Qatar’s diversified supply chain proven effective during pandemic, says Al Sayed

The economic impact of the COVID-19 pandemic has added a new stress to the global supply chain system which was already suffering from the rising tide of economic nationalism and protectionism.

However, Qatar and the Qatar Free Zones Authority (QFZA) had a head start in dealing with the coronavirus crisis due to the country’s past experience, and has greatly benefited from its diversified supply chain, H E Ahmad Al Sayed, Minister of State and Chairman of QFZA said yesterday.

Speaking at the opening of the digital roundtable ‘Qatar at the Crossroads of the World’, organised by The Business Year (TBY), Al Sayed reiterated the need to accept the added complications of building resilience into supply chain while maintaining operational efficiency for customers.

He added: “Cost-efficiency can no longer be the only guiding principle of supply chain. And the world must now ensure that supply chains not only deliver value for money, but have resilience built in that they are resistant to their future disruption, so the global economy can keep moving. Qatar and our Free Zone had a head start on dealing with this problem due to the past experience, which has given us and the companies that choose to call the QFZA their home, a great advantage, as we have already diversified our supply chain to make sure the world and Qatar remain connected. We have a tried and tested system that had proven its worth during the pandemic. However, there is still much more to be done by all of us”.

Al Sayed also reiterated the various opportunities available at QFZA, which include brand new infrastructures, tailor made solutions, as well as the opportunity to partner with top Qatari companies such as Qatar Airways and Qatar Petroleum, and to support the Qatar 2022 Legacy project.

According to QFZA CEO Lim Meng Hui, who also spoke during the panel discussion during the event, the Free Zones are now focusing on creating partnerships with non-oil sector companies that will help accelerate Qatar’s diversification efforts. He said the pandemic will lead to greater disruption and shift in existing business models, increasing reliance on technology and innovation. “We continue to study this development and we hope to develop new policies and strategies. Post Covid-19, emerging technologies and advanced industries sectors are expected to grow even more. And we already identified these as strategic areas for QFZA, and we will continue to identify innovative companies in these areas, such as IoT, electric vehicles, and so on,”

Hui added. He went on to reiterate that a redesign in global supply chain is expected and producers are expected to diversify supply chains in addition to localisation. Hui said the QFZA plans to expand to new areas such as logistics, e-commerce, regional distribution, as well as small-scale production in certain value chains.

TBY CEO Ayşe Valentin, during the webinar, highlighted the role of Free Zones, and the QFZA in particular, for the attraction of foreign direct investment and development of a balanced and diversified economy. She said global trade is currently undergoing a difficult period, but not only because of the COVID-19 pandemic, but due to rising protectionism by governments.

The roundtable also featured other international trade leaders including experts from the United Nations on Trade and Development and World Economic Forum, as well as representatives from the pharmaceutical, food and beverages, and logistics sector

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