Policy Context
The expansion of private sector participation in the delivery of public infrastructure and services is a stated priority of the Qatar National Vision 2030. The Economic Development Pillar calls for the transition from a state-dominated economy to one in which the private sector plays a progressively larger role in investment, employment, and service delivery.
Qatar’s approach to public-private partnerships has evolved from a narrow focus on utilities procurement to a broader framework encompassing transport, social infrastructure, technology, and urban development. The government has signalled its intention to deepen the PPP pipeline as part of its post-World Cup economic strategy, leveraging the infrastructure built for the 2022 tournament and redirecting capital toward diversification priorities.
The IWPP Model
The Independent Water and Power Producer (IWPP) model is the most established and mature PPP structure in Qatar. Under this model, the state awards long-term concessions to private consortia for the financing, construction, and operation of power generation and water desalination plants. The procuring entity — typically Qatar General Electricity and Water Corporation (Kahramaa) — enters into a power and water purchase agreement (PWPA) that guarantees offtake for the concession period, typically 20 to 25 years.
Key IWPP projects include:
- Ras Laffan B — An early IWPP that demonstrated the viability of the model in the Qatari context.
- Facility D (Umm Al Houl) — One of the largest IWPPs in the GCC, combining gas-fired power generation with reverse osmosis desalination.
- Facility E — A subsequent addition to Qatar’s IWPP portfolio, reflecting continued reliance on the model for capacity expansion.
The IWPP model has attracted international developers and financiers, providing a proven risk-allocation framework that assigns construction and operating risk to the private sector while the state retains regulatory oversight and offtake commitment.
Privatisation Framework
Qatar’s privatisation agenda has been more measured than those of some regional peers. The state has retained ownership of strategic assets — including Qatar Energy (formerly Qatar Petroleum), Qatar Airways, and the major utility providers — while pursuing selective privatisation and partial listings to deepen capital markets and improve operational efficiency.
Notable privatisation-related developments include:
- Qatar Stock Exchange listings. Several government-linked entities have been listed on the QSE, including Vodafone Qatar, Qatar Fuel (Woqod), and Nakilat (the LNG shipping company). These listings have expanded the investable universe on the QSE while maintaining state influence through majority or significant minority holdings.
- Corporatisation of state entities. A number of government bodies have been restructured into corporate entities with independent boards and commercial mandates, a precursor to potential future listing or private participation.
- Concession-based models. Beyond IWPPs, the government has explored concession and build-operate-transfer (BOT) arrangements for waste management, district cooling, and transport infrastructure.
Expanding PPP Scope
Qatar’s PPP ambitions extend beyond utilities into sectors that have traditionally been the sole domain of the state:
Transport. The Doha Metro and Lusail Light Rail Transit were delivered as conventional public procurement projects, but future transport expansions may incorporate PPP elements, particularly for operations and maintenance.
Social infrastructure. Education, healthcare, and housing projects are potential candidates for PPP delivery, with the government exploring models that combine private sector efficiency with public sector oversight.
Technology and smart city. Lusail City and other planned developments incorporate smart infrastructure components — including intelligent transport systems, digital utilities management, and building management systems — that may be procured and operated through PPP or concession arrangements.
Renewable energy. Qatar’s solar energy programme, anchored by the Al Kharsaah solar photovoltaic plant (800 MW), was delivered through a PPP structure involving international developers. Future renewable energy capacity additions are expected to follow a similar model.
Legal and Institutional Framework
Qatar does not yet have a dedicated PPP law of the kind enacted in some neighbouring jurisdictions. PPP transactions are typically structured under the general framework of the Emiri decree authorising the project, the applicable sector regulation, and the terms of the project agreements (concession agreement, offtake agreement, direct agreements with lenders).
The Ministry of Finance plays a central coordinating role in PPP development, while sector ministries and state entities serve as procuring authorities for projects within their mandates.
There have been periodic indications that a comprehensive PPP law may be enacted to provide greater legal certainty, standardise procurement processes, and establish a central PPP unit. Such a framework would align Qatar with international best practices and potentially accelerate the PPP pipeline.
Investor Considerations
Investors considering PPP opportunities in Qatar should note the country’s strong sovereign credit rating (typically in the AA range), the reliability of government payment obligations, the availability of international arbitration for dispute resolution (Qatar is a signatory to the New York Convention), and the growing depth of the local banking sector’s capacity to provide project finance.
The principal risks associated with Qatari PPPs relate to the relatively early stage of the institutional framework, the concentration of procurement authority within state entities, and the pace of regulatory reform.