Qatar is growing with the fastest rate in the region despite illegal blockade imposed by siege countries.
Qatar’s existing relationships around the world have continued to flourish, while new markets and opportunities are constantly being identified. Many questions and doubts were raised about the future of the country when the unjust siege was clamped on Qatar, but after many months it has become clear that it failed to have much impact on Qatar. Rather it reimposed the vigour and vigil of its leadership and people as well as the resolve of the great nation to stand firm on its feet.
Qatar’s economy will continue to be resilient against the blockade. With more economic indicators are pointing towards a brighter future, Qatar’s economy is poised to continue as one of the fastest growing in the region with a projected 3.4 percent growth in 2018. And the growth momentum is expected to pick up to a 3.9 percent mark in 2019.
Qatar’s hydrocarbon sector was the primary driver of growth in 2017 and would continue to do so this year with oil market fundamentals increasingly supportive of elevated prices. With natural gas output likely to rise and trade with many countries especially that of China set to increase as the country switches from coal power generation to cleaner gas, Qatar’s coffers to bring in more vibrancy.
Opec said world oil demand would grow faster than expected in 2018 because of a healthy world economy. Oil prices are hovering around $65 a barrel as prices topped $70 this year for the first time since late 2014, supported by the Opec-led cut and robust demand.
Rising public sector credit, the fading impact of the blockade and renewed consumer and business confidence will drive a further acceleration in 2018 in Qatar.
The region is also expected to record a better growth and should continue to enjoy a synchronised upturn buoyed by stronger demand growth all over the world. The IMF forecast for the Middle East and North Africa has growth accelerating from 2.5 percent in 2017 to 3.6 percent this year reflecting the benefits of higher oil prices that provide more fiscal space for government spending.
And Citigroup expects 2018 to be its best year for investment banking in the Middle East and Africa in at least a decade. But in the Middle East and Africa, getting deals done would depend on market stability.
However, several risks remain to grow in the region. The political and security risks remain high and could limit or delay the recovery in the region. For the betterment of the region, the parties behind the unjust siege should understand the importance of the peaceful co-existence and should respect each other’s sovereignty. It is paramount and good for everyone in the region.
