Qatar’s economy is anticipated to accelerate at a fast pace over the next decade, due to World Cup 2022 related preparations and other significant events, according to a senior official at the Qatar Financial Centre (QFC).
Qatar’s economy is recovering from the latest challenges it faced during the coronavirus pandemic as well as the three-year-long illegal blockade, an expert said.
The pandemic which has had a major impact on economies across the world, led to unprecedented setbacks which hit Doha as a leading oil and gas exporter. Despite this, the state’s economy has witnessed a remarkable recovery in recent weeks in what experts described as “unmatched” in the region.
“The Purchasing Managers’ Index (PMI) tells us that Qatar’s economic recovery is all about sustained recovery and new business and that is unmatched in our region. I see, for example, over the last four months that we have had a large increase in new orders and those continue to be so,” said the senior economic advisor at Qatar Financial Centre, Thaddeus Malesa in a video posted on QFC’s social media account.
The PMI readings recorded a consistent rise for around three months straight. In September of this year, the PMI recorded 51.4 that then went up fractionally to 51.5 in October. That increase was driven by strong business expectations and realised transactions. It then rose to 52.5 in November to signal an improvement in operating conditions in the non-energy private sector.
“The Purchasing Managers’ Index only covers four non-energy sectors and for Qatar’s economy LNG, crude oil, condensates, and related products are extremely important and we have been fortunate because this diversified production suit that we have here in Qatar has been in continual demand throughout the COVID-19 crisis,” Malesa added.
Due to that, only 1.3% of crude oil production was shut, whereas some other countries in the region have had to shut 10% of their production over the same period.
The statistics suggest a promising acceleration in the country’s economy over the next decade.
This is mainly due to major happenings expected in Doha in upcoming years, one of which is the FIFA World Cup 2022 where 1.5 million visitors are anticipated to visit the country in less than two years from now.
In terms of fiscal outlook, big infrastructure projects are under construction to provide services for the games but will also be adapted for touristic use in the years after the World Cup.
Another important determinant is the North Field Expansion project which is aiming to increase Qatar’s LNG production capacity by 2027.
“This is a 64 percent increase in terms of LNG export capacity. That is going to be brought online until 2028, according to latest industry estimates. This will obviously expand not only the amount of LNG but also the condensates and derivatives that are available for processing and for export,” he said.