika in the chemical industry (Watson) and Glencore¹ Switzerland is interested to launch a dialogue with the local companies and the authorities on new technologies, such as in the area of cybersecurity.

Recently top officials from both countries have held meetings during a forum called the Swiss-Qatar Mixed Commission in September 2022. The Federal Councilor Ueli Maurer and Finance Minister Ali bin Ahmed Al Kuwari, met in Zurich, to talk economic opportunities according to the business federation economiesuisse. In the midst of an energy crisis and the war in Ukraine, the purchase of liquefied natural gas from the world’s biggest exporter was a major topic, with the Qataris reportedly open to supplying the Swiss market (economiesuisse). Also different aspects of the real economy were discussed during the different meetings. Qatar is very interested in Swiss know-how. In view of the Football World Cup, Qatar is planning to modernize the construction sector and make it more sustainable, as significant sums will continue to be invested in infrastructure. A large water recycling plant is currently planned. This is exciting news for Swiss companies that are at the forefront of this field. Closer collaboration has also been established in the area of intellectual property protection in particular to better identify counterfeit watches.

Swiss banks are also interested to expand in the Qatari market. UBS announced plans to establish a services hub. Credit Suisse, meanwhile, is willing to open a new tech centre in partnership with the Investment Promotion Agency Qatar. Other sectors too want to further entre the market in the emirate. Swiss hospitals and hotels are looking for partnerships in Qatar and to boosting medical tourism in Switzerland.

What are Qatar’s interests in Switzerland?

Qatar has different investments in Switzerland through the Qatari sovereign wealth fund, the Qatar Investment Authority (QIA), with investments in several sectors totalling close to CHF1 billion, such luxury hotels like the Schweizerhof in Bern and the Bürgenstock Resort on Lake Lucerne. During the financial crisis, it helped shore up Credit Suisse by buying convertible bonds and taking a 5% share in the bank (swissinfo).

The Geneva International Motor Show also signed a deal with Qatar Tourism to bring the popular event to Doha. In 2023 the motor show will take place exclusively in the Qatari city (Gims.swiss).

The World Cup as a driver for economic diversification

Qatar wants to diversify its economy away from fossil fuels, toward a sustainable economy. Hosting the World Cup is part of Qatar National Vision 2030, which aims to diversify the economy and provide a high standard of living for the people. In total, it would be more than 200 billion dollars invested by Qatar to organize one of the biggest sporting events. An event that is expected to generate new activities and boost economic growth.

The State of Qatar has spent 220 billion dollars on infrastructure and giant development projects that have been spent in the 11 years since it won the hosting of the World Cup, and this is the highest number ever spent in the system of this world championship (Al-Jazeera).

Source: DW *Includes spending on infrastructure projects. Values not adjusted for inflation – as of April 2022
For Qatar: The cost of constructing of stadiums, according to official data, is about $7 billion.

Qatar built 8 stadiums according to the latest international standards, namely: Al-Bayt (hosting the opening of the World Cup), Khalifa International, Lusail, Al-Janoub, Education City, Ahmed bin Ali, Al-Thumama, and 974. The cost of constructing of stadiums, according to official data, is about $7 billion.

The Qatari government expects that tourism spending and economic activities associated with this World Cup will add the equivalent of 1.5% to gross domestic product. It is expected that tourism revenues from this tournament will reach about $7.5 billion, according to Capital Economics. Between 1.2 million and 1.7 million fans are expected to arrive in Qatar.

The International Monetary Fund and Bloomberg Agency say that the Qatari economy will reap financial revenues from organizing the World Cup estimated at tens of billions of dollars, including a jump in foreign direct investment in Qatar before and after that world championship. The International Monetary Fund expects economic growth in Qatar to reach 3.4% in 2022 and 2.4% in 2023; Supported and driven by many basic economic factors, including the country’s hosting of the World Cup.

Such expectations prompted the Qatari government to aspire to the country becoming a regional centre for business, and even to increase the number of tourists to reach to reach 6 million tourists annually by 2030. Doha is actually a city with one of the fastest-growing hotel and hospitality markets in the world. Over 150 new hotels have been built for the FIFA World Cup. In fact, the World Cup is only one point in the long history of Qatar as a hub for sports and other kinds of cultural activities, all of which makes it an attractive tourist destination (Euronews).

According to Sheikha Alanoud Al Thani, Deputy CEO and Chief Business Officer of the Qatar Financial Centre, a successful World Cup in Qatar is a kind opportunity to put Qatar on the international business and economic map, adding that Qatar’s financial commitments into building an infrastructure capable of hosting the World Cup has given many companies a boost, especially in the field of sports technology (Euronews).

The World Cup is a highly effective international marketing platform, that reaches millions of people in over 200 countries around the world. Not all countries have benefited in the same way. The list of the official FIFA partners includes: Adidas (ADS), Coca Cola (KO), Wanda, Hyundai, Kia, Qatar Airways, Qatar Energy and Visa². Switzerland has been able to pull out of the game, in particular thanks to the Swiss company Nüssli, active in the construction of stands. The company has set up a system of air-conditioned and removable stands. The estimated budget is around $700 million.

Criticisms directed at Qatar concerning labour force and relevant regulations

World Cup in Qatar is an object of boycott calls from some politicians and human rights organizations in European countries concerning foreign workers rights.

But Qatar has undergone serious significant domestic reforms. It is the first country in the region to introduce a minimum wage last year and formally abolished the kafala (sponsorship) system for migrant workers.

According to ILO reports, Qatar had undertaken substantial efforts in the areas of labour migration governance, the enforcement of the labour law and access to justice, and strengthening the voice of workers and social dialogue, which have improved the working and living conditions for hundreds of thousands of workers.

In March 2021, Qatar became the first country in the Gulf region to adopt a non-discriminatory minimum wage that applies to all workers, of all nationalities, in all sectors, including domestic work, in addition to legislations concerning occupational safety and health & labour inspection such as the prohibiting of outdoor work between 10 a.m. and 3:30 p.m., access to justice, concerning the labour unions, new legislation has led to the establishment of joint worker-management committees at the enterprise level (ILO).

Qatar’s labour minister responded to the allegations about the conditions of migrant workers involved in construction work for the World Cup, saying a mechanism is already in place for those seeking compensation. “At least $350 million has been given as compensation to workers,” he said.

Rita Schiavi, a former trade unionist with Unia (the largest workers’ union in Switzerland), who is familiar with the case of stadium construction sites in Qatar for the World Cup, finds criticism of Qatar too harsh. In an interview published in the daily newspapers of CH Media, she finds that there are many misconceptions about Qatar, before highlighting the evolution of working conditions that she has seen during her visits to Qatar. She pointed out that there are many misconceptions in the West, and prejudices against the Arab-Muslim world, such as the obligation to wear the headscarf (20min)(also look at the reports on SRF of 04.11.2022 and SRF of 10.11.2022).

In a fiery news conference in the Qatari capital on the eve of the tournament, FIFA President Gianni Infantino, attacked European critics on Qatar regarding issues of migrant workers and gay rights. He said, “Who cares about workers’ rights?!, “We in Europe close our borders and do not allow any worker from developing countries to work in our lands legally” he said, noting that there are many who work illegally, while Qatar provides them with this opportunity.

He added: “I have difficulties understanding the criticism. We have to invest in helping these people, in education and to give them a better future and more hope. We should all educate ourselves, many things are not perfect but reform and change takes time”, “I am European. For what we have been doing for 3,000 years around the world, we should be apologising for the next 3,000 years before giving moral lessons,” (Swissinfo³).

Swiss population vision on the World Cup in Qatar
The feeling of the Swiss population has been mixed, with concerns for the welfare of migrant workers, who make up the majority of workers in Qatar (95%). Many Swiss cities have chosen not to install fan zones or public viewings, justifying this decision by Qatar’s workers’ rights record.

Future vision
Finally, whatever scepticism and criticism prevail in the Western countries, Qatar was able to enter history as the first Arab and Muslim country to organize the World Cup, though sending a bright message about the history of the region and the importance of peace and cooperation between the people. Moreover, the World Cup represents a golden opportunity for the country to put itself on the world map changing the country’s image, and cliché about the Arab world, and most importantly, it is a strong tool to transform its economy into a modern, more diversified, highly digitised, and integrated into the global value chain. More is still needed to be done to achieve various urban development projects to achieve the country’s 2030 national vision’s sustainability goals, so creating opportunities and favourable conditions for foreign investors and visitors.

We, at Swiss Arab Entrepreneurs Platform, will be helping the different partners in order to seize the very interesting opportunities offered by the World Cup in Qatar today and in the future.

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1. British company with headquarter in Switzerland, The Guardian (Link).
2. Admiralmarkets (Link).
3. Swissinfo (https://bit.ly/3GWhbyA).