QATAR's economic strength was vindicated again as global rating agency Moody’s Investors Service rated country Aa3 with a Stable Outlook, reaffirming the resilience of economy. Qatar’s credit profile reflects the government’s strong balance sheet, vast hydrocarbon reserves and exceptionally high per capita income.
“The stable outlook reflects our assessment that Qatar’s credit metrics are likely to remain consistent with the Aa3 rating, even as oil prices remain subdued due to depressed global oil demand caused by the coronavirus pandemic,” Moody’s said on Tuesday.
One of the main reasons behind resilience of Qatar’s economy is proactive policies of government. The government is always there to help private sector and small and medium sector enterprises.
Qatar is the world’s leading exporter of liquefied natural gas (LNG), accounting for one-third of global LNG exports. At the current rate of production, its proven natural gas reserves would last for an estimated 130 years. Until recently, hydrocarbon production increases were limited by the self-imposed moratorium on the development of new natural gas projects in the North Field. However, the moratorium was lifted in April 2017.
Qatar Financial Centre (QFC) has announced new support measures to offer relief to the 900 plus firms already registered on its platform. The measures come in line with the recent actions taken by the State of Qatar and various Qatar entities to provide support to the nation’s economy and private sector in light of the business risks posed by Coronavirus (COVID-19).
QFC has announced that it would provide deadline extensions for tax filings due to the ongoing COVID-19 crisis without incurring any late filing penalties, in addition to reducing the rate of the charge due on the late payment of tax (late payment charge) to zero percent from March 1, 2020 to August 31, 2020. The updated rates will ensure that any QFC firm who extends their filing due date will not suffer any late payment charges until August 31, 2020, should their tax due also be paid after the payment due date.
QFC has also strengthened its digitalization processes for firms’ incorporation, ensuring that all automated processes are approved swiftly, from the point where a firm submits a business case to when a firm is licensed on the QFC platform and receiving post licensing services.
The proactive policies of government and other authorities demonstrate Qatar’s commitment and support of its private sector in alleviating financial burdens and ensuring the continuity of business.
