By Satish Kanady
DOHA: The banks in Qatar will continue to play a critical role in the country’s ongoing economic diversification programme by supporting its public spending. Government investments and population growth are driving an economic transformation with double-digit growth in the non-hydrocarbon sector, QNB Group CEO Ali Ahmed Al Kuwari said yesterday.
Addressing the opening session of MEED’s Qatar Projects conference here yesterday Ali Ahmed noted the country’s non-hydrocarbon sector currently accounts for more than half of the economy, driven by growth in construction, services and manufacturing.
The government has shifted its focus of investment spending from the expansion of LNG to diversification. Major projects in real estate and transport have been the focus of the diversification drive. The largest projects are mainly in the real estate and transport sectors. Investment spending in 2015-17 is estimated to be around $70-80bn per year. Public investment spending is expected to grow in line with GDP, he said.
A sector wise breakdown shows real estate spending accounts for 49.2 percent of total investment spending during 2015-17. While the share of Transport and Utilities sectors represent 27.8 percent and 13.7 percent, respectively. Oil and Gas accounts for merely 8.3 percent. Industrials sector’s share is 1.1 percent and petrochemicals 0.5 percent.
In his presentation, the QNB Group CEO noted mixed-use real estate developments and rail, road , airport and port projects in the transport sector make up the major projects . The budget for the development Lusail Mixed-use development is an estimated $45bn and $40bn for Qatar Integrated Rail, which is expected to develop 260km of metro and light rail in Doha and 400km of mainline. The allocation for Ashghal expressway programme is $20bn and Hamad International Airport is $15.5bn. The new phase of new airport will increase capacity to 55 million passengers. The $14.6bn has been set aside for Ashghal local roads and drainage projects. The $11bn investment in the new facility of Bul Hanine Oilfield is expected to double the capacity to 90k b/d by 2022. The $10.3bn investment in Barzan Gas Development plans to increase gas supply to market to meet demand.
The QNB Group CEO said banks will play a critical role by financing infrastructure projects, enabling the realization of the country’s diversification plans. Demand for banking products and services in Qatar has grown and is expected to continue. Therefore, the banking sector is expected to grow by double digits over the medium term.
In line with Qatar’s National Vision and National Development Strategy, QNB Group is strongly committed to nurture the growth of the private sector.
The Qatar National Development Strategy (QNDS) 2011-2016 has identified 14 priority sectors for development to realise the QNV 2030.
He said QNB Group is committed to act as an incubator and enabler for the development of the private sector, in particular small and medium Sized enterprises. Given its international presence, QNB Group can act as a conduit to channel foreign direct investment (FDI) on an international level across its network to support the private sector.
The Peninsula
