Qatar’s economy is prospering and buoyant, despite challenges created by COVID-19 pandemic. This was evident when global ratings agency Fitch affirmed Qatar’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘AA-’ with a Stable Outlook. The ratings reflect a strong sovereign net foreign asset position, one of the world’s highest ratios of GDP per capita and a flexible public finance structure allowing for favourable debt dynamics and a robust response to limit the fiscal impact of the coronavirus pandemic.
The ratings agency noted that the Qatar government and Qatar Central Bank (QCB) are implementing a QR75bn stimulus package. The QCB reserves also rose to nearly $40bn on the back of a modest current account surplus, from over $30bn in 2018.
Also, the Qatar Financial Centre (QFC), one of the world’s leading and fastest-growing onshore business and financial centres, has experienced a rapid rise in the number of firms joining its platform. It has seen a marked increase in international firms looking to establish their operations in Qatar, which is a testament to the stability and attractiveness of Qatar’s buoyant economy.
The QFC ended the year 2019 on a high note with an exceptional growth of 35 percent, reaching 71 percent of its strategic 2022 target of 1,000 firms being registered on its platform. Total number of licensed firms in 2019 is up 323 percent beyond QFC’s annual target. To meet its strategic 2022 target of 1,000 firms, a total of a total of 91 strategic fits were needed in 2019. Instead, QFC completed 294 strategic fits, including 20 firms from UK and 11 from the US. QFC data showed a total of 461 companies joined its platform between 2005 and 2017 and 151 in 2018. A total of 204 firms were licensed in 2019.
Yousuf Mohamed Al Jaida, Chief Executive Officer & Board Member, QFC, said that careful government planning and strategic investments paired with key legal and business reforms enacted by Amir H H Sheikh Tamim bin Hamad Al Thani, continue to shape and position Qatar as one of the fastest growing and dynamic economies in the world. The numbers across foreign direct investment point to impressive growth. At the end of the second quarter of 2019, FDI rose by 11.3 percent at $209.6bn, up from $188.3bn in the same period in 2018.
As one of the world’s fastest growing economies, Qatar offers an array of business opportunities in diverse sectors. Qatar’s economy is growing at a fastest rate than ever.
