‘Strategic Locations, Smart Incentives Drive Foreign Influx’

Doha: Qatar’s strategic push to diversify its economy is gaining new momentum as Ras Bufontas and Umm Alhoul Free Zones witness a significant rise in foreign direct investment (FDI), particularly in the logistics, technology, and manufacturing sectors.

Spearheaded by the Qatar Free Zones Authority (QFZA), these two zones have become magnets for international companies looking to establish a base in the Gulf and MENA region.

According to recent figures shared by QFZA, foreign interest in these zones has grown by over 35 percent year-on-year in the first half of 2025.

This increase reflects a broader global trend toward supply chain localisation, regional manufacturing hubs, and tech innovation, all of which align with Qatar’s national development strategy 2030.

Ras Bufontas Free Zone, located adjacent to Hamad International Airport, has emerged as a tech and innovation hub, with a growing number of companies specialising in smart logistics, artificial intelligence, and advanced IT infrastructure.

Global players from Germany, South Korea, and Singapore have recently signed agreements to set up regional headquarters and R&D facilities in the zone.

Speaking to The Peninsula, market experts noted that the strategic proximity to key air and sea routes, combined with generous incentives like tax exemptions and full foreign ownership, is driving a surge of foreign investment into Qatar’s investment zones.

“Ras Bufontas offers unmatched connectivity and access to a highly skilled talent pool,” said Dr. Henrik Meier, Director of Global Expansion at a Berlin-based logistics tech firm. “We chose Qatar because of its political stability, business-friendly regulations, and forward-looking investment incentives.”

Meanwhile, Umm Alhoul Free Zone, strategically located near Hamad Port, has become a hotspot for advanced manufacturing and logistics companies.

Sectors such as industrial equipment, green manufacturing, and marine services are gaining traction, driven by Qatar’s proximity to African, Asian, and European markets.

“Qatar is becoming an ideal springboard for regional supply chain operations. The tailored infrastructure and regulatory flexibility are making it increasingly attractive to high-tech manufacturers and global logistics providers,” Dr. Meier said.

Investors are also being drawn by incentives including 100 percent foreign ownership, zero customs duties, and tax exemptions for up to 20 years.

In addition, both zones offer access to warehousing, custom-built industrial facilities, and digital infrastructure, which are proving crucial in post-pandemic supply chain planning.

Canadian electric vehicle parts manufacturer VoltEdge Industries is among the latest to commit to Umm Alhoul.

“This is a strategic location for our Middle East and Africa operations,” said another industry expert, Danielle Reyes.

“We are impressed with the pace of development and Qatar’s commitment to sustainable industry.”

Aligned with Qatar National Vision 2030, QFZA expects continued momentum in attracting foreign investments that enhance innovation, industrial output, and non-oil GDP growth.

Both Ras Bufontas and Umm Alhoul are now at the heart of Qatar’s transformation into a regional hub for future-focused industries.