Economic diversification and ingredient to success:

Starting with the economic case in Qatar, as stated earlier there is high dependence on oil-
gas revenue. The economic diversification options in Qatar is still discouraged as a result of
high dependency on oil and gas, but this leaves the door open for some wide economic
activities that can be added to Qatars economic agenda, precisely activities that is based on
innovation driven economy. There have been some initiatives on diversification, but most
of them are still related and connected to oil gas, few examples may include the new
petrochemical complex in Ras Lafan and the strategic commercial investment by QP in
energy values as well as the GCC interconnectivity grid projects.
Conversely, the knowledge based economy vision requires innovative economic activities
which Qatar has the potentials for. The Knowledge economy vision in Qatar should involve
economic activities of less demand on natural or environmental resources and that does not
require high dependency on expatriates, precisely immigration of unskilled workers. It on the
hand should offer the potential for sustainable improvement in living standards unified with
human, social and environmental goals.
A list of suggested areas that Qatar can add in its economic agenda are as follow:
1. Cleaner and renewable (solar-wind) energy
2. Low carbo technology
3. Biosciences
4. Smart materials
5. Sustainable water technology and water desalination
To move forward in turning to diversification, there is a list of requirements and
involvements from different sectors needed to come to success, these may include
1. Nations education system must equip citizens with the relevant skills and mindset to
prepare them for an active participation in diversified economy.
2. Society must be prepared by government and education to be open to ideas and the
whole economic education system must be able to attract and retain highly talented
individuals.
3. More collaboration and partnership is required between public and private sectors in
the nation.
4. Higher involvement of policy, law and regulations for ideas property
The influence of effective government on economic performance is evident in developed
countries. Experiences in developed countries show a strong correlation between state
governing and per capita income. Indicator of the quality of government indicates key
obstacles to knowledge economy development. In transition countries, this obstacle is
mainly an inadequate legal environment. Investors are primarily interested in the
regulatory framework in a country and that they prefer to invest in countries with low-risk
political regimes. Economic incentives in form of good tax laws, financial initiatives and
flexible intellectual property regulative creates a more competitive business environment.
This is important for creation and accumulation of new knowledge. Generally speaking,
in a country with poor competition and with lack of pressure to create new products and
services the level of creation of new knowledge is very low and therefore the level of
economic growth as well.
5. Involvement of research and development in the creation of modern diversified
economic infrastructure backbone; a decent initiatives taken by state of Qatar is the
commitment to direct 2.8% of GDP to support research as in QNRF.