(I) Total GDP & its Growth during the current year & previous year
Qatar registered one of the highest levels of GDP growth in 2008, expanding by almost 44% to QR372.4bn. Qatar's economy is likely to grow in excess of 10% this year and the equity market to gain 20% over the next 12 months, Shuaa Capital said.
The strong growth in the Gas sector with LNG exports set to reach 44.0 million tons in 2009, from 30.4 million tons in 2008, will ensure an underlying strength and support to the economy.
(QR Million)
2008 (Preliminary)
2009(QNB Capital Forecasts)
2010 (QNB Capital Forecasts)
Nominal Oil and Gas GDP
229,727
217,350
340,330
% Growth
56.8%
-5.4%
49.0%
Nominal Non-Oil and Gas GDP
142,657
145,000
167,100
% Growth
27.2%
1.6%
24.5%
Total Nominal GDP
372,384
362,350
507,430
% Real GDP Growth (EIU Forecasts)
13.4%
9.6%
23.5%
Source : Qatar Statistics Authority & QNB Capital
For 2008, preliminary data from the Qatar Statistics Authority shows nominal GDP growth at 44.0%. The following were the main factors behind this growth:
The price of Qatari crude oil increased by 36.0% in 2008 to reach $95.2 p/b, compared to $70.0 p/b in 2007 according to figures obtained from the Middle East Economic Survey (MES).
Qatar's crude oil production averaged 837,000 bpd in 2008, compared to 819,000 bpd in 2007, according to ME S.
LNG exports increased by 10.9% to reach 30.4 million tons, from 27.4 million tons in 2007.
Higher oil and gas prices and production resulted in the Oil & Gas sector GDP showing an increase of 56.8% in 2008 to reach QR229.7 billion, compared to QR146.5 billion in 2007.
The Non-Oil and Gas sector GDP grew by 27.2% in 2008 to reach QR142.7 billion, compared to QR112.1 billion in 2007. For 2009, QNB Capital forecasts nominal GDP to witness a slight contraction by 2.7%, mainly due to the following factors:
The price of Qatar's crude oil is expected to average $50p/b in 2009, from 95.2 p/b in 2008.
Qatar's crude oil production is expected to drop by 37,000 bpd to average 800,000 bpd in 2009, due to quota restictions put in place by OPEC .
Non-Oil and Gas GDP is expected to grow only by 1.6% to reach QR145.0 billion.
Public Finance(QR Million)
2006/07 Actual
2007/08 Prelim
2008/09 Est
2008/09 Budget
2009/10 Budget
Government Revenue
86,062
117,790
130,042
103,300
88,700
Government Expenditure
67,147
84,727
97,838
95,900
94,500
Budget Surplus (deficit)
18,915
33,063
32,204
7,400
(5,800)
Budget Surplus/Deficit as % of GDP
9.2
12.8
8.6
--
--
Source : Ministry of Economy & Finance
After four consecutive fiscal year in which the State Budget showed a surplus, the 2009/10 State Budget projected a deficit of QR5.8 billion, primarily due to the decline in oil prices. The 2009/10 Budget forecasts total revenues to decline by 14.1% to QR88.7 billion, from QR103.3 billion in the preceeding Budget estimates, and total expenditures are forecasted to witness a marginal decline of 1.4% to QR94.5 billion. The oil price assumption for the 2009/10 budget is $40 p/b, compared to $55 p/b in the 2008/09 Budget estimates. The 2009/10 State Budget allocations for major public projects has declined by 6.4% to QR37.9billion, compared to QR40.5 billion in the previous budget.
Qatar's fiscal surplus is estimated to have averaged close to 9% of GDP per year, fuelled by a very strong growth in hydrocarbon export receipts, which generate over 80% of the government's revenues
Qatar's nominal dollar GDP per capita to contract by over 20% in 2009, despite a very high real GDP growth rate, mainly because of the projected fall in average oil and gas export prices, although it will continue to rank highly on the global scale," Moody's said.
(II) RATE OF INFLATION
The first quarter of 2009 Qatar witnessed a deflation of 8.4% due to the effect of the global crises and its impact on the housing sector in particular. The group housing declined by 14.5% during the first quarter of 2009. Qatar's inflation will ease considerably this year to between 3% and 5%, QNB Capital said in its first Qatar Economic Review. The increase in housing costs has been a key driver of inflation in Qatar in the last few years. Inflation averaged 11.3% between 2004 and 2008 compared with 1.6% in the preceding five years (1999 - 2003), QNB Capital said. The overall annual inflation rate reached an all time of 15.1% in 2008 compared with an increase of 13.8% in 2007.
CPI PRICE INDEX
Description
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Household Consumption (CPI)
128.45
127.08
125.13
125.44
126.13
Food, Beverages & Tobacco
132.14
130.47
129.82
130.00
129.61
Food
133.47
131.67
130.97
130.97
130.52
Beverages
99.86
99.80
99.65
100.13
100.78
Tobacco
105.96
107.48
107.48
115.68
116.15
Clothing & Footwear
127.48
124.65
123.15
123.52
121.47
Clothing & Fabrics
126.83
124.25
122.64
123.28
121.65
Footwear & Repair
129.52
125.71
124.62
123.87
120.06
Rent, Fuel & Power
145.13
143.96
140.03
140.85
141.91
Houses rent, Water Charges & House Maintenance
146.00
144.80
140.77
141.60
142.69
Fuel & Electrical Power
108.01
108.00
107.93
108.02
107.97
Furniture, Textiles & Home Appliances
112.79
109.34
107.99
108.46
108.49
Furniture, Textiles & its Maintenance
125.27
124.55
117.59
118.83
113.56
Home Textiles & its Maintenance
113.92
101.46
100.65
100.29
106.07
Main Home Appliances and its Maintenance
121.63
111.03
112.27
114.58
116.59
Glassware & Tableware
109.38
104.72
104.89
98.27
101.79
Cleaning Material
113.27
112.79
112.86
113.88
115.86
Household Services
102.11
102.11
102.18
102.32
102.32
Medical Care & Health Services
107.30
107.05
106.20
105.85
107.04
Pharmaceutical Products & Medical Supplies
102.20
100.67
99.20
92.79
92.79
Medical Services outside the Hospitals
116.69
116.96
115.99
117.17
119.60
Medical Services in Hospitals
97.32
97.32
97.32
100.00
100.00
Transport & Communication
110.30
108.65
105.92
105.35
106.16
Personal Transport Equipment
110.56
109.59
109.59
104.72
105.69
Requirements of Personal Transport Equipment
118.23
117.33
117.22
117.45
118.31
Purchased Transport Services
109.79
103.48
104.22
108.32
110.15
Communication
93.31
93.24
83.05
83.37
83.29
Entertainment, Recreation and Culture
113.44
112.49
113.69
113.17
116.17
Recreation Equipment and Requirements
89.19
86.70
83.03
86.23
85.07
Entertainment, Recreation and Culture Services
87.29
86.47
94.62
91.55
102.87
Newspapers, Magazines & Other Publications
104.81
105.08
104.81
103.45
100.98
Education and Training Services
130.49
129.72
128.59
128.60
128.60
Miscellaneous Goods & services
121.79
123.82
123.85
125.97
125.88
Personal Care Material & Other Services
108.18
108.41
107.62
111.72
111.94
Goods Not Elsewhere Classified
138.48
143.19
143.70
143.91
148.17
Restaurants, Coffee Shops & Hotels
118.59
120.43
120.73
122.48
120.40
Source : Ministry of Economy & Finance
(III) Total Trade in US$ and its growth during the previous year
Value of Imports for the H1 (2007) and H1 (2008) & Growth
Activity
2007
2008
Growth
Import
QR 38.852bn (US$ 10.67bn)
QR 49.465bn (US$ 13.59bn)
27.3%
Imports in percentage for the first half of 2008
Japan
- 10%
U.S.A
- 9%
Italy
- 9%
Germany
- 8%
China
- 7%
U.A.E
- 6%
South Korea
- 5%
Saudi Arabia
- 5%
U.K
- 5%
France
- 4%
Other Countries
- 32%
No
Countries
Values in Billion
% on Total Imports
1
Japan
QR 5.189
10.49%
2
U.S.A
QR 4.583
9.27%
3
Italy
QR 4.313
8.72%
4
Germany
QR 4.199
8.49%
5
China
QR 3.234
6.54%
6
U.A.E
QR 3.017
6.1%
7
South Korea
QR 2.669
5.39%
8
Saudi Arabia
QR 2.347
4.74%
9
U.K.
QR 2.277
4.6%
10
France
QR 1.839
3.72%
Qatar's Export's & Rexports - 2007
Total value of Exports (2007)
QR 152.9bn
Qatari origin commodities
QR 151.0bn
Re exports
QR 1.9bn
Total value of Imports (2007)
QR 80.097bn
Trade Balance
QR bn
(IV) Total Trade in US$ for 10 Major Countries - (2007)
Position
Destination
Qatari Import
Qatari Export
QR
US$
QR
US$
1
U.S.A
9.12bn
2.50bn
993mn
272mn
2
Italy
8.22bn
2.26bn
151mn
41.48mn
3
Japan
7.98bn
2.19bn
62.03bn
17.04bn
4
Germany
6.20bn
1.703bn
9.3mn
2.55mn
5
U.A.E
5.63bn
1.55bn
4.98bn
1.36bn
6
South Korea
4.86bn
1.34bn
26.6bn
7.33bn
7
China
4.66bn
1.28bn
1.21bn
0.33bn
8
Saudi Arabia
3.92bn
1.07bn
754mn
207mn
9
U.K.
3.76bn
1.03bn
235mn
64mn
10
India
2.27bn
623mn
9.69bn
2.66bn
(V) Total Trade in US$ and its growth with India by top 10 Commodities
India By Exports
Sl.No
Commodity & Description
Value in QRS
2005
2006
2007
1.
Mineral Fuels, Mineral Oils and Products of their Distillation; Bituminous Substances; Mineral Waxes
2,529,136,257
4,818,795,136
8,083,726,062
2.
Petroleum oils & oils obtained from Bituminous Minerals Crude
298,024,022
2,087,769,213
3,492,771,834
3.
Liquefied Natural gas
2,116,681,840
2,523,988,061
4,327,572,769
4.
Condensates
259,009,376
5.
Ammonia, Anhydrous or in Aqueous solution
309,896,369
342,297,370
348,588,863
6.
Organic Chemicals
120,006,730
323,072,744
454,356,668
7.
1,2-Dichloroethane (ethylene dichloride)
90,453,689
156,516,062
8.
Vinyl chloride (chloroethylene)
124,147,055
297,694,598
9.
Urea, whether or not in Aqueous solution
120,288,015
279,131,197
462,797,133
10.
Plastics and articles thereof
82,762,325
204,538,392
268,979,388
Total Exports to India - QRS 9,696,568,397 2.66bnUS$
Source Qatar Statistics Authority
Bilateral trade between India and Qatar was $3.3bn by the end of 2007, boosted largely by Qatar's gas exports. Qatar's exports to India stand at $2.66bn while India's share is $620mn. India's exports to Qatar mainly comprise consumer items, foodstuff and industrial equipment.
Total Trade balance in US$ for the previous year (2007)
No
Destination
Import
Export
Surplus
Deficit
QR
US$
QR
US$
QR
US$
QR
US$
1
E.U. Countries
27.03 bn
7.43 bn
6.75 bn
1.85 bn
20.28bn
5.58bn
2
Asian Cont. other than Arab Countries
27.0 bn
7.42 bn
129.8 bn
35.66 bn
102.8 bn
28.24 bn
3
CCASG
11.36 bn
3.12 bn
6.08 bn
1.67 bn
5.28 bn
1.45 bn
4
North American Countries
9.53 bn
2.62 bn
993 mn
272 mn
8.53 bn
2.34 bn
5
USA
9.12 bn
2.51 bn
993mn
272 mn
8.13 bn
2.23 bn
6
Italy
8.22 bn
2.26 bn
151 mn
410 mn
8.069 bn
2.22 bn
7
Japan
7.98 bn
2.19 bn
62.03 bn
17.04 bn
54.05 bn
14.85 bn
8
Germany
6.20 bn
1.703 bn
9.3 mn
2.55 mn
6.19 bn
1.7 bn
9
UAE
5.63 bn
1.55 bn
4.98 bn
1.36 bn
65 mn
190 mn
10
South Korea
4.86 bn
1.34 bn
26.69 bn
7.33 bn
21.83 bn
5.99 bn
11
China
4.66 bn
1.28 bn
1.21 bn
0.33 bn
3.45 bn
0.95 bn
12
Saudi Arabia
3.92 bn
1.08 bn
754 mn
207 mn
3.16 bn
873 mn
13
United Kingdom
3.76 bn
1.03 bn
235 mn
640 mn
3.52 bn
0.966 bn
14
France
2.88 bn
790 mn
135 mn
370 mn
2.74 bn
0.753 bn
15
India
2.27 bn
620 mn
9.69 bn
2.66 bn
7.42 bn
2.04 bn
16
Singapore
1.19 bn
330 mn
17.26 bn
4.74 bn
16.07 bn
4.41 bn
17
Thailand
1.07 bn
290 mn
7.0 bn
1.92 bn
5.93 bn
1.63 bn
18
Spain
879 mn
241 mn
3.40 bn
0.93 bn
2.52 bn
689 mn
19
Belgium
783 mn
215 mn
2.17 bn
0.60 bn
1.38 bn
385 mn
20
Taiwan
376 mn
103 mn
1.84 bn
0.51 bn
1.46 bn
0.40bn
India By Imports
Nos
Commodity and Description
Value in QRS
2005
2006
2007
1
Meat and edible meat offal
2,60,67,309
3,83,71,881
3,77,76,314
Vegetable, Roots and Tubers
2,89,94,633
4,80,34,237
5,58,50,367
Edible fruits
74,41,552
82,84,687
1,25,99,880
Coffee, Tea and Spices
2,31,80,027
2,22,26,773
1,78,16,210
Cereals
4,88,63,555
3,42,66,518
7,74,67,707
Total in Qatari Riyals
13,45,47,076
15,11,84,096
20,15,10,478
Total in USD
3,69,63,482
4,15,34,092
5,53,60,021
2
Essential Oil, Retinoid, Cosmetics, Perfumery etc
1,17,19,511
1,56,56,495
2,55,17,821
Total in Qatari Riyals
1,17,19,511
1,56,56,495
2,55,17,821
Total in USD
32,19,645
43,01,235
70,10,390
3
Pearls, Precious stones and metals etc
1,17,47,546
3,28,54,963
5,98,14,944
Total in Qatari Riyals
1,17,47,546
3,28,54,963
5,98,14,944
Total in USD
32,27,347
90,26,088
1,64,32,677
4
Apparel and Clothing Accessories (knitted/crocheted)
1,23,16,486
1,76,36,073
1,67,13,692
Apparel and Clothing Accessories (not knitted/crocheted)
4,79,60,814
6,03,91,871
7,39,97,322
Other made-up Textile Articles
54,49,091
1,03,90,762
1,04,91,667
Foot- wear etc.
42,59,125
61,58,713
1,37,23,184
Total in Qatari Riyals
6,99,85,516
9,45,77,419
11,49,25,865
Total in USD
1,92,26,790
2,59,82,807
3,15,73,039
5
Articles of stone, plaster, mica similar products
39,57,241
1,11,66,507
3,11,63,624
Ceramic Products
1,38,17,462
1,64,50,471
2,18,08,855
Plastics and Articles thereof
1,42,18,478
2,25,01,035
3,53,48,950
Rubber and Articles thereof
2,90,58,767
3,29,35,735
3,39,27,862
Salt, Sulphur, earths and Stones, Plastering material, cement, granite etc.
(VI) Major investments within & outside the country
Qatar Airways will purchase more aircraft at the Paris Air Show next month, chief executive officer Akbar al-Baker has said. He said the national carrier would continue to make profit and was expected to perform well in 2009-2010. Currently, the national carrier has more than 200 aircraft worth $40bn on long-term order. He said the airline would grow its fleet to over 110 aircraft by 2013 from 68 now and increase its routes to 120 in five years from 84 now.
In a major initiative to boost Qatar's power and water sectors, HH the Heir Apparent Sheikh Tamim bin Hamad al-Thani laid the foundation stone for the country's largest integrated water and power plant at Ras Girtas, north of Ras Laffan. The $3.9bn plant, with a capacity of 2,730mw when it is completed in two years, is also one of the largest in the Middle East region. It would supply 63mn gallons of potable water a day, when the second phase is completed in September next year. The plant would be wholly commissioned in April 2011, company officials said. The first phase of the plant would be completed in May next year and would provide 1,612mw of electricity.
QInvest will soon launch a $250mn private equity fund and another sector-specific fund as well as two other funds by the third quarter of this year. The Qatar Financial Centre-based firm, whose principal shareholders are Qatar Islamic Bank and Gulf Finance House, also said it would also embark on brokerage and wealth management services.
Qatar First Investment Bank (QFIB) is picking up a 12% stake in Dubai-based Nobles Properties and will explore investment avenues in real estate in the country and abroad. QFIB, a shariah-compliant investment bank regulated by the Qatar Financial Centre Regulatory Authority and Nobles have agreed to enter into a strategic partnership that will focus on evaluating real estate development opportunities in Qatar and within the Mena (Middle East and North Africa) region. The company will be looking into investing in all types of developments including residential, commercial and retail properties, QFIB chairman Abdullah bin Fahad bin Ghorab al-Marri said.
Qatar Industrial Manufacturing Company (QIMC), in association with a "strategic" partner, is undertaking a chlorinated paraffin wax joint venture project, estimated to cost QR300mn. The proposed joint venture project is expected to start production by late 2011.
Qatar Shipping is selling its subsidiary Qcon (Qatar Engineering and Construction Company) to Qatar America Asia Consortium (QAAC) for more than QR400mn ($110mn). hip has signed a term sheet with QAAC permitting them to carry out due diligence on Qcon (formerly Mecon), whose principal activities are into engineering, procurement and construction contractors for the oil and gas, petrochemical and power industries; offshore, electromechanical and instrumentation contractors.
Qatofin, the producer of linear low-density polyethylene, will start up at Mesaieed in the fourth quarter of this year, HE the Deputy Premier and Minister of Energy and Industry Abdullah bin Hamad al-Attiyah has said. Qatofin is a joint venture among Qapco (63%), Total Petrochemicals (36%) and QP (1%).
Qatari Diar has acquired the Cegelec, an international integrated group providing technologicalservices to companies and public authorities worldwide. Cegelec's investments in Qatar are targeted at $5bn by 2013. The firm which operates in some 30 countries will also open a branch in Doha.
Dohaland and Turner International Middle East have signed an agreement to form a joint venture, Time Qatar, which will be an independent project management company. The agreement is described as an important step forward as Dohaland aims to create and develop communities that will set the standard for property development in Qatar.
(VII) India's Investment Interests
Larsen & Toubro Ltd have set up an infrastructure joint venture in Saudi Arabia and in Qatar by the end of June, DNA India reported on its website, citing the company's chairman and managing director, AM Naik. "We are getting out of issues with our current partner in Qatar and will set up a new venture by the end of next month," he said.
(VIII) Major Trading Agreements proposed/finalised on Trade
Bilateral Trade
Qatar - Turkey
RasGas has delivered a cargo of LNG on a spot sale basis to Turkey, its first ever shipment to the European country. The shipment was made to EgeGaz at its Aliaga Terminal in Turkey by Al Daayen tanker. Since its creation in 1993, RasGas has developed world-class facilities for the extraction, storage, processing and export of LNG, and has 'reliably supplied' LNG to a number of customers all over the world. It has emerged as a leading global player and exporter in the natural gas industry.
Qatar - Ireland
The possibility of a Qtel tie-up with leading Irish technology companies has emerged following a high-level meeting between the two sides in Doha. The meeting was organised as part of the Enterprise Ireland Trade Mission to Qatar to strengthen economic ties between the two countries. Qtel has set a target of developing into one of the top 20 telecommunication companies in the world by 2020. While its strategy sees the company increasing its stake in target markets of the Middle East, North Africa, the Indian subcontinent and Southeast Asia, partnerships and technology exchanges with international organisations are an intrinsic part of its growth plan.
Qatar - Cuba
Qatar and Cuba have signed an agreement to build a $75mn luxury hotel on Cuba's Cayo Largo in the first major joint venture between the wealthy Gulf emirate and the communist island. The two state-owned partners, investment firm Qatari Diar and Cuba's Gran Caribe, said the five-star hotel Construction would begin next year with the aim of opening in 2012, they said. Qatari Diar has more than 80 projects worldwide worth in total about $60bn, but intends to make Cuba one of its principal areas of activity, Al-Saad said.
Qatar - Cyprus
HH the Emir Sheikh Hamad bin Khalifa al-Thani and Cyprus President Demetris Christofias held a round of official talks at the Emiri Diwan. Talks during the meeting dealt with relations of co-operation and ways of bolstering them in all fields besides several key regional and global matters of concern to both sides. Following the talks, HH the Emir and President Christofias attended the signing of a protocol on consultations between the two countries' foreign ministries and an agreement on the cancellation of visa requirements for diplomatic passport holders. A memorandum of understanding (MoU) was also signed between the Qatar Olympic Committee (QNOC) and the Cyprus National Olympic Committee (NOC).
Qatar - Singapore
Qatar Central Bank (QCB) has signed an agreement with Monetary Authority of Singapore (MAS) to share information and strengthen the supervision of cross-border operations of financial institutions under their purview.The MoU signed in Singapore, also facilitates staff training and technical assistance between MAS and QCB.
Qatar Telecom (Qtel) opened a new office in Singapore in keeping with the company's efforts to expand its presence in Southeast Asia and to enhance the levels of support for its branches in the region.
Qatar - France
The Qatar Financial Centre Authority (QFCA) entered into a co-operation agreement with Paris Europlace, an association of major institutions in French financial markets. The agreement broadly sets out areas of co-operation between both organisations to enhance the growth of financial services in the two countries.
Qatar - Indonesia
HH the Emir Sheikh Hamad bin Khalifa al-Thani and Indonesian President Susilo Bambang Yudhoyono presided over a round of official talks between Qatar and Indonesia aimed at further strengthening bilateral relations. During the talks they discussed ways to enhance bilateral relations in various sectors and a set of other issues of common concern. Following the talks, they signed an agreement on economic and technical co-operation between the governments of Qatar and Indonesia.
Qatar - Malaysia
Bilateral trade between Malaysia and Qatar was given a boost with the signing of a trade agreement between the two countries. Apart from promoting and diversifying trade between the two countries, the objective of the agreement is also to establish a joint trade committee to facilitate consultation and cooperation in trade and investment related matters. Qatar was Malaysia's eight largest trading partner in West Asia last year, with total trade amounting to RM1.699 million or 3.1 per cent of Malaysia's total trade with the region.
Qatar - South Korea
A round of official talks was held between Qatar and South Korea chaired by HH the Heir Apparent Sheikh Tamim bin Hamad al-Thani and South Korean Prime Minister Han Seung-soo. The talks held at the headquarters of the Korean prime minister featured bilateral ties and ways to develop them in various fields, especially in the economy and trade sectors. Following the talks, Qatar and South Korea signed an agreement to establish a joint Qatar-South Korea committee.
(IX) The principal five export destinations - 2007
No.
Description
Total in QR.
Total in US$
1
Japan
62.bn
17.bn
2
South Korea
26.7bn
7.3bn
3
Singapore
17.2bn
4.72bn
4
India
9.7bn
2.66bn
5
Thailand.
7.bn
1.92bn
(X) The principal five Export Commodities - 2007
No.
Description
Total in QR.
Total in US$
1
Crude Oil.
69.8bn
19.17bn
2
LNG
34.5bn
9.47bn
3
Condensates
19.4bn
5.32bn
4
Propane
4.4bn
120mn
5
Urea
3.3bn
906mn
(XI) The principal five import sources - 2007
No.
Description
Total in QR.
Total in USD
1
United States of America
9,12,05,19,649
2,505,637,266
2
Italy
8,22,91,73,225
2,260,761,875
3
Japan
7,98,24,69,266
2,192,986,062
4
Germany
6,20,94,94,695
1,705,905,136
5
United Arab Emirates
5,63,22,55,859
1,547,323,038
10
India
2,27,60,57,674
625,290,569
(XII) The Principal five import Commodities - 2007
No.
Description
Total in QR.
Total in US$
1
Machinery & Equipment
21.23bn
5.83bn
2
Articles of Iron & Steel
12.34bn
3.39bn
3
Vehicles or Tramway Rolling
9.58bn
2.63bn
4
Motor Vehicle
3.08bn
848mn
5
Seamless Line pipe of Iron & Steel
2.92bn
844mn
(XIII) Top five items of Export from India - 2007
No.
Description
Total in QR.
Total in US$
1
Machinery, Equipment & Nuclear Reactors
59,20,45,424
16,26,49,842
2
Rubber & articles
47,12,91,855
12,94,75,784
3
Iron & Steel
25,11,49,023
6,89,96,984
4
Meat, Vegetables, Tea & Cereals
20,15,10,478
5,53,60,021
5
Pearls, Precious Stones
5,98,14,944
1,64,32,677
(XIV) Factors which make impact on Trade & Qatar Economy
Qatar's economy is not only well poised for an above 7% growth this year but also offers a sea of opportunities for investors, says the Qatar Central Bank (QCB). "In spite of the unstable global economic situation that we are witnessing since more than a year, the performance of the Qatari economy is still strong and future is promising," QCB Governor Sheikh Abdullah bin Saud al-Thani said while inaugurating Qatar Global Investment Forum, organised by Institutional Investor. The governor said he expected the economic growth in real terms to be above 7% this year and inflation to remain in single digit. The overall consumer price index basket fell 7.3% during January, followed by a further fall of 1.1% in February and 1.5% in March this year.
Bank of America-Merrill Lynch said Qatar's inflation was likely to remain at 10% this year and then ease to 7% by 2010. "Qatar will remain one of the fastest growing economies despite lower oil prices. We estimate the Qatari economy to grow at 5% this year," according to the report. Highlighting that Qatar's general budget for this year has estimated an expenditure of QR94.50bn, Sheikh Abdullah said it was a clear expression that Qatar was keen to achieve the sustainable development as enshrined in Qatar National Vision 2030.
The HE Al- Attiyah inaugurated ExxonMobil's research Centre at the Qatar Science & Technology Park will contribute to the development of economically and environmentally viable energy sources, ExxonMobil Upstream Research Company president Stephen M Cassiani has said. "Our research here will be in areas that are of common interest to Qatar and ExxonMobil. They are environmental management and LNG safety," Cassiani said in an interview with Gulf Times .
United Kingdom marks the official inauguration of the South Hook3 Liquefied Natural Gas (LNG) receiving terminal at Milford Haven, Pembrokeshire, Wales. The ceremony takes place in presence of HM The Queen of the United Kingdom and His Highness Sheikh Hamad bin Khalifa Al Thani, Amir of the State of Qatar. The South Hook terminal represents a technological milestone as a part of the Qatargas 2 LNG value chain project that will make additional supplies of cleaner-burning natural gas available to the UK and the rest of Europe.
Qatar's efforts to promote the leisure segment will boost the hospitality market, analyst Blair Hagkull of Jones Lang LaSalle said at the Qatar Global Investment Forum in Qatar.
A delegation of leading New Zealand professional service companies met with public sector agencies in Qatar to explore areas of mutual co-operation, as part of a trade visit organised by New Zealand Trade and Enterprise. The visit involved 10 New Zealand companies representing a cross section of industries such as education consulting, visitor experience development, earth science technology, business continuity services, health systems and government reform. The companies presented their areas of expertise, especially in public sector reform, and discussed how they could contribute to Qatar's development as knowledge based economy. The visit has further strengthened a bilateral trade relationship that topped $1bn in 2008.
The Middle East (ME) region has high growth economies and large proportion of young population, but reported the lowest average expenditure on advertisements, according to a seminar. Qatar's per capita ad spend stood at $343 during 2006-08. Qatar's per capita ad spend had progressively increased from $295 in 2007 and $241 in 2006.
Mass-transit options, such as Doha Metro, light rail system and more extensive bus network are under development, Oxford Business Group said. The railway system is being significantly expanded and could eventually form an integral part of a GCC-wide network linking all the Gulf states, it said.
Qatar reaffirmed its support for a Gulf monetary union plan after the United Arab Emirates' decision to withdraw threw the viability of the euro-style single currency plan into disarray. The cheif economic advisor to the Qatar's Emir said in newspaper remarks that the world's top exporter of liquefied natural gas would forge ahead with the plan, while the Gulf Co-operation Council (GCC) said the single currency was weakened by the UAE opt out.
The Qatar General Electricity and Water Corporation (Kahramaa) has announced the tendering of work for reinforcement of water transmission pipelines of approximately 41. 5km to Madinat Al Shamal pumping station. As part of efforts to improve water distribution infrastructure, Kahramaa has constructed many reservoirs and pumping stations and upgraded several existing ones in recent months, said the official.
Kahramaa has awarded a contract worth € 47mn to Prysmian, a leading international group in the sector of cables and systems for energy and telecommunication for the development of a power transmission turnkey project, serving Doha.
Qatar's construction sector is poised for a 17.6 percent growth in 2009, as gas revenues continue to provide the country with ample funds to re-invest into infrastructure development and construction projects, according to QREX 2009.
The Information Technology (IT) industry in Qatar is set to be one of the best performing in the Gulf region, with its market size to reach $550mn by 2012, according to the New York Stock Exchange-listed SAP. "The overall IT market size (in Qatar) will increase to around $550mn by 2012, driven by investments in IT infrastructure as well as various e-government and e-business initiatives led by the government body ictQatar," said the SAP, quoting statistics from Business Monitor International.
Qatar has decided to further inject an astronomical QR15bn ($4.1bn) into the local banking system to boost liquidity and encourage lending by offering to buy real estate assets of the listed banks.
Qatari bank lending fell 7% in the first two months of 2009 as credit to the public sector dropped 36%, central bank data showed in the latest signal Gulf banks are more cautious on new loans. After more than doubling between 2007 and 2008 during a regional economic boom, total domestic credit in Qatar fell month-on-month in January and February as global economic turmoil took the heat out of a regional credit boom. Total bank credit in Qatar, the top global exporter of liquefied natural gas, stood at QR205.27bn ($56.37bn) on February 28 compared with QR220.81bn at the end of 2008, the central bank said in a monthly bulletin. M2 money supply growth in Qatar also slowed for the eighth straight month to 5.3% in February, when total domestic liquidity stood at QR176.96bn, the central bank said. M3 money supply grew 9.9% in the year to February to QR198.53bn, while the central bank's net international reserves fell 4.8% to QR40.31bn in the year to February, the data showed.
The Supreme Education Council and Sherborne school signed a contract to open a Doha-based campus, Sherborne Qatar as part of the outstanding schools project, with officials claiming that the school aims to become "the best school in Qatar."
Strong macroeconomy and a "bottomed-out" Doha Securities Market (DSM) have considerably strengthened investors' confidence in Qatar, which is well above the GCC average, according to Shuaa Capital. "Qatar saw an increase in investor confidence in May with the Qatar Investor Confidence Index increasing by 9.9 points to 131.3 points.
Qatar Islamic Bank (QIB) and its affiliate European Finance House (EFH), which has launched the $30mn open-ended Global Sukuk Plus fund. "The expected total return is 34% over the first three years of the fund, based on our projections of spreads returning to the average of the last five years," Mark Watts, EFH head of asset management, told in a private gathering. Regulated by the UK's Financial Services Authority, EFH - which 60% owned by QIB - is a Shariah-compliant financial institution in Europe and a leading force in the growing Islamic banking market.
Vodafone Qatar has signed up with Gulf Bridge International to connect Qatar with the Gulf region and the rest of the world through GBI's advanced network of submarine cables. GBI's high-capacity network (Gulf ring) is connected to the world through two routes, one east, to India and the Far East, and the second west to Italy and the rest of Europe using the latest fibre optic technology. Vodafone Qatar, under its licence, will establish and operate an international landing station in Qatar, where it will connect to GBI's international network.
Qatar Petrochemical Company participated in the 23rd CHINAPLAS Exhibition on Plastics and Rubber held in Guangzhou recently. In the near future China will become a major consumer of Qatar's linear low-density polyethylene (LLDPE). Qapco has already opened four representative offices in Beijing, Hong Kong Shanghai and Guangzhou.
Cyprus' new government is looking to upgrade its relationship with Qatar and GCC to "most important strategic partner", Cypriot Ministry of Commerce, Industry and Tourism, Antonis Paschalides has said. Qatar can invest in projects such as the 12-14 upcoming golf courses and a marina he said. Qatar accounted for 0.4% of Cyprus exports in 2008. The main products exported from Cyprus to Qatar were furniture, clothing, dairy products, pharmaceuticals, insecticides, malt, starches and others totaling 2,386,000 euros.
Global credit rating agency Standard and Poor's (S&P) affirmed its 'A' long term counterparty credit and insurer financial strength ratings on Qatar Insurance Company (QIC) with a stable outlook. The negative impact of recent global and local market dislocation on capital adequacy; resulted in QIC to report unrealised investment losses and changes in fair-value reserves totaling QR1.6bn in the first quarter of this year, it said.
OIL & GAS Qatar's crude oil exports are directed mainly towards the Asian markets, with the region accounting for 90.0% of the total oil exports in 2008.
Country
% Share
Japan
54.0%
Singapore
16.0%
South Korea
9.0%
Thailand
7.0%
Taiwan
2.0%
India
2.0%
Other Countries
10.0%
Total (Source : Qatar Petroleum)
100.0%
Source : Middle East Economic Survey
Source : Middle East Economic Survey
Qatar's oil production averaged 818,000 bpd during the first quarter of 2009. Qatar's oil production increased by 2.2% in 2008 to average 837,000 bpd, according to Middle East Economic Survey. Qatar's oil prices averaged $44.6 p/b during the first quarter of 2009. In 2008 Qatar's oil price increased by 36.0% to average $95.2 p/b.
Source: Commercial Section,
Embassy of India, Doha