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Qatari crude oil prices, both Dukhan and Marine, increased by 7.7% to average $86.62/barrel in August, indicated QNB Financial Services (QNBFS) calculations based on Bloomberg data.This compares with $80.45/b in July, QNBFS said on Monday.Qatari crude oil prices averaged $80.83/b for the year 2023 as at month-end August, QNBFS said citing Bloomberg data.Qatar’s budget for the current fiscal is heading towards a surplus, probably higher than envisaged, as Qatari crude averaged $80.83 per barrel from January to August in place of the budgeted $65 per barrel for fiscal 2023.Earlier, the Ministry of Finance estimated the budget surplus at QR29bn for the entire 2023.Qatari crude (including Dukhan and Marine) averaged $83.61 per barrel in January this year, $83.52/b (February), $75.80/b (March), $84.59/b (April), $76.13/b (May), $75.94/b (June), and $80.45/b (July).In the first quarter (Q1) of this year, Qatar already generated budget surplus of QR19.7bn, the Ministry of Finance revealed in June.In its briefing on the actual data of Qatar's budget in Q1 of 2023, the ministry said the total revenues for the quarter amounted to QR68.6bn, of which QR63.4bn were oil and gas revenues, while non-oil revenues amounted to QR5.2bn.The total expenditures in the same quarter of 2023 amounted to QR48.9bn, of which QR15.6bn was spent on salaries and wages and QR17.3bn on current expenses, while secondary capital expenditures amounted to QR1bn and major capital expenditures amounted to QR15.1bn, the statement noted.While releasing Qatar's budget for the fiscal year 2023, HE the Minister of Finance Ali bin Ahmed al-Kuwari had said the surplus would be directed towards paying off Qatar's public debt, supporting the reserves of Qatar Central Bank, and increasing the capital of the Qatar Investment Authority.He pointed out that an average oil price of $65 per barrel, on the basis of which the general budget for the year 2023 was built, is a conservative price adopted by the Ministry of Finance as part of its strategy to ensure the ability to allocate financial resources for existing commitments expected during the year, besides financing programmes and projects included in the national development strategy.

Powered by Commercial Bank’s payment acceptance solution, LuLu Group International opened Qatar’s first and the region’s second “cashier-less check-out free store: LuLu Express at Hamad International Airport Metro Station.Commercial Bank, in its pursuit of digital innovation, is “again leading the way in reshaping payment acceptance” in Qatar by “providing a shopping experience that is seamless and frictionless” for shoppers.Commercial Bank said the new convenience store provides fast, secure, and contactless check-out experience for customers.“What makes this store unique is being the first of its kind, where LuLu Express store has no check-out counters.“A customer can enter the store using his or her credit card, and then walk-out after finishing his shopping without any interaction with cashiers or self-checkout counters.“Every item picked by the customer at the store is automatically added to the customer’s digital shopping cart, and the purchase is completed when the customer leaves the store. There will be no queues, no cashier, and no waiting time at the counter to check-out either.”Speaking to Gulf Times following the launch of Qatar’s first check-out free store, Commercial Bank Group CEO Joseph Abraham said, “The opening of Qatar’s first cashier less store, which is powered by Commercial Bank’s acceptance solution, is a testament of the bank’s commitment to digital innovation to bring the best in class payment technology that meet the needs of merchants and customers alike.“We are delighted to co-operate with LuLu Express to introduce the first of its kind payment acceptance solution in Qatar, which not only makes shopping a fast and convenient experience for the customers, but also reshapes the payment solutions in the country. We are committed to providing customers in Qatar with the world’s latest innovations in digital experiences”.Abraham said Commercial Bank stays committed to “adapt and use cutting-edge technology to enhance customer experience.”“Transactions based on facial recognition will be a key feature of future banking. It is all about how we protect our customers in a convenient manner using technology. That will be an enhanced security feature that gives our customers' greater comfort and enhanced security.“LuLu has demonstrated the mindset of innovation. We are happy to partner with them,” Abraham noted.

The opening of Qatar’s first and the region’s second cashier less, check-out free store - LuLu Express at Hamad International Airport Metro Station - aligns with “digital transformation”, which is a key component of the Qatar National Vision 2030, noted Dr Mohamed Althaf, Director, LuLu Group International.Speaking to Gulf Times yesterday, Althaf said the “store is a new concept in that it provides lot of data that helps LuLu better understand its customer needs and serve them.”“This is the first such store in our entire global network. Powered by Commercial Bank’s fintech team, it can accept all kinds of payments. Right now, only credit cards, both local and international, will be accepted. In future, we can do credit and debit cards, Apple payments and transactions based on biometric and facial recognition,” he said.Althaf noted, “This is more than a cashier less, check out free store. We already have the technology for self-checkout. It is available in LuLu outlets across Qatar.“For us, this is a learning experience. This technology helps us know more about machine learning and artificial intelligence and how it can influence our store layouts in future. Customer data gathered help us know more about our customers and their needs. I believe this is our digital lab.”He said the store can be accessed based on the Metro timings. The opening of more such stores across Qatar will be considered.LuLu’s inventory management will address issues such as replenishing stuff at the store, he said.“The technology leadership taken by Commercial Bank has made the implementation fast, and they are always in the forefront when it comes to adoption of the latest fin-tech”.“The synergy between LuLu Group, and Commercial Bank for digital transformation and knowledge-based economy are in the spirit of the Qatar National Vision 2030”, he added.The LuLu cashier-less experience is similar to convenience store concepts in the US. LuLu Express is equipped with multiple cameras mounted in the ceiling and are powered by a combination of computer vision and machine learning to follow the shopper’s movement inside the store.These cameras use accurate tracking technology to identify shoppers through their body structure, and they do not record any facial recognition or biometric data.Although cashier-less, the store will have staff who will help customers find items on the shelves, restock and perform other operational activities, in addition to answering queries addressing concerns if any.

Qatar’s trade credit risk, which is a measure of private sector repayment risk, is “very low” by regional standards, Oxford Economics has said in a report.Oxford Economics rated the country's trade credit risk at 3.0, compared with the regional average of 6.1.Risk scores are from 1 to 10, with 10 representing the highest risk, the researcher noted.“The main factors underpinning this rating are macroeconomic stability, the credible and well-established exchange rate regime, robust growth, very high GDP per capita, and a healthy, well-developed banking sector,” Oxford Economics noted.Higher oil prices will likely support bank liquidity, despite rising exposure to construction and real estate and persistent foreign funding risk.The sovereign credit risk score under its data-driven methodology is 3.0, the same as six months ago and well below the Mena average of 4.3.The score reflects very high per capita incomes, large government reserves, strong external finances, and political stability.The budget deficit in 2017 was temporary, returning to surplus in 2018. But it began to narrow again in 2019 and, given the slump in oil and gas prices, moved into deficit of 2.1% of GDP in 2020.The balance returned to surplus in 2021, and widened above 10% of GDP in 2022, due to higher oil and gas revenues.“We forecast it to average at 9% of GDP this year,” Oxford Economics said.In 2017, the main rating agencies downgraded Qatar to AA-/Aa3 in response to the regional dispute (blockade).“Given the restoration of ties and the improvement in public finances, the ratings are on an upward trajectory again, with S&P recently upgrading its rating to AA and Fitch and Moody's lifting the outlook from stable to positive,” Oxford Economics said.Under the researcher’s methodology, exchange rate risk is 1.8, unchanged from six months ago, but well below the Mena average of 4.2.“The stronger US dollar has supported the dollar-pegged Qatari riyal at QR3.64, and there is only a small chance of de-pegging even if policy co-ordination with other Gulf countries continues to suffer,” Oxford Economics says.The low risk score, it said, “reflects the authorities’ long-standing commitment” to the dollar peg, as well as large foreign exchange reserves.Risk rose in 2020 when the current account moved into deficit, but the score improved as the current account moved back to surplus in 2021, as exports recovered, and oil and gas prices improved from the lows in 2020.The surplus widened to over 26% of GDP in 2022 and will remain in double digits this year and next, Oxford Economics added.

Sustainable Aviation Fuel (SAF) is considered a critical component in reducing the aviation industry's carbon footprint and achieving sustainability goals..text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[73991]**SAF has clearly emerged as a key feature within the industry as the world aims to achieve ambitious climate targets.The airline industry’s biggest focus now seems to be on sustainable aviation fuel, which will be the biggest contributor to its targeted net zero carbon emissions by 2050.SAF represents a broad category of fuels derived from non-fossil sources, including advanced biofuels and e-fuels, offering a sustainable alternative to conventional jet fuel.Global trade body of airlines - International Air Transport Association (IATA) estimates that SAF could contribute approximately 65% of the emissions abatement necessary for aviation to achieve its goal of reaching net zero CO2 emissions by 2050.Airlines have continued to announce their SAF offtake agreements, reaching 41 publicly announced SAF offtake agreements and 18 non-binding agreements since 2022, including both memoranda of understanding (MoUs) and letters of intent.Those agreements represent a total blended SAF volume of around 26mn metric tonnes. Considering the current blending ratio of 30-40% SAF and 60-70% conventional jet fuel, the total volume of neat SAF in these offtake agreements can be estimated to be around 8-10mn tonnes.Among the total of 59 SAF offtake agreements, some 51 agreements are based on Biofuel SAFs from four pathways, namely Hydro-processed Esters and Fatty Acids (HEFA), HEFA Co-Processing, Syngas Fischer-Tropsch (Syngas-FT), and Alcohol to Jet (AtJ). The remaining eight are associated with E-Fuel SAF, derived from various power-to-liquid projects.Based on IATA’s data sources, in excess of 130 renewable fuel projects have been announced publicly by more than 90 producers in some 30 countries across the world.Each of these projects has identified commitments to producing SAF in their product slate. Adding a few more projects in the second quarter of 2023, these projects represent an estimated overall renewable fuel capacity of 57mn tonnes by 2029.Given a three to six year lag between project announcement and commercialisation, IATA says further capacity announcements for 2026 and beyond can be expected, leading to additional facilities and in turn SAF production.Earlier, International Air Transport Association unveiled a series of roadmaps aimed at providing step-by-step detailing of critical actions and dependencies for aviation to achieve net zero carbon emissions by 2050.These roadmaps address aircraft technology, energy infrastructure, operations, finance, and policy considerations leading to net zero.At a media event during the IATA AGM in Istanbul in June, IATA Director General Willie Walsh said: "SAF production is less than 0.1% of what we need for net zero. But the trend is positive. In 2022, SAF production tripled to 300mn litres. And while critics of our industry dismiss that figure as irrelevant, it’s important to remember that airlines used every single drop costing almost $350mn.“With the right supportive policies, reaching 30bn litres by 2030 is challenging but achievable. That would be about 6% of the 450bn litres annual production capacity we need in 2050. We think it will be the tipping point because achieving it will establish the trajectory needed to scale up for 2050.”On why the airline industry was not moving faster on the issue, he said, “The willingness of airlines to use SAF is definitely not the issue. As I have said, every drop of SAF ever produced has been purchased and used. The problem is insufficient production capacity to meet demand.“That’s why we must increase the number of pathways for SAF production and diversify feedstocks — of course while maintaining their sustainability credentials. Doing so will open production opportunities best suited to particular geographical locations.”Undoubtedly, the aviation industry has the roadmaps to achieve energy transition. The industry leaders have reiterated time and again that their commitment to net zero by 2050 is fixed and firm.But to get the job done, SAF production has to be boosted. But stepping up SAF production is a complex and multifaceted endeavour that requires the concerted efforts of governments, industry stakeholders, and the research community.Governments and regulatory bodies need to provide incentives, subsidies, and tax breaks to encourage SAF production.This may include mandates requiring airlines to use a certain percentage of Sustainable Aviation Fuel in their fuel mix, which will then create a guaranteed market for SAF producers.By addressing these key areas, the airline industry can certainly work towards a more sustainable and environment-friendly future.

Growth in remittances from the GCC region could shift to Africa and Central Asia, the International Monetary Fund (IMF) said in a report.“Governments in the Gulf are starting to recruit fewer foreign workers as part of a push to employ more locals and are diversifying recruitment of foreign workers, targeting those from Africa and Central Asia,” IMF cited the reason in its report titled ‘Resilient remittances’.The report prepared by Dilip Ratha, a lead economist at the World Bank and an adviser to the Multilateral Investment Guarantee Agency noted: “The Gulf Co-operation Council countries are the second-largest source of remittances in US dollar terms but by far the largest when remittances are measured as a share of their GDP. The proportion of foreign workers in the Gulf often exceeds 70% of the population. Saudi Arabia and the United Arab Emirates are large sources of remittances for South Asia, North Africa, and Southeast Asia.”Remittances sent home by migrant workers provide vital income to millions of people in developing economies, the report said.A growing income gap between richer and poorer nations, demographic pressures, and changes to the planet itself will add to the number of people who migrate in search of economic opportunity. This will, in turn, fuel the flow of remittances for decades to come.According to official statistics, global remittances reached a record $647bn in 2022—three times official development assistance. In fact, remittances are worth more than that because many people send money through informal channels not captured by official statistics.Egypt’s remittance receipts are greater than revenue from the Suez Canal; Sri Lanka’s exceed tea exports; Morocco’s are larger than tourism earnings.India is the world’s largest recipient of remittances, the report noted. In 2022, it became the first country to receive more than $100bn in annual remittances. Mexico, China, and the Philippines are also large recipients.For smaller countries or those caught up in conflict, these transfers are especially vital. Money from migrants is worth more than one-fifth of GDP in Tajikistan, Lebanon, Nepal, Honduras, The Gambia, and a dozen other countries.“At times of crisis, remittances provide a financial lifeline,” the report noted.Migrant workers usually increase the sums they send home in the aftermath of a natural disaster, say, so that stricken relatives can buy food or pay for shelter. Remittances are often stable even if the source country falls into crisis.During the early stages of Covid-19, in 2020, for instance, remittances fell by just 1.1% — in a year when global income shrank by 3%.Migrant workers played a pivotal role in the economy during the pandemic, both as highly skilled doctors and nurses and as frontline delivery workers. The closure of money transfer operators during lockdowns disrupted remittance services, but people still sent money home through digital channels.Remittances recovered strongly and grew by almost 20% in 2021–22, it said.The United States is the largest source country for remittances, especially for Latin America and the Caribbean, the report said. Stricter border controls have trapped increasing numbers of migrants in transit countries, including in Mexico and Guatemala.A surprise result is an increase in remittance flows to transit countries as stranded migrants receive money from relatives. There’s a similar story on Europe’s borders, with more remittances going to trapped migrants in Morocco, Tunisia, and Turkiye, for example. These flows are having a positive impact on host economies, the report said.

Qatar sukuk issuance was supported in the first half of the year by a $1.3bn issuance by the government, Moody's said in a report Monday.GCC sukuk issuance fell 33% to $29.8bn in the first half of 2023 compared with the year-earlier period, mostly reflecting a steep decline in Saudi Arabian sovereign volumes, Moody’s Investor Service noted.Despite the decline, however, the kingdom remained the leading contributor to GCC issuance activity in the first half of the year, with around 50% of total volume, it said.Oman was the only GCC country not to register any issuance activity during the period.Supportive hydrocarbon prices continued to strengthen the fiscal balances of hydrocarbon- exporting GCC sovereigns and will translate into budget surpluses this year, considerably reducing the need to issue sukuk.Unfavourable financing conditions and increased market volatility also reduced opportunities for sovereign actors to refinance debt or to prefinance expected borrowing needs.Long-term issuance by GCC corporate and financial institutions during the period followed an opposite trajectory to regional sovereign issuance, Moody’s said.Long-term volumes from corporates and banks rose threefold to a combined $12.6bn (H1 2022: $2.9bn), partly offsetting the decline in sovereign volumes.Sustained economic growth and diversification agendas in GCC countries gave rise to increased issuance activity to support balance sheet growth.On the corporate side, cross-border issuance made up the bulk of activity, with $7.4bn issued in the GCC, almost three times the volume for 2022 as a whole.High demand for sukuk instruments and current scarcity in the market offered opportunities for private-sector actors to issue, Moody’s said.Globally, sukuk issuance fell 28% to $66bn in the first half of 2023 from $92bn a year earlier, largely reflecting lower volumes from major sovereign issuers, most notably Saudi Arabia.Moody’s expects global sukuk issuance to decline for a third consecutive year in 2023 after peaking at $205bn in 2020.“We anticipate issuance of between $150bn and $160bn for the year as a whole, down from $178bn in 2022. Lower volumes from key sovereign issuers directly stemming from ongoing improving fiscal positions explain most of the decline we anticipate for this year.“In the GCC, as well as Southeast Asia, robust commodity prices associated with sustained economic growth have translated into stronger fiscal positions and lower issuance needs,” Moody’s said.Lower sovereign volumes contrast with stronger activity on the part of private-sector issuers, which returned to the market in the first half of the year despite unfavourable market conditions.A significant increase in private-sector volumes was driven by companies completing postponed issuances or seeking to refinance upcoming maturities, as well as first-time issuers looking to diversify their funding sources.Increasing appetite for sustainable instruments, encouraged by GCC governments ahead of the COP28 summit, also pushed several corporates and financial institutions to issue green sukuk.“Overall, we remain positive on the long-term prospects for sukuk. These instruments offer access to the Gulf region, where significant financial reserves and solid economic prospects are attracting investors in increasing numbers.“As sukuk markets in core Islamic countries become more mature and economies continue to develop, we expect the sukuk market's growth prospects to remain solid,” Moody’s noted.

Qatar's economic activity could remain modest on expectedly steady hydrocarbon output, National Bank of Kuwait said in its report released Monday.NBK’s 2023 growth forecast for Qatar remains unchanged from the May estimate, at 2%.In its report, NBK noted Qatar’s economy expanded by 2.7% year-on-year (y-o-y) in first quarter (Q1, 2023), down from the “exceptional” World Cup-driven growth of 6.2% in Q4, 2022, and below the consensus forecast of 4.2%.The “slower” expansion was mostly on a marked deceleration in non-oil growth, which plunged to 1.9% y-o-y from 7% in the previous quarter, with the manufacturing (11%), motor vehicle repair (9.1%), transportation and storage (17%), and accommodation and food (17%) components expanding the most.Meanwhile, hydrocarbon sector growth eased to 4.1% from 4.8% previously, but remained the largest contributor to GDP (more than half).Looking forward, economic activity could remain modest on expectedly steady hydrocarbon output and as non-oil activity moderates post World Cup amid lower visitor numbers, softer credit growth, and higher interest rates; NBK said its 2023 growth forecast for Qatar remains unchanged from the May estimate, at 2% from 4.8% in 2022.The report also noted that Brent crude snapped a two-week losing streak on September 1, closing up at its highest level since last November at $88.6/barrel (+4.8% week over week) amid expectations of tighter supply.“All the indications are that Saudi Arabia will extend its voluntary 1mn barrels per day (bpd) production cut, in effect since July, into October, while Russia could also reduce its exports further after Russian deputy prime minister promised to unveil a new OPEC+ supply cut deal this week,” NBK said.In the US, commercial oil inventories fell for a third consecutive week (crude stocks have declined in five of the last six weeks), by 8mb in the week ending August 25, on higher domestic (refinery throughputs) and overseas demand (exports).“Prices were little changed this morning (September 4) in Asian trading,” NBK noted.

Qatar banking sector total assets declined 2% month-on-month (MoM) and (down 1.9% in 2023) in July to QR1.86tn, QNB Financial Services (QNBFS) has said in a report.The month also saw a decline in both loans and deposits with banks in Qatar.Both the public and private sectors pushed the overall credit lower. As deposits fell by 2.9% in July, the Loans to deposits ratio (LDR) increased to 134.1% compared to 131.5% in June this year.According to QNBFS, total assets drop in July was mainly due to a fall by 1.3% in domestic assets and 5.1% in foreign assets.Total assets are down by 1.9% in 2023, compared to a growth of 4.2% in 2022. Assets grew by an average 6.9% over the past five years (2018-2022)Liquid assets to total assets was at 30.7% in July, compared to 31.1% in June, QNBFS noted.Loans went down 0.9% during July to QR1.24tn, the report said.Loans slide in July was mainly due to a decline by 1.9% in the public sector and 0.5% in the private sector.Loans are lower by 0.9% in 2023, compared to a growth of 3.3% in 2022.Loans grew by an average 6.7% over the past five years (2018-2022), QNBFS said.Loan provisions to gross loans stood at 3.8% for both June and July this year.Total public sector loans dropped by 1.9% MoM (-3.8% in 2023). The semi-government institutions’ segment fell by 27.7% MoM (-0.2% in 2023), while the government segment (represents 28% of public sector loans) moved lower by 2.9% MoM (-14.1% in 2023). However, the government institutions’ segment (represents 67% of public sector loans) loan book increased by 1.3% MoM (+1.0% in 2023).QNBFS report reveal Qatar bank deposits fell by 2.9% during July to QR927.8bn.Deposits drop in July was mainly due to a fall by 7.1% in public sector deposits.Deposits have declined by 7.1% in 2023, compared to a growth of 2.6% in 2022.Deposits grew by an average 4% over the past five years (2018-2022), QNBFS said.Loans to deposits ratio moved up during the month to 134.1% in July.Looking at segment details, the government segment (represents 25% of public sector deposits) mainly dragged down the public sector with a fall by 15.5% MoM (-27.2% in 2023), while the government institutions’ segment (represents 58% of public sector deposits) dropped by 5.1% MoM (-10.1% in 2023).However, the semi-government institutions’ segment moved up by 1% MoM (3.3% in 2023) in July.An analyst said, “The banking sector deposits dropped significantly by 2.9% in July 2023 and can be attributed in part to the government’s debt redemption plan for both external and domestic debt.“Government deposits have declined by 27.2% for the year 2023 as at July 2023 and is likely to have been utilised in repaying debt, with the recently released public budget statement for the second quarter 2023 stating that QR12.5bn in redemption of external bonds and loans were made during the second quarter (Q2) of 2023.”

Origin-Destination (O-D) passenger traffic growth in Qatar was second best in the Middle East in the second quarter of the year, reveals a study by International Air Transport Association.In the second quarter (Q2) of the year, Qatar recorded an O-D growth of 5.1% (compared to same period in 2019), which was second only to the UAE in the entire Middle East region, IATA noted.The UAE led with an impressive 17.2% growth in O-D passenger traffic, compared to the same period in 2019, it said.Passenger traffic growth generally varied among the countries in the region, with the strongest performances seen in the UAE, Qatar, and Jordan.While Iran’s O-D passenger traffic remained 34.4% below pre-Covid levels, other countries also exhibited subdued growth in the second quarter compared to the previous period.This, IATA noted, was primarily due to the timing of Ramadan in 2023 compared to 2019.The passenger traffic recovery has been strong for Middle East carriers with 31.4% year-on-year (YoY) in the second quarter of 2023. The region’s airlines saw their revenue passenger kilometers (RPKs) reach within 0.9% of their Q2, 2019 levels.The Middle East outperformed the global recovery in RPKs, which reached 93.7% (within 6.3%) of pre-covid levels for the quarter. Since most of the passenger traffic for the Middle East is international, total RPKs followed similar growth trends and recovery rates as international RPKs.Ticket sales for the region have outperformed the global average and continue to trend upward, indicating sustained passenger demand, IATA said.Local holiday shifts in the region caused some fluctuations but the overall trend remains positive, it said.Although the annual growth in available seat kilometers (ASKs) was outpaced by the growth in RPKs, capacity still increased by 24.6% compared to the same period last year.As a result of the slower capacity growth, the passenger load factor for the region increased by 4.1 percentage points compared to the same period last year.Cargo activity: Cargo activity for Middle East airlines decreased in the second quarter of 2023 by 3.1% compared to the same period last year. This was still an improvement relative to the 8.1% YoY drop in the first quarter of 2023.Compared to 2019, second quarter cargo activity was flat. Middle East carriers have demonstrated better cargo activity in the second quarter compared to the global activity, which was 5% and 4.8% below 2022 and 2019 levels, respectively.Aircraft deliveries: Aircraft deliveries in the Middle East have maintained an upward trend since the lows of 2020, IATA pointed out.Deliveries for 2023, including 42 planes that are scheduled to be received by the end of the year, are set to increase by nearly 50% over 2022 numbers.With 90 aircraft in total for 2023, Middle East aircraft deliveries are set to recover to their 2019 levels.This region has also seen a shift in deliveries from predominantly widebody jets in 2019 to narrowbodies since 2020.The scheduled deliveries for 2023 indicate growth in both types of jet aircraft, with narrowbodies still accounting for most of the deliveries in the region, IATA noted.

Qatar’s budget generated a surplus of QR10bn in the second quarter (Q2) of the year with total revenue amounting to QR68.4bn and total expenditure QR58.4bn, the Ministry of Finance said on Thursday.“The surplus will be directed according to the state’s targeted financial policies, which are reducing public debt, raising the reserves of the Qatar Central Bank, and enhancing the savings of future generations through the Qatar Investment Authority,” the Ministry noted.Oil price averaged $77.7 per barrel during the quarter, the Ministry said in its ‘Statement of the State’s General Budget, Second Quarter 2023’.“Qatar's revenue continued to outperform the State budget projections, as oil prices remained higher than the conservative assumption of $65 per barrel outlined in the budget.“On the other hand, total expenditure during the second quarter of 2023 reached QR58.4bn, recording an increase of 19.3% compared to the previous quarter,” the Ministry of Finance said.Public debt: As of June 30, 2023, a 3.5% decrease was recorded in the overall public debt level compared to Q1-2023, bringing the total public debt to QR343.6bn, the Ministry of Finance said.“The reduction is a consequence of the successful execution of the scheduled debt redemption plan for both external and domestic debt. In the second quarter of 2023, a total payment of QR12.5bn was made towards the redemption of external bonds and loans,” the Ministry of Finance said.Domestic debt: Total domestic public debt stood at QR160.4bn, as of June 30 this year, which represents 46.7% of the overall public debt.External debt: Total external public debt at the end of June 2023 stood at QR183.2bn, which represents 53.3% of the total public debt.Debt to GDP ratio: Total public debt accounted for 39.8% of GDP in June this year, compared with 41.2% in the previous quarter.Citing data from the Planning and Statistics Authority (PSA), Ministry of Finance said real GDP in Q1,2023 increased by 2.7% compared to Q1,2022.The hydrocarbon sector recorded a growth of 4.1% and the non-hydrocarbon sector recorded a growth of 1.9% in Q1,2023 compared to the same period last year.The non-hydrocarbon sector returned to its normal performance in Q1,2023 following significant growth in the fourth quarter of 2022, which was primarily attributed to the World Cup-related initiatives. However, the sector maintained a robust level due to the positive momentum generated by the football mega event.Qatar experienced a substantial increase in tourist arrivals after the FIFA World Cup Qatar 2022.In Q1,2023, the country recorded a 268% rise in international visitors compared to the same period in the previous year, with a total of 1.16mn visitors.The influx of tourists provided support to various domestic sectors. Accommodation and food service activities stood out, showing an impressive 17.3% increase in Q1,2023 compared to the same period in 2022.The transportation and storage sector also continued to grow, with a 16.8% rise in Q1,2023 compared to the previous year.According to Hamad International Airport (HIA), the airport maintained its “remarkable” performance, witnessing a 44.5% increase in passenger traffic and an 18.7% increase in aircraft movements during the first quarter of 2023, as compared to the same period in the previous year.The manufacturing sector experienced a 10.8% growth in Q1-2023 compared to Q1,2022, driven mainly by increased production of refined petroleum products, food, beverages, and other goods, Ministry of Finance said.

Total public spending during the second quarter of the year amounted to about QR58.4bn, representing an increase of 19.3% compared to the previous quarter, Ministry of Finance announced on Thursday.Newly approved projects during the second quarter (Q2) totalled QR3.9bn, Ministry of Finance said and noted that “major capital expenditure” increased by 29.1% compared to the previous quarter due to completion of several infrastructure projects and the newly awarded projects, in addition to the disbursement of compensation to contractors.Total expenditure for the second quarter amounted to QR58.4bn, representing an increase of 19.3% compared to the previous quarter. Total expenditure for Q2, 2023 accounted for 29.3% of the 2023 budget, the Ministry of Finance noted.Total revenue for the second quarter amounted to QR68.4bn, which Ministry of Finance said represents a decline of 20.2% compared to the same period last year.Total revenue for the second quarter accounted for 30% of the 2023 budget.The oil and gas revenue amounted to QR40.3bn, which represents a decline of 30.9% compared to the same period last year.The decrease in hydrocarbon revenue during the current period is attributed to lower oil prices compared to the same period last year. The average oil price per barrel declined in Q2, 2023 by 30.5% compared to the same quarter last year.“This decline is primarily driven by concerns about a potential global economic slowdown,” Ministry of Finance said.Non-oil revenue for Q2, 2023 totalled QR28.2bn, which it said represents an increase of 2.2% compared to the same period last year.In Q2, 2023, a significant portion of the budgeted non-oil revenue for 2023 was realised, primarily due to the timing of corporate income tax collection.The revenue achieved in Q2,2023 aligned closely with the target, resulting in the Ministry of Finance maintaining its estimate of total 2023 non-oil revenue at QR42bn.In terms of country’s expenditure, the Ministry of Finance said “Current expenditure” increased by 14% compared to the previous quarter.This increase, it said was a result of the rise of interest rates on loans, in addition to the current expenses of some of the Qatar’s projects like the one on food security.Salaries and wages increased by 12.2% in Q2 compared to the previous quarter. This is mainly due to new employments in Q2-2023, in addition to advance payments and annual bonuses coinciding with the holiday season.Qatari projects that were financially approved (under major Capex) during the second quarter included infrastructure and roads (QR224.1mn), sewer and drainage (QR300mn), parks and green areas (QR948mn) and miscellaneous works (QR2.5bn).

Africa accounts for 18% of the global population, but just 2.1% of air transport activities including cargo trade..text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[71424]**Infrastructure constraints, high costs, lack of connectivity, regulatory impediments, slow adoption of global standards and skills shortages affect the customer experience and are all contributory factors to African airlines’ viability and sustainability. The continent’s carriers suffered cumulative losses of $3.5bn in two years from 2020, decimated by the Covid-19 pandemic. Moreover, International Air Transport Association (IATA) estimates further losses of $213mn in 2023.Obviously, a huge gap exists between Africa’s demand and supply. IATA points out that the continent can benefit from the connectivity, jobs and growth that aviation enables if that gap is closed.Recently, the African Airlines Association (AFRAA) announced that it is joining ‘Focus Africa’, an IATA initiative, which is aimed at strengthening aviation’s contribution to Africa’s economic and social development and improve connectivity, safety and reliability for passengers and shippers.This initiative will align private and public stakeholders to deliver measurable progress in six areas.Under Focus Africa, private and public stakeholders are committed to delivering measurable improvements in six critical areas - safety, infrastructure, connectivity, finance and distribution, sustainability, and skills development."AFRAA strengthens the Focus Africa coalition as we work to increase aviation’s role in Africa’s development. This has enormous promise. The continent is home to the world’s most rapidly growing population but accounts for just 2% of air passenger and cargo transport activity.“The road to realising aviation’s potential will be long. But with the strong partnerships committed to Focus Africa, we can, and we will realise the needed change,” said Kamil al-Awadhi, IATA’s regional vice-president (Africa and the Middle East).“The tasks for Focus Africa are not new. Work is already underway as part of the work of IATA and other stakeholders in Africa. But after the financial trauma that the pandemic brought to African aviation, we are at a unique time of rebuilding. By launching Focus Africa now, we can ensure that the recovery from Covid-19 moves aviation to an even better place than we were in 2019,” al-Awadhi added.Sustainably connecting the African continent internally and to global markets with air transport is critical for bringing people together and creating economic and social development opportunities.It will also support the realisation of the UN’s Sustainable Development Goals (UN SDGs) for Africa of lifting 50mn people out of poverty by 2030.In particular, trade and tourism rely on aviation and have immense unrealised potential to create jobs, alleviate poverty, and generate prosperity across the continent.Africa has a solid foundation to support the case for improving aviation’s contribution to its development. Pre-Covid aviation supported 7.7mn jobs and $63bn in economic activity in Africa. Projections are for demand to triple over the next two decades.In Africa, IATA has identified six critical focus areas that will make a positive difference for the continent’s aviation in particular and economy in general."The limiting factors on Africa’s aviation sector are fixable. The potential for growth is clear. And the economic boost that a more successful African aviation sector will deliver has been witnessed in many economies already. With Focus Africa, stakeholders are uniting to deliver on six critical focus areas that will make a positive difference. We will measure success and need to hold each other accountable for the results,” noted Willie Walsh, IATA director general.Undoubtedly, Africa continues the path to recovery from the Covid-19 crisis. Air cargo is 31.4% over 2019 levels and air travel is 93% of 2019 levels. Full recovery for air travel is expected in 2024.

Qatari companies have warmed up to sustainability as the globe simmers, QNB Financial Services said and noted MSCI has rated the country’s sovereign ahead of regional peers in ESG.Moreover, QNB's high rating (#1 in Qatar/top-2 among GCC banks), augmented by its sizeable weight in the QSE, puts Qatar front and centre on the sustainability map, QNBFS noted.Qatar envisions transforming into an advanced society by 2030 with a focus on four key pillars: human, social, economic and the environment.QNBFS said, arguably three of these pillars have ESG connotations. For example, for ‘E’, an environmental sector strategy (ESS) was created to support Qatar National Vision 2030, premised on the need to sustain the environment for the present and future generations.That culminated in the establishment of the Ministry of Environment and Climate Change in 2021 as Qatar set a bold goal of reducing greenhouse gas emissions by 25% by 2030, tying this commitment into the larger global climate goals and the Paris Agreement.More than 90 countries have at least pledged a timeframe within which they hope to achieve net-zero or carbon neutral status – 2050 is the target year set by most countries, although some pledges are as late as 2070.Over 60% of Middle Eastern respondents in the 2023 PwC survey on ESG affirmed their companies have incorporated ESG issues into their strategies – Qatari companies formed the third-largest group among these respondents.In December 2016, the Qatar Stock Exchange (QSE) issued guidance on ESG reporting and launched a web platform (QSE Sustainability Platform), which allows listed companies to record their progress in adopting sustainability.It is a detailed scorecard that queries data such as energy used per employee, average hours of training per employee and percentage of independent directors. The idea was to phase in mandatory ESG reporting gradually.QSE’s ESG scores are based on percentage-of-completion of these disclosures, rather than actually scoring these disclosures. It is somewhat surprising that this voluntary self-reporting databank has low compliance levels.“We do note that QNB Group has been noticeably persistently fully-compliant (100%). Comparatively, the overall average compliance ratio is 26% over the past four years. The median firm has 0% compliance ratio – only 19 companies have a >0% compliance ratio since 2019,” QNBFS said.The regulatory framework is evolving to integrate ESG and notable developments include: the 2015 Companies Law and its 2021 Amendment, QFMA Corporate Governance Codes (2014 and 2016), QSE ESG Guidelines (2016), and various labour reforms as recently as 2022.In late 2022, QFMA published a draft amendment to its Governance Code, to bring Qatar’s publicly-listed companies more in line with international best practices, QNBFS said.

GCC petrochemical and chemical producers have reduced hazardous waste generation to a record low of 0.0011 units per tonne of production in 2022, says GPCA in a report.This achievement represents a “remarkable” 42% decrease compared to the previous year, highlighting the industry’s dedication to sustainable practices and waste management, noted Gulf Petrochemicals and Chemicals Association, which represents the downstream hydrocarbon industry in the GCC region.In addition, the report revealed a 61% reduction of hazardous waste generation when compared to the average value recorded over the previous nine years (2013-2021).However, in 2022 non-hazardous waste generation increased by 10% compared to the previous year and dropped by 40% when compared to the rate between 2013 and 2021.Carbon dioxide (CO2) intensity saw a “remarkable” 12% decrease between 2022 and 2021, and an “impressive” 24% decrease compared to the previous nine-year average.GHG emissions also “dropped” by 11% compared to 2021, signalling the industry’s commitment to net-zero.In 2022, process safety incidents dropped by 31% year-on-year (YoY) and by an “impressive” 40% over the past nine-year average, GPCA said.Last year, GPCA members achieved an “impressive” 17% reduction in combined Total Recordable Incidents (TRIs), encompassing incidents involving both employees and contractors.This accomplishment was measured against the average TRIR (Total Recordable Incident Rate) over the preceding nine years.A comparison between 2022 and 2021 reveals a 3% improvement, despite a simultaneous 3% increase in total man-hours.Having identified this as an area of concern, GPCA has set up a new task force under the Responsible Care Committee – the Contractor Safety Task Force (CSTF) – to enhance contractors’ safety culture and behaviour among GPCA’s Responsible Care members.Recently, GPCA released its ‘Responsible Care 2022 Performance Metrics’ report under the theme ‘Navigating a year of progress and sustainability’.The report is based upon some 999 data entries from as many as 39 companies collected and analysed from a set of 26 metrics.The individual performance metrics are divided in five key categories: occupational health and safety, process safety, emissions and discharges, resource utilisation, and distribution and products.

The Qatari authorities are taking steps to limit local banks’ reliance on short-term non-resident deposits and external funding, the Economist Intelligence Unit (EIU) has said in a report.The Qatari banking sector is “well regulated”, EIU said and noted “strong prudential indicators insulate local banks from a deterioration” in asset quality. Banks’ profitability has been “bolstered” by higher interest rates and a larger net interest margin.Since the authorities are taking steps to limit Qatari banks’ reliance on short-term non-resident deposits and external funding, EIU noted that it will address the large negative net foreign asset position of Qatar's banks.According to EIU, the riyal's peg to the dollar will continue to be backed by healthy foreign reserves and the huge assets of the Qatar Investment Authority (the sovereign wealth fund), estimated at about $475bn.As in the case of Qatari banking sector, EIU has assigned ‘BBB’ rating for the local currency. The rating, it said, is supported by strong international demand for Qatar's hydrocarbons exports, a large current-account surplus and a restrictive monetary policy stance.Qatar's sovereign credit strengths are large fiscal and current-account surpluses, which are expected to limit borrowing, and huge external assets. The country’s public debt has fallen sharply over the past two years.High energy prices, though falling below their recent peaks, will support a strong trade position in 2023-24 and ensure external liquidity is comfortable,” EIU said, assigning sovereign risk rating at ‘A’.The economic structure risk is BB-rated, it said. Qatar's over-reliance on hydrocarbons exports remains a vulnerability, exposing the country to global energy price movements.In its previous update, EIU noted Qatar's overall business environment score improved, from 6.60 for the historical period (2017-21) to 7.74 for the forecast period (2022-26).This has helped Qatar's global ranking to improve by 15 places, from 36th to 21st, although it retains its regional ranking, in third place. The largest improvements in terms of scores are in the infrastructure and market opportunities categories, it said.“Qatar's fairly open foreign investment regime, open trading relationships with regional partners and sophisticated capital markets will remain strong aspects of its business environment. The main shortcomings are in policy towards private enterprise and competition and in access to financing for small and medium-sized enterprises; these are expected to improve in the medium term,” EIU said.

American multinational corporation Boeing sees Qatar as a very important and strategic market, where it is present in all sectors of aerospace in the country.“We are proud to be a company that continues to contribute towards Qatar’s growth, especially in terms of Qatar National Vision 2030 and look forward to supporting the country’s ambitious plans,” Boeing President in the Middle East, Turkiye and Africa Kuljit Ghata-Aura said in an exclusive interview with Gulf Times in Doha.Kuljit noted Boeing and Qatar have been partners since 2006, when Qatar Airways placed its first order for Boeing aircraft.Besides two great customers in Qatar on the defence and commercial side – Qatari Amiri Air Force and Qatar Airways, Boeing collaborates with education and government institutions in Qatar on a range of initiatives that promote STEM education and entrepreneurship, he pointed out.He said, “Qatar’s Ministry of Economy and Commerce is one of our partners in the process through Invest Qatar. That relationship has strengthened over the last few months.”“We are proud to have been part of Qatar Airways’ success story. Since our partnership began, Qatar Airways has made landmark orders of Boeing 777s and 787 Dreamliners. These new airplanes will support Qatar Airways as it expands its passenger and cargo capacity. Boeing is also supporting Qatar Airways Cargo in developing ‘connected cargo’ solutions to enable greater operational efficiency,” Kuljit said.Boeing provides support to the Qatar Amiri Air Force by facilitating iconic platforms such as the F-15 fighter, the C-17 Globemaster transport airplane and the AH64 – Apache helicopter – all of which have been utilised to protect Qatar’s air, land and sea borders and have also been deployed to conduct humanitarian missions across the globe.During his brief visit to Doha recently, Kuljit spoke to Gulf Times about Boeing’s community engagement in Qatar.

Boeing has a “very significant” growing commercial customer in Qatar Airways that is going to be the launch customer of some of its “newest and most innovative” products, noted company’s president in the Middle East, Turkiye and Africa, Kuljit Ghata-Aura.“We are proud to have been part of Qatar Airways’ success story. Since our partnership began (in 2006), Qatar Airways has made landmark orders of Boeing 777s, 777 Freighters, 777Xs, 737 MAXs, 787 Dreamliners and 747-8 Freighters.“As the launch customer of the new 777-8F, we recently announced two very significant deals for 74 777X passenger and freighter airplanes, and up to 50 737-10 passenger airplanes. In April, Qatar Airways took delivery of its first 737-8 airplane,” Kuljit said in an exclusive interview with Gulf Times in Doha.Currently, he noted, Qatar Airways operates more than 130 Boeing airplanes: three 737-8s; 89 777s, including 27 777 freighters; 41 787s; three 747 Boeing Business Jets and two 747-8 freighters.Kuljit noted Qatar Airways has more than 120 Boeing airplanes on order books, which include 74 777Xs; 19 787-9s; two 777 freighters, 25 737-10s and six 737-8s.In 2013, Qatar Airways ordered 60 777X new widebody airplanes. In January 2022, Qatar Airways expanded its commitment to the 777X family by becoming the launch customer for the newest 777-8 freighter, with a confirmed order of some 34 airplanes and options for an additional 16 freighters.In July 2022, Qatar’s national carrier committed to up to 50 Boeing 737-10s with a firm order for 25 airplanes and options for 25 more.In April this year, Qatar Airways took delivery of its first 737-8, the first Boeing single-aisle airplane in the airline’s fleet.“These new airplanes will support Qatar Airways as it expands its passenger and cargo capacity. Boeing is also supporting Qatar Airways Cargo in developing ‘connected cargo’ solutions to enable greater operational efficiency with a focus on the 777-8 freighter,” he said.During the FIFA World Cup Qatar 2022, Kuljit noted a dedicated team of 60 professionals was deployed to Doha to support airline customers with everything they needed to ensure a safe and timely service for the tournament.He said Boeing provides support to the Qatar Amiri Air Force by facilitating iconic platforms such as the F-15QA (Qatar Advanced) fighters, the C-17 Globemaster transport airplanes and the AH-64 Apache.All of them have been utilised to protect Qatar’s air, land and sea borders and have been deployed to conduct humanitarian missions across the globe and surveillance missions in Qatar during large-scale events like the 2022 FIFA World Cup.The F-15QA fleet conducted 52 sorties and the AH-64 Apache accomplished 96 missions during the 2022 FIFA World Cup in Qatar.Kuljit said Boeing works closely with the Qatar Amiri Air Force, providing training and sustainment for the C-17 fleet.Boeing is also providing spare parts, support and test equipment, maintenance support, performance-based logistics, training devices, and aircrew and maintenance training for Qatar’s fleet of the AH-64 Apache helicopters.In addition, Boeing is providing in-country spare parts, maintenance, training, programme management and logistics support for the F-15QA fighters.To ensure mission readiness and smooth support of all defence platforms, Boeing is growing its employee base in Qatar, he pointed out.On Boeing’s global production rates, he said, “On 737, we are transitioning production to 38 airplanes a month. As we move to the higher rate, we will continue to prioritise stability. We still plan to increase to 50 airplanes per month in the 2025/2026 timeframe.“On 767, the current rate is three a month, while on 777/777X – it is also three a month. We have said our plan is to go to four a month in the 2025-2026 timeframe.“On 787, we are producing at four a month and still plan to reach five a month by the year-end. We have said our plan is to get to 10/month by the 2025-2026 timeframe.”On supply chain issues impacting the airline industry, Kuljit noted, “At Boeing, we continue to focus on driving stability in our production system, including closely partnering with our suppliers to address challenges, meet our customer commitments and prepare for future rate increases. Our objective is unchanged: a healthy and stable production system.“There’s progress in many areas of the supply base, however we expect supply chain challenges to continue well into 2024. We continue to work through supply chain challenges on a case-by-case basis.“We regularly monitor our suppliers across the globe, including our sub-tier supply chain, to ensure their deliveries support our current and future airplane production needs. This includes a variety of different approaches, from top leadership engagements to daily communications to onsite and embedded teams, all ensuring alignment and stable, predicable execution.“We have also ramped up internal fabrication for surge capacity and increased inventory of select parts for risk protection,” he added.