The Report: Qatar 2019
Its relatively small population and status as the world’s biggest gas exporter have helped Qatar become the richest country globally in terms of GDP per capita, which stood at $72,700 at current prices in 2019, according to IMF estimates. In recent years, however, the nation has faced strong economic headwinds from a drop in global energy prices to a diplomatic blockade.
Country Profile
Since gaining independence in 1971 Qatar has quickly risen to prominence both regionally and internationally to become an economic, political and cultural powerhouse in the Middle East. With a relatively small local population and substantial revenues generated from having the third-largest proven natural gas reserves globally, Qatar boasts one of the world’s highest GDP per capita, according to IMF estimates. Prior to 2010 the country was primarily known for its large gas reserves; however, Qatar’s global profile received a major boost when it won the bid to host the 2022 FIFA World Cup. Now, the country is recognised in the international arena for many reasons, including its push for domestic infrastructure projects. This chapter contains a viewpoint from HH Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar; and an interview with Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister and Minister of Interior.
Explore chapterEconomy
Qatar’s relatively small population and status as the world’s biggest gas exporter have helped it to become the richest country globally in terms of GDP per capita. In recent years, however, it has faced strong economic headwinds. The oil price decline beginning in the second half of 2014 led to the country’s first budget deficit in 2016, prompting the government to cut costs and reinvigorate its long-standing policy of economic diversification. As oil prices stabilised and hydrocar¬bons revenues began to rise once again, the nation was faced with another challenge: the governments of Saudi Arabia, the UAE, Bahrain and Egypt severed diplo¬matic relations with Qatar in June 2017 and announced an economic blockade of the country. This chapter includes interviews with Ali bin Ahmed Al Kuwari, Minister of Commerce and Industry; Sheikh Khalifa bin Jassim bin Mohammed Al Thani, Chairman, Qatar Chamber; Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank; and Omar Al Ansari, Secretary-General, Qatar Research, Development and Innovation Council.
Explore chapterTrade & Investment
Rising oil prices and effective policy-making have played a significant role in returning Qatar to a healthy trade surplus. A swift response by a range of government ministries has secured new routes to global markets. In March 2018 Hamad Port, which officially opened in 2017, celebrated the handling of 1m twenty-foot equivalent units ahead of schedule. Foreign investment also continues to rise on a year-on-year basis. Legislators are overhauling laws and regulations in order to maintain this positive trend, a process that promises to open the economy to further global capital. This chapter includes interviews with Ahmad Al Sayed, Minister of State; and Chairman, Qatar Free Zones Authority; and Fahad Rashid Al Kaabi, CEO, Manateq.
Explore chapterBanking
Over the course of 2018 Qatar’s banking industry demonstrated its resilience in the face of an economic blockade placed upon the country by a number of governments. Credit ratings agencies Moody’s and Fitch both upgraded Qatar’s sovereign credit ratings outlook to stable in the summer of 2018, recognising the improving macroeconomic scenario and the largely successful resolution of the challenges associated with the economic embargo. This action was accompanied by a number of individual bank upgrades, and in October 2018 Moody’s upgraded the entire banking sector from negative to stable, noting that banking sector profitability will remain stable with strong capital buffers. This chapter contains interviews with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; Abdul Hakeen Mostafawi, CEO, HSBC Qatar; and Raghavan Seetharaman, CEO, Doha Bank.
Explore chapterCapital Markets
The Qatar Stock Exchange (QSE) has faced considerable challenges in recent years, including a dip in oil prices and the effects of an economic blockade. However, after an initial decline in late 2017, the main index’s performance during 2018 established it as one of the fastest growing in MENA. The QSE has also succeeded in attracting an increasing number of foreign investors – an important development in terms of long-term growth and stability. In addition, exchange authorities have continued to streamline processes and introduce new instruments, including the market’s first exchange-traded funds. With oil prices firming and regulatory changes set to further bolster activity, the short to medium term promises to be interesting time for the market. This chapter contains an interview with Rashid bin Ali Al Mansoori, CEO, Qatar Stock Exchange.
Explore chapterIslamic Financial Services
Qatar is home to some of the region’s most prominent sharia-compliant institutions. Despite operating in a crowded and competitive arena, over recent decades the country has claimed a significant share of the banking, insurance and investment segments. More recently, Qatar faced the challenges of a sustained dip in oil prices and a regional economic blockade. However, due to a prudent regulatory structure and the government’s ability to support its most important Islamic institutions, the sector remains largely unaffected by economic turbulence, and is well positioned to take advantage of the opportunities emerging from the Qatar National Vision 2030 strategy and preparations for the 2022 FIFA World Cup. This chapter contains an interview with Bassel Gamal, Group CEO, Qatar Islamic Bank.
Explore chapterInsurance
Despite a relatively small population of around 2.7m, Qatar accounts for around 5% of insurance premiums in MENA. Nevertheless, relative to the size of its economy, insurance activity remains at a modest level. Annual premiums of around $3bn account for 1.5% of GDP, compared to a global average of more than 6%. The insurance penetration rate, meanwhile, stands at less than 2%, significantly below the OECD average of 8.9%. These market characteristics suggest significant potential for further growth. In the short term, however, much of the industry will be focused on regulatory matters; time is running out for insurers to comply with a new framework introduced in 2016 that aims to align Qatar’s insurers with global best practices.
Explore chapterEnergy
For over a decade Qatar has been the world’s leading supplier of liquefied natural gas, and by 2024 the country aims to boost output by 43%. While much of Qatar’s growth in the decades after independence in 1971 was fuelled by crude oil, natural gas gained prominence in the 1990s. In 2018 Qatar announced it would leave the Organisation of Petroleum Exporting Countries, which it joined as one of the first members in 1961, in order to focus on gas. Qatar’s ambitions signal it will be in a strong position moving forward as worldwide demand for natural gas increases. In addition, Qatar is taking steps to proactively develop its solar power generation. This chapter contains an interview with Sheikh Khalid bin Khalifa Al Thani, CEO, Qatargas.
Explore chapterUtilities
In the two decades since it first began exporting liquefied natural gas, Qatar’s economy and population has expanded rapidly, increasing demand for electricity and water. A report published in 2015 noted that the utilities sector accounts for most of Qatar’s natural gas consumption. From 2007 to 2017 the country’s annual consumption of natural gas doubled from 24bn cu metres to 47.4bn cu metres, according to BP’s “Statistical Review of World Energy 2018”. In 2018 the country set the goal of boosting annual LNG output by 43% to 110m tonnes by 2024, the demand for which is expected to surge in the medium term given a number of major infrastructure projects in the pipeline, including a metro rail network and the planned city of Lusail.
Explore chapterIndustry
The potential for the industrial sector to play a major role in Qatar’s economic growth was officially recognised in 2008 with the publication of the country’s plan for long-term development, Qatar National Vision 2030. Since then Qatar has taken a number of steps to increase the incentives available to foreign investors interested in supporting the country’s industry. Boosted by a new project to build a large petrochemicals complex, and responding to concerns about food supply and security in the wake of the 2017 blockade, non-hydrocarbons industries look poised to play a more prominent economic role. This chapter contains interviews with Mohamed Badr Al Sadah, CEO, Hassad Food; and Nasser Hassan Al Naimi, Managing Director, Barzan Holdings.
Explore chapterTransport
Guided by plans laid out in Qatar National Vision 2030, the country is on track to upgrade and connect its land, air and sea networks in 2019. The first trains are set to run on the new Doha Metro network, while dozens of expressway bridges, underpasses and intersections are due for completion. Organisation efforts for the 2022 FIFA World Cup have added urgency to the drive to improve transport connections while passenger and freight numbers are expected to grow at the country’s new international air and seaports. The increased traffic through these facilities is spurring the development of free zones and logistics centres, which are expected to create opportunities for entrepreneurs and investors. This chapter contains interviews with Abdulla Nasser Turki Al Subaey, President, Civil Aviation Authority; and Abdulla bin Abdulaziz bin Turki Al Subaie, Minister of Municipality and Environment; and CEO and Managing Director, Qatar Rail.
Explore chapterConstruction
Qatar’s construction industry has flourished over the past five years to become a key engine of the economy. Although activity remains robust, the wider economic squeeze brought about by the 2014-16 oil glut has been felt in the sector, as the effects of lower oil and gas revenue trickled down to impact government expenditure and investor confidence. A narrower project pipeline and increased competition for contracts has forced contractors to cut margins and take on greater risk. Nonetheless, with the 2022 FIFA World Cup just three years away, a partial rebound in energy prices, and the government turning its attention to new developments in the energy and defence sectors, figures are hopeful for 2019. This chapter contains an interview with Saad bin Ahmad Al Muhannadi, President, Public Works Authority.
Explore chapterReal Estate
As a key driver of diversification efforts, the real estate sector has been an important contributor to economic growth in recent years. According to a 2018 report, non-mining and quarrying sectors registered a combined compound annual growth rate (CAGR) of 6.8% between 2013 and 2017, which was largely attributed to four sectors: construction, health care, insurance and real estate, with the last registering a CAGR of around 7.6%. Despite this positive performance, early 2018 saw growth moderate, most likely influenced by a regional blockade that saw Saudi Arabia, the UAE, Bahrain and Egypt sever diplomatic ties with Qatar in July 2017. However, the effects were short-lived, and the sector is back on track and poised for growth. This chapter contains an interview with Nasser Al Ansari, Chairman and CEO, Just Real Estate.
Explore chapterICT
Qatar’s ICT market is well established, and characterised by high levels of mobile and internet penetration rates. Internet services are both affordable and quick, with fibre-based connections available since 2012. The country’s two main telecommunications operators are also working to roll out 5G services in all heavily populated areas by the end of 2020. The deployment of advanced technology runs alongside the Qatar National Vision 2030 strategy. On the IT side, government officials are working to strengthen the sector, with plans for the development of a new smart city, e-government services and a robust start-up ecosystem currently in the works. This chapter contains an interview with Sheikh Hamad bin Abdulla Al Thani, CEO, Vodafone Qatar.
Explore chapterTourism & Sports
The 2016 slump in oil prices led the Qatari government to identify industries with high growth potential in a diversified economy. Tourism was among the sectors prioritised due to the opportunities presented by infrastructure investment and major events such as the 2022 FIFA World Cup. The sector’s promising performance comes amid the backdrop of a regional blockade led by Saudi Arabia and several other Arab countries. Efforts to diversify source markets – especially important as prior to the blockade tourism in Qatar was dominated by travellers from the GCC – have also led to an increased number of visitors from countries such as India, Russia and China. Altogether, these factors bode well for the future of the tourism sector in Qatar. This chapter contains an interview with Hassan Al Thawadi, Secretary-General, Supreme Committee for Delivery & Legacy.
Explore chapterEducation and Research
Education is an important pillar of Qatar National Vision 2030, the country’s development plan to diversify the economy and reduce its dependence on hydrocarbons. To that end, Qatar has prioritised developing and reforming the education sector, with a substantial portion of its energy revenue dedicated to education. Although the decline in international oil prices in recent years has resulted in some cuts to funding, public spending is once again on the rise in the country, with education allocated 9.3% of the 2019 budget. While the economic blockade had an adverse effect on opportunities for regional academic collaboration, the impact on the overall sector has been limited, with a slight dip in student enrolment and staff retention in some private schools. This chapter contains interviews with Hassan Rashid Al Derham, President, Qatar University; and Richard O’ Kennedy, Vice-President for Research, Development and Innovation, Qatar Foundation.
Explore chapterHealth
Qatar’s health care sector has emerged as the highest-ranked system in the MENA region, according to the Legatum Prosperity Index 2018. The past 10 years have seen particularly quick improvement with Qatar rising from 27th place in 2008 to fifth in 2018 out of 148 countries in terms of its health care. This has been attributed to increased investment in new facilities, services and technologies to meet the demands of the growing population. To further its progress, Qatar has launched the second phase of its ambitious National Health Strategy. The plan will focus on preventive health care in hopes of addressing the rising prevalence of non-communicable diseases. Meanwhile, ongoing efforts to develop the private care sector have seen Qatar loosen regulations of foreign investment. This chapter contains an interview with Hanan Mohamed Al Kuwari, Minister of Public Health.
Explore chapterRetail
Qatar has one of the highest GDP per capita in the world. The retail sector has, therefore, benefitted considerably from high levels of disposable income, coupled with a large expat population. Furthermore, retail centres have established themselves as the primary choice for not only shopping but also leisure and entertainment. The country has subsequently seen a significant expansion in retail space since 2000. However, population growth is now stabilising, leading to concerns about oversupply over the longer term. Nevertheless, despite these challenges, demand and consumer confidence in the retail sector remains buoyant, and new hypermarkets continue to open across the country.
Explore chapterLegal Framework
The state of Qatar, a peninsula located in the Arabian Gulf, is known for being one of the world’s foremost exporters of natural gas. Its economy has grown from being one that is dependent mainly on pearling – that is, the harvesting of pearls from molluscs – to one that is driven by the production and export of hydrocarbons and other resources. Qatar National Vision 2030 (QNV 2030) was published by the General Secretariat for Development Planning in October 2008. QNV 2030 is organised around four pillars – human, social, environmental and economic – and targets the development of several sectors and the provision of a high standard of living by the year 2030. This chapter contains an interview with Mubarak bin Abdullah Al Sulaiti, Chairman, Al Sulaiti Law Firm.
Explore chapterThe Guide
The guide contains listings of some of the leading hotels and resorts in Qatar and contacts for important government offices and services. It also contains useful tips and information for first-time or regular business and leisure visitors alike.
Explore chapterTable of Contents
There are no articles in this chapter. To view the table of contents, please open click the "View in online reader" link above.
HH Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar: Viewpoint
Sheikh Mohammed bin Hamad bin Qassim Al Thani, Minister of Commerce and Industry: Interview
Abdulla Mubarak Al Khalifa, Group CEO, Qatar National Bank (QNB): Interview
Abdulla bin Abdulaziz bin Turki Al Subaie, Managing Director and CEO, Qatar Rail; and Minister of Municipality: Interview
Nasser Al Khater, CEO, 2022 FIFA World Cup Qatar: Interview
Ahmad Al Sayed, Minister of State; and Chairman, Qatar Free Zones Authority (QFZA): Interview
Qatar Tribune PRINT: QA emerges as lifeline for international travellers amid Covid-19
Qatar Tribune PRINT: OBG’s new report to map out Qatar’s evolving tax framework
The Peninsula Qatar PRINT: Qatar ideal investment destination, says Sheikh Khalifa
Qatar Tribune PRINT: Key projects boosting trade in Qatar, says Sheikh Faisal
