Deregulation and liberalisation are among key factors that would allow Qatar to further diversify its economy amid an economic blockade, which has now entered its sixth month, a senior official of the Qatar Financial Centre (QFC) has said.

Speaking at a panel discussion on Qatar’s economy during the ‘Euromoney Qatar Conference 2017’ yesterday, QFC CEO Yousuf Mohamed al-Jaida said the government has taken various steps to tap other revenue sources from the non-hydrocarbon sector.

“As Qatar expands its economy via different revenue sources, diversification methods and increasing economic and trade relations, we can only look to next steps to progress our economy.

“Next year we will see the implementation of VAT in Qatar, just one new reform that will help drive new revenue and help the economy move away from being an oil and gas-dependent economy,” al-Jaida pointed out.

Al-Jaida stressed that Qatar continues to be one of the strongest and fastest growing economies in the Middle East and North Africa (Mena) region, “and with so many infrastructure and investment mega projects in the pipeline, it is no surprise.”

“The QFC is an important part of Qatar’s strategy to diversify its economy and we will continue to attract foreign direct investments by offering a competitive platform for businesses to expand to Qatar,” al-Jaida noted.

The six-month-old economic blockade imposed by Saudi Arabia and its allies in June this year was a central topic at yesterday’s ‘Euromoney Qatar Conference 2017’ opening ceremony.

In an on-stage interview during the conference, HE the Minister of Finance Ali Sherif al-Emadi said Qatar was outperforming all GCC countries economically in terms of diversification in the first six months of 2017.

Since June, al-Emadi said the blockade has created more opportunities to promote the local economy, so that Qatar’s private sector will outperform in terms of real GDP.

The impact of the blockade is likely to have positive results in the long-term by drawing people and institutions more closely together, encouraging greater self-sufficiency, and accelerating the pace of diversification and investment in new industries, according to senior economists and banking leaders attending the Tuesday’s conference.

Al-Jaida also said the Qatari government can easily raise $9bn through international bond issuance in 2018. The cost of Qatari bond issues might rise next year, depending on where the bonds were sold, he said, noting that Asian funds were showing increasing interest in Qatari debt.

Joining al-Jaida in the conference’s panel discussion were Public Works Authority (Ashghal) president Dr Saad bin Ahmed al-Muhannadi, QNB head of Economics Rory Fyfe, and Qatar Islamic Bank chief financial officer Gourang Hemani.

Related Story