Not forgetting, of course, that the football World Cup is due to be played there in 2022.
Qatar is one of the world’s fastest-growing economies and has been so for more than a decade now with real GDP growth averaging over 16% pa. While this growth is predicted to slow due to gas production becoming more efficient and capacity figures being hit, it still left the impression of a country with a determination to move forwards and continue with its dynamic infrastructure spend.
I had been in the country earlier in the year and flew into the ‘old’ airport (which was not very old), but this time flew into the spanking new Hamad international airport, which was incredibly impressive with onward connections all over the world.
The numbers of onward destinations was staggering and made we wonder why we are still arguing about when and where we might get another runway in the UK while all around us global competitors are building whole new airports to compete for the global traveller.
Earlier this year both the United Arab Emirates (UAE) and Qatar were upgraded to emerging market status from frontier market status. With both countries meeting the very specific criteria needed for upgrading, there was certainly a mood of optimism optimism among locals I met in the financial district when I was visiting. The criteria included significant progress on financial regulation, the lifting of restrictions on foreign ownership of shares and stable institutional frameworks and easier capital liquidity and flow.
The Qatari Wealth Fund controls over $100bn of assets and has acquired holdings in well-known British companies like Sainsbury’s and Barclays as well as trophy investments like Harrods.
The Shard is a typical high-profile example, as is the redevelopment of the Chelsea Barracks site, of prestige property investment further diversifying their holdings.
Qatar has invested in other European countries too, with French oil company Total among other investments made on the continent.
On a per capita basis, Qatar is the richest country in the world, and locals I met told me that as a nation they were keen to build upon their gas wealth by attracting inward investment, as well as seeking to invest globally through quality investments designed to diversify at a relatively early stage in their economic development from natural resources.
The US is also benefitting with over $650m invested in the capital, Washington, in residential and business properties. Chicago, the Windy City, has also attracted investment. It is now possible for those brave enough among eligible UK investors (companies or those certified as sophisticated) to invest into this growth story with the arrival of the Qatar Investment Fund which is listed on the London Stock Exchange and has the stated objective of achieving long-term growth by investing in Qatari equities.
With all this money and a seat at the United Nations it might be easy to forget that Qatar is actually very much a family business. The Al-Thani dynasty appears to be pretty hands on and very much in control of their business operations and investment plans. However, having been there and met some locals and expats working there, and seen the ambition, I suspect this is one family business which will continue to do well.