Economy
From The Report: Qatar 2017
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Following a challenging 2016, when the price of Brent Crude dipped briefly below $30 per barrel and governments across the GCC were compelled to significantly adjust their fiscal plans, 2017 has brought the region some respite – both to current accounts and the wider economy. Qatar remained better insulated from the effects of oil price volatility than most countries in the Gulf, owing chiefly to the unintended countercyclical effects of its infrastructure investment boom. Nonetheless, a return of oil prices to above $50 per barrel will certainly reduce strain on the economy, which was beginning to experience tightening in liquidity. Stronger energy prices will provide the government with a positive platform for the launch of its new six-year strategic plan, which will aim to further deliver on the economic diversification mandated by Qatar National Vision 2030.

This chapter contains an interview with Sheikh Ahmed bin Jassim bin Mohammed Al Thani, Minister of Economy and Commerce, and Vice-Chairperson, Qatar Investment Authority; and Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank.

Articles from this Chapter

Overview

Balancing act: Diversification and development are aiding recovery
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Following a challenging 2016, when the price of Brent Crude dipped briefly below $30 per barrel and governments across the GCC were compelled to significantly adjust their fiscal plans, 2017 has brought the region some respite – both to current accounts and the wider economy. Qatar remained better insulated from the effects of oil price volatility than most countries in the Gulf, owing chiefly to the unintended countercyclical effects of its infrastructure investment boom. Nonetheless,…

Interview

A focused approach: Sheikh Ahmed bin Jassim bin Mohammed Al Thani, Minister of Economy and Commerce; and Vice-Chairperson, Qatar Investment Authority, on Qatar’s economic growth strategies
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Interview: Sheikh Ahmed bin Jassim bin Mohammed Al Thani To what extent was the first National Development Strategy (NDS) successful? SHEIKH AHMED BIN JASSIM BIN MOHAMMED AL THANI: The NDS 2011-16 was the first implementation plan under Qatar National Vision 2030 (QNV 2030), and was used as the practical tool to position Qatar among countries that prioritise sustainability in socio-economic, cultural and environmental development. During this phase Qatar’s government focused primarily on laying…

Interview

Helping hand: Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank (QDB), on changes for small and medium-sized enterprises (SMEs)
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Interview:Abdulaziz bin Nasser Al Khalifa In what way is financing to SMEs being affected by tightening liquidity in the banking sector? ABDULAZIZ BIN NASSER AL KHALIFA: With respect to SMEs, tightening liquidity in the banking sector creates particularly severe pressure, as it restricts their access to finance. Naturally, financial institutions – both locally in Qatar and regionally across the GCC – seek to minimise risks associated with lending, and therefore, they have become increasingly…

Analysis

Measured responses: As global oil prices begin to recover, the government has forecast a declining deficit
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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 has ensured that public finances remain robust and are able to absorb weaker oil revenues without…

Analysis

Changing plans: Six-year blueprint places emphasis on private sector development and entrepreneurship
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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 own development and providing for a high standard of living for all its people for generations to…

Analysis

Strategy for growth: The government looks to small and medium-sized enterprises (SMEs) to spur diversification
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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 this situation requires intervention and development of carefully considered policies…