Manufacturing Trends and Predictions in 2024

Below are manufacturing predictions and trends from Opentext, Oracle and, Advanced Technology Services (ATS) for 2024.

Future of SME Business: Smart Technology and Industry 4.0

1. It may seem at first that industry 4.0 is something that only benefits enterprises and large companies that have facilities scattered throughout geographic regions, dozens of departments, and generally large and complex operations. However, this is not the case.

2. Even tiny businesses can benefit from what industry 4.0 has to offer. By using the cloud to process and store information more efficiently or by using various other new technologies to improve the way they design, build and deliver their products and services, they boost their efficiency and become more relevant.

3. Just like with previous industrial revolutions, it may take some time before the benefits reach every corner of the business sphere. But even in the present moment, small businesses are experiencing the benefits of industry 4.0.

4. They can now compete with large enterprises in ways that would have never been thought possible a few decades ago.

Opportunities and Challenges of Global Minimum Tax Implementation

1. The emerging idea of global minimum tax is inseparable from the challenges faced by tax jurisdictions in the digital economy. In the era of digitalization, MNEs can conduct business activities anywhere and anytime without being limited by country barriers. Unfortunately, it is difficult for taxation authorities to prevent harmful tax avoidance through profit shifting on cross-border transactions. Thus, MNEs freely try to shift their profits in low-tariff countries. Therefore, in order to prevent profit shifting, the OECD published the BEPS Action Plan in 2013 which was later reduced to pillar two of the Global Anti Base Erosion (OECD, 2021).

2. In addition, one of the objectives of implementing a global minimum tax is to prevent tax incentive wars to attract investment. It must be recognized that fiscal incentives have a significant role in attracting FDI (Foreign Direct Investment). Various studies show that tax incentives in the form of tax holidays and tax allowances have a significant influence in attracting FDI in Indonesia. Sari et al (2015), for example, found that tax holidays have an impact on increasing investment activity in Indonesia. On the other hand, Pratiwi and Khoinurrofik (2023) argue that the effective tax rate has a significant impact on fixed asset investment. That is, the lower the effective tax rate, the higher the level of investment in fixed assets. However, unhealthy competition between jurisdictions in providing fiscal incentives makes MNEs easily shift their profits (race to the bottom).

Investment Promotion Agency Qatar (Invest Qatar)'s Strategies

1. Significant investments in transport infrastructure projects, such as Hamad International Airport, Hamad Port and Doha Metro, form a crucial part of Qatar's strategy. The emphasis on human capital development through initiatives like Education City and strategic partnerships with international universities highlights the nation's commitment to nurturing talent. Additionally, regulatory reforms, including the liberalisation of foreign ownership laws and progressive visa policies, contribute to making Qatar an attractive destination for skilled professionals.

2. Public-Private Partnerships (PPPs) are identified as a cornerstone of Qatar's economic diversification efforts, fostering a business ecosystem that prioritises productivity, competitiveness and private sector-led growth. The May 2020 PPP law is underscored as a significant milestone, providing investors with confidence and predictability. Diverse sectors, including education, health care, real estate, tourism and energy, present promising opportunities for collaboration.

3. Collaborations with global tech giants, such as Microsoft and Google, showcase the country's favourable investment climate and growth potential. Ongoing partnerships to develop innovation centres reinforce Qatar's dedication to advancing key sectors like energy, health care and transport.