Like many of its GCC neighbours, Qatar has implemented an overarching, long-term strategy that provides a set of development objectives, known as Qatar National Vision 2030 (QNV 2030). Organised around four main pillars – human, social, economic and environmental development – the stated goal of QNV 2030 is to transform the country into an “advanced country… capable of sustaining its…
While Qatar has made great strides to diversify its economy, government revenues are still heavily dependent on the hydrocarbons industry. As a result, low global oil prices caused a major contraction in state income. This coincides with an already planned peak in government spending on infrastructure, including preparations for the 2022 FIFA World Cup. Fortunately, a combination of factors…
SMEs are often at the forefront of innovation and experimentation. However, encouraging a thriving small-business culture is a challenge in economies that are heavily concentrated in single, vertically integrated industries such as oil and gas. The path of economic development in such countries typically crowds out smaller enterprises, leaving markets dominated by a handful of larger corporations. Changing…
With Qatar increasingly looking to engage the private sector in undertaking national infrastructure projects, efforts are under way to introduce a new legal framework governing public-private partnerships (PPPs) in the country. The proposed PPP law, which aims to further incentivise and mobilise private investment, is currently passing through the final stage of the legislatorial process, with…
The blockade imposed on Qatar by Saudi Arabia, the UAE, Bahrain and Egypt in June 2017 has had many significant effects on the country and its economy, not to mention the wider region. Yet while much of this was initially disruptive, there is a sense among government officials and business leaders that the situation also presents opportunities that Qatar and businesses operating in the country…
Qatar was quick to embrace the financial technology (fintech) revolution, having long recognised that digital technologies can raise both competitiveness and security. The push to digitise has been given an added boost by the blockade, as it has driven all sectors of the economy to invest in safer and more advanced fintech systems. Banks have been supportive of national fintech initiatives…
With Qatar in the midst of a bold capital investment programme – seeing almost $500m per week being spent on infrastructure developments – the financial sector has a vital role to play in maintaining the smooth flow of money to the domestic economy. In 2016 a liquidity squeeze resulted in a 4.6% drop in M2 money supply, while the sector’s loan-to-deposit ratio (LDR) reached 100.1%, in…
With 10 domestic commercial banks and a number of financial institutions operating out of the Qatar Financial Centre (QFC), the Gulf nation is emerging as a financial services centre for the region. However, with banks’ cost of borrowing rising and the buoyant growth trend likely to approach a natural plateau in the next two to three years, there are signs that the market could be about to…
Investment Holding Group (IHG) announced it would make an initial public offering (IPO) subscription for 60% of its stock in January 2017. The announcement meant the company would be the first new listing in the GCC for 2017, and the first IPO on the Qatar Stock Exchange (QSE) since Mesaieed Petrochemical in 2014. Listing Impact The IPO was significant because it marked the first occasion…
Islamic financial services (IFS) have come a long way in a relatively short period. According to the Islamic Financial Services Board (IFSB), the international body that acts as the global regulator for the sector, $1.89trn of assets were managed in sharia-compliant structures internationally in 2016. As the sector grows, so do the demands placed upon it, meaning greater regulatory oversight…
