FROM LEFT: Minister of Finance H E Ali bin Ahmed Al Kuwari, Deputy Managing Director of IMF Bo Li, Minister of Finance of Pakistan, H E Muhammad Aurangzeb during the panel discussion, yesterday.
Doha, Qatar: Qatar is working on long-term plans that ensure intergenerational equity and guarantee stable living standards in the future. The country was among the first contributors to IMF’s Sustainability and Resilience Fund, reflecting its role in supporting global economic stability while safeguarding its national economy, Minister of Finance, H E Ali bin Ahmed Al Kuwari has said.
The panel discussion entitled ‘Global Trade Tensions: Economic Impact and Policy Responses in MENA’ held yesterday in partnership with Ministry of Finance and IMF as part of the 23rd edition of the Doha Forum, explored how countries in the MENA region are navigating rising global trade and policy uncertainty.
The discussion focused on how countries can build resilience by strengthening fiscal and external buffers, improving policy frameworks, and enhancing institutional credibility.
The speakers examined how sound fiscal rules, credible macroeconomic policies, and structural reforms can help cushion shocks and support recovery. It also highlighted how deeper integration, openness, and better governance can help MENA economies diversify and adapt to an uncertain global environment.
Addressing the session, Minister Al Kuwari said, foreign trade constitutes approximately 60% of Qatar’s GDP, reflecting the openness of the Qatari economy and its close integration with global markets through energy, trade, and investment.
“We are energy supplier of the world and so it’s extremely important for us. In terms of the recent trade policies and tariffs, I don’t think Qatar was affected so much because most of our exports are in the energy side and we have less in other commodities that can be affected.
“We reduced debt from 58 percent in 2021 to 41 percent, and this was recognised by the IMF report, Chapter 4, as well as the rating agencies. Qatar was upgraded by the three rating agencies to an AA, which is the highest rating in the region and among the highest in the world,” Minister said.
Minister Al Kuwari noted that Qatar has successfully reduced its debt levels and built strong reserves through effective management of its monetary and financial reserves, thus enhancing its ability to withstand external shocks.
He said, “We have been very disciplined in our fiscal policy framework. We have built a medium-term fiscal policy framework, which is focusing on having a look, to the scenarios of revenues and, expenses for the next 20 years, and under different scenarios, stress and good scenarios. Fiscal sustainability is extremely important and we have built this sustainable fiscal sustainability framework even before the trade wars. The idea behind it is to be resilient to shocks, COVID, trade wars,” he added.
He also noted that AI is a strategic sector in which Qatar is investing heavily, not only through data centers but also by developing practical applications that serve the energy, trade, and financial services sectors.
In terms of diversification, the Minister noted that “we started the journey 2008, when we put the Qatar National Vision 2030 and the essence of the vision is basically built around diversification of the economy and building the non-oil sectors like technology, manufacturing, logistics, tourism and we believe these sectors will be driving the economy.
For example, the first six months GDP of this year was 5.3 percent growth in the non-oil GDP. And the expectations we have is a 4 percent annually for the next five years. IMF noted they are expecting 4.1 percent on average growth for Qatar for the next five years.
Also speaking during the panel Bo Li, Deputy Managing Director, International Monetary Fund discussed the importance of artificial intelligence as a tool for economic diversification, pointing out that Qatar and the UAE have achieved good results in the AI Readiness Index, and that investing in human capital, digital infrastructure, and smart regulation is the way to maximise its benefits.
Qatar has a national skilling program, which is a good example of providing the right skills to the population to be ready for the AI age.
“Our forecast for this year is for the global economy to grow at 3.2 percent which is still slowing down compared to last year, 3.3 percent. But it’s better than what we feared because back in April, at the height of trade disruption, the fear was even worse. So the reason is that there is a policy buffer and resilience in many countries. And also, we see private sector adapting it with agility and innovation that also give a boost to the global economy,” he said.
For his part, Minister of Finance of Pakistan, H E Muhammad Aurangzeb said, “The government of Pakistan has worked in recent years to bolster its financial reserves by achieving primary budget surpluses and improving the current account, while also leveraging the influx of remittances from the Gulf region, which exceeds $18bn annually, to enhance stability.” He stressed that the solution to the challenges facing his country lies in structural reforms and a transition from stability to growth, coupled with investment in modern technologies such as blockchain and artificial intelligence to empower young people and increase their productivity.
