Market Trends of Qatar ICT Industry
This section covers the major market trends shaping the Qatar ICT Market according to our research experts:
Rising 5G Demand
- Qatar's telecommunications industry has seen strong development and substantial advancement in the previous years because of strong government backing and the nation's encouragement of an ecosystem of collaboration between public and private organizations. According to an Ericsson report, through different infrastructure initiatives, the telecommunications sector in Qatar is well-positioned to expedite the transition to 5G and roll out new solutions nationwide.
- The four main components of Qatar's National Vision 2030-economic, social, human, and environmental development, are expected to be connected via 5G. As the country continues to roll out a 5G network, which would bring several intriguing cases for digital government and smart city initiatives, Qatar has established itself as a leader in ICT technology. The two most significant telecom providers in the nation, Vodafone and Ooredoo, have made significant strides toward 5G connectivity in Doha as the development of new services like 5G cloud and internet of things (IoT) networks continued to be a priority.
- With the continued implementation of the 5G network throughout the nation, Qatar has established itself as a technological innovator in the ICT sector. Consumer commitment to 5G and expectations for the next generation is rising as 5G adoption crosses the threshold from early adopters to widespread adoption in many areas of the world. Early adopters of technology continue to push 5G adoption in Qatar, where 26% of the population is currently connected. Compared to 2020, there are twice as many 5G customers this year, and they frequently utilize more than three services. It is anticipated that 5G monetization methods will change as users want customized network capabilities for certain 5G subscriptions.
- According to the Ericsson ConsumerLab 5G report, the 5G introduction in Qatar is paving the way for the metaverse in the future. The usage of applications and services connected to the metaverse is increasing concurrently with the adoption of 5G, showing that 5G users spend 35 min more per week on these services than 4G users. In Qatar, 5G users participate in weekly metaverse activities at a rate that is 1.5 times higher than 4G users. The use of AR will rise in the future. 46% of 4G users in Qatar said that after they sign up for 5G, they would begin utilizing or increasing their AR apps in the real world.
- According to an OpenSignal report, currently, Qatar has 16.4% of handsets remain connected to 5G availability across the country. Puerto Rico leads the 5G availability with almost 43%. In the US, users of 5G-capable smartphones spend 25.2% of their time connected to a 5G network.
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Robust Digital Transformation in the BFSI
- The Qatar National Vision 2030 and other government plans have made expanding Qatar's selection of financial services a top focus in recent years. Promoting broad-based growth and bridging Qatar's start-up ecosystem with global equivalents require a large and robust financial services industry. In particular, the government wants to encourage collaborations between banks and the broader financial ecosystem to digitize and enhance services provided by the government to citizens, businesses, and businesses to companies.
- The BFSI sector of Qatar is rapidly evolving, with the everchanging customers' demand for innovative products and services. In response to the constantly shifting consumer preferences and the difficulty for banks to remain competitive in today's digitally focused market, QIB has taken the lead in implementing technologically smart solutions. They have launched several digital banking initiatives and ground-breaking products and services in line with their digital transformation strategy. From account opening to quick fulfillment of personal finance and credit card requests, QIB continues to transform the world of digital banking by meeting the demands of its clients daily. Maintaining its commitment to providing the finest, quickest, and most reliable financial products in Qatar, QIB continues to carry out its long-term business plan.
- Fintech adoption is aided by robust ICT infrastructure and extensive usage of digital technologies, with 99% of Qataris using the internet and social media. Banking digitalization aims to increase profitability, expand operations, and enhance the client experience. By enabling banks to connect with a broader range of market segments and demographics, digital solutions improve the organization's overall resilience. The banking industry has taken a sustainable strategy, focusing on digitalizing its retail and wholesale goods and services to boost resource efficiency, reduce waste, and provide better customer service as the need for a productive system rises.
- Due to COVID-19, digital transformation in Qatar accelerated, and banks started investing more in fintech solutions. The COVID-19 pandemic has sparked financial inclusion and led to a significant rise in digital payments. Fintech solution providers aid in increasing financial inclusion, reducing operating expenses and improving application security. Sandbox programs have been implemented by governments in the GCC area, enabling Fintech firms to test their goods on the actual market. These initiatives need to aid in fostering the nation's Islamic finance sector's expansion.
- According to BCG, the fintech start-up numbers in the Middle East and Africa region increased from 3581 in 2018 to 9323 in 2021. As per the report, the growth of fintech start-ups in the area almost tripled in the gap of 4 years.
