Qatar's Investment Strategies: A Business Development Case Study

This case study examines Qatar's strategic efforts to diversify its economy beyond oil and natural resources. It explores the country's transformation under Sheikh Hamad Bin Khalifa, including the establishment of the Qatar Investment Authority (QIA) to foster new business opportunities and investment strategies. The study utilizes SWOT and PESTLE analyses to assess Qatar's environment, identifies challenges such as reliance on a single income source, and investigates the importance of international business, human resource management impacts, and overcoming market challenges. It reviews Qatar's history, current situation, and future vision, including its Vision 2030 plan and the role of the Qatar Development Bank. The case study provides insights into Qatar's approach to economic development, including diversification, investment, and infrastructure development, while addressing issues such as the need for income source diversification and the impact of international business practices. The study also includes a TOWS analysis to identify strategies and recommendations for future development.

Case Study

ABSTRACT
Qatar is small part in the middle east. This stage is mainly based on the income of the oil
and natural resources. As the stage is based on the solely on the single income they make
another choices and plan to develop new opportunities for the business. Fot this royal family of
the state has been looking for ward and try to develop new diversified sources if income for the
country. For this purpose they set Qatar Authority Investment which helps to people of the
country to make their investment more accurate and try to develop new business opportunities
for the people of the state. With the help of the SWOT and PESTLE analysis it helps to Qatar for
identified its environment.

TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................2
CHAPTER ONE INTRODUCTION ..............................................................................................4
CHAPTER 2 : CORPORATE AND COMPETITIVE APPRAISAL.............................................6
CHAPTER 3: ANALYSIS OF THE SITUATION.........................................................................9
CHAPTER 4: PROPOSED SOLUTION TO PROBLEM ...........................................................13
CHAPTER 5: Forecast and Action Plans.....................................................................................16
REFERENCES..............................................................................................................................19

CHAPTER ONE INTRODUCTION
Under the leadership of Sheikh Hamad Bin Khalifa, Qatar has turned in into the global
power house. It is considered all type of natural, gas, oil, media and finance. Under his
supervision he turned to Qatar a financially global capitalism. He also develops world largest
non associated gas field in the world in 1990 (Bao and Analoui, 2011).
Along with this in 2005, government of the country has created Qatar Investment
Authority, which is one the largest assent management company in the world. This country has
now to move from the power house to new well develop source of income in which they are
trying top develop new source of income for the country. Sheikh Hamad were making efforts to
diversify economy and planned to manage new economic management in the country. The first
steps which taken by him is improved the economic management of Qatar (Bovee and Thill,
2010). The aim of the country in to develop new generating source if income and make its own
country for more powerful for the benefits of new generation. To make development of the new
income sources Sheikh of Qatar state move, to make different types of joint ventures with banks
and redesign of the diplomatic strategy. The country set its own vision 2030 in which they
include their ambitious plans to includes a range of diversity income sources.
Background of study
Qatar is country which is part of the Middel East, that is small, peninsular state. The main
source of income of this country is natural gas and oil fields which they make export to other
country. Doha is capital of this country. Due to lack of natural resources in the 18th century , they
had to face many types of problems. In the year of 1820 to 1930 the major source of income for
the country was based on the pearling. I late 90s, the country moves to new source of income
which is to develop telecommunication, airports a power plant and government buildings. In the
last few years this state has been changed completely and focuses more on the developing new
sources if income for their people (Cedrick, and Long, 2014).
Under, Sheikh Hamad Bin Khalifa which ruled on the Qatar had to make different types
of venture and make an assets' management company which helps to them for opening new
income source income. To develop such power they move to various types of income and make
different types of collaboration with many other people (Bao and Analoui, 2011). It main joint

venture organization in Qatar Investment Authority (QIA). With the help of QIA they try to
make development of their country and investment firm so they can control capitalization in the
country.
Statement of problem
Irrespective of the many benefits of the country, Sheikh has to face many problems to
appoint of the investments in the country (Khan, 2014). The aim of the QIA is ti make strengths
of the country investment and they by diversifying into new asset classes and make growing
portfolio of long term strategic investments, but the QIA does not want to make any type if
interments in the energy sector of Qatar. Authorities are focused on developing small and mid
sized organization.
The energy sector of the country was not much well developed as they have to face
many types of problems in its business area. The ruling family of the state run many types of
firms and majority of them are profitable and efficient. Along with this many members of the
QIA are belongs to foreign members so the QIA make autonomous from the government and
involved many members of the ruling families (Yuksel, 2012). With the such step they avoid the
monopoly which has been created by the foreign investor in market.
Apart, form the above Qatar has to face many other problems in its business operations.
They have to face many types of other problems such as lack of infrastructure, revenue and
higher fluctuation in the foreign market (Duhaime and et.al., 2012). All these challenges have to
face by the country in order to make support their own working establishment on energy sector.
Research questions
Following are the research question which are available for critical analysis:
 Why it is important for Qatar to identified new diversified source of income?
 How inappropriate international human resource management can effects business
activities and investment strategies?
 How Qatar overcomes with problems and challenges which they faced in national and
international market?
Research aims and objectives

Aim “ To critically analyze and develop strategies to overcomes with difficulties which faced by
Qatar state in its development ”
Objectives
 To examine important of international business and develop strategies to make new
investments
 To analyze external environment and challenges which belongs Qatar
 To make summarizes weaknesses and opportunities of Qatar
 To provide recommendation for development in country level.
CHAPTER 2 : CORPORATE AND COMPETITIVE APPRAISAL
History of Qatar
Qatar is a small, peninsular state which is situated in the gulf country. In the 18th century,
the state by overlooked by colonial powers which were active in the Gulf. The main source of
income which was focused by the state are the pearling. As many other type of the gulf
countries, this state also based on the oil fields. Under the sheikh Hamad Bin Khalifa, the
country started growing and become more visible state (Hill, Jones and Schilling, 2014). Under
his leadership, state become more growing and they are also developing their business firm in
order to expand the business.
In the year of 1977, ruler family play important role in development of state and present
government try to develop all aspects of society. In that era government of the Qatar makes
significant changes in its system and make their self for more development so they can make
their society more modern (West, Ford and Ibrahim, 2010). There are different types of
programs which were launched by current government such as Al Jazeera, which was launched
by government to make promotion of their educated reforms, spent a lot of money on the
different section of the society to make revenue on the infrastructure and real state. The major
source of income for the country was still exported of oil. The government of country was very
much worried about the single source of income. In order to ensure the long term growth of the
state they try to make different types of investment in the countries such development of

telecommunication, airport and power plant (Mrabet and Alsamara, 2016). Along with the state-
owned enterprises also play important role in order to make improvement of economy. In the
country economic Qatar Petroleum the largest provider of the tax- revenue.
Current situation
Current situation of the country are now much promising. The state and its government is
now looking more forward to make establishment of the new vision and long term goals within
country. In 2005, Sheikh of the country make Qatar Investment Authority (QIA). The main aim
of this authority is to make establishment of new facilities and try to make investment in the
country. With the set of the long term vision, now the state is able to make development
(Charfeddine, 2016) Its first international organization is Qatar Airlines which is one of the most
successful business venture. Along with this they also make development in many other
facilities such as make of the infrastructure network and telecommunication sector.
At the present. Situation is not very complex. In 2012, government of the country
establishment of Qatar development Bank to promote
diversification at home. At present, with more politically stability, country try to develop their
long term investment fund so they can promote better services in the country. Aim agenda of the
starting and set up of the bank is to promote diversification and development of the private
sector. Target of bank is to fill gap in between market and finance activities (Samanta, Cheng
and Sadr, 2016).
Along with they also try to make development of their society. Many of people in the
country still followed traditional rules. Government tries to make development of balance in
between the modern and traditional values so they can make effective development of country.
Government of Qatar has set a national vision 2030, in which they build a bridge to fulfill gap in
between present and future. For this government also give 4 pillars approach in which they try to
develop human development, social development, economic development and environmental
development (Mrabet and Alsamara, 2016). In the late 1990s, Qatar sought to increase its
spending in education in primary and secondary. Along with this their development strategies are
also included different types of other development such as sports, entrepreneur and
infrastructure.

In sports investments they are also organized different types of strategies which is part
of their development strategy. It high profile winning bids in 2006 Asian games, in 2014 they
also organized world swimming championships and FIFA world cup-in 2022.
Tows analysis
SO
Qatar can offers cost effective services in
tourism and also helps to build the state more
strong
WO
for developing its tourism sector they need to
make focuses on the tourism sector.
ST
The country have to use the diversified sources
of income
WT
To overcome with this problem the stage need
to develop their more infrastructure
development new source income.
CHAPTER 3: ANALYSIS OF THE SITUATION
3.1 Problem statement of Qatar
The problems which faced by Qatar for its intentional development includes different
types of aspects which need to considered while making problems statement. There are many
types of challenges which are present faced by country which mainly includes economic
challenges and political demonstrations. (Sharif and et.al., 2016)
In its economic problems mainly includes decreases in process of oil. Qatar mainly
profits are totally depended on the oil prices and many development project are also deepened on
it. Along with this there is also some other problem which faced by country is that influx of
immigrants could result loss of cultures and other Qatari social norms.
3.2 literature review
This report make concentration on review of different types of theories associate with
different types of frameworks.

Porter's five Forces frameworks
In order to make assessment of the external business environment of organization, Qatar
can also use Five forces frameworks according to Porter (1979) and (1980). This five forces are
forces on market problems and different types of competitive issued which faced by country.
This frameworks consist five forces new entrants’ threat, substitutes’ threat, existing
competitors’ threat, buyers’ bargaining power and suppliers’ bargaining power. According to the
Porter (1985) and Porter (2008) in order to make successful any type of strategies organization
have to make analysis of the different aspects of the external environment so they can make
their strategies more accurate.
Porter’s value chain framework
Porter (1985) is another frameworks if value chain analysis. This framework generally
used for making analysis of the internal environment of firm. This framework mainly includes
two type of activities primary and supporting activities. The primary activities include five
different aspects such as logistics,operations, outbound logistics, marketing and sales and
services. In the secondary activities includes firm infrastructure, procurement, management of
human resources and development of technology. All these activities are includes internal
frameworks of the company and helps to organization to make assessment of their internal
activities and also make assessment of the different types of activities which used by
organization to complete their tasks and information.
Resource-based approach framework
This framework is also used by company to make analysis of the internal environment. In
this framework organization considered all important aspects of company such as capabilities,
resources and core competences. Through this analysis they can take advantage of competitive
business environment and take market share along with development of their business and
strategics.

3.3 Structure of problems analysis and models
Human resource's management model
Human resource's management is designed to maximize employees performance. HR is
mainly concerned to the management of people within organization., focusing on polices and on
systems. Following are the models of HRM.
The Warwick Model
The main aim of this model is to identity the outer and inner aspects of management. It
helps to exploring how HRM changes and adapts itself to the various aspects. In focuses on the
various tasks which mainly operated by the organization and then develop its strategic polices.
This models mainly focuses on five different types of elements such as outer context,
inner context, business strategy content, HRM context and HRM content (Mrabet and
Alsamara, 2016). All these elements are interlinked and helps to achieving Superior
performances.
Analyze of model
this model can also associate with the current situation of the Qatar. In which they need
to make their human capital which includes people of Qatar (Cedrick, and Long, 2014). To
make develop of the human they need to provide education and resource so they can also
competitive with outer world.

Illustration 1:The Warwick Model
(Sources: Mrabet and Alsamara, 2016)
Strategic International Human Resource Management
This model is mainly concerned with the coordination, control, local responsiveness and
overall learning. It allows to in developing a relation between endogenous and exogenous factors
. It also helps to maintained balance in between global and local requirements (Charfeddine,
2016). This model is used by business firm when they owned many subsidiaries. Obstacles are
observed in acquiring multiple skills and competencies within the organization.
Analyze of model

This model helps to maintain relationship in between local and global requirements. The
local requirements of the state is to make development of diversification sources of income and
global requirements is related to achieve more develop services for the state . So for make
implication of this model Qatar make balance in between global and local requirements.
Illustration 2: Strategic International Human Resource Management
(Sources: Biygautane, Gerber and Hodge, 2016)
International business models
Such type of model are used by business fir when they want to expand their business and
entering into new market. With the help of such model they check their progress.