Economy
From The Report: Qatar 2019
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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.

Articles from this Chapter

Overview

Right to be optimistic: Economic strength and potential have been reaffirmed by the short-lived impact of the blockade
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Qatar’s relatively small population and status as the world’s biggest gas exporter have helped it to become the world’s richest country in terms of GDP per capita. In recent years, however, it has faced strong economic headwinds. The oil price decline in the second half of 2014 was a challenge to hydrocarbons-producing states throughout the region, and Qatar was the only Gulf monarchy to avoid a budget shortfall in 2015. By 2016, however, it had slipped into its first budget deficit,…

Interview

Strength and resilience: Ali bin Ahmed Al Kuwari, Minister of Commerce and Industry, on responding to regional pressures with a global vision
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Interview:Ali bin Ahmed Al Kuwari How do you view the role of the government versus that of the private sector in driving growth? ALI BIN AHMED AL KUWARI: Over the past few years Qatar’s government has gradually narrowed the scope of its intervention while enhancing the participation of the private sector in the delivery of high-quality services. Qatar is developing a holistic public-private partnership (PPP) framework. We are also in the process of drafting a PPP law in line with international…

Interview

International cooperation: Sheikh Khalifa bin Jassim bin Mohammed Al Thani, Chairman, Qatar Chamber, on measures to facilitate private sector growth
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Interview:Sheikh Khalifa bin Jassim bin Mohammed Al Thani What role will promoting international visibility play in strengthening the “Made in Qatar” brand abroad? SHEIKH KHALIFA BIN JASSIM BIN MOHAMMED AL THANI: Qatar’s international presence plays a significant role in promoting the country as a destination for business, investment and the source of Qatari-manufactured products abroad. Visibility has been strengthened through trade missions, participation in trade exhibitions and…

Analysis

Determined to diversify: The country has doubled down on its drive to broaden its economic bases and increase private sector involvement
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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 and diversified economy capable of meeting the needs of, and securing a high standard of living”…

Interview

Enterprising ideas: Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank (QDB), on developing the economy from the ground up
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Interview: Abdulaziz bin Nasser Al Khalifa What role do you envision for local and small and medium-sized enterprises (SMEs) to play in the development of the national economy? ABDULAZIZ BIN NASSER AL KHALIFA: The increased focus on SMEs by the government highlights the important role they play in the economy. Of the 25,000 private sector businesses currently registered, more than 96% are classified as SMEs. In light of this, expanding the segment and providing greater opportunities for smaller…

Analysis

New horizons: The medium-term inflation outlook is benign, notwithstanding the upcoming implementation of value-added tax
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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 up by the blockade, and the effect that these would have on the cost of living for both Qataris and…

Analysis

New avenues: Strong gains by the non-oil and gas sector underpins solid economic growth, as diversification efforts intensify
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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 increased hydrocarbons and non-hydrocarbons activity, before stabilising to around 2.7% per annum…

Interview

Connecting the dots: Omar Ali Al Ansari, Secretary-General, Qatar Research, Development and Innovation (QRDI) Council, on mobilising for innovation
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Interview: Omar Ali Al Ansari What has been the driving force behind the establishment of the QRDI Council? OMAR ALI AL ANSARI: The formation of the QRDI Council is another step in Qatar’s journey in research and innovation. Over a period of 10 years, a culture of research has been fostered through the establishment of various academic institutions, research institutes and funding bodies. The Qatar National Research Fund, for example, was established in 2006 – the first research fund of its…