Qatari economy is entering 2018 with a clear vision and a new plan that is based on a promising budget, advanced strategies supported by a strong will and ambitious projects to strengthen and protect the State and to pave the way for further prosperity under the leadership of His Highness the Emir Sheikh Tamim bin Hamad al-Thani and the government.
The new year differs from the previous years for the Qatari economy, which has been strong despite of challenges. It continues the process of building, giving and promoting the renaissance, prosperity and stability of the country, which has been subjected to an unjust siege imposed by a number of brothers for more than seven months.
In his first speech after the imposition of the siege on Qatar last June, the Emir said: “We are called upon to open our economy to initiatives and investment so that we can produce our food and medicine, diversify our sources of income and achieve our economic independence in bilateral relations, from co-operation with other States, in our geographical environment and throughout the world, and on the basis of mutual interests and mutual respect”.
The Emir also stressed that he had directed several times to follow a policy of economic openness to investment and diversification of sources of income, as at this stage it is no longer a matter of luxury, but a necessity.
In his speech, the Emir said that he had directed the government to do everything necessary to achieve this vision, including the required economic openness, removing barriers of investment and preventing monopoly in the framework of building the national economy and investing in development, especially human development.
The Emir also instructed to invest gas revenues of recent inventions for future generations.
In accordance with the Emir’s directives to support and encourage the private sector and increase its contribution to the process of sustainable development in the country, HE the Prime Minister and Interior Minister Sheikh Abdullah bin Nasser bin Khalifa al-Thani, issued a number of decisions to promote the national economy for all investors in the Economic Zones in the south of Qatar for the years 2018 and 2019 so that the rent fees decreases from QR40 to 20 per square metre, exempt investors in the logistics areas south of the country of the rental fees of 2018 and 2019, if issuance of building permits before January 31, 2018, and the issuance of licenses to complete the construction before 31 January 2019, postponement of payment of the rental fees of “productive” factories in the small and medium industries for one year, postponement of instalments of industrial loans for 6 months to owners of productive industrial projects, and requiring all ministries and local governmental sectors to buy local products 100% of the time, when the local product conforms and approved by country standards.
In line with the directives of His Highness the Emir Sheikh Tamim bin Hamad al-Thani, the new draft law aims to attract foreign capital by 100% in all activities and sectors, economic and trade, which will help the inflow of foreign capital and add to the country’s economic development.
A comprehensive review of the economic map shows that the Qatari economy has the highest growth rates in the region and the highest per capita income in the world according to international institutions.
Qatar’s economy started with increased foreign investments, especially after the unjust siege.
The country’s expenditure on major projects is expected to reach about $25bn this year, targeting projects in education, health and construction sectors in preparation for hosting the FIFA World Cup in 2022.
The State also plans to award contracts worth $29bn to the private sector in order to encourage diversification, and focus on supporting food security projects, small and medium enterprises, and the development of infrastructure in economic zones and free trade zones.
The Qatari economy starts the new year with an announcement on establishing the world’s largest gas exporter, Qatargas, which is a result of merging of Qatargas and RasGas. This makes the company the only company to export LNG to the world with one vision, one management system and one business culture.
With the new year starting, capital market experts are optimistic about the expected performance of the stock exchange in 2018, confirming its ability to achieve the highest growth rates on average. This comes as a result of a number of factors that will stimulate the market, such as the 2018 State budget and the promising numbers and indicators that provide optimism and enhance confidence in the performance of the Qatari economy in the next phase.
Hamad Port is also another factor that will increase the economy’s strength and robustness in the next phase, as it is one of the biggest and newest ports in the Middle East. Its estimated capacity is of 7.5mn containers, and several agreements have been signed with important shipping lines to link this port with international ports in Turkey, China, Taiwan, Oman, Pakistan, Singapore, Kuwait, Australia. In addition, Hamad International Airport, which is considered one of the biggest airports in the world, has a planned capacity to handle 50mn travellers yearly.
The Qatari economy starts the new year with optimistic plans to develop agricultural production to meet the needs of the local market and achieving self-sufficiency in agricultural and animal products through the Qatar national food security programme and the comprehensive food security plan for the period 2014-2024. The arable land in Qatar is about 65,000 hectares, which produces about 567,981.3 tonnes of agricultural products, covering the needs of the local market by a large percentage. Officials are considering the possibility of increasing the area of agricultural land in the country, and is likely to increase the number of farms in the coming years to 2,000 farms working on the production of vegetables, fruits and others and supply to the local market.
To support and promote the national industrial revival, the state organised last year Made in Qatar exhibition to get acquainted with the most prominent industries in the country and the economic development witnessed by the State during the recent period.
In addition, the exhibition was held to open new markets and commercial outlets, to promote mutual trade growth with the countries of the world, enable manufacturers and businessmen in Qatar to identify these markets and giving them opportunities to share experiences, information and techniques that can benefit the business sector in the country. The results of these initial efforts were the emergence of new factories and industries in the country and the increase in the number of industrial establishments existing and registered in the industrial register at the Ministry of Energy and Industry to about 730 industrial establishments with investments exceeding QR260bn.
Ongoing economic development projects are taking place to fortify the economy, these include the establishment of storage areas, logistics areas and the launch of a number of food security projects.
The State has also given special attention to water security by establishing new desalination plants and large reservoirs for the storage of potable water, the largest of its kind in the world and will be launched in the first half of this year.
The Qatari economic scene includes the Lusail tram project, as well as the Doha Metro project, which is at the forefront of projects to provide a convenient and accessible transport network within and around Doha and its main locations. Work on this project is ongoing around the clock, above and below the ground, where the first phase of operation is expected to begin in 2020.
Qatar has an important competitive position in the energy sector thanks to its rich natural gas and oil resources. It is the world’s leading exporter of liquefied natural gas, the largest source of helium and the fourth largest producer of urea in the world. Qatar also has a reserve of $340bn, including its national sovereignty fund. —QNA
Work on Doha Metro project is ongoing around the clock.
