Introduction

Nations must promote themselves as attractive destinations in a globalized, competitive landscape (Anholt 1998; Wu 2017). Governments employ nation branding to create an appealing image (Jordan 2014) and attract foreign tourists, companies, talent, and diplomatic attention (Graan 2013; Kaneva 2011). Additionally, a nation’s brand has swiftly become a pivotal criterion influencing foreign businesses’ decisions about where to invest (Lee and Lee 2019; Montanari and Giraldi 2018). While early research in the intersection of nation branding and FDI primarily focused on defining and discussing these concepts (Dinnie 2005, 2015; Fan 2010; Morgan et al. 2011), the past decade has witnessed a significant expansion in scholarly attention to this multifaceted subject, with a multidisciplinary and transdisciplinary approach (Joshi 2018; Lahrech et al. 2020a, b; Montanari and Giraldi 2018).

Although scholars and practitioners acknowledge the positive influence of nation branding in attracting FDI (Lahrech et al. 2020a, b; Napolitano et al. 2018), the lack of a coherent theoretical framework and empirical evidence persists (Matiza and Oni 2013; Papadopoulos et al. 2016). Moreover, studies have disproportionately focused on countries with large populations, long histories, and concentrated specific regions (Reurink & Garcia-Bernardo 2021; White III et al. 2015), emphasizing the need for broader, more representative case studies.

This qualitative, embedded case study, drawing on the Anholt Ipsos Nation Brands Index (NBI) framework and Dunning’s Eclectic Model, explores how nation branding can bolster a country’s competitiveness as an investment destination within the context of Qatar. It scrutinizes the pivotal role of nation branding, with a focus on the Qatari government's efforts in fostering foreign direct investment by examining how foreign investors perceive and react the nation's brand image. The study’s findings offer valuable insights for governments and marketing practitioners on how nation branding can stimulate foreign capital inflows, in diverse countries. This research may have significant policy implications and fill a gap in the literature regarding how nation branding can be utilized to foster FDI attraction. Ultimately, this study sets out to answer the following central research questions:

  1. 1.

    Why did foreign firms select a particular investment location?

  2. 2.

    How did foreign firm’s perceptions of a nation brand drive their investment location decision?

  3. 3.

    How do foreign investors’ perceptions of nation brand relate to the six dimensions of the Anholt Ipsos Nation Brands Index framework?

Literature review

Nation branding is an established multidisciplinary research area (Browning and Ferraz de Oliveira 2017; Hao et al. 2019; Merkelsen and Rasmussen 2016), where governments utilize marketing techniques to project a positive global image (Jordan 2014; Knott et al. 2015) linked to the constructivist notion of national identity (Graan 2013; Iwabuchi 2015; Kaneva 2011). Destination branding, an integral facet of nation branding, enhances location attractiveness, benefitting from increased exports (Huang 2011) and soft power (Iwabuchi 2015) through strategic activities, including communication, events, campaigns, media relations, and advertising (Graan 2013; Huang 2011; Kaneva and Popescu 2011; Varga 2013; Volcic and Andrejevic 2011). The term “nation brand image” signifies the constructed perception arising from nation branding efforts (Graan 2013; Hao et al. 2019; Huang 2011; Iwabuchi 2015) and aiming to influence tourism, investments, trade, and the attraction of foreign talent (Graan 2013; Kaneva 2011; Volcic and Andrejev 2011). However, this construct's potential for oversimplification and objections from internal stakeholders must be acknowledged (Graan 2013; Kaneva and Popescu 2011; Varga 2013).

This study explores the interplay between the theoretical foundations of nation branding and FDI. Attracting FDI sustains economic growth and development (Roy et al. 2020) and enhances domestic production compexity (Javorcik et al. 2018) and the workforce (Becker et al. 2020). Key determinants for attracting FDI include market size, and growth prospects, and the regulatory environment (Asongu et al. 2018; Contractor et al. 2020; Tavares-Lehmann et al. 2012,). Favorable regulatory frameworks facilitate market access and build long-term investor confidence (Ganić and Hrnjic 2019). Additionally, the business climate’s friendliness, shaped by factors such as efficient procedures, local talent availability, knowledge access, reliable supply chains, cost competitiveness, and accessible funding, significantly influences investment decisions in foreign locations (Corcoran and Gillanders 2015; Nketiah-Amponsah and Sarpong 2020). Infrastructure availability, spanning efficient domestic transportation, energy, logistics, technology, and telecommunication facilities stand as other major factors for FDI attraction.

A range of contextual factors may influence FDI decisions. For instance, even in the presence of uncertain legal systems, state-led economies can draw foreign investors due to strong political connections, revealing a curvilinear relationship between regulatory quality and FDI attraction (White III et al. 2015). Taxation, often considered a secondary driver for FDI, garners active promotion by governments worldwide through favorable policies. However, empirical research has yet to conclusively examine and confirm the effects, whether positive or negative, of such incentives on FDI inflows (Reurink and Garcia-Bernardo 2021). Additionally, countries rich in natural resources and implementing liberal fiscal reforms prove conducive to FDI, as are countries positioned favorably along major trade routes or in close geographical proximity to markets (Teixeira et al. 2017).

Multinational enterprises (MNEs) and their affiliates are central to the international FDI system, contributing significantly to foreign capital spending, employment creation, productivity spillovers, and research and development intensity (Ayomitunde et al. 2019). The organizational structure of MNEs and the governance relationship between parent companies and their subsidiaries directly influence FDI location choices (Monaghan 2012; Reurink and Garcia-Bernardo 2021; White III et al. 2015). Investment locations exhibit varying characteristics determining the types of foreign investments they attract (Reurink and Garcia-Bernardo 2021; Tavares-Lehmann et al. 2012; Teixeira et al. 2017). While the geographical scale varies, with studies typically focusing on the national-level dimension (Bah et al. 2015; Groh and Wich 2012; White III et al. 2015) research examining FDI destinations at the supranational level, though limited, remain relevant (Hu et al. 2021).

The profile of an investment destination is finally characterized by its economic attributes, including ideological foundation (Bah et al. 2015; White III et al. 2015), sectoral and trade specialization (Teixeira et al. 2017), and developmental stage (Groh and Wich 2012). The convergence between FDI volume and investment destinations is primarily driven by superior domestic income level, trade openness, population’s skill and education level, and foreign investment policies and procedures (Popovici et al. 2021). The success of a FDI attraction strategy is finally contingent upon the mobilization and participation of all domestic stakeholders, including national authorities, local agencies, and citizens (Monaghan 2012).

Conceptual framework

This embedded case study is guided by two core concepts: Dunning’s (2001) Eclectic Theory and Anholt’s (2005) NBI framework. These models provide insights into the factors influencing a destination’s appeal for FDI.

The Eclectic model, also known as the Eclectic Paradigm or Ownership, Location, and Internalization (OLI) Paradigm, suggests that multinationals engage in international expansion based on their ability to attain three tangible advantages: ownership, location, and internalization (Dunning 2015; Moradlou et al. 2021). Ownership pertains to competitive advantages from proprietary assets (Moradlou et al. 2021). Location advantage involves the favorable geographic and operational conditions of the host country, including the availability, quality, and cost of resources (Moradlou et al. 2021; Yang and Deng 2017). Internalization deals with in-house value chain activities (Isa et al. 2017; da Cruz et al. 2020).

In contrast, the NBI framework, which is rooted in recognizing the multidimensional nature of nation branding (Anholt 2005), focuses on assessing the intangible aspects of nation branding and global reputation (Lahrech et al. 2020a, b). It extensively evaluates nation brand perceptions across six dimensions: exports, governance, culture/heritage, people, tourism, and investment/immigration (Beaumont and Towns 2021). Despite the proliferation of country rankings (Beaumont and Towns 2021), the NBI model stands as a preeminent reference with its rigorously structured and consistently replicated methodology (Aronczyk 2013). The proposed conceptual framework for this embedded case study integrates both models, addressing scholars' call for further research on how governments can use nation branding to enhance FDI attraction (Lee and Lee 2019). These models, although distinct, cohesively supplement each other, providing a comprehensive and more nuanced perspective on the factors impacting FDI attraction (Fig. 1).

Fig. 1
figure 1

The lens model on host location advantages, Nation Brand Perceptions, and FDI attraction

Full size image

Expanding upon Dunning’s (2001) Eclectic Paradigm and centralizing Anholt’s (2005) Nation Brand Hexagon, the framework offers a more subjective yet critical and dynamic understanding of the impact of nation branding on FDI attraction and the drivers of FDI location attractiveness. Described in the accompanying table below, the framework incorporates nine factors symbolized as triangles. The three shaded peripheral factors signify Dunning’s (2001) three competitive advantages that foreign companies seek when operating abroad. These advantages are appraised against concrete and immediate criteria, facilitating consistent decision making for companies. The remaining six uncolored triangles represent the dimensions within Anholt’s (2005) NBI framework. These factors draw upon the subjective and dynamic perceptions of individuals participating in the decision-making process for investment locations. The dotted arrows emphasize the synergetic effect of combining both Dunning’s (2001) objective criteria with Anholt’ (2005) subjective dimensions on inward FDI. The proposed conceptual framework implies that these two sets of factors mutually reinforce each other, offering opportunities for governments and corporations alike. Governments should continue to address Dunning’ (2001) structural elements while actively branding their country as an investment destination across Anholt’ (2005) six perceptual dimensions. Meanwhile, corporations can enrich the quality of their foreign investment location decisions, considering diverse internal perceptions of a foreign market’s brand. The nine elements encompassed in the resulting proposed framework prove to be comprehensive and consistent with both direct and indirect FDI determinants found in the literature (Bah et al. 2015; Groh and Wich 2012; Reurink and Garcia-Bernardo 2021; Tavares-Lehmann et al. 2012; Teixeira et al. 2017) (Table 1).

Table 1 Conceptual framework’s description
Full size table

Qatar as the focus for this study

This study centers on Qatar, a nation located on the Arabian Peninsula and sharing a terrestrial border with Saudi Arabia and maritime borders with Bahrain, the Islamic Republic of Iran and the United Arab Emirates, Qatar is a hereditary monarchy that gained independence from the United Kingdom in September 1971. Often referred to as a “micro-state” or “city-state,” Qatar’s wealth is primarily derived from its abundant fossil fuel resources. With is “Qatar National Vision 2030” roadmap, the country is committed to diversifying its economy and shifting from a commodity-based to a knowledge and innovation-based one (Ibrahim and Harrigan 2012). The government has been actively promoting FDI through favorable policies. In 2005, the establishment of Qatar Investment Authority (QIA), a sovereign wealth fund, marked a significant step in Qatar’s outward foreign direct investment (OFDI) efforts to secure additional revenue sources and protect against economic uncertainties (Ahmed 2019). Concurrently, Qatar has also intensified its efforts to attract inward foreign direct investment (IDFI) through initiatives like the Qatar Free Zones, comprehensive investment climate reforms (Antoniades et al. 2021), and the establishment of the Investment Promotion Agency Qatar, which coordinates Qatar’s national FDI agenda under the national brand “Invest Qatar.”

Methodology

An embedded case study was employed, a specific type of single case study design well suited for exploring, describing, and understanding a particular phenomenon from the perspective of the those directly involved (Creswell 2017). Furthermore, it focuses on the sub-unit of analysis (Scholz and Tietje 2002); nation brand perceptions of MNCs. In this research, the embedded case study approach was chosen to comprehensively explore the role of nation branding in FDI attraction in Qatar. It allowed for an in-depth exploration of the specific context of Qatar and an understanding of how nation branding influenced investment location decisions.

Furthermore, the incorporation of Yin’s framework, renowned for its efficacy in scrutinizing both common and atypical cases and for evaluating established theories within precise contextual parameters, further reinforced the selection of a single case study (Yin 2017). This approach aligned with the exploratory nature of the research and its theory-driven roadmap, thereby amplifying the methodological rigor of the study. Semi-structured interviews served as the primary research method for this study. Characterized by their open-ended and detailed nature, they facilitated a profound exploration of the experiences, perceptions, and thoughts of influential decision makers, especially when engaging with hard to reach participants. Notwithstanding their time and resource demand, semi-structured interviews can introduce variability in the data collected, making more challenging to ensure consistency and comparability across responses (Magaldi and Berler 2020).

Data were gathered using a purposeful sampling, interviewing nine senior executive leaders representing foreign companies that have established operations in Qatar within the last decade. All nine interviewees were either country heads or senior executives of their respective companies, and were directly involved and/or were strongly familiar with the decision to invest in Qatar. This sampling technique allowed to collect rich information and generate in-depth understanding of the participants’ perceptions of Qatar’s nation branding in relation to their company’s decision to operate in Qatar. The participants were accordingly selected based on their role and/or tenure and were involved in the investment decision, and where a recent FDI decision has been made. The selection of foreign companies spanned various geographies, industries, and sizes enhancing the generalizability of the findings and transferability of the data. The represented geographies included leading outbound investment countries such as the United States of America, China, France, Germany, and the United Kingdom. The participating companies comprise of a wide range of sectors. Sampling was continued, until data saturation was reached, thereby ensuring the rigor, completeness, and trustworthiness of the results. Interviewees were asked a wide range of questions to maximize the diversity of responses, encourage completion, minimize bias, and enhance comparability across participants (Yin 2017). Thematic analysis was used, which consists of identifying emerging ideas, topics, or patterns with the collected data.

All ethical precautions were undertaken including the right to confidentiality, privacy, anonymity, and interview participation approval. While the data collected were sensitive in nature, the risks posed to subjects were minimal. This study may be influenced by the researcher’s secondary role within the investment promotion agency of the State of Qatar which could have influenced the participants’ responses and skewed results. To mitigate potential biases, neutral pretested questions were asked and pretested, and respondents were assured that they could state negative comments or experiences.

Findings

The purpose of this embedded case study was to gain a greater understanding of the contribution of nation branding as a tool to attract FDI within the context of Qatar. These positive perceptions were generated over time, in some cases, further expansion plans. Moreover, some dimensions of Qatar’s brand, including investments, immigration, and exports, resonated particularly highly with the participants, whereas tourism received much lower attention.

Research Question 1: Why did foreign firms select a particular investment location?

The participants highlighted Qatar’s conducive business climate, including the strength and reliability of the government, as a factor influencing their decision to invest in Qatar. Participant D noted that “the first advantage would be the ease of setup and doing the business and the availability of prime office space,” and Participant H added that “it’s relatively easy to set up a presence here.” Participant C explained that “Qatar is moving fast with fiscal policies attractive for both companies and individuals, but also a strong financial and macro-economic profile. Qatar is stable and reassuring for an investor compared to other countries.” That stability was also seen by Participant I, who said “Qatar, from a corporate standpoint, is seen as a country that honors its commitments.”

Several executives stressed the complementarity between the economic development stage and associated high demand and requirements for specialized products and/or services which their respective companies offer. Participant C explained that “[Qatar] is still emerging and developing; the combination of our services that we brought from Europe to this market was and is still suitable.” Participant A concurred, adding: “We see actually a lot of potential for the type of services that we provide.” Participant D also mentioned the similarity of demands across the region and, therefore, the possibility of expanding the company’s geographical footprint: “The overlap of topics … especially in the government and public sector, exists in Qatar as well as in Saudi.”

The participants recognized that having a presence in Qatar allowed them to be more attuned to specific market needs. In fact, respondents concur that being on site improves the identification, responsiveness, and, consequently, access to business opportunities. According to Participant H:

Being here allows a much more granular view and understanding of the region and the opportunities. … In this part of the world—there is still much more value attached to a physical presence.

Participant A agreed, noting:

We understand that it’s important to be on the ground to actually win certain projects. In the past, it was a bit challenging because we never had a full-time consultant in Qatar.

Like Participant E, who highlighted the convenience and efficacy of being in the capital city of Doha to “traveling to and serving the rest [of] the region,” most respondents also emphasized the location advantages of Qatar as a trade, business, and digital hub. This includes “the ability to come and serve other markets as well from Qatar” (Participant D). Participant E agreed, noting that “location was an important factor for us, and remains so … We’re either serving a local market or … using offices as kind of mini hubs.” Participant G adds:

It’s pretty easy to get everywhere except the Americas. You know, it’s quick and a good gateway between, I think, Asia and Europe.

In fact, “given the proximity of the markets,” Participant A noted that “it would have been actually logical to expand in Qatar before.” In addition to physical location, Participant F observed that Qatar is “a country that is very much connected digitally.”

Interviewed participants stated that the establishment of an office in Qatar was also motivated by the need to diversify their regional activities and customer portfolios. Participant D said it simply: “It was a means to diversify.” Participant E elaborated by stressing the company’s decision to “diversify places where [its] people could be based and serve the region more broadly.”

The research indicated that foreign firms selected Qatar primarily because of its conducive business environment, greater access to opportunities, and strong market connectivity. The primary reasons why the interviewed foreign companies decided to invest and operate in Qatar included the (a) supportive local business environment, (b) greater access to business opportunities, (c) the interconnection with adjacent markets, and (d) the diversification of their regional distribution. All of which synchronizes with the conceptual model presented.

Research Question 2: How did foreign firm’s perceptions of a nation brand drive their investment location decision?

The participants shared a wide range of positive impressions and linkages with Qatar. They underscored that qualitative attributes around wealth, success, and growth have, to a large degree, driven their decisions to establish presences in Qatar. According to Participant I, “the brand, the perception we all have about Qatar, is [that it is] a rich country … [with] one of the highest GDPs per capita.” Likewise, Participant E said that “Qatar is a place with ambitions and deep pockets. … I also see Qatar as a place which has a lot of resources.” Many participants mentioned the nation’s fast growth, with Participant F noting that “Qatar is a country that is changing a lot” and Participant H adding that “it appeared [to be] one of the fastest growing economies.” Overall, Qatar was seen as “successful,” Participant E said.

Participants also reinforced their perception by sharply contrasting Qatar with its regional peers. Participant B described it as a “small, agile country, advanced vis-a-vis the rest of the region, that can take advantage of the expansion, really of the next frontier.”

Interviewed executives associated Qatar with specific sectors or fields, with energy being the most frequently mentioned. Other areas mentioned included technology, transportation, logistics, advanced manufacturing, infrastructure, and sports. Participant I said that “the brand, the perception we all have about Qatar, is a rich country, highly dependent on fuel,” with Participant F agreeing, noting that “You will associate Qatar with gas, connectivity, and logistic hub.” Participant G also mentioned the state-run airline: “The first thing that always comes up is it’s either Qatar Airways or Qatar Energy, right?” Some discussed the country’s investment in infrastructure. Participant I said that “Qatar was booming thanks to the huge investment driven by the infrastructure development,” and Participant H talked about Qatar’s infrastructure as it related to international sports, especially “the infrastructural development they pledged to do, mostly related to the World Cup but not only that.” Participant C talked about many of the industries that benefit from and add to that infrastructure:

Manufacturing is pretty much high in Qatar. Energy comes to mind, right? Because it’s the biggest player. And you think about all the supply chain and the offshoots of energy that would come to mind too. If I think about more high-tech, the image that comes to mind is a strong infrastructure … one of the most advanced in the world.

Participant A also offered a political perspective, stating that “Qatar is always related to soft power and diplomacy.”

Participants pointed out the subjective and evolving nature of the perceptions about Qatar, as well as potential divergences of opinions within certain firms. Participant F explained that “I think there is a gap between the perception that you may have before coming and what actually is going on in the country.” Participant G pointed out the fanciful perceptions of the nation:

The immediate assumption is that [with the] money, literally … the streets are paved in gold. They hear the GDP stories and just assume that it’s crazy rich and very easy.

Participant E added that because decisions are made by people and not firms, perceptions matter:

A lot came down to the perception of individual leaders in the organization because at the end of the day, it’s people, right? The institution doesn’t form a view per se. … I saw the range of perceptions of leaders and how that somehow crystalized into maybe a view at the institutional level.

Participant C also addressed the perceptions of Qatar’s national brand from foreigners versus those living in Qatar, noting that:

Qatar’s national brand is different when it is looked from outside than the way we live it inside. As a French [person], I’m always amazed to see how the national branding of Qatar is perceived totally different in France than the way it is perceived here, meaning that they consider it as too directive, too aggressive, expanding too fast, and with interference with the local economies abroad. But here it’s considered as investing the resources of the country in new sectors, supporting different sectors, and bringing in talent from all over the world.

In general, the participants recognized the persistence of misconceptions about Qatar in certain regions abroad, which are mainly due to lack of local knowledge and familiarity. Participant A explained:

People just don’t want to hear that they have a certain image of the country. And this is what they want to believe. If you want, I think it’s really difficult even with the communication strategy to change that perception. But again, I am like an insider, being based here for the past almost six years. It’s different, you know, because obviously you get a lot more access to information inside the country than outside of the country.

Some were already more familiar with the country, with Participant E noting that:

For those who are driving decision making, there was a reasonable level of knowledge of the country, the context and so on. I don’t think you had some of the perception issues that those less tuned into this region might have. So, for us, I think some of those perceptions around what you often kind of hear in the media and which I think of a sort of mass misperceptions, we obviously didn’t really have.

Finally, the investors reported that the longer they had been present in Qatar, the more positive their perceptions were about Qatar, which generally translated into decisions to expand their local activities. Participant E said:

I do think that your personal experiences have a great effect. … Those first impressions and those initial kind of exchanges with the country on a professional and personal level—I think [they] have a tremendous impact on … what stays with you and how you therefore kind of carry that perception forward into your decision making.

Participant F agreed, noting that “I think there has been a positive evolution of our perception, which is followed by more investment and more commitment.” Participant D added that “I would say 40% of people have never heard of it or were very unaware of Qatar as a brand. Second, an interesting finding was that, as people got more familiar, their perception actually improved.”

The executives highlighted the key role played by select individuals within a company, ranging from the CEO to one or multiple executives, in shaping the decision to invest in Qatar. In such cases, the individuals’ respective experiences triggered an emotional attachment to Qatar and turned the investors into brand advocators. Participant G noted that:

The reason to stay and actually invest was … the positive feeling and sentiment that our CEO had when he walked out of the meetings. Purely very much his decision.

Participant E explained that there were more people involved in his company’s decision.

It was more at the individual level that perceptions perhaps played a role. When it really came to crystalizing that up into a decision to come into the country, I think the perceptions shaped how hard people pushed. … There are folks … who also had a more positive perception of the brand of the country and what it stands for ethically, geopolitically, and … had that view that, from within the regional context, there is a special kind of factor for Qatar that matters to some of us.

The research indicated that foreign firms’ perceptions of Qatar’s nation brand had an overall strong and positive effect on their investment location decisions. The results also revealed the heterogeneity of views within the same entity and the influential role played by certain advocates having strong knowledge and/or empathy toward Qatar. Lastly, the research suggested that the longer the presence in Qatar, the better the perception is of its nation brand. The participants gave consistent responses on (a) their perception of Qatar’s nation brand, (b) the significant yet heterogeneous influence of the brand in foreign companies, and (c) the important role of key individuals in the decision making.

Research Question 3: How do foreign investors’ perceptions of nation brand relate to the six dimensions of the Anholt Ipsos Nation Brands Index framework?

Participants highlighted the logistical, transportation, and digital hub traits of Qatar, which allow their respective companies to operate across several markets regionally and/or globally. Participant D noted that they decided to “build our presence in Qatar to serve other markets.” Participant A regretted not making the decision earlier, explaining that “given the proximity of the markets, it would have been actually logic[al] to expand in Qatar [before now].” Participant F also mentioned the country’s role as both a digital and geographic hub:

Qatar is very much associated with being a hub. I think here the image that comes to mind is Qatar Airways, which I think can be related to the connectivity that you have in the country. And I think also you feel this connectivity in the digital arena.

The notion of hub, and its associated connectivity benefits, applied to both exports and imports of goods and services, as Participant F noted further:

You have this feeling of a hub that is, you know, right in the middle of a region that … is is growing, where a lot of things are happening. And also it’s a region that is between Asia and Europe, right, so it is this point in the middle. I would say the first image that comes to my mind is a connected hub. And I think that’s one of the strengths of Qatar.

Participant I agreed, explaining “I think there is a huge competition in the region as a logistic hub, which is sometime good for corporates because you can have the choice.”

The interviewees highlighted the responsible role played by Qatar’s government not only domestically in terms of sustaining the socioeconomic development of the country, but internationally to proactively advance global issues. The participants perceived Qatar as a safe, stable, and trustworthy place to live and conduct business. Participant A said that “Qatar is a very safe country and, also, politically stable. … The way they handled the blockade, from June 2017 until just recently, speaks for investors or [to] give investors confidence.” Participant I explained that “when you work for a governmental project, it’s quite smooth. … I think Qatar, from a corporate standpoint, is seen as a country that honors its commitments.”

Additionally, a few respondents perceived that Qatar performed better than other countries in the region from a government oversight and international compliance perspective. Participant C said that “Qatar is stable and reassuring for an investor compared to other countries and is an agile country, advanced vis-a-vis the rest of the region.” Participant G noted that “Qatar is not an oligarchs’ safe haven” and that “furthermore, Qatar is seen as a reliable and trusted economic and political partner.” Other participants also focused on Qatar’s perception of being a good international partner, with Participant H saying that it is “a country that has always and still has, I would say, a fairly good both commercial and political relationship with [a European country], and Participant G adding that Qatar enjoyed “being good partners with [a North American country].”

The participants discerned the unique and intricate role of Qatar in global issues ranging from conflict resolution to humanitarian aid, the environment, and energy. Participant G focused on “the levels of cooperation that were happening for stuff like that to take place. And that goes beyond the physical mediation events. It’s deeper and much more structural than that. And it took me being in Doha to understand that.”

Participants commended Qatar’s active, distinct, and focused stance on specific international affairs. They also highlighted the country’s pivotal role in tackling major global challenges such as energy security. Participant H saw Qatar as:

I would say a financial or an economic brand, and a broader geopolitical brand. They are both good in my view. … I personally believe it is still a very good profile by the way the country is organized, by the position it takes on international affairs and so on.

Participant E added how important it was that there was a

positive perception of the brand of the country and what it stands for ethically, geopolitically, and so on. … Qatar has taken a political stance that I think is distinct as well. I think it’s one of the shining lights in the Arab world. … It is one of the countries in the region, I think, that sets the bar higher. And I think … that’s a very positive thing, despite often quite a lot of pressure from many other outside factors.

Participant E gave sustainability as a specific example, commenting on “how can Qatar help and be a driver of the energy transition by actually investing into sustainability and energy efficiency initiatives, [and] becoming a global hub to actually making the world greater.”

Participants observed that Qatar is still sometimes the subject of controversies, especially on a contentious labor issue. However, many judged the media’s propagation of criticisms to be inflated and misguided, defending the authorities’ extensive and continuous efforts toward solving a complex issue that affects a much wider region. Participant I explained that “Qatar unfortunately still suffers a lot from a global perception on human rights for the labor force.” Participant H said that “it is a country that attracts also some controversies,” adding that

the most common, the most famous [issue] is, if you want, the workers’ rights … Is Qatar active in trying to solve it? Yes. I mean, the cooperation they have struck with the International Labour Organization goes, I think, in the right direction. … I think that is something that the country is addressing.

However, Participant A noted that the issue may have more attention than warranted, explaining that “the media in Europe is particularly focused on workers’ rights. … I think Qatar already does a lot of things. I think they’re just not recognized enough outside [the country].”

The participants consistently viewed Qatar as a place that stands out from the rest of the region for its preserved cultural authenticity and traditional habits. “Qatar is not like the size of big countries that you have in the region,” Participant B said. “They have kept the heritage here; the soul is still here.” Participant C noted that Qatar’s

population has a very strong personality, I would say identity, in comparison with other Middle East countries. For me. it is an advantage. … It’s not what you want to mirror in the West. It has a strong identity, and it attracts people who believe in the central identity.

The respondents reported sports as a major element in the local social and cultural fabric of Qatar. They also stressed the significant investments in sports-related infrastructure and events, which reflects on the country’s global image. Participant F noted that “right now, all the communication of Qatar is related to Qatar as a destination, tourist destination, sports, events, [and] cultural events.” Participant I agreed, noting that “Qatar has also been positioning itself a lot into sports and culture. … The country is trying to position itself as a global leader in culture, in sports, in organizing global events.” This was a source of pride for Participant B, who said that “Qatar is great to brand itself as leader in sports events.” Participant D noted that “Qatar is sponsoring certain mega events in sports. You know that they own certain football clubs.” Participant A also emphasized the sports connection, saying “There is a lot of development in sports and … sports, in general, plays an important role.”

Finally, the participating companies identified the importance of education to not only preserve the heritage, but also share and develop new knowledge. Participant B explained that “Qatar has done a huge investment in education. It has global universities and campuses.”

The participants addressed the people dimension. Participant G commented on the social interaction and high feeling of connectedness and trust:

[Our CEO] liked the people he was sitting across the table from on, I would say, a genuine personal level and from a business perspective.

Competency was another major topic of discussion with a general alignment on availability of local talent. Participant F “found that you can actually hire very good people, you can do good innovation. … You have local talent. You have good universities.” Participant G added:

I was extremely impressed with the depth and breadth of thought. … like the candor and the depth of the conversation. (Participant G)

However, a few executives recognized the limited talent pool in the region, especially for short-term and/or specialized profiles, with Participant I noting that “it’s difficult to attract and invest in the right profiles, say, for short-term projects.” Participant H added:

As an international company, maybe one of the difficulties that we face here is … qualitative manpower. … If we advertise a position for our Doha branch or our Abu Dhabi branch, as far as it is, obviously it doesn’t attract as much attention as when we advertise a position in London, New York, or Paris. That’s, I think, inevitable.

Although a few respondents discussed the dimension of tourism, comments were extremely few and limited to Qatar’s perceived high-end positioning and first-rate travel infrastructure. Participant B believed that “Qatar is going to be the rich destination of the Arab world; you have citizens coming from all the Arab world and staying in Qatar because of the security, safety, health care, and lifestyle.” Participant C highlighted Qatar’s “constant strategy to attract the higher end of each sector, whether for the tourism or other activities.” Participant I reflected on the country’s geographic location, noting that “Qatar is positioning itself as a hub through the national airline, facilitating the incoming and outgoing flight from and to any parts of the world.”

The investment and immigration dimension were the most discussed dimension in the interviews. The participants provided extensive perspectives on Qatar’s investment profile. They perceived safety, stability, growth, resources, reliability, partnerships, and ambition to be the country’s key strengths. Participant A associated “particularly stability and safety with Qatar as an investment destination.” Participant E said that it is “a safe place to do business, very resilient, very stable” and has “seen an amazing story of growth.”

Participants also focused on the country’s predominant industry. Participant F noted that “Qatar is very much connected to the oil and gas industry.” Participant C explained that “Qatar has a readable growth from the oil and gas, which brings. … strong stability to the country,” which is, according to Participant A, “due to abundance of gas.” Stressing the sector’s importance, Participant C added that “the most important is the strong backbone of the oil and gas that supports all the strategy for the rest.”

Participant H stressed that due to “the combination of World Cup, and obviously the natural resources, it appeared [to be] one of the fastest growing economies.” Participant C reminded that

The infrastructure now has been built, but now the activities and the services still need to be built with [a] foreign business mindset and process to be implemented in the country.

Overall, Qatar is perceived as a ”very rich country where you have a lot of opportunities and money,” according to Participant C.

Participant C was the most reflective and descriptive of all participants, commenting that “Qatar is moving fast with fiscal policies attractive for both companies and individuals, but also a strong financial and macroeconomic profile.” Participant C also highlighted “the strength of Qatar Inc.,” referring to “the Qatar-related companies that are controlled directly or indirectly by the state of Qatar in now more and more sectors” and represent ideal long-term partners for foreign investors across a broad range of industries, including “the aviation sector, … the financial industry, the telecom [industry], and other sectors.”

The participants also shared contrasting experiences with domestic business procedures. Participant C expressed high satisfaction with payment transfers:

Given the strong financial and economic profile of Qatar, the ease of doing business, particularly in transferring cash, every financial-related aspect of setting [up] a business is very important. There is no restriction [on] external currencies in the country.

However, Participant G concurred with Participant E’s suggested potential areas of improvement in “contracting practices and procurement practices.”

The respondents commented on the immigration features of Qatar. They praised the country’s quality lifestyle, security, and modern infrastructure. Participant G remarked that “my employees that come down with kids now, they’re like, hey, I would choose Doha over [a neighboring country] in a heartbeat because it’s comfortable, it’s easy, [and] the quality of life is so much higher. Participant C focused on “the quality of life based on the existing infrastructure that [has] been developed, particularly over the last decade.” Participant B described Qatar as the “Monaco” of Arabia:

It has … [an] excellent health care system and facilities, … a modern, cozy, relaxed lifestyle. … The quality of services is excellent, and so is the security. The population is smaller. So, it can be in that niche segment to be like the Monaco of Arabia.

Participants also indicated Qatar’s feeling of home and family friendliness.

Participant G noted that

Qatar is different and always ends up being this kind of “after the fact” thing where once we get people down or … then they go, oh man, nobody told me this was an amazing place to raise a family.

Participant E said that “I personally do think that Qatar has a specifically strong branding with a certain subgroup of people, … communities of individuals, but also businesses, and influencers within global businesses.” Participant F talked about “perceiving Qatar as a home, as a place where you can be and stay.” Participant C further elaborated on the development of “a pool of long-term expat[s] … who believe that they belong to this community, to this country” and the attraction of foreigners who “come because they feel they belong; they endorse the branding of Qatar, they like it, and they want to contribute long term to the country.” Participant I was the only participant who deplored the difficulty in retaining long-term employees because of the “project-specific” nature of the construction industry in particular.

A few participants finally perceived the cost of life in Qatar to be relatively high.

The interview participants were consistent and considered several dimensions of the NBI framework in their responses, with ‘investment and immigration’ being the most discussed area.

Discussion

Central themes were determined from the analysis of the interviews regarding foreign companies’ perceptions of Qatar’s nation brand image and how they influenced their investment decisions. Each of these themes are presented next by highlighting their connection to the conceptual framework derived from Dunning’s (2001) Eclectic Theory and Anholt’s (2005) six-dimensional NBI framework.

Eclectic theory

The eclectic theory encompasses three sets of advantages (Dunning 2001). The interviews focused on the location advantage aspect. The participants’ perceptions were categorized in one single theme as presented below.

Economies of scope, scale and specialization, and location advantage

The most common perceived location advantages of Qatar include the country’ strategic geographical position, stable political and government-backed incentives environment, available and affordable access to quality resources (human, material, natural, financial), and world-class transport, production, and technology infrastructure. The participants briefly referred to the two advantages of Dunning’s OLI paradigm. On one hand, their perceived ownership advantage mainly stems from their firms’ distinct expertise and know-how, which satisfy the high standards and needs of the fast-growing Qatari market. On the other hand, the respondent’s perception about the internalization advantage within the context of Qatar is largely influenced by the parent company’s markets and operations diversification strategy.

Anholt Ipsos NBI framework

Five main themes emerged from the analysis of the participants’ perceptions of Qatar’s nation brand and how they shaped their respective company’s investment location decision. These themes (socioeconomic prosperity, integrated global hub, activist engagement, collectivist culture, and high-end lifestyle) are detailed and compared to the NBI dimensions next.

Socioeconomic prosperity and investment/immigration dimension

The Investment/Immigration dimension in the NBI framework relates to the business and living conditions of a country (Anholt 2005). The development of modern infrastructure, focus on well-being, facilitation of skilled immigrants’ residency rules, and integration of the expat community directly contribute to the participants’ image of Qatar as a modern, comfortable, and family-friendly destination. The findings also revealed a close attachment and sense of belonging of the participants to the country. Some participants revealed the key role played by select executives within the firm to counterweight diverging views about Qatar’s brand and actively influence the investment decision making. Other interviewees did not refrain from favorably and assertively comparing Qatar to its regional neighbors, while some genuinely and constructively made suggestions to improve perceived procedural and living cost issues. Overall, the participants reflected positively on their perceptions of Qatar as a favorable domicile for both companies and people.

Integrated global hub and exports dimension

The participants unanimously pointed out that their companies were highly advantaged by Qatar’s lauded global connectivity. The foreign companies also stressed the regional business hub nature of Qatar that allow them to service other adjacent markets or smoothly bring in expertise and/or human resources from other offices. A participant also noted the country’s “connectivity in the digital arena.” Qatar has achieved significantly significant progress and built global competitiveness in the digital space, including the deployment of 5G networks and fiber-optic submarine cables, the establishment of regional cloud data centers, and the rollout of e-government transformation initiatives.

Activist engagement and governance dimension

While different stakeholders participate in the development of the nation brand, including authorities, citizens, and consultancies, governments remain the central entity responsible for coordinating among such agents in crafting an authentic national narrative and communicating it to both internal and external audiences (Browning 2015; Huang 2011; Iwabuchi 2015; Kaneva and Popescu 2011; Knott et al. 2015). Since governance is an important dimension in Anholt’s nation branding hexagon, positive perceptions of the government’s role, performance, policies, and actions would likely improve Qatar’s brand image (Lee and Lee 2019).

The interviewees regarded Qatar’s government as stable, reliable, capable, and dynamic on various fronts ranging from political, to economic and international affairs. The perceived ethical climate and rule of law observance influenced their respective company’s decision to invest in the country. They contrasted the government’s distinct responsiveness and responsibleness within the broader region and provided details about the high degree of “investors’ confidence” and honoring of contractual obligations.

In the NBI framework, good governance is not only limited to governments’ fair, transparent, and well-performing management of the domestic economy and investment ecosystem. The commitment to global issues such as peace and security is also captured in the dimension value. Despite its relatively small size, Qatar has emerged as a prominent and influential actor in regional and international affairs (Brannagan and Giulianotti 2018). Qatar has taken up a leadership position that ranges from conflict mediation and resolution (Brannagan and Giulianotti 2018) to humanitarian assistance (Al Kurdi 2021), equal access to education (Al Sabbagh and Copeland 2019), and sports and cultural diplomacy. This was echoed by the participants who recognized both the country’s trusted partner status and the complex yet urgent nature of the issues it is striving to address. Some interviewees acknowledged that the migrant workers’ conditions, not only in Qatar but in the wider surrounding region, still require improvements.

Collectivist society and people and culture/heritage dimension

The culture and heritage element of the NBI framework measures the appreciation and interest in a nation’s history and contemporary culture, including sports, arts, and literature (Lahrech et al. 2020a). Sports, arts, and education were also highly regarded national cultural features with major domestic investments in public infrastructure being mentioned. Moreover, the interviewees discussed at length the collectivist’s orientation of Qatar’s cultural and value system. They emphasized the balance between preserved traditions and beliefs and the importance of shared values and mutual trust, especially in light of the rapid, embraced modernization, and the vast presence of expatriates. The findings related to the people dimension further strengthened and confirmed this perceived collectivist societal fabric of Qatar. One participant commented on the social connectedness experienced and therein the trust relationship feeling, which motivated the firm’s decision to invest in Qatar.

High-end lifestyle and tourism dimension

The tourism area in Anholt’s hexagon measures the perceived attractiveness of Qatar as a tourist and travel destination. This dimension received the least amount of feedback from the participants. Beside the hot summer weather, they positively commented on Qatar’s modern infrastructure, high-end hospitality, comfortable environment, and safe location. The recently announced national tourism strategy aims at capitalizing on the country’s unique global transit hub position, growing the beforementioned sectors, and expanding them to additional nice segments, including MICE (Meetings, Incentives, Conferences, and Exhibitions), resort, theme park, leisure, urban, and sustainable tourism (Abaalzamat et al. 2021) will impact the nation brand perceptions.

Implications and recommendations

The problem is the absence of a conceptual framework and theory explaining the effects of nation branding on FDI attraction, due in large part to the lack of empirical research and multi- and inter-disciplinary attention paid to this topic (Matiza and Oni 2013; Napolitano et al. 2018). The purpose of this case study was to enhance our understanding of how nation branding fosters the attractiveness of an investment destination. This qualitative research aimed at bridging the gap between academic and practical knowledge using foreign managers’ insights and perspectives. A conceptual model drawing upon two existing frameworks was established to understand how the brand of a nation improves its attractiveness as an investment destination. The findings support the applicability of the presented conceptual model in this context; however, further empirical research would be required to further scrutinize and demonstrate the relationships between the proposed interrelationship between the two constructs revealed in this study.

The reported themes were examined in the light of existing literature on nation branding and FDI. The combination of the themes offers a more comprehensive understanding of how nations can do to improve FDI attraction. This qualitative embedded case study explored foreign investors’ perceptions of Qatar’s nation branding. Further research in other geographical areas could further illuminate the decision frameworks within FDI decision making. One does have to be cognizant of the research design limitations presented, however, this exploratory research accesses key participants in this specific highly nuanced field, providing a rich data stream that makes a contribution in our understanding of this field.

The findings of this research provide useful inputs to public and private stakeholders involved in nation branding activities, as well as multinational internationalization strategy. Governments can significantly improve their international reputation as an investment location by focusing on the NBI dimensions of national competence. Namely, public entities and agencies that are responsible for nation branding can use this framework to investigate their performance on each of the six dimensions and associated attributes. Once they identify their key strengths and weaknesses, they can develop both structural and branding strategies, and exhibit select attributes to their key target audiences to foster not only their FDI but also trade, tourism, and talent attraction initiatives. Similarly, foreign companies can use the developed conceptual framework in their internal expansion and investment location decision-making process. The findings confirm that the combination of the location determinants identified in the OLI paradigm and the nation brand image dimensions within the NBI framework provide a good indication of a country’s attractiveness. The developed conceptual framework allows foreign companies to select and/or put varying weight on both the location advantages and nation’s competencies depending on their respective relevance, both from a corporate and employees’ point of view. Finally, this research will prove useful to policy makers, and governmental and marketing agencies.

This case study could constitute a first step in multiple future research trajectories. Keeping the research focus on the role of nation branding in FDI attraction, one could both expand the geographical scope to test the replicability of the research, assess the credibility, and compare the transferability of the findings. Similar single or multiple case studies could be replicated to other countries in order to add, confirm, or contrast some of the findings resulting from this study, and confirm the robustness of the proposed conceptual framework as an empirical model for research on nation branding. Regional neighbors, who present similar political, economic, and demographic characteristics to Qatar, could reveal relationships, patterns, or gaps. The scope could also be expanded to other countries or regions that actively engage in nation branding and pursue foreign investments. If the study shows differences across the participants, further qualitative research in the form of a narrative or longitudinal technique could be conducted to gain better understanding of how specific phenomena evolved over time.

Conclusion

The purpose of this qualitative, embedded case study was to gain a greater understanding of the contribution of nation branding as a tool to attract FDI. Foreign companies interviewed in this qualitative study revealed that their perceptions of Qatar’s nation brand had a positive impact on their decision to invest and conduct business in the country. Their responses revealed five key thematic areas of Qatar’s nation branding that influenced their investment decision. However, the investors’ asymmetrical weighting on the dimensions of the NBI model opens a debate on the salience and pertinence of certain measurement variables used in the framework such as people and tourism.

The findings of this embedded case study confirmed previous research the positive influence of branding on a nation’s attractiveness to foreign investors (Bah et al. 2015; Browning 2015; Graan 2013; Hakala et al. 2013; Kaneva 2011; Knott et al. 2015; Varga 2013; Volcic and Andrejevic 2011). The proposed “Lens” conceptual framework is essential in that it connects two complementary concepts, respectively, the Eclectic Theory and the NBI model. The conjunction of static and objective measurements used by MNEs as entities on one hand, and dynamic and subjective insights perceived by sets of MNE decision makers and/or influencers on the other hand, provides an integrated tool to better understand how foreign companies assess and formulate their investment location decision.