Qatar is being encouraged to develop "hidden champions"—small and medium-sized enterprises that specialize in niche global markets—to diversify its economy beyond the oil and gas sectors, according to economist Professor Ha-Joon Chang. Promoting such firms, he said, could enable Qatar to gain international leadership in specific products and technologies without the need for large-scale production typical of industries like automotive manufacturing.

Prof Chang, a board member of Qatar Foundation and a research professor at the Department of Economics at SOAS University of London, made these remarks in an interview ahead of Qatar's ongoing efforts to expand its economic base. He is also co-director of the Centre for Sustainable Structural Transformation and the author of numerous books and articles on economic development.

Emphasizing the importance of diversification, Prof Chang noted that Qatar’s heavy reliance on oil and gas revenues exposes it to economic risks, making the expansion into other sectors essential. He suggested that Qatar look to the European model of hidden champions, firms that often employ a few hundred to a few thousand workers but dominate highly specialised markets worldwide.

“These companies allow countries to build leadership in targeted areas without requiring the mass production that larger industries entail,” he said, highlighting the potential benefits for Qatar’s economic resilience and growth.

Hidden champions typically focus on innovative products and technologies, positioning themselves as global leaders in narrow fields. By nurturing such enterprises, Qatar could open new avenues for sustainable development and reduce vulnerability to fluctuations in energy markets.

Prof Chang’s advocacy aligns with ongoing national strategies aimed at economic diversification and developing knowledge-based sectors. His insights provide a framework for Qatar to broaden its industrial base while leveraging competitive advantages in specialised markets.