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Qatar has “shown global leadership” by pledging 20% of its Special Drawing Rights (SDR) holdings towards International Monetary Fund’s Poverty Reduction and Growth Trust (PRGT) and Resilience Support Trust (RST) mechanisms for financial support, IMF managing director Kristalina Georgieva said Wednesday.SDR is an international reserve asset created by the IMF to supplement other reserve assets of member countries. According to the IMF website, Qatar has SDR holdings of 985mn, according to Reuters."The pledge made today would allow the IMF to expand concessional lending to low income countries and expand lending to vulnerable-to-climate-shocks countries," Georgieva said in a video shared by the Qatar News Agency.Meanwhile, the official announcement between the State of Qatar, represented by the Ministry of Finance and the International Monetary Fund (IMF), titled State of Qatar’s SDRs commitment to the IMF, was issued Wednesday during the third edition of the Qatar Economic Forum.“The announcement demonstrates State of Qatar’s leadership role in supporting least developed countries overcome economic shocks and challenges,” Ministry of Finance said in a statement.“The global economy faces unique uncertainties, such as high inflation, increasing debt vulnerabilities, rising poverty and inequality, slowing growth and tighter financial conditions. These challenges require additional resources to be addressed, stemming notably from the rising south-to-south economy and the new growth opportunities it presents to the global business community.“The State of Qatar recognises these rising needs and has continued to deliver on its commitment to strengthen multilateral action to address the current challenges with the aim to contribute to the new global growth story,” Ministry of Finance said.

Supply constraints in the airline industry could drag on for more than half a decade, delaying deliveries to airlines and hampering the industry’s rebound from the Covid-19 pandemic, Boeing Company President and CEO David L Calhoun said in Doha Tuesday.Speaking at a panel session at the Qatar Economic Forum 2023 powered by Bloomberg, Calhoun said, “I can see supply constraints for a very long time. We have backlogs that go out five to six years so if the backlogs would suggest supply constraints that far, that means it’s even further.”Calhoun noted it could take until the end of 2024 to iron out sector-wide supply chain problems that have hampered global jetliner production."Priority one for the two airplane manufacturers is stability," Calhoun said and noted, “We have to resolve the supply chain issues and the surprise associated with it; and we have to resolve it sort of once and for all. That is not a short-term job. It sounds like it might be, but I think it could take all of this year and probably all of next year."On future developments, Calhoun said the industry was unlikely to introduce all-new jet designs before the mid-2030s."I think in our industry, because of some of the constraints both in propulsion and the design of the wing, it's going to be at least until the mid-2030s before we – in this case I'm just going to assume my competitor – will call out that airplane,” Calhoun noted.Aircraft manufacturers have struggled to increase production at a time when airlines are clamouring for new jets to meet the surge in demand for travel, Bloomberg said in a dispatch.Component shortages have restricted output as Boeing and arch-rival Airbus SE struggle to scale up production. Calhoun said only after the industry has regained what he called stability — a process that will take about a year and a half — can it really ramp up production rates.Asked whether the aviation industry will be able to achieve net zero emission by 2050, Calhoun said, “The only real contributor by way of engine technology is sustainable aviation fuel (SAF). That’s the only needle that will move between now and then. There will be advanced technologies – hydrogen included.”

HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi said Qatar potentially will run out of gas for supplies from the North Field expansion by the year-end, because of “very big demand” for long-term contracts.“We have signed a large contract with China. We have other deals that we are working on. With so many deals lining up, we will potentially run out of gas from the North Field – both North Field East and North Field South. There is very big demand. Additional gas from the North Field will be available by 2026; all contracts have been awarded,” al-Kaabi said at a ministerial session at the Qatar Economic Forum Powered by Bloomberg in Doha Tuesday.The expansion project will increase Qatar's liquefied natural gas (LNG) production capacity from 77mn tonnes per year (MTPY) to 126 MTPY, through the North Field East (NFE) and North Field South (NFS) expansion projects, with first LNG expected by 2026.Qatar will add 65mn tonnes per year of LNG to meet the growing needs of the world from its North Field expansion and its project in the United States, al-Kaabi said.“We don’t follow what others say we should do...we do what is technically possible with our fields. When it’s the right time and technically we can do it, we’ll definitely do more,” the minister said.Talking about the gas supply and demand situation in future, al-Kaabi said, “There is going to be a shortage in oil and gas in future, predominantly due to the push on (energy) transition. It is really aggressive without studying it. If you look at economic and environment stability, these are not mutually exclusive... we have to have both.“And if you push some countries into doing that, that doesn’t help humanity in general. The only thing that saved humanity and Europe this year was a warm winter and the slowdown in the economy worldwide. If the economy comes back in 2024, the worst is yet to come,” said al-Kaabi.“If you look at future, whether it is oil or gas, because of decade-long lack of investments, due to the push to transition of energy, there is going to be shortage for both.”Al-Kaabi emphasised the need to have a “mix” of all energy resources and said, “You need a mix of all energy sources and people need to realise that you need oil, gas and renewables. People talk about renewables as if it’s a fix-all.“If you look at renewables you can generate electricity from wind and solar, but you can’t make plastics or any sort of such products. So by saying renewables generate electricity does not solve the problem, you need a proper energy mix. And it can’t be driven by politics and politicians wanting to get in the seat to say this is the solution. It’s a nice pitch to say energy transition, but when you dig down and look at the reality, it’s not achievable.”Al-Kaabi said he was "thrilled" that the G7 final communique spoke about the need for more LNG for the world and warned the world would face a shortage of oil and gas due to a lack of investment."I am thrilled that finally the G7 in their final communique said they need more LNG to be supplied to the world. We've been saying this for the last 10 years,” al-Kaabi noted.

The Qatar Investment Authority (QIA) is examining artificial intelligence (AI) as a theme of investments and sees it as a "wonderful technology" in some applications, CEO Mansoor Ebrahim al-Mahmoud said Tuesday.Participating in a panel session at Qatar Economic Forum powered by Bloomberg he said, “From time to time we tell our teams to look at those things that are important and are coming. Make sure we build a portfolio that tap into this field. For example, the same thing for climate change, digitalisation, life science. These are long term themes.”In terms of AI, al-Mahmoud said: “We have been investing there. I think the level of using the AI in terms of extreme in that the machine will do everything...personally I have a mixed feeling about it. I feel we need some sort of legislation that could manage this.“But it is a wonderful technology in some applications such as marketing, or understanding businesses.“We (Qatar) are one of the leading countries in the region in terms of digitilisation and connectivity infrastructure that we have. We would like to really tap into this as a strength of the country to make sure that we can attract and invest in technologies such as Fintech.”QIA, al-Mahmoud said, has been very active in private and public credit over the past two years."Companies that have been feeling the tide, they have good business models but they have an issue with their balance sheet because of this acceleration of hikes of interest rates," al-Mahmoud noted."So normally institutions like us, which are very liquid, very long term, have a risk appetite in these types of investment. I would advise that for the next maybe one year, the credit space would be an interesting space to deploy some investment," al-Mahmoud said.Al-Mahmoud also expects the Adani Group to get through "smoothly".Earlier, the Indian conglomerate was pummelled by a US short seller (Hindenburg Research) critical report and lost billions of dollars in market value.

The airline industry’s impact on global economy and people’s lives is huge, Qatar Airways Group Chief Executive HE Akbar al-Baker said Tuesday.Participating in a panel session at Qatar Economic Forum powered by Bloomberg he said: “People will travel and are still dependent on aviation because it plays such a large part of our life for leisure, business, trade and economic development. There is no alternative to airplanes,” al-Baker noted.Referring to the debate on sustainability, especially in Europe, al-Baker said: “In one of the climate conferences a young girl wanted to prove to the world that they do not need planes and they can use the boat and she arrived at this conference in a boat. But where did she start the journey on the boat? How did she get there?“Majority of the distance she covered was on the airplane because she could not cover that distance on the boat for the time she wanted to be at the conference. I don’t want to criticise her, but we have to be realistic,” al-Baker said.Asked whether the aviation industry will be able to achieve net-zero emission by 2050, al-Baker noted: “I don’t think we will be able to achieve net zero emission by 2050. Everybody is talking about it. But let us be realistic. There is not enough production of SAF. The hydrogen project is in its infancy. People also do not know what hydrogen will generate when it flies at a high altitude.“The hydrogen technology is expected to mature by the second half the century. Which means, after 2050. So, I am sceptical about this.”In an interview with Bloomberg TV, al-Baker said Qatar Airways is ramping up routes to Europe, Africa, Asia, and big time in to China. Our fleet is already very young, so we can extend their operations further and when new technology that will be introduced we will then place orders for airplanes.”“In relation to China, not only are our airlines are packed. Now that the lockdown has ended in China there is a huge appetite for the Chinese to travel out of China. The amount of money they spent at our duty free shops is more than any other nationality. So, you can see the potential Chinese market holds for the international aviation industry, and at the same time, for the retail trade around the world,” al-Baker told the Qatar Economic Forum.

Ashghal (Public Works Authority) is gearing up to launch projects worth QR4.1bn in the third quarter of the year, Jarallah Mohamed al-Marri, director, Building Projects Department said on Monday.Addressing a media event convened to announce the 19th edition of Project Qatar in Doha (from May 29 to June 1) al-Marri said the projects included development of Hamad General Hospital and some health centres.“The Public Works Authority is participating in Project Qatar exhibition with a special pavilion for the seventh year in a row, through which it is displaying the achievements of the authority in infrastructure projects,” al-Marri noted.He said, “The strategic partnership of the authority with Project Qatar comes within the authority’s vision to enhance communications and partnerships with various private sector companies that contribute to the implementation of projects in the country. We look forward to the exhibition being an opportunity to meet a wide group of consultants, contractors and suppliers with whom the authority can co-operate in the future. Local entrepreneurs and local products are our first priority.”Ahmed Mohamed al-Sada, director, Office of the chief executive officer and Public Relations Department at Qatari Diar, which is the developer of Lusail City project said, “Qatari Diar is participating for the second year in a row as a sponsor of real estate development in the exhibition. This participation is based on the successful participation last year, as we hope that this session will be an opportunity for us to present our latest and most prominent projects around the world to the audience, especially regional and international visitors, many of whom we had the opportunity to meet in last year's session.”

The 19th edition of Project Qatar, nation’s largest and most prominent construction exhibition, will be held from May 29 to June 1 at the Doha Exhibition and Convention Centre, it was announced on Monday.The event will bring together 120 international exhibitors from 25 countries and feature eight official country pavilions and 200 local companies, led by major governmental and semi-governmental companies and prominent private sector companies in Qatar.This year’s event will be held under the patronage of HE the Prime Minister and Minister of Foreign Affairs, Sheikh Mohamed bin Abdulrahman bin Jassim al-Thani with the support of Ministry of Commerce and Industry and in partnership with Public Works Authority (Ashghal).IFP Qatar, trade fair and conferences organiser, announced details of the 19th edition of Project Qatar at a media event attended by senior officials and representatives of sponsors from public and private sectors.Haidar Mshaimesh, general manager, IFP Qatar, said the organisers expected thousands of visitors at the four-day event. On all the four days, visitors can access the exhibition from 2pm to 9pm.“Qatar's construction industry presents enormous prospects, particularly under the Qatar National Vision (QNV) 2030, the government's strategic growth plan. The framework intends to transform Qatar into a self-sustaining diverse economy that is less dependent on oil.“The 19th edition of Project Qatar is expected to play a significant role in achieving the goals of QNV 2030 by highlighting regional products and the importance of Qatari industry to the national economy. With the assistance of the government, the event presents several opportunities for local and foreign contractors to expand across Qatar.“In addition, there will be great possibilities for Qatar to attract foreign direct investments. We are excited to meet top exhibitors and visitors from around the world who will be offering cutting-edge solutions for the industry.”Major participants at the event include Ashghal as the strategic partner, Qatar Tourism (Hosted Buyers Sponsor) Qatari Diar (Property Development Sponsor), Qatar Development Bank (Leading Sponsor), Qatar Free Zones Authority (Free Zones Partner), Suhail Industrial Holding Group (Industrial Partner) Al Sraiya Holding Group (Platinum Sponsor), Midea (Diamond Sponsor), Milaha, QTerminals, Hamad Bin Khaled (HBK) Contracting, Abdullah Abdulghani & Bros, (Silver Sponsors), Modern Home Company the official distributors of Hisense (HVAC Sponsor), Gulf Organisation for Industrial Consulting (GOIC Industrial Consulting Sponsor), Vodafone Qatar (Exclusive Telecom Sponsor) and Gulfcrafts (Innovative Branding Sponsor).Some 25 countries are participating in this year’s session, eight of which are represented by official national pavilions, which are led by Kuwait’s Public Authority for Industry, Italy’s Italian Trade Agency (ITA), Turkiye’s Ministry of Commerce, and Iran’s Trade Development Organisation (TDO) along with China, Russia, India, and Pakistan.The exhibition will also welcome international delegations from several countries, including the Gulf Co-operation Council countries, Turkiye, Iran, India, China, and others.As a major platform for Qatar's construction industry, Project Qatar 2023 will also introduce four specific conferences.The first edition of Q Industry, a conference that promotes domestic production and manufacturing of materials and equipment vital to the construction industry, as well as the second editions of Q Invest, and Q Tech, along with the ninth edition of Q Green, will be held during the exhibition.The media event was addressed by Jarallah Mohamed al-Marri, director, Building Projects Department at Ashghal; Ali Mohamed al-Kuwari, vice-president, (Marine and Industrial Equipment) Milaha; Ahmed Mohamed al-Sada, director, Office of the chief executive officer and Public Relations Department at Qatari Diar; Noor Shahdad, Group Corporate Communications director, Q Terminals; Shadi Afif, chief development officer, Suhail Industrial Holding Group; Emad Chen, managing director, Midea; Yazan Mustafa, chief operating officer, Commercial and Industrial Division, Abdullah Abdulghani & Bros Company; and Anastasia Volokhova, brand strategy manager, Gulfcrafts.

Qatar's budget surplus is seen at 9.6% of GDP this year based on 2023 revised forecast for Brent crude at $87 a barrel, researcher Oxford Economics said in its latest forecast.The country's budget based on an oil price $65, projects a surplus equivalent to 3.4% of GDP, Oxford Economics noted in its latest country report.According to Oxford Economics, Qatar's government ran a surplus of QR89bn (10.3% of GDP) in 2022.Annual inflation slowed to 4% in March, from 4.4% in February after prices rose 0.3% month-on-month (m-o-m). Food and transportation prices eased on a sequential basis, underpinning the slowdown in the annual print, but recreation and culture as well as housing and utilities categories rose.The trends are consistent with Oxford Economics CPI forecast of 2.3% this year, and the researcher expects a further decline below 2% in the medium term.The Qatari economy will slow to about 2.6% this year and in 2024, down 0.1ppt from last month, following stronger-than-expected 2022 growth, according to Oxford Economics.Survey data point to resilient demand and strong expectations, which Oxford Economics believes will support economic activity. Consequently, Oxford Economics has left its non-oil sector growth estimates broadly unchanged at 3.2% this year and next.The latest GDP statistics show the economy grew by 4.8% year-on-year (y-o-y) in 2022, above its 4.1% estimate, following a jump of 8% in the fourth quarter (Q4).Energy GDP rose a surprising 4.8% y-o-y in Q4, the strongest pace since first quarter (Q1) 2012.The non-energy sector more than doubled that pace, growing 9.9% y-o-y during the quarter, as the World Cup fuelled activity in accommodation, transport, and trade industries. This brought non-oil growth for the year to 6.8%, higher than the researcher’s 6.3% projection.Balance of payments data for Q4, 2022 confirmed a surge in services exports at the end of last year and resilient goods trade.As a result, the 2022 current account surplus hit a record $63.1bn (26.6% of GDP). Meanwhile, the period of divestment from Qatar appears over following the best quarterly FDI inflow since 2012. “We expect these positive trends to continue this year and next, though lower commodity prices imply both the external and fiscal surpluses will narrow,” Oxford Economics noted.The non-energy sector expanded by 6.8% in 2022, exceeding Oxford Economics’ 6.3% projection and marking the fastest pace since 2015.But growth will slow to 3.2% this year as momentum eases after the World Cup, maintaining a similar pace in 2024-25.Tourism will be among the sectors that will support non-oil recovery this year, thanks to major events, including the Asian Football Cup and Formula 1 Qatar Grand Prix, and in the medium term.Qatar attracted 2.56mn tourists in 2022, and data for January and February show foreign arrivals were about three and four times higher than in the respective months last year, Oxford Economics noted.

Qatar’s banking sector risk is among the lowest in the Middle East, a new report by The Economist Intelligence Unit (EIU) has shown.Qatar’s banking sector risk is the second lowest in the Gulf Co-operation Council (GCC) region and the entire Middle East (with the exception of Israel), EIU noted in its latest report. Only Saudi Arabia (risk score 33) is ahead of Qatar (38) in this regard.Middle Eastern banks have “limited direct exposure” through investment in equities or bonds linked to financially stressed institutions in North America and Europe, it said.GCC commercial banks had less than 5% of total assets and less than 3% of total liabilities involving US counterparts at the end of 2022, and although they have increased their financial links to European financial services providers in recent years—especially Saudi Arabia following an aggressive outreach strategy—their overall exposure remains manageable.Banking sectors in the region’s key business and finance hubs located in the GCC states especially Doha, Dubai, Abu Dhabi, Bahrain, Riyadh and Kuwait City — appear “well positioned” to withstand the shocks emerging from financial markets in Europe and North America.“These hubs hold the region’s key financial institutions and most developed banking industries and have started 2023 on a strong financial footing,” EIU noted.For instance, EIU said total assets, customer deposits, net loans and net interest income — the difference between interest earned from lending activities and interest paid to depositors — for GCC listed banks have been on an upwards trajectory since the start of 2021 and these performance measures reached record highs in the fourth quarter of 2022.The outlook for the banking industry in 2023 across the GCC and Israel looks reasonably bright given the expectation of strong international energy demand and associated investment and exports,recovering tourism industries, buoyant non-energy business activity, major public and private investment programmes, and a continued boom in initial public offerings (IPOs), which had a bumper year in 2022.Moreover, the GCC banking sector is likely to benefit from stable exchange rates and relatively low inflation, as well as the prospect of further consolidation across the industry amid the push to create lenders with larger revenue streams and operating efficiencies capable of supporting ambitious diversification agendas.According to EIU, banks across major markets in the Middle East retain ample financial buffers in terms of core capital-adequacy ratios, liquidity coverage ratios and net stable funding ratios.All these measures were comfortably above the minimum required levels as set out under Basel III requirements for banking sectors in aggregate and for major individual banks in 2022.In addition, and specifically in the GCC, banks tend to rely much more on relatively stable domestic funding sources from government, corporate and retail depositors rather than external, market-sensitive finance — a characteristic that provides them with a degree of certainty and stability for core funding sources.Banks across the Middle East retain the backing of governments with an active presence in the financial services sector, which can prove crucial in times of need to curtail runs on banks caused by depositors and investors seeking to withdraw funds or exit their investment positions.This is especially the case in the GCC, where governments have a track record of stepping in with considerable support during times of need, as seen during the global financial crisis of 2008 and the early stages of the covid-19 pandemic in 2020.For their part, GCC states have sought to improve financial services sector regulation and comply with international best practice to help to attract foreign investment and set the foundation for a stable environment that supports their own development and diversification agendas.The Middle East has fared better than other regions during previous periods of financial instability, such as the global financial crisis of 2008. Limited direct exposure to risky foreign investments, a focus on traditional lending and savings mobilisation, strong regulation and financial buffers, and prompt and forceful policy action proved beneficial in the past and will provide some protection once again.Moreover, limited integration into the global financial system of the region’s weaker states should militate against direct effects through the financial system.However, an escalation of the current financial difficulties in major developed markets and a sharp deterioration in global financial conditions would most likely affect the Middle East through second-round effects and in various ways.The region’s developed and developing banking sectors would probably suffer impacts on income statements and balance sheets caused by a contraction in global economic activity, trade and investment, volatile and bearish international energy markets, plunging overseas and domestic asset prices — including equities and real estate — and softer domestic business activity.The Middle East’s major banking industries would remain well capitalised, but profitability and asset quality would probably suffer, to the detriment of regional economic growth and stability, EIU noted.

Qatar’s medium-term growth is likely to rise to around 4–4.5% after the North Field expansion starts boosting LNG production, International Monetary Fund (IMF) said in a report released on Thursday.Aided by buoyant export revenue and public spending, Qatar’s fiscal and external current accounts are projected to be in surpluses throughout the medium term, IMF said.The report, which was issued after a visit to Qatar by a team led by IMF’s Ran Bi in early May, said, “After very strong growth in 2022 boosted by the World Cup, the economy is expected to normalise in the near term while the outlook remains relatively favourable.Real GDP growth is expected at 2–2.5% in 2023–24 on robust domestic demand and the ongoing LNG expansion, with inflation moderating gradually to around 3%.”Risks to Qatar’s outlook are broadly balanced. Downside risks stem mainly from an unfavorable global environment, including a sharper-than-expected global growth slowdown, tighter and more volatile global financial conditions, increased commodity price volatility, and further worsening of geopolitical tensions.On the upside, accelerated reform efforts guided by the 3rd National Development Strategy, to be unveiled in the summer of 2023, could boost productivity and promote economic diversification. Sustained high hydrocarbon prices would further strengthen the outlook.“Fiscal discipline has been broadly maintained in 2022, with most of the hydrocarbon windfalls saved and overall expenditure largely kept within the budget envelope. As a result, fiscal surplus rose to around 10% of GDP in 2022, from close to zero in 2021. Central government debt declined by 16 percentage points to around 42% of GDP during the same period.“The 2023 budget balances continued discipline and sustaining domestic demand, with a broadly unchanged wage bill and cuts in public investment from 2022 outturns. The upcoming medium-term budget, for 2023–25, will be developed following the release of the 3rd National Development Strategy to balance aspiration for transformation and fiscal discipline.”IMF noted that a decade of the nation’s efforts to diversify the economy culminated in the successful hosting of the 2022 FIFA World Cup. Qatar managed the Covid-19 pandemic well, providing a safe environment for the first major global sport event since the pandemic.Qatar is well placed to leverage the top-notch infrastructure built and capitalise on the momentum and visibility created by the World Cup as the government lays out its 3rd National Development Strategy to help achieve the ambitions of Qatar National Vision 2030.“Qatar has smoothly navigated the recent global economic and market volatility. The Russian war in Ukraine highlighted risks from geopolitical tensions, including the impact on energy prices, and the role of natural gas in safeguarding energy security, opening up opportunities for Qatar. The banking sector turmoil originating from the U.S. has had only a limited and temporary impact on the domestic financial system,” IMF noted.While in Doha, the IMF team met with HE the Minister of Finance Ali bin Ahmed al-Kuwari, HE the Governor of Qatar Central Bank Sheikh Bandar bin Mohammed bin Saoud al-Thani, other senior government officials, and private sector representatives.

Qatari banks’ reliance on non-resident deposits has progressively fallen by more than one-third (nearly $30bn) since their peak registered in late-2021, the International Monetary Fund said in its country report released on Thursday.The completion of World Cup-related projects and hydrocarbon windfalls have reduced credit demand from the public sector and provided additional liquidity to banks, reducing their funding needs. The Qatar Central Bank has implemented several macro-prudential measures since (spring of) 2022 to discourage banks from relying on non-resident deposits, especially of short tenors.The report was issued after a visit to Qatar by a team led by IMF’s Ran Bi in early May.As domestic monetary policy has tightened, consistent with the currency peg to the US dollar, banks’ asset quality, liquidity and profitability remained solid, and their reliance on nonresident deposits has fallen.“QCB has maintained price and financial stability. Monetary policy has been tightened broadly following the US Federal Reserve, consistent with the currency peg to the dollar. Monetary policy transmission has strengthened through more effective liquidity management.“Banks remain well-capitalised, liquid and profitable, although the non-performing loans (NPLs) ratio has edged up amid monetary policy tightening. Relatively high provisioning for NPLs, on the other hand, mitigates the risk,” IMF said.Qatar’s AML/CFT mutual evaluation, completed in February, confirmed that the nation has made significant progress on technical compliance with the FATF Standards, while more work is needed to further improve the effectiveness.The ambitious structural reform agenda underpins Qatar’s economic diversification efforts to build a more inclusive, knowledge-based and greener economy.“Structural reforms have advanced further to achieve Qatar National Vision 2030, including in green financing and digitalisation. The Ministry of Finance has developed a Sovereign Green Financing Framework with a clear set of principles," the report said.The QCB has created a dedicated department to define the ESG policies, standard reporting framework and management of ESG risk and compliance. Related initiatives at the national level involving main regulatory bodies are being assessed. Qatar has also successfully capitalised on the 2022 FIFA World Cup to upgrade its digital infrastructure.The Investment Promotion Agency of Qatar embarked on partnerships to accelerate digital transformation and foster technological innovation domestically, including through FDI. The QCB recently launched the National Fintech Strategy, with detailed guidelines and standards under development, IMF noted.

India’s aviation industry is always seen as one that offers growth potential, but it faces significant challenges and can also be brutally competitive.While India’s largest airlines Air India and IndiGo have been attracting headlines due to their ambitious growth plans, some of the country’s other airlines are grappling with serious financial challenges.Air India’s recent moves to order 470 aircraft signals that it is back in expansion mode, and data show competitor IndiGo has about the same number of aircraft remaining on its order books.They are both looking to tap into the strong demand potential in the Indian market, but their growth strategies will also put more pressure on India’s smaller airlines, points out CAPA Centre for Aviation.“Many of these airlines are already in difficulties,” CAPA Centre for Aviation noted.Go First airline has entered voluntary bankruptcy, due partly to long-running fleet problems that are out of its control.Another airline Spicejet is mired in court disputes as aircraft lessors seek unpaid fees, and Jet Airways faces looming deadlines to keep its relaunch hopes alive.As competition continues to heat up in the Indian domestic market, the question is whether all these players can survive, or whether further consolidation will be required among the smaller independent airlines.Undoubtedly, India's growing middle class and increasing disposable income have led to a significant rise in domestic and international air travel. As more people can afford to fly, the demand for air travel is expected to continue growing.But analysts say India’s airline industry faces a myriad of problems including financial instability, intense competition, infrastructure constraints particularly in regional areas, regulatory complexities, rising fuel costs, pilot shortage and high operational costs.One of the major issues plaguing the Indian airline industry is financial instability. Most airlines in India have struggled with high operating costs, intense competition, and fluctuating fuel prices.Many carriers have faced losses and accumulated substantial debt, leading to financial distress and even bankruptcy in some cases.India's airline industry is highly competitive, with numerous players vying for market share. This competition often leads to price wars, making it difficult for airlines to maintain profitability.Low-cost carriers have emerged as strong competitors, offering competitive fares and capturing a significant portion of the market.India's aviation infrastructure has struggled to keep pace with the rapid growth of the airline industry. Congested airports, inadequate runway capacity, and a lack of modern facilities in many tier two and tier three airports have led to operational challenges and delays.Limited infrastructure development in smaller cities and towns also hampers the expansion of air connectivity to underserved regions.Industry experts say the Indian aviation sector operates under complex and restrictive regulations, which can hinder growth and increase operational costs.Regulatory approvals, bureaucratic processes, and taxation policies can be cumbersome and time-consuming for airlines. Streamlining and simplifying regulations would help the industry to flourish.In energy-deficit India, fuel prices are a significant cost component for airlines, and the volatility of fuel prices poses a constant challenge in the highly price-sensitive Indian market. Fluctuations in oil prices on the global market impact operating costs and profitability.Fuel taxes and surcharges imposed by the government also add to the burden, making it difficult for airlines to manage costs effectively.Like many other emerging markets, India is experiencing a shortage of skilled pilots, primarily due to the rapid expansion of the airline industry.As airlines add more aircraft to their fleets, finding qualified and experienced pilots becomes increasingly challenging. The scarcity of pilots can lead to flight cancellations, disruptions, and increased costs for airlines.To support its ambitious growth plans, Tata Group, the new owner of Air India, plans to set up an aviation training academy to rival those considered the best worldwide.Already there are talks about Air India setting up its own ground handling division to meet the airline's future needs.While major cities in India have relatively good aviation infrastructure, regional areas lack adequate facilities and air connectivity.Limited airports, poor infrastructure, and inadequate air services restrict the growth potential of these regions. Developing airports and improving connectivity to smaller cities would help stimulate economic growth and tourism.Airlines in India face high operational costs due to various factors, including expensive airport charges, high taxes, and maintenance expenses.Additionally, the country's complex tax structure and regulatory environment contribute to increased operational costs, impacting airlines' profitability and competitiveness.That said, India's airline industry has a favourable environment for growth, driven by factors such as increasing disposable income, urbanisation, government support, infrastructure development, and the potential of the low-cost carrier segment. By capitalising on these opportunities and addressing challenges, the industry can flourish and contribute to the country’s economic development.However, addressing these challenges requires a multi-faceted approach involving policy reforms, infrastructure development, and strategic management by airlines.That requires government support in terms of favourable policies, regulatory simplification, and infrastructure investment. These would be instrumental in nurturing a more sustainable and competitive airline industry in India.Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn

Second highest passenger growth is expected in the Middle East region during the summer travel holiday season, IATA’s forward bookings data indicate.An IATA survey covering 4,700 travellers in some 11 countries shows that 79% said they were planning a trip in the June-August 2023 period.While 85% said that peak travel season disruptions should not be a surprise, 80% said that they expected smooth travel with post pandemic issues having been resolved.Forward bookings data indicates that greatest growth is expected in Asia Pacific region (134.7%) followed by Middle East (42.9%), Europe (39.9%), Africa (36.4%), Latin America (21.4%) and North America (14.1%).IATA survey has seen “high levels of confidence” among travellers for the peak Northern summer travel holiday season. This corresponds with first quarter of 2023 forward bookings data for May – September, which is tracking at 35% above 2022 levels.IATA’s senior vice-president (Operations, Safety and Security) Nick Careen said, “Expectations are high for this year’s peak Northern summer travel season. For many this will be their first post-pandemic travel experience. While some disruptions can be expected, there is a clear expectation that the ramping-up issues faced at some key hub airports in 2022 will have been resolved. “To meet strong demand, airlines are planning schedules based on the capacity that airports, border control, ground handlers, and air navigation service providers have declared. Over the next months, all industry players now need to deliver.”Collaboration, sufficient staffing and accurate information sharing are all essential to minimise operational disruptions and their impact on passengers. The key is ensuring that the capacities which have been declared and scheduled are available.“A lot of work has gone into preparing for the peak Northern summer travel season. Success rests on readiness across all players in the supply chain. If each player delivers on what has been declared, there should be no last minute requirements to reduce the scale of the schedules that travellers have booked on,” said Careen.Labour unrest, particularly in France, is cause for concern. Eurocontrol data on the impact of French strikes earlier this year shows that cancellations can spike by over a third.“We need to keep a very careful eye on Europe where strike actions have caused significant disruptions earlier this year. Governments should have effective contingency plans in place so that the actions of those providing essential services like air traffic control maintain minimum service levels and do not disrupt the hard-earned vacations of those travelling or put at risk the livelihoods of those in the travel and tourism sectors,” Careen added.

Uptick in LNG imports from Qatar contributed to higher LNG imports in India and Pakistan in April this year, GECF’ latest data show.In April 2023, Asia Pacific's LNG imports continued to recover and increased by 5% (1.05mn tonnes) y-o-y to 20.50mn tonnes, which was slightly lower than the imports in April 2021.China, India, Thailand, and Pakistan contributed to the bulk of the incremental increase in LNG imports and offset weaker imports in Japan. Asia Pacific's cumulative LNG imports from January to April this year rose by 3% (2.6mn tonnes) y-o-y to 89.12mn tonnes, Doha-headquartered Gas Exporting Countries Forum said.China's LNG imports continued to recover in April and recorded the highest year-on-year increase since September 2021. The rebound in economic and industrial activity boosted gas consumption, driving LNG imports higher.Pipeline gas imports to the EU increased by 3% month-on-month, to reach 14 bcm in April.Global LNG imports surged by 10% y-o-y to 34.4mn tonnes, setting a new record high for imports in April. The increase was driven by stronger LNG imports across all regions, especially in the Asia Pacific and Europe.In Europe, the rise in LNG imports continues to compensate for the lower pipeline gas imports into the region.Meanwhile, the rebound in gas consumption in China, opportunistic buying in India due to lower spot LNG prices, and declining gas production and pipeline gas imports in Thailand contributed to the increase in the Asia Pacific's LNG imports.Furthermore, Philippines joined the ranks of LNG importers in April, GECF noted.As of April, the restocking of gas storage sites has commenced. In the EU, the average level of gas in underground storage was 59.4bcm, which amounts to 57% of the region's storage capacity.In the US, the level of underground gas storage increased to 55.6bcm, representing 42% of its capacity.A slower stockbuild is expected in both the EU and US this summer due to the high levels of gas already in storage. The combined LNG in storage in Japan and South Korea was estimated at 9.8bcm.According to GECF, gas and LNG spot prices in Europe and Asia continued their downward trend for the fourth consecutive month. In April, the Title Transfer Facility (TTF), which is the main reference virtual market for gas trading in Europe and Northeast Asia (NEA) LNG spot prices, averaged $13.69/MMBtu and $12.10/MMBtu, respectively, representing a 1% and 9% decrease compared to the previous month.The TTF spot price was 57% lower y-o-y, while the NEA LNG spot price experienced a decline of 58% y-o-y. With the arrival of the shoulder season, the market witnessed a decrease in tightness as a result of ample storage levels and strong LNG supply.However, in Asia, there was some emerging buying activity in anticipation of the summer season, which helped limit the decline in spot LNG prices, GECF said.

Qatar's headline and core inflation remains relatively lower than elsewhere mainly due to subsidies and caps on certain products, strengthening of the US dollar to which the riyal is pegged, IMF said in its latest regional outlook.Headline inflation showed signs of peaking at the end of 2022, although it remains persistently high for emerging markets, Middle income countries and low income countries, the International Monetary Fund (IMF) said in the recent report.Headline and core inflation in many oil-exporting countries (Qatar, Bahrain, Iraq, Kuwait, Oman and Saudi Arabia) remain relatively lower than elsewhere — as subsidies and caps on certain products, the strengthening of the US dollar (to which many of the countries peg their currencies), and limited share of food in the consumer price index basket have helped to offset imported inflationary pressures — and appear to have peaked in the last months of 2022. By contrast, headline inflation continued trending upward in most emerging markets, Middle income countries (Egypt, Morocco, Pakistan, and Tunisia, but not Jordan because of its peg to the US dollar and temporary fuel subsidies), partly reflecting the impact of past exchange rate depreciation and persistently elevated food prices, but also broadening price pressures (including on services) as underscored by the rise in core inflation amid loose monetary policy (Egypt, Pakistan, Tunisia).According to the IMF, real GDP growth in the Mena region has been upgraded for 2022 because of stronger-than-expected growth in many oil-exporting economies (Qatar, Bahrain, Libya, Saudi Arabia, and the United Arab Emirates) and some oil importers (Jordan, Mauritania, Morocco, Tunisia).Real GDP in the region is estimated to have expanded by 5.3% in 2022 (an upward revision of 0.3 percentage point from October), up from 4.3% in 2021, reflecting the strong performance of oil exporters (especially GCC economies) and Egypt and despite lacklustre growth in other emerging markets, middle income countries and most low income countries.The acceleration in growth in 2022 was mainly due to strong domestic demand—notwithstanding the negative impact of higher prices on households’ purchasing power and firms’ production costs—and a strong rebound in oil production for oil exporters, it noted.Several factors explain the relative strength of domestic demand. Tourism rebounded, and hotel occupancy rates recovered, surpassing their pre-pandemic levels in many countries (Qatar, Jordan, Morocco, and Saudi Arabia).Remittance flows remained strong in mid-2022 in most emerging markets and middle income countries (Egypt, Jordan, Morocco and Pakistan), IMF noted.Lending to the private sector (non-financial firms and households) continued to expand in real terms in some emerging markets and middle income countries, with double-digit growth in some countries (approximately 10% in Egypt), partly reflecting the prevalence of subsidised lending initiatives in the second half of 2022.Labour market conditions stopped deteriorating in 2022, although structural factors, such as labour and product market rigidities hampered a meaningful recovery, especially in emerging markets and middle income countries, it said.Employment growth in emerging markets and middle income countries remained lacklustre in the second half (Jordan, Morocco, Tunisia) but continued to rise at a healthy pace in GCC countries (Bahrain, Oman, Saudi Arabia), partly reflecting rebounding migrant employment (Bahrain, Oman, Saudi Arabia). Unemployment rates inched up or remained broadly steady in most emerging markets and middle income countries, staying above pre-pandemic levels in many countries in late 2022 (Jordan, Morocco, Tunisia), IMF added.

Available Qatar economic data remains positive, researcher FocusEconomics said citing surge in tourist arrivals and strong growth in private sector Purchasing Managers' Index (PMI) in the country.In its latest country update, FocusEconomics noted tourist arrivals surged in the first quarter (Q1) of 2023.Official figures indicate Qatar’s tourism sector is gaining strength, which is reflected on the arrival numbers for the first quarter of 2023 that has hit record numbers – over 1.16mn by the end of March.FocusEconomics said the private-sector PMI rose strongly from February onward to a nine-month high in April.The country’s economy expanded 8% year on year in fourth quarter (Q4) of 2022, a multi-year high.It was spearheaded by the non-energy sector, with the FIFA World Cup spurring the transport, retail and hospitality industries.The energy sector also recorded robust growth. Energy output increased by 14.3% in annual terms in February.In contrast, the public sector performed sluggishly, likely linked to school closures and reduced government office hours during the month-long sporting event.On the flipside, the construction sector appears to be cooling amid the end of the World Cup construction boom and higher interest rates, with building permits declining year on year in Q1.FocusEconomics noted the economy will lose steam this year on slowing building activity, rising borrowing costs and flagging external demand.That said, ongoing gas sector development and a stronger tourism industry will provide support.Improved relations with Arab neighbours are an upside risk; for instance, in mid-April Qatar and Bahrain announced they would restore ties.FocusEconomics panelists see GDP expanding 2.5% in 2023, which is down by 0.1 percentage points from one month ago, and expanding 2.5% in 2024.Inflation fell to 4% in March from 4.4% in February this year. The Qatar Central Bank (QCB) hiked its policy rates by 25 basis points (0.25%) in May, in line with the Fed, with the lending rate rising to 6%.In 2023, FocusEconomics panelists see inflation moderating from last year as borrowing costs rise, the World-Cup-related demand surge ends and commodity prices recede. FocusEconomics panellists see consumer prices rising 2.9% in 2023, which is down by 0.1 percentage points from one month ago, and rising 2.2% in 2024.According to FocusEconomics, Qatar’s GDP would scale up to $272bn by 2027 from $218bn this year.GDP per capita, it said, would reach $108,095 in 2027 from $83,318 this year. Next year, GDP per capita has been estimated at $85,993 and $91,254 in 2025 and $99,978 in 2026.Merchandise exports have been estimated to reach $127.8bn in 2027 from $112.2bn in 2023, $110.8bn (2024), $108.3bn (2025) and $117.4bn (2026).Fiscal balance (as a percentage of GDP) has been estimated at 7.1% this year, 5.7% (2024), 5% (2025), 6.5% (2026) and 6.2% (2027).Public debt (as a percentage of GDP) has been estimated at 43.8% this year, 44.2% (2024), 42.8% (2025), 40.6% (2026) and 38% (2027).

The outlook for the oil market and prices in 2023 remains highly uncertain amid a myriad of negative and positive risk factors, National Bank of Kuwait (NBK) said in a report Thursday.While the outlook for the next couple of months remains weighed down by demand-impacting macroeconomic concerns, specifically OECD recession fears and lagging Chinese consumption growth, in the second half (H2) of the year, supply-side pressures stemming from Opec+ production cuts will increasingly come to the fore, NBK noted.Allied to expectations of increased oil consumption over the summer months and especially in China and the Far East, the market is expected to flip from a surplus to a deficit, with the result that prices should begin to firm quite a bit from current levels.The global economic growth forecast this year was trimmed by the International Monetary Fund (IMF) in its April World Economic Outlook (-0.1% pts to 2.8%), citing higher interest rates and heightened risk of financial system turmoil.Underwhelming economic readings in the US, particularly GDP, retail sales and jobs also added to headwinds, while in China manufacturing unexpectedly contracted in April, according to the official PMI.These developments as well as more recent concerns about the US defaulting on its debt in the absence of congressional approval to raise the debt ceiling were behind oil’s tumble to a fresh year-low of $72.3/b in early May, NBK said.Moreover, refining margins for petroleum products such as diesel, a key gauge of industrial activity and transportation, have also signalled some weakness in the Far East, amid sub-optimal demand and stock builds.Compounding matters and stoking volatility has been the decline in oil market liquidity, it said.Open interest (the number of outstanding Brent futures and options contracts) declined by 4.7% to 2.15mn contracts by May 2, while money manager net length continued to retreat as speculators increased positions on prices falling amid palpable bearish sentiment.Nevertheless, the consensus among energy agencies and analysts is that global oil demand will eventually accelerate in the second half (H2) of the year, led mainly by China and other non-OECD countries.Despite the near-term softness, Chinese GDP growth in Q1, 2023 actually surprised on the upside at 4.5% year-on-year (y-o-y), and both the International Energy Agency (IEA) and Opec see China as the impetus for their improving oil demand forecast through the rest of the year.They left their demand growth forecasts (annual average) unchanged for 2023 at 2mn bpd and 2.3mn bpd respectively in their April oil market reports.On the supply side, Opec+’s surprise output reduction will likely deepen the anticipated supply shortages in H2, 2023, with the result that oil supply will likely start undershooting oil demand before the end of the current quarter.Based on IEA oil demand and non-Opec crude projections and assuming Opec+ cuts are adhered to for the rest of the year and there is no meaningful increase in output by members currently under-producing relative to their targets, NBK sees the supply deficit widening and implied stock draws of as much as 2.5mn bpd in Q4, 2023.

Qatar Airways, which has started receiving its ordered 737 MAX has deployed the first aircraft on the Kuwait route.In all, Qatar Airways will be receiving nine 737 MAX. The airline has already received two and will receive the remaining seven aircraft by end of July.At a recent media event in Doha, Qatar Airways Group Chief Executive HE Akbar al-Baker told Gulf Times the national airline has already started taking delivery of its (Boeing) MAX aircraft.According to Qatar Airways, the national carrier recently had the opportunity to add a small number of Boeing 737-8 MAX aircraft to its fleet, the first of which arrived in Doha on April 15.Since its arrival the aircraft has undergone post-delivery maintenance, which has included IFE streaming installation and the aircraft has been used for pilot training almost every day, the airline said on its website.The utilisation of the Boeing 737-8s will add capacity to help drive future growth, especially in short haul markets, which will be expanded from the Doha-Kuwait-Doha route to other nations, principally in the GCC as further approvals take place.“As a rapidly growing airline, these efficient and modern aircraft are a welcome addition to the narrow body fleet to support our sustainable expansion plans as the world’s leading airline,” Qatar Airways said.Qatar Airways has now received its second Boeing 737-8 MAX and will receive the remaining seven aircraft by end of July.Qatar Airways is a leading customer for the Boeing 737-10 with 25 of this type ordered at the Farnborough Airshow in 2022. The Boeing 737-10 and Boeing 737-8 have a number of operational synergies, particularly in pilot training and ground handling, which will deliver value to customers, though there are differences in onboard amenities such as the Oryx One Play Wireless Inflight Entertainment, rather than the Individual IFE screens which will be available on the Boeing 737-10.“Whilst the Boeing 737-8 will operate on shorter sectors, these are not expected to be exclusively operated with this aircraft and will flexibly utilise the Boeing 777 and Airbus A350 depending on demand and capacity,” Qatar Airways said.According to manufacturer Boeing, the 737-8 has a 6,570km range.Incorporating advanced technology winglets and efficient engines, the 737 MAX offers excellent economics, reducing fuel use and emissions by 20% while producing a 50% smaller noise footprint than the airplanes it replaces.Additionally, 737 MAX offers up to 14% lower airframe maintenance costs than the competition.