HE the Prime Minister Sheikh Abdullah speaking at the Euromoney Conference.
By Santhosh V Perumal
Business Reporter
Qatar, which is taking calibrated measures to lessen the negative effects of weaker global energy market, will adopt a “more conservative” oil price assumption in 2016 budget that will see sustained allocation for infrastructure, education, health and projects related to FIFA World Cup 2022.
This was disclosed by Prime Minister HE Sheikh Abdullah bin Nasser bin Khalifa al-Thani and Finance Minister HE Ali Sherif al-Emadi in their keynote addresses to the Euromoney Conference Qatar 2015 that got under way yesterday.
Calling for review of present economic policies, the prime minister said Qatar had embarked on steps to minimise the negative effects of falling oil prices.
Oil price are now 60% lower year-on-year and currently trades below $40 a barrel, which has had its reflection in the domestic bourse that is down more than 18% year-to-date.
“We have been successful in pursuing a strategy of diversification and encouraging investment, which will ensure that the non-oil sector growth will continue in Qatar in the coming period,” he, however, said, adding Qatar is moving ahead with the completion of all infrastructure projects for the World Cup as per the preset plans.
Qatar is committed to creating an investment friendly environment and enhancing opportunities for global investors through enacting appropriate legislations, he said, referring to a recent Emiri decree that allowed a higher foreign ownership limit (FOL) up to 49% in the listed companies.
So far, Nakilat, Milaha, Ezdan Real Estate, Commercial Bank, Aamal Company, Qatar General Insurance and Reinsurance and Doha Bank have received approval from the Qatar Central Securities Depository to enhance the FOL up to 49%.
Despite global pressures, Qatar is expected to have robust growth, owing to investments in health, education, infrastructure and projects related to the 2022 FIFA World Cup, al-Emadi said, adding the non-hydrocarbon sector is slated to grow around 10% for the next few years.
The total value of major projects in development in Qatar is QR260bn, excluding oil and gas and private sectors, he highlighted.
On the budget, he said Qatar will adopt a “more conservative” approach in the oil price assumption. The government’s oil price assumptions were set at $65 per barrel in both 2013 and 2014, when the price for Brent averaged $109 and $99 per barrel, respectively.
