Qatar’s conflict mediation role - the potential fallout for the social sustainability agenda
Qatar is five years away from its Vision 2030 benchmark - a long-term national plan introduced in 2008 to address the country’s economic, social, and environmental challenges. Central to Qatar’s plan is the goal of building a knowledge-based economy with less reliance on revenue from fossil fuel.
While executing its Vision 2030 plan, Qatar has also built a reputation as a key diplomatic player in the region through its efforts in mediation and conflict resolution. Since the late 1990s, it has facilitated negotiations between parties across multiple continents, such as the Darfur Peace Talks in 2008. While Qatar’s mediation role has elevated its global profile, some have argued it may inadvertently distract its strategic focus away from domestic issues, particularly in attracting Foreign Direct Investment (FDI), green transition, and broader economic diversification goals - and within these areas, progress towards fair labour practices for migrant workers whose labour underpins them.
The knock-on impacts of a foreign investment dip
Although much of Qatar’s Vision 2020 transformation is expected to be driven domestically, FDI has been a major source of economic growth, attracting international business and foreign labour. According to the Investment Promotion Agency Qatar, the country attracted USD 2.74 billion in FDI in 2024, creating approximately 9,348 new jobs across diverse sectors.
FDI also promotes international partnerships and economic cooperation, encouraging further investments, especially in areas that produce jobs requiring high skill sets. In 2024, Qatar earned USD 1.4 billion in FDI from Japan and China in high-growth fields, such as information technology and automotive ventures. More recently, Qatar has sought to introduce sustainable technologies in its public infrastructure, channeling FDI into projects that improve the country’s green transition and promote low-carbon urban growth.
While Qatar’s active mediation role may enhance its diplomatic image and improve investor confidence, it can also produce unintended challenges. Qatar’s central role in the Hamas-Israel mediation efforts in 2023 has led to significant reputational backlash. In response to these pressures and to safeguard investor confidence, the government introduced some legal reforms, including the Bankruptcy Law and Commercial Registration Law, to restore economic momentum. These reforms were especially critical after the country’s FDI dipped to negative $474 million in 2023, a decline from $76.1 million in 2022.
Both the Iranian missiles targeting the American airbase in June and Israeli strikes on Doha in September plunged the region into a heightened state of uncertainty. Numerous experts have warned these events could deter the influx of FDI, striking at the heart of Qatar’s diversification strategies. The Director for GCC countries at the World Bank, Safaa El-Kogali, stressed that foreign investors will likely adopt a wait-and-see approach until stability is restored.
Impacts on labour
As regional perceptions of risk shift, Qatar may face some disruption in foreign talent recruitment, and some workers living in the country might decide to relocate. A reduction in foreign talent may lead to project disruptions and delays, particularly for ongoing green transition initiatives. The expertise of renewable energy engineers, consultants, and technical workers are essential for delivering complex infrastructure projects.
The impacts of these conflict-related events also extends to low-income migrant workers, whose labour underpins Qatar’s infrastructure and major projects. When project deliveries are frozen or contracts cancelled, these workers face financial instability and disruption in their living arrangements. Losing their jobs can result in lost income, inability to access affordable housing and healthcare, and potential forced return to their home countries.
Therefore, as a starting point to ensure protections for worker welfare, decision makers and regulatory bodies should closely monitor companies’ commitment to and compliance with the Wage Protection System (WPS) - an electronic salary payment system designed to ensure workers are paid on time and in full.
Qatar should also consider establishing a social protection fund, similar to the Omani model, to provide migrant workers with end-of-service benefits and financial support during periods of economic uncertainty. Aligning such measures with international labour standards, as set by the International Labour Organization (ILO), would support the country’s commitment to fair labour practices, while also enhancing investor confidence and promoting labour market stability over time.
Considering the rising regional instability, it is essential that Qatar balances its foreign policy ambitions with a renewed focus on domestic economic resilience, particularly in the areas of foreign direct investment, green transition, and fair labour practices. These pillars are critical to driving growth in the country’s non-oil sectors and advancing the government’s vision of a sustainable, knowledge-based economy.
A version of this article was previously published by the Gulf International Forum. This iteration was independently prepared for the Institute for Human Rights and Business (IHRB) and includes updated analysis and perspective.
The author, Dr. Hind Al Ansari is a Fellow at Gulf International Forum. She is a development and global education researcher based in Washington and recently completed a one-year fellowship at the Wilson Center. Dr. Al-Ansari has published multiple articles and has been recognized for her work as a recipient of the Middle East Policy Council 40 Under 40 Award. She holds a PhD in Education from Cambridge University and a Master in Middle Eastern Studies from Harvard.