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Qatar's maritime sector displayed robust performance this September as more ships called on Hamad, Doha and Al Ruwais ports and there was a growth in general cargo and container handling compared to August 2022, according to the official data. The number of ships calling on Qatar's three ports stood at 276 in September 2022, which saw 3.37% increase against August 2022. However, it was 7.07% lower on an annualised basis. As many as 2,176 ships had called on three ports during the first six nine months of this year. "The maritime sector of Qatar has undergone a significant transformation in recent years,” Mwani Qatar said in a tweet. Hamad Port – whose strategic geographical location offers opportunities to create cargo movement towards the upper Gulf, supporting countries such as Kuwait and Iraq and south towards Oman – saw as many as 138 vessels call on the port in the review period. The general cargo handled through the three ports was 132,270 tonnes in September 2022, which showed a stupendous 31.13% and 15.63% jump month-on-month and year-on-year respectively in the review period, according to figures released by Mwani Qatar. Hamad Port – whose multi-use terminal is designed to serve the supply chains for the RORO (vehicles), grains and livestock – handled 63,500 freight tonnes of bulk and 58,304 freight tonnes of breakbulk in September this year. On a cumulative basis, the general cargo movement through the three ports totalled 1.15mn tonnes during January-September this year. The three ports handled 6,048 RORO in September 2022, which registered a 26.68% decline on a monthly basis but zoomed 38.81% surge year-on-year. Hamad Port alone handled 6,043 units in August this year. The three ports together handled as many as 59,539 vehicles during January-September 2022. The container handling through three ports stood at 123,006 TEUs (twenty-foot equivalent units), which showed a marginal 0.93% increase on a monthly basis but declined 4.47% year-on-year in September 2022. Hamad Port, which is the largest eco-friendly project in the region and internationally recognised as one of the largest green ports in the world, saw 119,890 TEUs of containers handled this September. The container handling through the three ports stood at 1.06mn TEUs during January-September this year. The container terminals have been designed to address the increasing trade volume, enhancing ease of doing business as well as supporting the achievement of economic diversification, which is one of the most important goals of the Qatar National Vision 2030. The building materials traffic through the three ports stood at 27,364 tonnes in September this year, which plummeted 23.59% and 34.41% month-on-month and year-on-year respectively. A total of 352,560 tonnes of building materials had been handled by these ports in the first nine months of 2022. The three ports had handled 6,499 livestock in September 2022, which showed 6.11% and 79.89% decrease on monthly and yearly basis respectively. The ports had handled a total of 127,316 heads during January-September this year. Doha Port is boosting efforts to transform the country into an attractive regional tourist destination serving global cruise ships as well as providing the facilities needed for the economic diversification being pursued by the Qatar National Vision 2030. "Qatar’s maritime sector is expected to witness another year of strong growth in light of the efforts taken by the authorities concerned to boost goods traffic at the ports, with expectations of supply chains improving during the next few periods," Mwani Qatar had said in its latest annual report.

Qatar's producers' price index (PPI) surged 54.25% year-on-year in August 2022, mainly on the back of the country's hydrocarbons sector and certain manufacturing businesses such as refined petroleum products, rubber and plastics, chemicals and basic metals and according to the official estimates. Qatar's PPI, which captures the price pressure felt by the producers of goods and services, rose 3.17% on a monthly basis in the review period, the figures released by the Planning and Statistics Authority (PSA) said. The PSA had released a new PPI series in late 2015. With a base of 2013, it draws on an updated sampling frame and new weights. The previous sampling frame dates from 2006, when the Qatari economy was much smaller than today and the range of products made domestically much narrower. The hardening of the global crude oil and industrial input prices, on account of higher inflation and interest rates, had its reflection in the PPI. The mining PPI, which carries the maximum weight of 82.46%, reported a 63.86% surge on an annualised basis in August 2022 as the average selling price of crude petroleum and natural gas was seen soaring 63.95% and that of stone, sand and clay by 12.46%. The mining PPI escalated 5.12% on a monthly basis in August this year on the back of a 5.13% jump in the average selling price of crude petroleum and natural gas but there was a 1.56% decline in that of stone, sand and clay. The manufacturing sector PPI, which has a weight of 15.85% in the basket, zoomed 12.99% year-on-year in August 2022 due to a 42.55% growth in the average price of rubber and plastic products, 26.85% in refined petroleum products, 14.8% in basic metals, 9.58% in chemical and chemical products, 9.19% in cement and other non-metallic mineral products and 2.99% in food products. Nevertheless, there was a 4.05% decline in the average price of printing and reproduction of recorded media and 1.29% in beverages. The manufacturing sector PPI saw a monthly 8.07% dip this August as the average selling price of chemicals and chemical related products shrank 11.13%, followed by refined petroleum products (6.19%), basic metals (2.96%), printing and reproduction of recorded media (0.16%) and cement and other non-metallic mineral products (0.07%). However, there was a 5.26% increase in the average selling price of rubber and plastics products, beverages (0.17%) and food products (0.09%). The index of electricity, gas, steam and air conditioning supply reported 1.71% and 11.22% decrease on yearly and monthly basis respectively this August. The index of water supply weakened 1.76% on an annualised basis but reported a 4.63% jump month-on-month in August 2022.  

The Qatar Stock Exchange on Thursday gained 145 points and its key barometer inched towards 12,700 points, mainly led by banks and financial services sector. More than 51% of the traded constituents extended gains as the 20-stock Qatar Index settled 1.15% higher at 12,695.27 points, although it touched an intraday high of 12,759 points. The weakened net selling pressure from both local retail investors and domestic funds had its influence in the market, whose year-to-date gains improved to 9.2%. The foreign institutions continued to be net buyers but with lesser intensity in the bourse, whose capitalisation added QR10.05bn or 1.45% to QR705.34bn, mainly on the back of large and midcap segments. The Islamic index gained slower than the other indices in the market, which saw a total of 0.11mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR1.24mn changed hands across 38 deals. Trade turnover and volumes were seen decreasing in both the main and venture markets. The Gulf individuals’ net selling was seen weakening in the bourse, which saw no trading of sovereign bonds. The Arab retail investors’ net profit booking weakened in the market, which saw no trading of treasury bills. The Total Return Index shot up 1.15% to 26,004.03 points, the All Share Index by 1.27% to 4,034.13 points and the Al Rayan Islamic Index (Price) by 0.25% to 2,745.54 points. The banks and financial services sector index gained 1.78%, industrials (0.99%), transport (0.74%), consumer goods and services (0.73%) and realty (0.43%); while insurance and telecom declined 0.73% and 0.03% respectively. Major gainers in the main market included QNB, Qatar Islamic Insurance, Qatar Islamic Bank, Zad Holding, Nakilat, Mannai Corporation, Industries Qatar, Mesaieed Petrochemical Holding, Ezdan, Mazaya Qatar and Nakilat. In the venture market, Al Faleh Educational Holding saw its shares appreciate in value. Nevertheless, Qatar Cinema and Film Distribution, Qatar Insurance, Qatar National Cement, Milaha, Qatari German Medical Devices, QIIB, Aamal Company, Qatar Electricity and Water and Milaha were among the losers in the main market. In the juniour bourse, Mekdam Holding saw its shares depreciate in value. The domestic institutions’ net selling declined significantly to QR18.73mn compared to QR78.51mn on September 28. Qatari individuals’ net profit booking weakened substantially to QR18.29mn against QR72.65mn the previous day. The foreign individuals’ net selling decreased noticeably to QR0.22mn compared to QR4.2mn on Wednesday. The Arab individuals’ net selling shrank perceptibly to QR5.94mn against QR7.8mn on September 28. The Gulf retail investors’ net profit booking fell notably to QR2.76mn compared to QR3.74mn the previous day. However, the Arab institutions turned net sellers to the tune of QR0.25mn against no major net exposure on Wednesday. The foreign institutions’ net buying weakened considerably to QR40.07mn compared to QR174.34mn on September 28. The Gulf institutions’ net buying fell perceptibly to QR6.12mn against QR9.84mn the previous day. Total trade volume in the main market was down 6% to 212.76mn shares, value by 14% to QR681.31mn and deals by 5% to 21,334. The venture market saw a 37% contraction in volumes to 0.29mn equities and 33% in value to QR2.06mn but on a 5% jump in transactions to 160.    

Qatar banking sector is demonstrating resilience post-pandemic and its short to mid-term outlook looks "positive" with interest margins remaining in the comfort zone and being highly capitalised, far exceeding both local statutory and Basel requirements on capital adequacy, according to PricewaterhouseCoopers (PwC) Middle East. “Despite the effects of the pandemic, the banking sector in Qatar has shown strong performance in 2021. To promote this long-term stability, we expect the sector to embrace new technology, ESG (environment, social and governance) and ethical banking. The Covid-19 pandemic played an important role in challenging banks to accelerate their digital transformation and sustainability efforts," said Ahmed AlKiswani, Qatar Financial Services Leader, PwC Middle East. Finding that banking institutions across Qatar are "well positioned" with their liquidity, stability, and earnings" to embrace this change, he said they must act swiftly in aligning their operating models to fully internalise the latest trends and remain in line with their global and regional peers. On profitability, the report said interest margins remained in the "comfort" zone, including leveraged benefits of funding diversification, and assured strong top-line growth. Banks have also been very successful in driving down funding expenses and managing costs that highlight the growing momentum of continuous effort in efficiency optimisation, it said. Key bottom-line return indicators such as RoAA (return on average assets) and RoAE (return on averages equity) have seen solid mid-single digit dynamics across all major players suggesting top-line growth and cost management offset risk pressure, according to the report. "Overall the short to mid-term financial outlook looks positive but should be carefully managed to safeguard the banking sector’s strength and secure recovery," it said, adding most incumbents are yet to take any concrete and decisive action on their commitment to sustainable finance, making the best use of modern technology, responding to evolving customer demands and the competitive and regulatory landscape. On stability, PwC Middle East said Qatari banks remain highly capitalised, far exceeding both local statutory and Basel requirements on capital adequacy. Funding remained largely driven by customer deposits with certain banks successfully diversifying by wholesale financing with bonds, certificates of deposits and other debt instruments, it said. On earnings, the report said while the market top-line remained largely flat, the sector managed to hit high singles in operating income growth and move into double-digit territory on bottom-line dynamics. Revenue diversification towards non-interest driven income has not witnessed fundamental change as of yet, according to the report.

The foreign funds' substantial buying interests yesterday lifted the Qatar Stock Exchange by more than 199 points and its capitalisation gained about QR12bn, as markets worldwide discounted fears of global recession. A higher than average demand in the real estate, transport and banking counters was seen driving the 20-stock Qatar Index up 1.61% to 12,550.38 points, although it touched an intraday high of 12,675 points. The Gulf institutions were increasingly net buyers in the market, whose year-to-date gains improved to 7.95%. More than 62% of the traded constituents extended gains to investors in the bourse, whose capitalisation added QR11.57bn or 1.69% to QR695.29bn, mainly on the back of mid and small cap segments. The Islamic index gained slower than the other indices in the market, which saw a total of 0.16mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR1.6mn changed hands across 62 deals. Trade turnover and volumes were seen increasing in both the main and venture market. However, the domestic funds were increasingly net sellers in the bourse, which saw no trading of sovereign bonds. The local retail investors were seen bearish in the market, which saw no trading of treasury bills. The Total Return Index shot up 1.61% to 25,707.26 points, the All Share Index by 1.51% to 3,983.71 points and the Al Rayan Islamic Index (Price) by 1.39% to 2,738.36 points. The real estate sector zoomed 3.29%, transport (2.26%), banks and financial services (1.87%), industrials (0.99%), telecom (0.98%) and insurance (0.85%); while consumer goods and services declined 0.65%. Major gainers in the main market included Ezdan, Masraf Al Rayan, Nakilat, Barwa, Gulf International Services, QNB, Alijarah Holding, Qamco, Mesaieed Petrochemical Holding and United Development Company. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares appreciate in value. Nevertheless, Ahlibank Qatar, Gulf Warehousing, Zad Holding, QIIB and Medicare Group were among the losers in the main market. The foreign institutions turned net buyers to the tune of QR174.34mn compared with net sellers of QR27.18mn on September 27. The Gulf institutions’ net buying strengthened perceptibly to QR9.84mn against QR8.01mn the previous day. However, the domestic institutions’ net selling expanded significantly to QR78.51mn compared to QR12mn on Tuesday. Qatari individuals were net sellers to the extent of QR72.65mn against net buyers of QR18.81mn on September 27. The Arab individuals turned net sellers to the tune of QR7.8mn compared with net buyers of QR7.45mn the previous day. The foreign individuals were net profit takers to the extent of QR4.2mn against net buyers of QR2.69mn on Tuesday. The Gulf retail investors turned net sellers to the tune of QR3.74mn compared with net buyers of QR2.24mn on September 27. The Arab institutions had no major net exposure against net sellers to the extent of QR0.02mn the previous day. Total trade volume in the main market grew 13% to 225.74mn shares, value by 39% to QR789.84mn and deals by 21% to 22,476. The venture market saw volumes grow about six-fold to 0.46mn equities and value jump more than 12-fold to QR3.06mn on more than five-fold growth in transactions to 153.

Liquidity on the Qatar Stock Exchange (QSE) is all set to improve drastically with the Qatar Investment Authority (QIA) allowing the QSE-licensed market makers to access some of its stock inventory. In this regard, the QIA has set up a market making initiative through which the QSE-licensed market makers will be able to access some of QIA’s stock inventory and incentives programmes to facilitate markets in QSE-listed stocks. The move by the country’s sovereign wealth fund comes as part of its efforts to attract foreign asset managers as well as to support and develop local economy. “Qatar is uniquely positioned to further open its capital markets to foreign issuers,” said Mansoor bin Ebrahim al-Mahmoud, chief executive officer of the QIA. The QIA’s commitment to deepening its capital market is an important step to attracting foreign asset managers to invest in Qatar, and to stimulate retail participation that will help diversify and broaden the market. This QIA-sponsored market making initiative is a first step towards this goal and helps to further develop the Qatari financial markets. “We welcome the QIA’s initiative to enhance liquidity in the market. Higher liquidity will further attract investors into the market while improving price discovery and boosting investor confidence.” said Abdul Aziz al-Emadi, acting chief executive officer of the QSE. The need for strengthened market makers comes in view of more exchange traded funds or ETFs expected to be traded on the QSE. This year the QSE has seen the largest foreign investment flows in its history, given its renewed focus on liquidity. The launch of market making initiative would support continuation of this momentum. The Qatari bourse, as part of its wider reform strategy, has been working on various initiatives to enhance liquidity in its market and is working closely with the Qatar Financial Markets Authority (QFMA) and the Qatar Central Securities Depository (QCSD) on this important programme. The QSE is also engaged with various stakeholders to further increase the free float in the market, a bourse spokesman said. The recent announcements by major companies for the removal of foreign ownership limits are part of an overarching plan to enhance access for foreign investors. Supporting the development of asset management industry is also part of QSE’s strategy, the spokesman said. The QSE is also working to attract more listings, introduce more ETFs and derivatives to help investors diversify their portfolios and better manage their investment risks, the spokesman added.

Qatar's malls, outdoor retail, and food and beverages (F&B) markets are expected to remain resilient as developers continue to capture local and international demand by providing a destination and entertainment focused retail experience, according to Investment Promotion Agency (IPA) Qatar-Ernst & Young report. An estimated gross leasable area of 0.71 per capita indicates there is a likely opportunity to bridge the underlying gap through offering unique concepts complemented with leisure and entertainment experience, the report said. “The destination and entertainment focused retail developments will continue to attract demand, with majority of the retail offerings concentrated in north Doha and Al Rayyan,” it said. The expected increase in supply would create a two-tiered market in Qatar, with prime malls attracting higher footfall owing to unique concepts and leisure provisions, according to it. The report said additional supply estimated at 500,000sq m by 2022 and retail spend and turnover are likely to benefit from anticipated rebound in tourist arrivals and relaxation of Covid-19 restrictions. Retail real estate witnessed a “significant” growth in the last four years with many shopping malls scheduled to open in the current year to capture the footfall, which will be generated from iconic events, such as FIFA World Cup (2022), FINA World Championships (2023), World Horticultural Exposition (2023) and Asian Games (2030). The country has a retail stock of 1.96mn sq m with 80% occupancy as of 2021. Based on location, 42% of the retail stock is in Doha, 31% in Al Rayyan, 14% in Al Daayen, 5% in Al Wakra, 5% in Umm Slal and 3% in Al Khor. As per the heat map, it is observed that there is an opportunity for community and neighbourhood malls in the outskirts of Doha. Qatar has 29 malls across six municipalities. With a majority of malls concentrated in Doha, new malls in Al Daayen, Al Wakra and Al Rayyan are strengthening their foothold by maintaining stable footfalls. Total consumer spending witnessed a compound annual growth rate (CAGR) of 1.5% during 2015-20, with the majority of consumer spending in Qatar (approximately 29%) attributable to housing and utilities, followed by F&B (approximately 15%). Super-regional malls performed better in terms of footfall, occupancy, and lease rates compared with the smaller community and neighbourhood malls. "With the current market conditions, the yield rates for super regional malls are estimated to be in the range of 7%-8% while for smaller retail offerings the yields are slightly higher," it said. Average lease rates have decreased between 2015 and 2020, with street retail at a CAGR of -5.7% and malls at a CAGR of -1.7% during the period, respectively.

Global recession fears continued to play spoilsport in the Qatar Stock Exchange, which on Monday plummeted 164 points and its key index retreated below 12,300 levels. The foreign and gulf institutions were increasingly net profit takers as the 20-stock Qatar Index tanked 1.32% to 12,287.78 points, although it touched an intraday high of 12,469 points. The banking counter witnessed higher than average selling pressure in the market, whose year-to-date gains fell to 5.69%. About 58% of the traded constituents were in the red in the bourse, whose capitalisation eroded QR8.07bn or 1.17% to QR679.8bn, mainly on the back of mid and small cap segments. The Islamic index declined slower than the other indices in the market, which saw a total of 0.09mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.55mn changed hands across 24 deals. Trade turnover and volumes were seen increasing in the main market; whereas in the venture market, both trade turnover and volumes were on a declining mode. The domestic institutions turned net sellers in the bourse, which saw no trading of sovereign bonds. The foreign individuals were also seen net sellers in the market, which saw no trading of treasury bills. The Total Return Index declined 1.32% to 25,169.36 points, All Share Index by 1.27% to 3,909.68 points and Al Rayan Islamic Index (Price) by 1.26% to 2,692.91 points. The banks and financial services sector index lost 2.03%, real estate (1.15%), industrials (0.94%) and consumer goods and services (0.51%); while transport gained 1.13%, insurance (0.84%) and telecom (0.59%). Major losers in the main market included Milaha, Qatar Islamic Bank, Commercial Bank, QNB, Aamal Company, QIIB, Masraf Al Rayan, Industries Qatar, Mesaieed Petrochemical Holding, United Development Company and Vodafone Qatar. In the venture market, Al Faleh Educational Holding saw its shares depreciate in value. Nevertheless, QLM, Nakilat, Doha Insurance, Gulf Warehousing, Al Khaleej Takaful, Baladna, Estithmar Holding and Ooredoo were among the gainers in the main market. In the juniour bourse, Mekdam Holding saw its shares appreciate in value. The foreign institutions’ net selling increased substantially to QR45.05mn compared to QR1.03mn on September 25. The Gulf institutions’ net profit booking expanded significantly to QR10.4mn against QR1.61mn the previous week. The domestic funds were net sellers to the extent of QR8.35mn compared with net buyers of QR15.84mn on Sunday. The foreign individuals turned net sellers to the tune of QR2.65mn against net buyers of QR7.03mn on September 25. However, Qatari individuals were net buyers to the extent of QR54.62mn compared with net sellers of QR17.43mn the previous day. The Arab individuals turned net buyers to the tune of QR8.54mn against net profit takers of QR2mn on Sunday. The Gulf retail investors were net buyers to the extent of QR2.39mn compared with net sellers of QR0.8mn on September 25. The Arab institutions turned net buyers to the tune of QR0.89mn against no major net exposure the previous day. Total trade volume in the main market grew 24% to 153.71mn shares and value by 67% to QR526.02mn on more than doubled deals to 19,640. The venture market saw a 91% plunge in trade volumes to 0.04mn equities, 90% in value to QR0.25mn and 79% in transactions to 24.

Qatar will soon establish first trade finance centre in the Near East Beltway Initiative (NEBI) region, comprising 20 countries with a combined $8tn economy, 2.5bn population and 30mn small and medium enterprises or SMEs transacting more than $2tn in trade finance transactions per annum. In this regard, Trans Capital Finance (UK) and Crescent Trade Finance (UK) have entered into a "strategic" collaboration agreement to join forces towards creating a regional platform, offering trade finance products and services supported by their Doha-based respective entities Nebix and Crescent Fintek at the Qatar Finance Centre (QFC). Both the parties intend to expand regional business development opportunities and global business connectivity capabilities by offering innovative solutions, enabling trade finance access with valuable benefits from streamlined processes, lower capital requirements, and risk mitigation structures. "Qatar can be positioned as a central alternative financial hub to strategically serve corridor neighbouring countries and major connected regional markets labelled as the NEBI-Zone,” said Fadi Saab, chairman of Trans Capital Finance (UK). Henk Jan Hoogendoorn, chief of Financial Sector Office at QFC, hailed the decision of the UK-based entities to rely on Qatar as a viable regional trading hub hosting an efficient and cross-border trade platform proposition benefiting from modern air and seaports as well as the integrally connected economic and free zones. Finding that Doha is emerging as a regional trade finance hub due to its "soft power" on the economic, diplomatic and social fronts; Saab said the country enjoys strong inter-governmental ties and cross sectorial private enterprise relations with major fast growing corridor market in the NEBI-Zone. "Commercial activities in these emerging and developing countries are expected to record significant growth with attractive scaling opportunities for businesses in various sectors," Saab said. He highlighted that there are major trade finance ecosystem players, which offer traditional and alternatives trade finance products and services and can be invited to establish an operating base out of Qatar for a "win-win economic impact to all national, regional and global stakeholders. "Resulting strategic synergies, operational economies of scale, complementary activities, vertical and horizontal integration services, will not only benefit the local but shall further Qatar's leading position as a vibrant trade facilitation platform serving the needs of micro, small and medium enterprises or MSMEs throughout the NEBI zone," he said. Bulent Karagoz, founding partner of Crescent Trade Finance (UK), said Qatar’s regional connectivity is the basis for an active ecosystem of stakeholders that can optimally offer structured financing solutions to assist SMEs in obtaining funding for their local and international trading activities, reinforced by advanced fintech technologies to achieve technical efficiencies and operational economies of scale. Saab said focal points such as Ministry of Commerce and Industry, Investment Promotion Agency of Qatar, Special Economic Zone, Qatar Free Zone, Qatar Financial Centre and Qatar Chamber can play an important role in solidifying the position of Qatar as an innovative trade finance service provider. Local and international trade finance specialists can help solve the working capital and cash flow challenges facing importers and exporters by offering value-added structured products, he said. Highlighting that global trade finance market is valued at $5.2tn, which is 6% of global gross domestic product in 2020; he said despite trade finance's critical role, there remains "a $1.7tn unfulfilled gap" in coverage of requested facilities from MSMEs with a 40% rejection rates from banks in the review period.

The US rate hike continued to have its influence on the Qatar Stock Exchange, which Sunday opened the week weak and its key index tanked 192 points and capitalisation eroded QR12bn. An across the board selling, particularly in the industrials, transport and real estate counters, led the 20-stock Qatar Index plummet 1.52% to 12,451.72 points, although it touched an intraday high of 12,646 points. The local retail investors were net profit takers in the market, whose year-to-date gains truncated further to 7.1%. More than 89% of the traded constituents were in the red in the bourse, whose capitalisation eroded QR11.97bn or 1.71% to QR687.87bn, mainly on the back of large and midcap segments. The Islamic index declined faster than the other indices in the market, which saw a total of 0.07mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.8mn changed hands across 40 deals. Trade turnover were seen increasing amidst decline in volumes in the main market; whereas in the venture market, both trade turnover and volumes were on an expansive mode. The Arab individuals were seen bearish in the bourse, which saw no trading of sovereign bonds. The foreign institutions were also seen net sellers in the market, which saw no trading of treasury bills. The Total Return Index declined 1.52% to 25,505.15 points, All Share Index by 1.52% to 3,959.83 points and Al Rayan Islamic Index (Price) by 1.9% to 2,727.17 points. The industrials sector index tanked 2.89%, transport (1.94%), realty (1.71%), banks and financial services (1.05%), insurance (1.01%), telecom (0.98%) and consumer goods and services (0.84%). Major losers in the main market included Mannai Corporation, Qamco, Qatari Investors Group, Gulf International Services, Mazaya Qatar, Doha Bank, QNB, Qatar First Bank, Qatari German Medical Devices, Industries Qatar, Baladna, Aamal Company, Estithmar Holding, Ezdan, Vodafone Qatar and Milaha. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, Commercial Bank and Qatar Electricity and Water were the only two gainers in the main market. The local retail investors turned net sellers to the tune of QR17.43mn compared with net buyers of QR13.46mn on September 22. The Arab individuals were net sellers to the extent of QR2mn against net buyers of QR6.54mn the previous trading day. The foreign institutions turned net sellers to the tune of QR1.03mn compared with net buyers of QR2.66mn last Thursday. The Gulf retail investors’ net profit booking expanded marginally to QR0.8mn against QR0.32mn on September 22. However, the domestic funds were net buyers to the extent of QR15.84mn compared with net sellers of QR4.86mn the previous trading day. The foreign individuals’ net buying strengthened perceptibly to QR7.03mn against QR3.47mn last Thursday. The Gulf institutions’ net selling decreased significantly to QR1.61mn compared to QR21.36mn on September 22. The Arab institutions had no major net exposure against net buyers to the tune of QR0.42mn the previous trading day. Total trade volume in the main market grew 2% to 123.81mn shares, while value shrank 20% to QR315.81mn and deals by 36% to 8,675. The venture market saw trade volumes jump more than five-fold to 0.44mn equities and value grow more than six-fold value to QR2.54mn on almost tripled transactions to 112.

The apprehensions over an expected extremely tight US monetary policy and later the sharp 75 basis points hike in rates by the US Federal Reserve had dampened sentiments on the Qatar Stock Exchange, which resulted in its key index plummet 600 points and capitalisation erode QR35bn. An across the board selling, notably in the banking and industrials counters, led the 20-stock Qatar Index plunge 4.53% this week, which saw the global credit rating agency Standard and Poor’s view that the consumption lending in Qatar is expected to see stronger growth, buoyed by the FIFA World Cup at the end of the year and positive sentiment stemming from high natural gas prices. The Gulf institutions were increasingly net profit takers this week which saw Qatar's industrials sector display robust performance in July on an annualised basis. More than 89% of the traded constituents were in the red this week which saw the Qatar Central Bank strengthen the treasury bills (T-bills) segment by launching shorter tenure treasury bills as well as enhancing the present size of T-bills. The Arab individuals turned bearish this week which saw the Minister of Commerce and Industry HE Sheikh Mohamed bin Hamad bin Qassim al-Thani say the FIFA World Cup will help Qatar's revenues from global tourism to grow more than 116% year-on-year to QR67bn in 2022. The foreign funds’ net buying weakened significantly this week which saw a report prepared by of Investment Promotion Agency Qatar and Ernst and Young that said demand for hotel and apartment facilities is expected to increase "exponentially" to accommodate more than 1mn visitors during the final quarter of 2022 for FIFA World Cup. However, the foreign retail investors were increasingly net buyers this week which saw a total of 0.11mn Masraf Al Rayan-sponsored exchange traded fund QATR worth QR0.31mn trade across 25 deals. The Arab funds were also increasingly bullish this week which saw as many as 0.24mn Doha Bank-sponsored QETF valued at QR3.01mn change hands across 89 transactions. The overall trading turnover and volumes in the main market and the venture market were on the decline this week, which saw the industrials and banking sectors together constitute more than 61% of the total trade volume in the main market. Market capitalisation eroded QR34.5bn or 4.7% to QR699.84bn, mainly on large and midcap segments this week, which saw no trading of sovereign bonds. The Total Return Index plummeted 4.53%, All Share Index by 4.37% and All Islamic Index by 3.75% this week, which saw no trading of treasury bills. The banks and financial services sector index plunged 5.11%, industrials (4.67%), real estate (4.47%), telecom (3.36%), transport (2.96%), insurance (2.24%) and consumer goods and services (0.26%) this week. Major losers in the main market included Ezdan, Estithmar Holding, Qatar Electricity and Water, Qatar Islamic bank, Qatari German Medical Devices, QNB, Commercial Bank, QIIB, Qatar First Bank, Qatar National Cement, Industries Qatar, Aamal Company, Gulf International Services, Mesaieed Petrochemical Holding, Qamco, QLM, Barwa, Mazaya Qatar, Ooredoo, Vodafone Qatar and Nakilat. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value this week. Nevertheless, Qatar Cinema and Film Distribution, Doha Bank, Dlala, Qatar Industrial Manufacturing and Woqod were among the gainers in the main market this week. The Gulf institutions’ net selling increased noticeably to QR28.28mn compared to QR21.54mn the week ended September 15. The Arab individuals turned net sellers to the tune of QR2.43mn against net buyers of QR3.78mn the previous week. The foreign funds’ net buying decreased significantly to QR118.11mn compared to QR539.44mn a week ago. However, the foreign individuals’ net buying grew markedly to QR18.6mn against QR1.26mn the week ended September 15. The Arab institutions’ net buying expanded noticeably to QR8.8mn compared to QR0.67mn the previous week. The domestic institutions’ net selling shrank substantially to QR12.58mn against QR377.57mn a week ago. The local retail investors’ net selling declined drastically to QR101.9mn compared to QR138.37mn the week ended September 15. The Gulf individuals turned net profit booking eased perceptibly to QR0.39mn against QR7.66mn the previous week. Total trade volume in the main market tanked 18% to 625.83mn shares, value by 33% to QR2.27bn and deals by 20% to 67,859. The venture market reported 15% contraction in trade volumes to 0.99mn equities and 30% in value to QR5.83mn but on 8% jump in transactions to 479.

Consumption lending in Qatar is likely to see the strongest growth, buoyed by the FIFA World Cup at the end of the year and positive sentiment stemming from high natural gas prices, according to Standard & Poor's (S&P), an international credit rating agency. However, the rating agency expects the overall private sector credit to grow 5% in 2022, less than half the average rate seen over the previous three years. The government construction projects, the main growth spur previously, have mostly been completed, which is shown in banks' first-half performance. Overall credit could reduce slightly if lending to the government continues to decline in the second half, which "we view as likely given our projected fiscal surplus of about 12% of GDP (gross domestic product)", it said. Finding that banks' "significant" exposure to the wealthy public sector will continue to support solid asset quality; S&P said its projections anticipate that central bank rate hikes, following those by the US Federal Reserve, could pressure some Qatari borrowers, with a marginal effect overall. However, high inflation in Turkey, and to a lesser extent Egypt, will likely be more material contributors to cost of risk over 2022, which it still estimates at pandemic levels of about 100bps or basis points. "As a result, we expect an NPL (non-performing loans) increase toward about 3.6% of total loans this year from 3.2% at year-end 2021," S&P said. Net interest margins are expected to further widen this year. However, along with higher funding costs, hyperinflation-related adjustments stemming from Qatari banks' presence in Turkey will slightly constrain net income growth, according to the rating agency. "Still, on balance, we expect these trends to provide positive momentum, supporting solid capitalisation," the rating agency said. Stressing that a key system vulnerability – its large stock of external debt – is likely to continue reducing over the rest of 2022; it said both lower demand and the introduction of new prudential regulations to discourage non-resident-driven balance sheet growth led to a nearly 25% reduction in non-resident funding in the first half compared with year-end 2021, which was offset by an increase in interbank lending. In turn, the stock of external liabilities declined about 6% and "we expect this trend to continue for the rest of the year. However, replacing non-resident deposits with domestic sources, which has been very visible in the corporate sector so far over 2022, will likely increase overall funding costs," it said. Elsewhere in the Gulf Cooperation Council; S&P said the earnings from most regional banks will reach almost pre-pandemic levels by year-end 2022, amid high oil prices and rising interest rates, supporting their creditworthiness. "In the second half, we forecast a more visible strengthening of regional banks' interest margins and a manageable pick-up in cost of risk, amid lingering effects from the Covid-19 pandemic via loans that benefited from support measures and were then restructured. Combined, these factors will be a net positive for banks' earnings," it said.    

Reflecting the global turmoil brought about by a sharp 75 basis points hike in the US rates, the Qatar Stock Exchange on Thursday fell more than 114 points and capitalisation eroded QR6bn. An across the board selling, particularly at the telecom, industrials and real estate counters, led the 20-stock Qatar Index to decline 0.9% to 12,643.8 points, although it touched an intraday high of 12,829 points. The Gulf institutions were seen increasingly net profit takers in the market, whose year-to-date gains truncated to 8.76%. About 78% of the traded constituents were in the red in the bourse, whose capitalisation eroded QR5.9bn or 0.84% to QR699.84bn, mainly on the back of midcap segments. The Islamic index declined faster than the other indices in the market, which saw a total of 0.05mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.54mn changed hands across 17 deals. Trade turnover and volumes were on the increase in the main market; whereas it was on the decline in the venture market. The domestic institutions turned bearish in the bourse, which saw no trading of sovereign bonds. The Gulf individuals were increasingly into net selling, albeit at lower levels, in the market, which saw no trading of treasury bills. The Total Return Index shed 0.9% to 25,898.62 points, the All Share Index by 0.78% to 4,020.85 points and the Al Rayan Islamic Index (Price) by 1.14% to 2,779.89 points. The telecom sector index tanked 2.25%, industrials (1.47%), realty (1.09%), insurance (0.87%), transport (0.78%), banks and financial services (0.45%) and consumer goods and services (0.13%). Major losers in the main market included Qatar Electricity and Water, Ooredoo, Aamal Company, Medicare Group, Qatar General Insurance and Reinsurance, Doha Bank, Estithmar Holding, Ezdan, Barwa, Vodafone Qatar, Milaha and Gulf Warehousing. Nevertheless, Qatari German Medical Devices, Inma Holding, Doha Insurance, Dlala and Zad Holding were among the gainers in the main market. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares appreciate in value. The Gulf institutions’ net selling increased significantly to QR21.36mn compared to QR1.85mn on September 21. The domestic institutions were net sellers to the tune of QR4.86mn against net buyers of QR10.58mn the previous day. The Gulf retail investors’ net profit booking rose slightly to QR0.32mn compared to QR0.2mn on Wednesday. The local retail investors’ net buying declined markedly to QR13.46mn against QR27.83mn on September 21. The foreign individuals’ net buying shrank perceptibly to QR3.47mn compared to QR9.97mn the previous day. The Arab institutions’ net buying weakened marginally to QR0.42mn against QR0.94mn on Wednesday. However, the Arab individuals were net buyers to the extent of QR6.54mn compared with net sellers of QR4.16mn on September 21. The foreign institutions turned net buyers to the tune of QR2.66mn against net sellers of QR43.12mn the previous day. Total trade volume in the main market grew 21% to 121.52mn shares and value by 3% to QR392.97mn but on almost flat deals at 13,654. The venture market saw 62% contraction in trade volumes to 0.08mn equities, 58% in value to QR0.4mn and 54% in transactions to 40.    

The Qatar Central Bank (QCB) is strengthening the treasury bills (T-bills) sector by launching shorter tenure treasury bills as well as enhancing the present size of T-bills, a move that ought to enhance international investment appeal. "The QCB will introduce certain enhancements in the issuance of T-bills starting from October 2022," the central bank said in a tweet. These enhancements include increasing the size of issuance, issuing shorter tenor instruments and issuing treasury sukuks, it said. The expected yields on T-bills and treasury sukuk issuance for one week, one month, three months, six months and nine months will be consistent with the existing monetary policy, the QCB said. At present, T-bills have maturities of one month to three months. The total issue of T-bills in September has been valued at QR3bn, of which QR1.2bn is through T-bills with six-month maturity and QR900mn through one-month and nine months respectively. Market experts view that the move ought to increase the attractiveness of Qatar as a portfolio investment destination. T-bills are known as low-risk financial instrument, they are easy to operate without causing any capital loss to their holders. A T-bill is usually sold at discount, which means at lower price than its nominal value. Upon maturity, the government is committed to pay the nominal value of those T-bills. They are considered one of the monetary policy instruments for domestic liquidity management. Sukuks are considered as one of the major government debt instruments used by the government to provide the necessary liquidity for projects funding, it said.

Global factors such as expectations of sharper US rate hike and volatile Russia-Ukraine crisis played spoilsport in the markets, including the Qatar Stock Exchange, which saw its key index plunge 178 points and capitalisation erode QR10bn. The banking and industrials counters witnessed higher than average selling pressure as the 20-stock Qatar Index tanked 1.38% to 12,758.25 points, although it touched an intraday high of 12,930 points. The foreign institutions were seen net profit takers in the market, whose year-to-date gains truncated to 9.74%. More than 70% of the traded constituents were in the red in the bourse, whose capitalisation eroded QR9.92bn or 1.39% to QR705.74bn, mainly on the back of large and midcap segments. The Islamic index declined slower than the other indices in the market, which saw a total of 0.1mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.75mn changed hands across 27 deals. Trade turnover and volumes were on the decline in both the main and venture markets. The Arab retail investors were seen bearish in the bourse, which saw no trading of sovereign bonds. However, both local individuals and domestic institutions turned net buyers in the market, which saw no trading of treasury bills. The Total Return Index shed 1.38% to 26,133.04 points, the All Share Index by 1.35% to 4,052.31 points and the Al Rayan Islamic Index (Price) by 0.79% to 2,811.98 points. The banks and financial services sector index plummeted 1.82%, industrials (1.43%), real estate (0.57%), transport (0.48%) and telecom (0.08%); while insurance gained 0.11% and consumer goods and services 0.01%. Major losers in the main market included QLM, Qatar Islamic Bank, Industries Qatar, Mannai Corporation, Qatari German Medical Devices, QNB, Commercial Bank, Estithmar Holding, Ezdan and Nakilat. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, Qatar Industrial Manufacturing, Gulf Warehousing, Qatar Insurance, Qatar Oman Investment, Woqod and Mesaieed Petrochemical Holding were among the gainers in the main market. The foreign institutions turned net sellers to the tune of QR43.12mn compared with net buyers of QR130.83mn on September 20. The Arab individuals were net sellers to the extent of QR4.16mn against net buyers of QR0.58mn the previous day. The Arab institutions’ net buying weakened noticeably to QR0.94mn compared to QR2.44mn on Tuesday. However, the local retail investors turned net buyers to the tune of QR27.83mn against net sellers of QR110.03mn on September 20. The domestic institutions were net buyers to the extent of QR10.58mn compared with net sellers of QR14.18mn the previous day. The foreign individuals turned net buyers to the tune of QR9.97mn against net profit takers of QR0.35mn on Tuesday. The Gulf institutions’ net selling weakened markedly to QR1.85mn compared to QR7.89mn on September 20. The Gulf retail investors’ net profit booking eased perceptibly to QR0.2mn against QR1.4mn the previous day. Total trade volume in the main market shrank 28% to 100.29mn shares, value by 29% to QR382.08mn and deals by 19% to 13,663. The venture market saw 19% shrinkage in trade volumes to 0.21mn equities, 29% in value to QR0.95mn and 24% in transactions to 87.

The Qatar Stock Exchange Tuesday gained more than 75 points, mainly paced by the consumer goods and industrials sectors. The foreign institutions’ increased net buying drove the 20-stock Qatar Index up 0.59% to 12,936.54 points, recovering from an intraday low of 12,937 points. The Arab retail investors were net buyers, albeit at lower levels, in the market, whose year-to-date gains improved to 11.27%. About 61% of the traded constituents extended gains in the bourse, whose capitalisation added QR3.06bn or 0.43% to QR715.66bn, mainly on the back of small and microcap segments. The Islamic index gained faster than the other indices in the market, which saw a total of 0.03mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.36mn changed hands across 20 deals. Trade turnover and volume were on the increase in the main market; while it showed a decrease in the case of venture market. However, the local retail investors were increasingly bearish in the bourse, which saw no trading of sovereign bonds. The domestic institutions were seen net profit takers in the market, which saw no trading of treasury bills. The Total Return Index gained 0.59% to 26,498.23 points, the All Share Index by 0.44% to 4,107.32 points and the Al Rayan Islamic Index (Price) by 0.8% to 2,834.33 points. The consumer goods and services sector index shot up 1.54%, industrials (0.9%), real estate (0.51%), insurance (0.44%), transport (0.31%), banks and financial sector (0.14%) and telecom (0.13%). The major gainers in the main market included QLM, Mannai Corporation, Medicare Group, Woqod, Milaha, Masraf Al Rayan and Ezdan. Nevertheless, Aamal Company, Doha Insurance, Estithmar Holding, Alijarah Holding, Qatar Electricity and Water, QNB and Nakilat were among the losers in the main market. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. The foreign institutions’ net buying increased significantly to QR130.83mn compared to QR4.18mn on September 19. The Arab individuals turned net buyers to the tune of QR0.58mn against net sellers of QR2.84mn the previous day. However, the local retail investors’ net selling expanded substantially to QR110.03mn compared to QR19.62mn on Monday. The domestic institutions were net sellers to the extent of QR14.18mn against net buyers of QR14.02mn on September 19. The Gulf institutions turned net sellers to the tune of QR7.89mn compared with net buyers of QR2.3mn the previous day. The Gulf retail investors were net sellers to the extent of QR1.4mn against net buyers of QR1.97mn on Monday. The foreign individuals turned net profit takers to the tune of QR0.35mn compared with net buyers of QR5.05mn on September 19. The Arab institutions’ net buying weakened noticeably to QR2.44mn against QR3.32mn the previous day. Total trade volume in the main market soared 16% to 138.5mn shares, value by 29% to QR540.3mn and deals by 16% to 16,886. The venture market saw 10% shrinkage in trade volumes to 0.26mn equities, 35% in value to QR1.34mn and 12% in transactions to 115.

The FIFA World Cup will help Qatar’s revenues from global tourism to grow more than 116% year-on-year to QR67bn in 2022, according to the Minister of Commerce and Industry HE Sheikh Mohamed bin Hamad bin Qassim al-Thani. “It is estimated that the FIFA World Cup will attract more than 1mn visitors, thus leading to projected international tourism revenues of QR67bn in 2022 compared to QR31bn in 2021,” the minister said in an interview to The Business Year’s World Cup special edition, which was unveiled yesterday. The projects implemented within the framework of organising and hosting the FIFA World Cup support the state’s journey towards achieving its strategic and development goals in the coming years, he said, adding the hosting of the FIFA World Cup has had a vital, significant role in promoting economic growth and diversification in the nation. Since the beginning of this journey, Qatar has been keen to launch initiatives that support the urban planning and economic diversification sectors, he said. “This global event will contribute positively to Qatar’s economic landscape by attracting investments and ensuring the economic growth of a number of vital sectors such as trade and tourism, as well as promoting the expansion of sports’ contribution to the economic sector,” according to him. As part of strengthening the diversification strategy, the Ministry of Commerce and Industry is also working on strategies to provide “significant” incentives to enhance investments in the manufacturing sector, HE Sheikh Mohamed highlighted. “The Ministry of Commerce and Industry seeks to diversify income sources and increase the real value added from priority sectors, especially non-oil ones, as well as raise Qatar’s non-oil exports in 2022,” he said. The ministry is currently working to remove all obstacles to Qatar’s business environment and to develop it further as well as provide significant incentives to enhance investment in the manufacturing sector, whose share in gross domestic product (GDP) has increased to about 66% by the end of 2020 compared to 52% in 2018. “Additionally, the ministry seeks consolidating the role of the private sector in achieving the economic prosperity of Qatar,” he said. Highlighting that the manufacturing sector was among the fastest to recover, he said based on these positive indications, “we expect the manufacturing sector’s growth and momentum to be sustained in the coming years.” As part of its efforts to support the industrial sector and enhance its contribution to the national economy, the ministry created Qatar’s manufacturing sector strategy (2018-22) to layout a roadmap for the manufacturing industries up until 2030. In this regard, he cited the government’s efforts to attract major international companies to Qatar to invest in “strategic” manufacturing sub-sectors such as plastics products, 3D printing, pharmaceuticals and extreme environment infrastructure solutions.

Qatar is expected to experience “significant” momentum and growth after the 2022 FIFA World Cup and the country’s status as a global sports hub will be a driver for new business opportunities for the private sector, according to QNB Group chief executive officer Abdulla Mubarak al-Khalifa. “We expect to see a surge of business as this event (FIFA World Cup) will benefit the economy long beyond the closing match, attracting foreign direct investment (FDI), while at the same time developing domestic entrepreneurship,” he said in an interview to The Business Year’s (TBY) World Cup special edition. TBY has been covering the Qatari economy for almost a decade and this latest publication was produced in partnership with the Ministry of Commerce and Industry, the Qatari Businessmen Association, and the Qatari Businesswomen Association. Qatar’s status as a global sport hub will be a driver for the private sector, though “we also expect to see strong growth in new projects beyond sport that will benefit the economy,” the minister said. “Strengthening of regulatory frameworks is paving the way for public-private-partnership (PPP) projects, particularly in the education, healthcare and tourism sector,” he said, adding “as the leading incubator for private sector engagement, we act as a one-stop shop for the small and medium enterprises (SMEs).” Referring to its partnership with FIFA on being the official Middle East and Africa supporter, he said, “This (partnership) will strengthen QNB’s brand image and reputation globally.” The bank seeks to leverage innovation as a strategic enabler for both corporate and personal clients, he said, adding changes in the customer behaviour has led to a shift to more convenient and remote channels. “This trend has accelerated our drive towards digitalisation and automation, which ultimately impacts our business and operating model. Those trends are further exacerbated by the entry of new players such as non-banks, non-financial institutions, fintechs and bigtechs and results in disruption through technological innovation and financial intermediation,” al-Khalifa said. QNB Group extends through its subsidiaries and associate companies to more than 31 countries across three continents providing a comprehensive range of products and services. The total number of employees is 27,000 operating through 1,000 locations, with an ATM network of more than 4,500 machines.