Qatar’s AI Market Headed for Dramatic Expansion

Qatar’s artificial intelligence market is expected to grow from QAR 1.56 billion in 2024 to QAR 7.07 billion by 2030, representing a compound annual growth rate (CAGR) of 28.66 percent. This projection points to substantial opportunities for investors and innovators alike, according to a report by Qatar Development Bank (QDB) in its “AI Sector SME Industry Series 2024.” 

Government and SME Collaboration at the Core

The rapid market expansion is attributed to strong government support and innovation among small and medium-sized enterprises (SMEs). The Ministry of Communications and Information Technology (MCIT) is specifically highlighted for its role in creating a supportive environment for AI adoption. 
The report notes that GDP, telecommunications metrics, currency exchange rates, and macroeconomic forecasts aligned with Qatar’s business cycle were key indicators used to forecast AI market size. 

Key Technologies Shaping Qatar’s AI Landscape

Machine Learning Leads the Way

Machine learning remains the dominant segment of Qatar’s AI ecosystem. It delivers tools that enable SMEs to derive analytics, gain insights, and optimize operations. 

Generative AI: Poised for Major Growth

Generative AI (GenAI) is projected to account for approximately 30 percent of the AI market by the close of the decade. Its prominence is expected to rise significantly post‑2026, with major applications in content creation and personalized marketing. The technology enhances other AI verticals—including machine learning, NLP (natural language processing), and automation—thereby driving innovation across sectors. 

SMEs Positioned to Capitalize with Strong Support Ecosystem

QDB highlights that SMEs are well positioned to capture growth opportunities in areas such as AI-powered product development and custom model creation. The report notes that a multifaceted support ecosystem is available to assist SMEs in succeeding in the AI space. 

Financial and Advisory Support

SMEs benefit from:

Technology financing programs like “Minha for Digital Transformation” aimed at startups, and “Technology and Digitalisation Solution Financing” for more established firms.
 Funding from the Qatar Science and Technology Park (QSTP) for digital innovation projects across various development stages. 

Incubation, Mentorship, and Infrastructure

QDB, along with its subsidiary Qatar Business and Incubation Centre (QBIC), provides hands-on guidance and infrastructure support throughout the SME lifecycle.
Additional support includes prototype development and mentoring through QSTP’s XLR8 programme as well as incubation via MCIT’s Digital Incubation Centre. 

National and Global Partnerships Elevating Qatar’s AI Ecosystem

The report mentions several strategic collaborations and infrastructure initiatives that enhance the AI landscape:

•  An AI collaboration between Ooredoo and NVIDIA.
• Advanced AI labs at QSTP.
• A Microsoft data center region.
• A Google cloud region—all in partnership with MCIT and the Qatar Free Zones Authority (QFZA).

Research Institutions and Skill Development

Key players in AI research and training include:

• Qatar Computing Research Institute (QCRI) at Hamad Bin Khalifa University (HBKU).
• Qatar University, which leads national initiatives in AI research.

Further efforts include the integration of AI into the national education system, and support for SMEs through the HBKU‑Huawei AI ICT Hub.
Market networking is bolstered by events such as the Qatar Web Summit, while digital skills are advanced via MCIT’s National Skilling Programme.