Qatar: Economic Snapshot 2019
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The new innovation strategies driving Qatari research and developmentOBGplus
A series of initiatives designed to promote entrepreneurship and incubate start-ups in Qatar are strengthening the country’s research, development and innovation (RDI) ecosystem. On January 15 the second annual Arab Innovation Academy (AIA) concluded its 10-day intensive workshop designed to equip young entrepreneurs from Qatar and across the region with the skillsets to develop and launch new…
Qatar doubles down on economic diversificationOBGplus
It has been more than 10 years since the launch of Qatar National Vision 2030 (QNV 2030), the document in which the government formally revealed its determination to diversify the nation’s economy. Recognising that a reliance on its abundant natural resources for national income left the country vulnerable to the dynamic fluctuations of world energy prices, the “development of a competitive…
Transition to knowledge-based economy driven by ICT advances in QatarOBGplus
The rapid pace of technological evolution has seen the applications of the internet grow exponentially. Originating as a specialised military technology, digital connectivity has now become a part of the social and economic infrastructure in nearly all world economies. This widespread use of technology is bringing about the Fourth Industrial Revolution, comparable in its economic impact to…
Diversification leads to strong growth in non-oil and gas sectors in QatarOBGplus
Offsetting fluctuations in hydrocarbons output and prices, the non-energy sector accelerated in 2018, growing by 6% in the first half of the year, according to an IMF report released in November 2018. Real GDP growth of 2.4% was projected for 2018, up from the 1.6% growth of 2017. This expansion is set to gather momentum again in 2019, with real GDP expected to rise by 3.1% on the back of both…
Manageable inflation expected in QatarOBGplus
When Qatar found itself subject to an economic blockade in 2017, a number of financial data points were of immediate interest to economic observers. The sudden withdrawal of foreign deposits was an early concern, and one which the government quickly overcame by pouring capital from public bodies into the system (see Banking chapter). Attention was also focused on the trade challenges thrown…
Qatar to boost investment with targeted legislationOBGplus
A number of significant developments related to foreign direct investment (FDI) set to be implemented by the end of 2019 will further strengthen Qatar’s appeal as a destination for international investors. Expected developments include the opening of two special economic zones (SEZs), changes to foreign investment legislation and the launch of a substantial incentive programme by the Qatar…
New mortgage products and incentives designed to cushion banks in QatarOBGplus
Qatari banks seeking to build their home loan portfolios have faced a challenging environment in recent years. According to the IMF, Qatar’s real estate price index fell by 11% in 2017, reversing a positive trend that had seen a 53% cumulative increase between 2013 and 2016. The market continued to decline in 2018, with the transacted value of real estate deals falling by 32% in the first…
Sharia-compliant funds see healthy returns in QatarOBGplus
Sharia-compliant funds are emerging as an increasingly popular investment instrument in markets across the region, and Qatar is playing an important role in this expansion. According to the Qatar Financial Centre (QFC), sharia-compliant funds accounted for $224m by end 2017; just over 50% of the assets placed in the Qatari mutual fund segment. Their prominence in the market means that they…
Qatar to remain a leading supplier of LNGOBGplus
Qatar’s decision to expand liquefied natural gas (LNG) production by 43% from 77m tonnes per year to 110m tonnes per year by 2024 is designed to enable the country to capitalise on growing global demand for the fuel. The country has been one of the world’s main exporters of LNG, although in recent years, competitors including the US and Australia have ramped up production and carved their…
