The economy continued to grow in 2023, with estimates indicating that GDP has grown at constant prices by 1.2%. This was supported by the growth of the hydrocarbons sector by 1.4% and the non-hydrocarbons sector by 1.1%. The IMF estimates that the local economy will grow by 2% at the end of the current year, with growth jumping to 4.1% annually during 2025-29 – propped up by gas production expansion projects, manufacturing projects and Third National Development Strategy initiatives. Inflation continued to fall during 2024, reaching 1.4% by the end of July – against 5% and 3% during 2022 and 2023, respectively – reflecting the success of the fiscal policies and measures implemented by the state to ensure the stability of supply chains, the availability of basic commodities and price control.
The IMF expects inflation to stabilise at 2% in the medium term. Qatar continues to direct its general budget surpluses toward reducing public debt and increasing financial reserves to maintain the ability and resilience to respond to any financial challenges that may arise. The state has managed to reduce public debt from nearly 73% of GDP in 2020 to less than 44% by the end of 2023. The policies pursued have contributed to upgrading Qatar’s credit rating, according to global agencies, while maintaining a stable outlook.
The state is keen to align balanced spending policy, which improved its financial position over the past years. It concurrently supported national growth and development with the allocation of the necessary financial resources for government initiatives for the years 2024-28. This was done in accordance to priorities and in line with the objectives of the Third National Development Strategy, which includes supporting commerce, industry, research, tourism, digital transformation, IT, financial and administrative systems, and human development with the aim of achieving economic diversification and sustainability.
We are serious about investing in these sectors. This interest must be coupled with a similar interest in developing human competencies and expertise in all fields; evaluating workers according to the standards of professionalism, efficiency and quality of outputs; enhancing work ethic; and ensuring diligence in public affairs. In the context of enhancing local production and private sector opportunities, and after implementing the in-county value programme in government procurement in August 2022, a directive was issued to target a growth rate of no less than 10% annually of the in-country value, develop plans to localise various economic sectors, and work on developing mechanisms such as mandatory procurement lists and long-term contracts. This would occur while considering the need to take into account the quality of the local product and its competitiveness against imported products.
The state has acted to support the private sector through Qatar Development Bank and partnerships in private agricultural projects. It has also worked to develop the real estate sector by supporting its development strategy and launching the real estate platform of the state that enhances transparency through data and the use of advanced technology, all of which to encourage local and international investment in the real estate sector.
As part of Qatar’s commitment to its environmental pledges, the first sovereign green financing framework in the region has been launched as per the highest international standards in the fields of sustainable financing and green financing. This was followed by the issuance of government green bonds in global debt markets, which achieved an initial public offering oversubscription by six times at the peak, with wide geographical and institutional diversity. This confirms global investors’ confidence in the country’s financial and economic performance and its future orientations.
We accord special importance to the relations with our brothers in the Gulf and to the advancement of the process of our integration. In light of Qatar’s presidency of the current session of the GCC, we have spared no effort, alongside the leaders of the GCC, to support our march and push forward joint action in a way that fulfils the aspirations of our peoples. With regard to our foreign policy, we have always been keen to establish it on fundamental basics and solid principles in sync with our values and reflective of our Islamic-Arab-Gulf affiliation, to achieve our goals and national interests, and fulfil our international obligations and effective partnership with the international community in addressing global challenges for the good of mankind.
Apart from striking a balance between values, principles and interests, our foreign policy is also based on political realism and a realistic assessment of what we can afford to do. Our approach is to pursue dialogue and preventive diplomacy, support conciliatory political solutions and peaceful settlement of disputes, and engage in mediation when that is possible. This requires the necessary flexibility to perform this role.
Making thoughtful change is a reliable way to develop peoples’ interests, meet their aspirations and realise them. The Cabinet has finalised draft constitutional and legislative amendments. Two goals incorporate the constitutional and legislative amendments: ensuring the unity of the people on the one hand, and equal citizenship in terms of rights and duties on the other.
The election of two-thirds of the Shura Council was stipulated in Qatar’s permanent constitution since 2004 but has not been put into effect. I declined to have provisions in the constitution yet to be implemented. So, I took the initiative to call for elections. Our system is an emirate founded on justice and shura (consultation), which protects rights and liberties under the rule of law.
The Shura Council is not a representative Parliament in a democratic system, and its status and powers will not be affected whether its members are chosen by election or appointment. The people and the government have a direct civic relationship, and there are recognised norms and mechanisms for direct communication between the people and the government. The members of the Shura Council were appointed or elected to debate laws and actions of the executive authority with impartiality and without ulterior or parochial interests, with wisdom and reason, and to present recommendations to the Amir. Shura is one of the most important forms of participation in public affairs and it will so continue. There are many channels for citizen participation, and we must increase, intensify and deepen. We are all one family in Qatar. The contest between candidates for membership in the Shura Council took place within families and tribes, and there are different views regarding the repercussions of such competition on our norms, traditions, and conventional social institutions and their cohesion. The contest assumes an identity-based character that we are not equipped to handle, with potential complications over time that we would rather avoid. The Qatari experience has shown that the positive aspects of our social institutions have not been an obstacle to progress but rather a contributing factor, forming a solid foundation that has enabled us to combine our authenticity with modernity.
I remember our ancestors who clung to this land, strived to survive on it and spared no sacrifices, some of whom were martyred defending it. However, they built a national entity against the backdrop of the bleakest environmental and economic circumstances. I recall the difficult trials that we successfully navigated together thanks to our faith, steadfastness and awareness of our common destiny. I relive the joy in the achievements and the smiles of our children, while being mindful of our responsibility for their future. My conviction is strengthened that there is no alternative to combining strong will and wisdom; and that our values, morals, humility and patriotism are the sources of our strength and the justification for our confidence in the future.
This viewpoint was taken directly from HH Sheikh Tamim bin Hamad Al Thani’s speech delivered at the 53rd ordinary session of the Shura Council in October 2024.
Read More from OBG
