Qatar Business

Doha, Qatar: Global credit rating agency Fitch Ratings has affirmed Qatar’s Long-Term Issuer Default Ratings (IDRs) at ‘AA’with a stable outlook, reflecting confidence in the strength and resilience of the Qatari economy. The agency attributed its decision to easing risks following the subsidence of threats to liquefied natural gas (LNG) facilities. It projected that Qatar’s economy will experience a strong rebound driven by the resumption of gas exports and the onset of additional production from the North Field expansion, pushing growth rates into the double digits by 2028 following a significant surge in production capacity starting in 2027. Fitch projected that the state budget will achieve a surplus by 2027, which will widen further the following year, supported by the launch of the Golden Pass LNG facility in the US. The agency noted that the banking sector has demonstrated remarkable resilience despite regional conditions. The agency emphasized that Qatar boasts one of the highest per capita income levels in the world alongside massive sovereign assets, forecasting that its net sovereign foreign assets will reach approximately 254.2 percent of GDP by the end of 2026. The country remains a net external creditor, backed by a high global governance score and a track record spanning more than 20 years without any debt restructuring. QatarEnergy is currently executing the North Field East project to raise its current LNG production capacity from 77 million tons per annum (mtpa) to 110 mtpa, marking the first phase of the country’s LNG expansion plan. Meanwhile, the North Field South project, representing the second phase of the state’s expansion plan, will increase LNG production capacity from 110 mtpa to 126 mtpa. This comes as QatarEnergy announced in late March that the Golden Pass LNG project, a joint venture between QatarEnergy and ExxonMobil, achieved a major milestone toward the full commissioning of its production and export facilities with first LNG production from the first of three trains, boasting a total capacity of 18 million tons per annum. In May, S&P Global Ratings and Moody’s Ratings affirmed Qatar’s sovereign credit ratings at AA and Aa2, respectively, with stable outlooks. Both agencies noted that the state’s massive financial assets would help mitigate the fallout from the US-Israeli war on Iran.

Qatar Business

Doha:Qatar Chamber held a virtual meeting with the Arab-Belgian-Luxembourg Chamber of Commerce (ABLCC), attended by Mohamed bin Ahmed Al Obaidli, Qatar Chamber Board Member and Vice President of the ABLCC; Philippe Dessoy, President of the ABLCC; and Qaisar Hijazin, Secretary General of the ABLCC. The meeting focused on expanding trade and investment relations between Qatar and Belgium, highlighting key opportunities for cross-border business collaboration. Discussions also centered on revitalizing the role of the Arab-Belgian-Luxembourg Chamber of Commerce (ABLCC) to drive deeper economic ties and strengthen commercial engagement with the European Union. Speaking at the meeting, Mohamed Al Obaidli highlighted vast partnership opportunities between Qatari and Belgian businesses across multiple sectors, noting that Qatar's world-class infrastructure, competitive investment climate, and strategic global connectivity reinforce its status as a regional business hub. Al Obaidli stressed the need to activate the ABLCC's mechanisms, elevating its role to expand trade flows and open dynamic new communication channels for investors on both sides. For his part, Philippe Dessoy said that there are several leading Qatari investments in Belgium across a number of sectors, noting that there remains considerable scope for further Qatari investments in Belgium and Europe more broadly. Dessoy urged business leaders to capitalize on Belgium's strategic position within the European Union to deepen economic ties between the Arab world and the EU. He also stressed the importance of stepping up trade delegations and bilateral business visits to uncover emerging joint ventures and investment opportunities. For his part, Qaisar Hijazin noted that the Chamber is preparing to host a major economic conference in Brussels next year. He invited Qatar Chamber to participate in the conference, which would contribute to strengthening economic and investment cooperation between Qatari and Belgian companies.

World Business

Doha, Qatar: Qatar National Bank (QNB) expected the Bank of England (BoE) to maintain a cautious, data-dependent stance, keeping policy restrictive enough to guide inflation back to target without unnecessarily choking off a fragile recovery. QNB noted that the UK government faces a difficult balancing act between supporting economic growth and containing inflation. In its weekly economic commentary, QNB said the upcoming September decisions will be closely watched for how the new government balances these competing risks. The bank said containing stagflationary pressures will depend not only on the BoE’s decisions but also on the coherence of the wider policy framework adopted by Prime Minister Andy Burnham and Chancellor John Healey. In particular, QNB said the new government’s ability to reassure markets of its fiscal discipline while still pursuing its growth and new economic model ambitions will be critical. QNB noted that Andy Burnham, Prime Minister of the United Kingdom since July, has inherited a difficult economic situation. The United Kingdom is navigating the second half of 2026 against a difficult combination of weak growth and above-target inflation, which are the characteristics of a stagflationary environment. QNB said that, together with the new Chancellor, John Healey, the new Prime Minister has pledged a "new economic model" centred on investment and industrial renewal. The report discussed the inflation and growth pressures confronting the new Prime Minister and his Chancellor, and how the interaction between monetary and fiscal policy will determine whether stagflationary risks can be mitigated. QNB noted that the UK economy is exhibiting clear stagflationary risks, with economic growth barely in positive territory and consumer price inflation remaining above the BoE's 2% target. QNB said the UK economy has struggled for momentum, expanding by around 1% in each of the past two years, with a similar or softer pace expected in 2026. The bank attributed this deceleration to constrained consumer spending from high taxes and frozen tax thresholds, rising global energy costs, sluggish business investment, and the lingering lag effects of past interest rate hikes. QNB also noted that labor market indicators have begun to cool, with hiring becoming more cautious. QNB said headline consumer price inflation reached a peak earlier in the year, when the global energy price shock pushed costs higher. Yet even with the moderation of energy pressures, domestically generated inflation is proving quite sticky. QNB noted that the Office for National Statistics continues to highlight risks from persistent domestic wage growth and corporate pricing strategies adjusting to earlier cost spikes. QNB said monetary policy in the UK is set independently of the government, with the BoE mandated to deliver price stability while supporting the wider economy. The bank noted that the BoE currently finds itself in the middle of a potential stagflation dilemma: cutting interest rates too quickly risks reigniting price pressures and inflation, while holding them too high for too long risks deepening the stagnation and potentially a recession. QNB said the BoE has signaled a "gradual and careful" approach, keeping policy modestly restrictive at 3.75%, weighing competing risks to prices and economic activity, and only moving as the evidence on underlying inflation becomes clearer. The bank said this explains why the Monetary Policy Committee has resisted calls to lower rates, and why a hawkish minority of members have argued for further tightening, wary that easing prematurely could allow inflation expectations to become entrenched. QNB said fiscal policy flexibility will remain constrained by high government debt levels and statutory fiscal rules. UK government borrowing costs are among the highest in the advanced economies, with ten-year gilt yields around 5% and public debt close to 100% of GDP. QNB noted that debt-servicing costs now absorb a substantial share of public revenue, leaving little margin for error. The bank said financial markets have proved sensitive to early signals that the new government might seek greater flexibility within its fiscal rules, with long-dated yields rising in protest. QNB said the new government needs to be credible and convincing with its forthcoming fiscal plans to help anchor borrowing costs and allow it to support growth. The bank noted that the policy mix and communication, in other words, matter as much as the level of interest rates.