THE IMPACT OF MEDICAL EQUIPMENT MANUFACTURING AND EXPORT ON ECONOMIC DIVERSIFICATION IN QATAR: AN EXAMINATION OF THE ROLE OF LOCAL MANUFACTURING AND EXPORT IN ECONOMIC GROWTH

Abstract

The aim of this study is to study the effect of local medical equipment's manufacturing can have on the economic diversification and non-oil Gross Domestic Product (GDP) growth of Qatar. Amid growing interest in reducing economic dependency on hydrocarbons, Qatar has prioritized industrialization and innovation through its National Vision 2030. One emerging area of strategic importance is the local manufacturing of medical equipment - a sector that offers potential not only for import substitution and export expansion but also for job creation, technological advancement, and economic resilience. Despite its importance, little empirical research exists on how this sector influences macroeconomic indicators in the Qatari context. To bridge that gap, this study analyses how such relationship varies such manufacturing variables with non-oil GDP growth, using the medical manufacturing sub-sector as a case study. The research adopts a quantitative methodology, employing both descriptive and inferential statistical techniques. A synthetic dataset, modeled on plausible economic scenarios from 2015 to 2024, was generated due to limited publicly available data specific to the medical manufacturing sector in Qatar. The key variables examined include manufacturing output, research and development (R&D) investment, medical equipment exports, sectoral employment, and innovation performance. The dependent variable is non-oil GDP growth, which serves as a proxy for economic diversification and structural transformation. Using multiple linear regression analysis, the study investigates the extent to which these variables individually and collectively influence GDP growth. It finds a strong positive relationship between local medical manufacturing and economic performance. Specifically, manufacturing output and export growth emerged as the most influential predictors of GDP growth, suggesting that the sector holds substantial potential for enhancing Qatar's export base and reducing reliance on imported goods. Investment in R&D was also found to have an impact though slightly less pronounced, effect on economic growth, underlining the importance of innovation in industrial development. Employment generation and innovation index scores showed moderate positive effects, suggesting that workforce development and creative capacity are supporting factors in economic diversification. The study also tests several hypotheses, all of which indicate statistically significant relationships at the 95% confidence level, it is between the independent variables and non-oil GDP growth. These results reinforce the strategic importance of medical manufacturing in Qatar's broader economic transformation agenda. By fostering local production capabilities, Qatar can not only reduce its healthcare equipment dependency on global supply chains but also boost its resilience to external shocks, such as pandemics or international trade disruptions. Finally, since this is one of the few cases on sector specific industrialization in the Gulf region, this study provides policy relevant insights for Qatari economic planners. It recommends increased investment in medical technology infrastructure, incentives for R&D, and the creation of export-driven industrial clusters. These steps can collectively accelerate the role of local manufacturing in achieving long-term economic sustainability and fulfilling Qatar's national development goals. Future research should incorporate real-time firm-level data and explore comparative analyses with other Gulf Cooperation Council (GCC) states to deepen regional insights.