Qatar Digital Transformation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Qatar Digital Transformation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Qatar Digital Transformation Market size is estimated at USD 7.89 billion in 2024, and is expected to reach USD 16.89 billion by 2029, growing at a CAGR of 16.43% during the forecast period (2024-2029).

Key Highlights

• Qatar is experiencing significant growth in digital transformation, driven by a rising urban population and the increasing adoption of mobile phones that support 3G, 4G, and 5G services. Additionally, the market is benefiting from Qatar's smart city initiatives, which are further accelerating the country's digital transformation.
• In February 2024, the Investment Promotion Agency Qatar (Invest Qatar) and the Ministry of Communications and Information Technology (MCIT) released a report titled 'Smarter Qatar.' The report, 'Embracing Emerging Technologies and Innovation, Improving Lives, and Driving a Sustainable Digital Economy,' highlights Qatar's commitment to adopting advanced technologies to become a smart nation. It also details Qatar's strategic initiatives to leverage the global smart city market, which is projected to reach nearly USD 7 trillion by 2030.
• Qatar is rapidly advancing its internet connectivity, with a notable focus on enhancing both mobile and fixed broadband networks. As of April 2023, Speedtest reported that Qatar had the fastest average mobile internet connection globally, reaching nearly 190 Mbps. The United Arab Emirates (UAE) and Macau followed, each recording average median speeds above 170 Mbps.
• Further, major players in the country are investing in boosting the nations networking capabilities to improve its digital infrastructure. In November 2023, Nokia and Ooredoo Qatar achieved a notable feat by launching the Middle East and Africa's (MEA) inaugural private wireless network, tailored specifically for the energy sector. This initiative is designed to deliver exclusive voice and data services to even the most remote and demanding locales.
• In recent years, the Qatar National Vision 2030 and other governmental initiatives have prioritized expanding Qatar's financial services. The government is particularly interested in promoting partnerships between banks and the broader financial ecosystem to digitize and enhance services for citizens and businesses.
• However, Qatar's digital transformation is promising but faces challenges. A primary concern is security, particularly the fear of data being transferred outside the country. The increasing volume of data generated and stored digitally makes businesses vulnerable to data breaches.

Qatar Digital Transformation Market Trends

Analytics, Artificial Intelligence and Machine Learning is expected to boost the Market Growth

• By leveraging technologies such as artificial intelligence, machine learning, and others, Qatar has driven economic growth and improved its quality of life through the development of digital infrastructure and the creation of enabling ecosystems.
• In 2023, Qatar advanced to the 48th position in the Digital Quality of Life Index, achieving a value of 0.53, up from 0.51 the previous year. This index evaluates five key pillars: internet affordability, internet quality, e-infrastructure, e-security, and e-government, using 14 indicators. Scores range from zero to one, with one representing the highest quality of digital well-being.
• The government is actively involved in accelerating the country's digital growth and has invested significantly to support it. In March 2024, Qatar earmarked a substantial QAR 9 billion (USD 2.47 billion) incentive package for artificial intelligence (AI) initiatives, signaling a strategic shift towards a holistic digital transformation.
• Google Cloud’s introduction in Qatar opens doors for enterprises and startups to harness advanced technologies, with a special emphasis on artificial intelligence (AI). In February 2024, Ooredoo, a telecom company based in Qatar, collaborated with Google Cloud. This partnership is poised to transform Ooredoo Qatar's data analytics and Artificial Intelligence (AI) capabilities. Leveraging Google Cloud's machine learning and AI solutions, alongside its Smart Analytics tools, Ooredoo Qatar aims to delve deeper into customer preferences and needs. These insights enhance network performance and refine personalized offerings and bolster proactive customer support.
• Moreover, in May 2024, the Qatar Free Zones Authority (QFZ) and Quantiphi, a Google Cloud partner, have signed an agreement to establish a global technology hub in Qatar’s Free Zones. This initiative aims to meet the growing demand for AI and generative AI enterprise solutions, driving innovation and accelerating digital transformation initiatives across Qatar and the region.

Oil, Gas and Energy to Have a Major Share in the Market

• The energy sector is going through a profound transformation driven by digital technologies. The shift spans from embracing renewable energy sources to implementing smart grids, fundamentally altering the production, distribution, and consumption dynamics of energy. Moreover, it can help cut costs, boost output, and reduce carbon emissions in the oil and gas sector
• Qatar's natural gas production, as reported by the Energy Institute, reached approximately 181 billion cubic meters in 2023, up from 177 billion cubic meters in 2021. As gas production expands, managing operations becomes increasingly challenging. Utilizing digital technologies such as AI and IoT is essential to optimize production, reduce costs, and enhance efficiency.
• In February 2024, Petrotec collaborated with Siemens to advance Qatar’s digital energy transformation. This partnership will enhance operational efficiency, optimize asset performance, reduce downtime, implement eco-friendly solutions, and improve resource management.
• The global shift towards sustainability and the move to renewable energy sources have made it imperative to embrace digital technologies for more effective energy generation, storage, and distribution. According to the International Renewable Energy Agency (IRENA), Qatar's installed renewable energy capacity surged to approximately 824 megawatts by 2022, a significant rise from the 24 megawatts recorded the year prior.

Qatar Digital Transformation Industry Overview

The Qatar Digital Transformation Market is fragmented, with numerous players currently operating. Key players in the ICT market are continuously striving for advancements. Several prominent companies are forming collaborations and expanding their presence in developing regions to strengthen their market positions. Oracle Corporation, International Business Machines Corp. (IBM), Wipro Doha LLC, and Ooredoo Qatar, among others, are major players.

• July 2024: MEEZA, a leading provider of managed IT services and data centers in Qatar, announced a strategic partnership with AMD, a prominent player in high-performance computing and graphics solutions. Through this collaboration, MEEZA aims to leverage AMD's advanced computing platform to drive the AI revolution in Qatar and beyond.
• May 2024: DDN, a global provider of artificial intelligence (AI) and multi-cloud data management solutions, partnered with Ooredoo, Qatar's telecommunications operator and ICT provider. Through this alliance, DDN's advanced AI capabilities position Ooredoo at the forefront of the ICT landscape, bolstering its service portfolio. Ooredoo will adopt DDN’s sophisticated AI infrastructure, including sovereign AI capabilities, to drive innovation and improve operational efficiencies across its networks.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support