Qatar’s economy is on the upswing and growing at the fastest rate than ever. Despite the unjust siege, Qatar’s economy is performing solid and showing strong resilience. This was evident when the Qatar Central Bank, in its 2018 Annual Report, said Qatar will likely maintain its position as one of the fastest growing economy in the GCC and will register a strong growth this year. Favourable movements in global oil prices, strong exports and improvement in fiscal balance are likely to provide overall macroeconomic stability this year, the report said.
Qatar has emerged stronger despite the unjust siege because of its policy of economic openness which in turn has attracted more foreign investors into the country. With several 2022 FIFA World Cup-related projects nearing completion stage, and as a result of the ongoing economic diversification strategy, sources of growth for non-hydrocarbon sector have been getting diversified. Going forward, as per the Qatar Economic Outlook released by Planning and Statistics Authority, real GDP is projected to grow at average rate of 2.8 percent during 2018-2020.
Also, shares in the Qatar Stock Exchange have risen significantly as the world’s best performer, with the current account surplus increasing and the country’s large foreign exchange reserves rebuilt. Total reserves in the banking sector remained stable at QR80.3bn in July, a 9.7 percent increase from July 2018 and a 43.7 percent increase since the second month of the blockade in July 2017, Al Byraq Center for Economic and Financial Studies noted in its weekly analysis.
In its 10th Financial Stability Report (FSR) released in July, QCB Governor H E Sheikh Abdulla bin Saoud Al Thani said: “In the middle of weakening global economy, Qatari economy showed a resilient performance. With normalisation of capital flows and strengthening of macroeconomic conditions, Qatar economy has fully come out of the initial adverse impacts from the economic blockade.”
The FSR document underscored Qatar’s ability to withstand any unforeseen disturbances and maintain financial stability going forward. In 2018, Qatar continued to remain competitive in terms global competitiveness index (GCI) of World Economic Forum. According to revised GCI, Qatar ranked 30 out of 140 Advanced Economies and emerging market and developing economies, rising by 2 positions from 2017. Among the emerging economics, Qatar’s position was one of the highest.
In the latest report, the QCB reiterated that the Qatari economy was completely out of the initial negative effects of the economic blockade imposed since June 2017. This was reflected in the return of capital flows, the convenient liquidity position of the banking system, official foreign reserves that returned to pre-blockade level, healthy growth in private sector and reasonable growth in the non-hydrocarbon sector.
Qatar is performing better with each passing day. The economy is one of the best performing in the region and has recorded a steady growth despite all odds.
