Qatar's stock market has overcome the challenges posed by coronavirus outbreak. Qatar Stock Exchange (QE) Index has surged over 20 percent since March 9, this year. The stock market has outperformed other regional markets in terms of growth, which reflects resilience of Qatar’s stock market.
The QE Index had closed at 8,310, its lowest closing level of the year, on March 9, as investors sentiments were hurt by rising COVID-19 cases and falling oil prices. Driven by supportive policies by the government and other stakeholders, the stock market has grown stronger since March and breached 10,000 level this month.
Qatar has taken several measures in the past which has made its economy resilient and strong. Empowering the private sector is one of the main priorities of the government.
Qatar had announced a financial package amounting to QR75bn to help support the private sector during the outbreak.
Despite the challenges facing the global economy, including the spread of the novel coronavirus (COVID-19) pandemic, the economy has managed to maintain its high credit ratings with a stable outlook.
Qatar has managed to maintain its high credit ratings with a stable outlook in ratings of global agencies. Moody’s rating agency assigned the credit rating of Qatar in April at (Aa3) with a stable outlook, and classified the economic strength (a1), which is higher than the initial degree (a3), indicating the exceptional rise in per capita income in the country and the great reserves of hydrocarbons.
In its report, Moody’s had said that Qatar’s credit profile reflects the government’s strong balance sheet, vast hydrocarbon reserves and exceptionally high per capita income. These factors provide significant shock-absorption capacity and mitigate the vulnerability of government revenue to temporary declines in oil prices.
The strength of the Qatari economy was also confirmed by the S&P Global Ratings, which affirmed its long-term outlook for Qatar at stable, and its long- and short-term foreign and local currency sovereign credit ratings on Qatar at (AA-/A-1+).
In its report issued in March, the rating agency said that in view of the sharp fall in international oil prices, it has significantly lowered its oil price assumptions for 2020 and 2021. Qatar’s government and external balance sheets currently remain strong and provide a buffer to withstand external shocks. It added that while the prices of hydrocarbons may remain low, the government’s fiscal and external positions will remain stable.
With the help proactive government policies and resilience of private sector, Qatar’s capital market is set grow stronger in coming days.
