Qatar’s economy is on the upswing, thanks to booming LNG demand to Asia, increasing confidence of investors and international rating agencies on the country. With the ongoing siege completing a year, foreign investors are making a beeline by entering different sectors of the economy after the State announced a package of laws, including real estate acquisition, permanent visa and residence, and opening up of the economy to boost foreign investment.
The presence of major foreign companies in Qatar indicates the strength of the Qatari economy, which is an indicator of investor confidence in the ability of Qatar to face the siege, revealed a study by Qatar University on “Foreign Investment Openness in the State of Qatar and Its Interaction in Development of Qatari Economy”.
Yet another proof, the study noted, was that the country’s credit rating is in the highest range for global rating agencies such as Standard and Poor’s, Fitch, Moody’s and Capital Intelligence.
At present, most of the foreign investment is concentrated in the energy sector. Opening up the local economy to foreign investment would accelerate the growth of the private sector and expand its productive base. The move will strengthen and diversify the production base and create import alternatives to the economy, the study noted.
According to QNB’s latest economic commentary on Qatar’s economy, the latest monthly trade statistics show that the goods trade surplus surged higher in April. In level terms, the surplus topped QR14.7bn. In percentage terms, the surplus was up a stunning 49 percent year-on-year as against April 2017. It noted that April’s exports were up more than QR5bn, an increase of more than 27 percent compared with a year ago.
Higher crude oil prices as well as booming LNG demand to Asia helped in boosting exports. Exports to Japan were strong in April; up nearly QR2bn versus last April. Japan’s export share accordingly jumped to 20 percent; up from 17 percent in March and 15 percent a year ago. Growth in LNG demand has more recently been dominated by China, whose imports soared by an extraordinary 49 percent in 2017.
Moreover, in February, International Monetary Fund (IMF) Managing Director Christine Lagarde had said that the steady growth in Qatar’s non-oil economy is a reflection of the country’s good diversification policy. Qatar’s growth in the non-oil sector has been pretty much on a par with the non-oil growth in the oil importing countries, the IMF chief said.
Also, in April, Deputy Managing Director of the IMF, Tao Zhang, had praised the economic policies of Qatar and its success in overcoming economic crises affecting the global economy.
To sum up, the Qatari economy is on a strong footing, more competitive and will be a model of development for all in the region.
