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Thursday, February 02, 2023 | Daily Newspaper published by GPPC Doha, Qatar.
 Santhosh V. Perumal
Santhosh V. Perumal
Santhosh V. Perumal, a postgraduate in Econometrics with an advance qualification in Capital Markets and Financial Services, is Gulf Times' journalist. His coverage areas are debt and equity, hydrocarbons, international trade, environment, banks, insurance and real estate. Previously, he was in New Delhi, India as Senior Finance Correspondent of PTI.
Qatar has year-to-date seen up to 375 basis points (bps) increase in interest rates, reflecting the US monetary policy stand because of the fixed exchange parity
Business
Qatar interest rates seen up to 375bps hike so far this year

Qatar has year-to-date seen up to 375 basis points (bps) increase in interest rates, reflecting the US monetary policy stand because of the fixed exchange parity. The Qatar Central Bank (QCB) recently increased the deposit and repo rates by 75bps and lending rate by 50 bps, after the US Federal Reserve hiked its policy rate by 75bps at its latest federal open-market committee meeting. Apprehensions are that the corporate sector might take a hit on hike in interest rates, although macroeconomic growth is expected to be robust owing to the hydrocarbons, which has had a strong run due to higher average energy prices. The central bank said the hike (in interest rates) has come, following regional and international economic developments. The hardening of interest rates in the region stems from the US Federal Reserve's series of rate hikes there as part of tackling inflationary pressures. The QCB raised the deposit rate by 75bps to 4.5%. It also raised the lending rate by 50bps to 5% and the repo rate by 75bps to 4.75%. The repo rate in Qatar has increased by a cumulative 3.75% or 375bps from the beginning of this year. Since January this year, QCB repo rate has risen from 1% to 1.25% in March, then to 1.75% in May, 2.5% in June, 3.25% in July, 4% in September and the latest 4.75% in November. In 2021, the average repo rate was 1%. The QCB lending rate has cumulatively increased by 2.5% or 250bps from the beginning of this year. It was seen jumping from 2.5% in January to 2.75% in May, 3.25% in June, 3.75% in July, 4.5% in September and the latest 5% in November. The average lending rate in 2021 was 2.5%. Similarly, the QCB deposit rate has cumulatively jumped by 3.5% or 350bps, increasing from 1% in January to 1.5% in May, 2.25% in June, 3% in July, 3.75% in September and the latest 4.5% in November. The average deposit rate stood at 1% in 2021. The weighted average overnight interbank interest rate (on riyal) stood at 2.61% in September compared to 0.28% in January. A latest report from Oxford Economics said the GCC (Gulf Co-operation Council) countries could see a cumulative 425bps hike in interest rates in 2022, which will likely weigh on the region's non-oil GDP (gross domestic product). "We expect growth in non-oil GDP in the GCC region to be 4.9% in 2022 and then ease to 3.4% in 2023," it said, adding "higher interest rates will increase borrowing costs, albeit at a slower pace". Soon after the US Fed's latest move, the GCC central banks quickly followed suit – Saudi Arabia, the UAE, Oman, and Bahrain mirrored the rate hike, and their policy rates now stand at 4.5%, 3.9%, 4.5%, and 4.75%, respectively. The GCC economies, barring Kuwait, follow fixed exchange parity with the US dollar, which stifle their monetary policies.

QSE
Business
Exogenous factors play spoilsport in QSE; index tanks 121 points, M-cap erodes QR7bn

Reflecting the turbulent global markets, a day after the US rate hike, the Qatar Stock Exchange on Thursday saw its key barometer plummet more than 131 points and capitalisation erode in excess of QR7bn. The insurance and industrials counters witnessed higher than average selling pressure as the 20-stock Qatar Index lost 0.98% to 12,306.07 points but recovering from an intraday low of 12,280 points. The foreign institutions’ weakened net buying interests had its influence in the market, whose year-to-date gains truncated to 5.85%. About 66% of the traded constituents were in the red in the main bourse, whose capitalisation saw QR7.27bn or 1.05% decrease to QR687.2bn, mainly on the back of large and small cap segments. The Islamic index was seen declining slower than the other indices in the market, which saw a total of 0.08mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.33mn changed hands across 12 deals. Trade turnover fell amidst higher volumes in the main market; while the venture market saw an increased turnover and trade volumes. The local retail investors were seen bullish in the bourse, which saw no trading of sovereign bonds. The foreign retail investors were increasingly net buyers in the main market, which saw no trading of treasury bills. The Total Return Index shed 0.98% to 25,206.82 points, All Share Index by 0.88% to 3,936.28 points and Al Rayan Islamic Index (Price) by 0.78% to 2,705.03 points. The insurance index tanked 1.9%, industrials (1.42%), banks and financial services (0.85%), consumer goods and services (0.71%), real estate (0.23%) and transport (0.02%); while telecom was up 0.07%. Major losers in the main market included Ahlibank Qatar, QLM, Aamal Company, Mesaieed Petrochemical Holding, Widam Food, Commercial Bank, Doha Bank, QIIB, Salam International Investment, Industries Qatar and Mazaya Qatar. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, United Development Company, Baladna, Qatari German Medical Devices, Medicare Group and Mannai Corporation saw their shares appreciate in value. The Gulf institutions’ net profit booking grew markedly to QR5.91mn compared to QR1.58mn on November 2. The foreign institutions’ net buying decreased considerably to QR15.12mn against QR88.51mn the previous day. However, the local retail investors turned net buyers to the tune of QR8.27mn compared with net sellers of QR8.52mn on Wednesday. The foreign individuals’ net buying expanded noticeably to QR6.31mn against QR1.07mn on November 2. The Gulf individuals’ net selling declined significantly to QR3.6mn compared to QR37.55mn the previous day. The domestic institutions’ net profit booking fell perceptibly to QR17.75mn against QR35.33mn on Wednesday. The Arab retail investors’ net selling eased marginally to QR2.45mn compared to QR3.01mn on November 2. The Arab institutions had no major net exposure against net buyers to the tune of QR0.18mn the previous day. Total trade volume in the main market grew 11% to 118.85mn shares, while value shrank 14% to QR407.31mn and deals by 11% to 16,622. The venture market saw trade volumes double to 0.18mn equities and value soar 55% to QR1.02mn but on 56% decline in transactions to 20.    

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Business
GCC economies in sound financial standing: IIF

The Gulf Co-operation Council (GCC) countries are in sound financial standing and that the region's equities have "greatly outperformed" those in the developed and emerging markets (EM), according to the Institute of International Finance (IIF), an US economic think-tank. Reasoning for the Gulf region's financial soundness, IIF said “increases in the price of oil have led to large fiscal surpluses, filling government coffers and reducing debt." Consequently, sovereign default risk in the GCC region is low when compared to the EM peers, it said, adding sovereign credit ratings, apart from Bahrain and Oman, remain "strong". The IIF also said the Gulf region's debt needs is expected to decline in view of the robust fiscal surpluses. "We expect hard currency bond issuances from the GCC to fall from $110bn in 2021 to $40bn in 2022, consistent with the outcome for the first nine months of this year. This is due mainly to a decline in sovereign borrowing by oil exporters in the region as governments are expected to register significant fiscal surpluses," it said. Corporate issuance, including from government-related-entities (GREs), to finance existing loans and bonds that mature in 2023 will remain sizeable, according to the IIF. Equities in the GCC area, largely led by Saudi Arabia, have greatly outperformed those in developed and emerging markets, it said. While the MSCI emerging market index and the MSCI ACWI index (which tracks stocks in both developed and emerging markets) have lost 33% and 13% respectively since the beginning of 2021, the MSCI GCC index has gained nearly 40%, the report highlighted. "The over-performance can be largely attributed to the increase in oil price (Brent crude oil increased roughly 75% during the same period), and its positive effects on GCC economies," it said, adding year-to-date, the GCC equities have also outpaced peers, growing 2% in 2022 while emerging markets and ACWI fell over 25%. Highlighting that FDI or foreign direct investment in the MENAP (Middle East, North Africa and Pakistan) region is improving; the report said in Qatar, a new FDI law allows full foreign ownership in manufacturing and non-financial services. Moreover, the North Field expansion is attracting additional investment that would help raise the country’s LNG or liquefied natural gas production capacity. Qatar’s LNG production capacity is expected to increase from 110mn tonnes per year to 126mtpy by 2026 or 2027. The North Field Expansion Project, comprising North Field South and the North Field East expansion projects, is the industry’s largest ever LNG project.    

Gulf Times
Qatar
Foreign funds lift sentiments in QSE as index gains 36 points

The foreign institutions’ increased net buying interests yesterday lifted the Qatar Stock Exchange’s key barometer 36 points. A higher than average demand for the insurance and banking sectors led the 20-stock Qatar Index gain 0.29% to 12,427.39 points, recovering from an intraday low of 12,339 points. The Arab institutions were seen net buyers in the market, whose year-to-date gains were at 6.89%. The foreign retail investors continued to be net buyers but with lesser intensity in the main bourse, whose capitalisation saw QR0.29bn or 0.04% increase to QR694.47bn, mainly on the back of microcap segments. The Islamic index was seen declining vis-à-vis gains in the other indices in the market, which saw a total of 0.04mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.46mn changed hands across 25 deals. Trade turnover and volumes were on the increase in the main market; while the venture market saw decreased turnover and trade volumes. The domestic institutions were increasingly bearish in the bourse, which saw no trading of sovereign bonds. The local retail investors were also increasingly net sellers in the main market, which saw no trading of treasury bills. The Total Return Index grew 0.29% to 25,455.33 points and All Share Index by 0.21% to 3,966.06 points, while Al Rayan Islamic Index (Price) was down 0.06% to 2,726.26 points. The insurance index expanded 0.94%, banks and financial services (0.51%) and consumer goods and services (0.08%); while real estate declined 0.81%, transport (0.5%), telecom (0.36%) and industrials (0.1%). About 67% of the traded constituents extended gains in the main market and included QIIB, Commercial Bank, Ahlibank Qatar, Woqod and Qatar Insurance. In the venture market, Mekdam Holding saw its shares appreciate in value. Nevertheless, Qatar General Insurance and Reinsurance, Widam Food, Estithmar Holding, Dlala, Qatari German Medical Devices, Lesha Bank, Inma Holding, Gulf International Services, Ezdan, Mazaya Qatar and Milaha saw their shares depreciate in value. The foreign institutions’ net buying increased considerably to QR88.51mn compared to QR54.68mn on November 1. The Arab institutions turned net buyers to the tune of QR0.18mn against no major net exposure the previous day. However, the Gulf individuals’ net selling strengthened significantly to QR37.55mn compared to QR16.21mn on Tuesday. The domestic institutions’ net profit booking grew perceptibly to QR35.33mn against QR32.72mn on November 1. The local retail investors’ net profit booking weakened noticeably to QR8.52mn against QR17.75mn the previous day. The Arab retail investors were net sellers to the extent of QR3.01mn compared with net buyers of QR1.01mn on Monday. The Gulf institutions’ net profit booking grew marginally to QR1.58mn against QR1.5mn on November 1. The foreign individuals’ net buying shrank noticeably to QR1.07mn compared to QR3.26mn the previous day. Total trade volume in the main market was up 0.36% to 107.36mn shares, value by 22% to QR471.75mn and deals by 17% to 18,696. The venture market saw a 65% contraction in trade volumes to 0.09mn equities, 65% in value to QR0.66mn and 74% in transactions to 45.

Gulf Times
Business
FIFA World Cup to score regional benefits beyond Qatar: Oxford Economics

The Middle East's first ever football World Cup, hosted by Qatar, is seen benefiting the wider Gulf Co-operation Council (GCC) economy, according to Oxford Economics, a leader in global economic forecasting and econometric analysis. Given the recovery in travel and tourism, it forecasts 4.9% and 3.4% growth in the region's non-oil sector in 2022 and 2023, respectively, it said in a report. Oxford Economics expects Qatar to gain the most; the preparations for the World Cup and the month-long event itself will drive 7.6% growth in the non-oil economy this year, the fastest pace since 2015. Highlighting that the World Cup has played a pivotal part in Qatar's journey to diversify its economy away from the energy sector; it said by the end of this year, the share of the non-oil sectors in GDP (gross domestic product) looks poised to reach close to 63%, up from 50% a decade ago. Diversification has been achieved through strong gains in construction and real estate (via residential and leisure facilities), transportation (via upgraded transport links, including a new airport and Doha Metro) and financial services, with the share of the energy sector holding relatively constant. Given high share of long-haul source markets, the travel and tourism sector will spur this rebound, it said, adding the tournament, which starts on November 20, is set to attract more than 1mn visitors to Qatar, which its estimates show will lift the 2022 total to 2.8mn, surpassing 2019 levels. "The World Cup is strengthening momentum in travel and tourism in Qatar and across the GCC region this year, shrugging off the impact of strong dollar-pegged currencies and underpinning non-oil recovery," Oxford Economics said. Longer term, the infrastructure upgrade linked to the World Cup has the potential to be FDI (foreign direct investment) "positive" for Qatar, helping fulfil some of the diversification goals charted in its National Vision 2030. "The modern infrastructure coupled with reforms has the potential to reinvigorate FDI inflows after a recent period of divestment," it said, adding "in Qatar's case, the improved relations with neighbours will be a key driver of the rise in inward FDI we project for this year and beyond." Qatar's strong finances will support its efforts to broaden the economy, but ongoing reform will be equally important given rising competition in the region, the report said. "We think further reforms will also play a role as Qatar keeps up with growing competition in the region," it said, adding the ongoing reforms will be equally essential to achieving goals charted in Qatar's broad development strategy – the National Vision 2030 – as the World Cup itself.

Qatar's maritime sector was extremely busy in October with Hamad, Doha and Al Ruwais ports recording a robust double-digit growth in ship calls on annual and monthly basis and Hamad Port particularly witnessing the highest container volumes, said the figures released by the Mwani Qatar.
Business
Qatar's maritime sector witnesses brisk business in October; Hamad Port sees the highest container volumes

Qatar's maritime sector was extremely busy in October with Hamad, Doha and Al Ruwais ports recording a robust double-digit growth in ship calls on annual and monthly basis and Hamad Port particularly witnessing the highest container volumes, said the figures released by the Mwani Qatar. The three ports witnessed robust expansion in container, RORO and building materials year-on-year and month-on-month respectively this October, indicating the pace of private sector in the fastest growing economy and the fruition of diversification strategies. The number of ships calling on Qatar's three ports stood at 319 in October 2022, which grew 10.76% and 15.58% on annual and monthly basis respectively. 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 147 vessels call on the port in the review period. As many as 2,495 ships had called on three ports during the first 10 months of this year. In October, a new service Gulf-India Express 2 (GIX2), a circular service connecting Hamad Port with India, commenced operations. "The maritime sector of Qatar has undergone a significant transformation in recent years,” Mwani Qatar had said in a tweet. The container handling through three ports stood at 129,482 TEUs (twenty-foot equivalent units), which rose 13.46% and 5.26% respectively in October 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 127,462 TEUs of containers handled this October. The container handling through the three ports stood at 1.19mn TEUs during January-October 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 three ports handled 6,660 RORO in October 2022, which registered a 32.99% and 10.12% growth on yearly and monthly basis respectively. Hamad Port alone handled 6,393 units in October this year. The three ports together handled as many as 66,199 vehicles during the first ten months of this year. In the last five years, about 500,000 units have been handled through Mwani Qatar to meet the growing demand for transportation options in the country. The building materials traffic through the three ports stood at 57,091 tonnes in October this year, which zoomed 57.55% on an annualised basis and more than doubled month-on-month in the review period. A total of 409,651 tonnes of building materials had been handled by these ports in January-October 2022. In the last five years, Hamad Port has handled 4mn tonnes of building materials. The general cargo handled through the three ports was 161,208 tonnes in October 2022, which showed a 10.97% annual decline although it soared 21.88% month-on-month in the review period. Hamad Port – whose multi-use terminal is designed to serve the supply chains for the RORO (vehicles), grains and livestock – handled 42,350 freight tonnes of bulk and 104,010 freight tonnes of breakbulk in October this year. On a cumulative basis, the general cargo movement through the three ports totalled 1.31mn tonnes during January-October this year. The three ports had handled 22,044 livestock in October 2022, which plunged 51.55% year-on-year but more than tripled on monthly basis. The ports had handled a total of 149,360 heads during January-October this year. In the past five years, Hamad Port has received about 4.5mn heads of cattle to meet the rising demand for meat.  

Gulf Times
Business
QSE loses steam as selling in transport and banking drags index 23 points

The Qatar Stock Exchange Tuesday witnessed profit booking, a day after it made huge gains, as its key index lost 23 points, mainly dragged by the transport and banking sectors. The Gulf retail investors were increasingly net sellers as the 20-stock Qatar Index shed 0.18% to 12,391.58 points but recovering from an intraday low of 12,263 points. The Gulf institutions were seen net profit takers in the market, whose year-to-date gains were pruned to 6.59%. The foreign institutions’ weakened net buying had its influence in the main bourse, whose capitalisation saw QR0.52bn or 0.07% fall to QR694.18bn, mainly on the back of microcap segments. The Islamic index was seen declining slower than the other indices in the market, which saw a total of 0.04mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.41mn changed hands across 25 deals. Trade turnover and volumes were on the decrease in the main market; while the venture market saw increased turnover and trade volumes. The domestic institutions continued to be bearish but with lesser intensity in the bourse, which saw no trading of sovereign bonds. The local retail investors also continued to be net sellers but with lesser vigour in the main market, which saw no trading of treasury bills. The Total Return Index was down 0.18% to 25,381.97 points, Al Rayan Islamic Index (Price) by 0.11% to 2,727.89 points and All Share Index by 0.13% to 3,957.75 points. The transport sector index shrank 0.45%, banks and financial services (0.28%), insurance (0.16%), consumer goods and services (0.10%) and telecom (0.08%); while real estate and industrials gained 1.06% and 0.12% respectively. More than 59% of the traded constituents were in the red in the main market and included Dlala, QLM, Commercial Bank, Al Khaleej Takaful, Qatar Oman Investment and Milaha. In the venture market, Mekdam Holding saw its shares depreciate in value. Nevertheless, Ahlibank Qatar, Alijarah Holding, Barwa, United Development Company, Qatari German Medical Devices and QIIB were among the gainers in the main market. The Gulf individuals’ net selling strengthened markedly to QR16.21mn compared to QR12.64mn on October 31. The Gulf institutions turned net sellers to the tune of QR1.5mn against net buyers of QR2.36mn the previous day. The foreign institutions’ net buying shrank considerably to QR54.68mn compared to QR73.72mn on Monday. However, the foreign individuals were net buyers to the extent of QR3.26mn against net sellers of QR1.3mn on October 31. The Arab retail investors turned net buyers to the tune of QR1.01mn compared with net sellers of QR10.07mn the previous day. The local retail investors’ net profit booking weakened noticeably to QR8.52mn against QR17.75mn on Monday. The domestic institutions’ net selling eased perceptibly to QR32.72mn compared to QR34.33mn on October 31. The Arab institutions had no major net exposure for the third straight session. Total trade volume in the main market fell 13% to 106.98mn shares, value by 31% to QR386.36mn and deals by 24% to 15,978. The venture market saw trade volumes more than double to 0.26mn equities and value also more than double to QR1.88mn on more than tripled transactions to 173.

The mining PPI shrank 1.88% on a monthly basis in September this year on the back of a 1.89% decline in the average selling price of crude petroleum and natural gas, while that of stone, sand and clay was unchanged.
Business
Qatar's September PPI surges 44.18% year-on-year

Qatar's producers' price index (PPI) surged 44.18% year-on-year in September 2022, mainly on the back of the country's hydrocarbons sector and certain manufacturing businesses such as refined petroleum products, rubber and plastics, 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, eased 2.08% 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 52.63% surge on an annualised basis in September 2022 as the average selling price of crude petroleum and natural gas was seen soaring 52.69% and that of stone, sand and clay by 9.77%. The mining PPI shrank 1.88% on a monthly basis in September this year on the back of a 1.89% decline in the average selling price of crude petroleum and natural gas, while that of stone, sand and clay was unchanged. The manufacturing sector PPI, which has a weight of 15.85% in the basket, rose 5.81% year-on-year in September 2022 due to a 27.22% growth in the average price of rubber and plastics products, 23.29% in refined petroleum products, 12.34% in basic metals, 6.51% in cement and other non-metallic mineral products, 3.36% in food products and 0.03% in chemicals and chemical products. Nevertheless, there was 3.49% decline in printing and reproduction of recorded media and 1.35% in beverages. The manufacturing sector PPI saw a monthly 4.1% dip this September as the average selling price of rubber and plastics products shrank 10.5%, chemicals and chemical products (6.29%) and basic metals (2.14%). However, there was a 0.87% jump in the average selling price of refined petroleum products, 0.55% in food products, 0.16% in printing and reproduction of recorded media, 0.12% in cement and other non-metallic mineral products and 0.02% in beverages. The index of electricity, gas, steam and air conditioning supply reported 5.47% and 7.14% increase on yearly and monthly basis respectively this September. The index of water supply expanded 1.78% and 2.53% year-on-year and month-on-month respectively in September 2022.

Gulf Times
Business
Telecom, banking sectors lift sentiments in QSE; index surge 163 points, M-cap adds QR10bn

The Qatar Stock Exchange Monday gained 163 points mainly on the back of strong buying interests in the telecom and banking counters. The Gulf funds were seen net buyers as the 20-stock Qatar Index rose 1.33% to 12,414.41 points, recovering from an intraday low of 12,166 points. The foreign institutions continued to be net buyers but with lesser intensity in the market, whose year-to-date gains were at 6.78%. The local retail investors’ weakened net selling had its influence in the main bourse, whose capitalisation saw QR9.64bn or 1.41% jump to QR694.7bn, mainly on the back of large cap segments. The Islamic index was seen gaining slower than the other indices in the market, which saw a total of 0.35mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR1.39mn changed hands across 51 deals. Trade turnover and volumes were on the decrease in the main market; while the venture market saw increased turnover and trade volumes. The Arab individuals were seen bearish in the bourse, which saw no trading of sovereign bonds. The Gulf retail investors were increasingly net profit takers in the main market, which saw no trading of treasury bills. The Total Return Index shot up 1.33% to 25,428.73 points, Al Rayan Islamic Index (Price) by 0.64% to 2,730.77 points and All Share Index by 1.42% to 3,962.97 points. The telecom sector index zoomed 3.87%, banks and financial services (2.03%), transport (0.96%), consumer goods and services (0.45%), industrials (0.45%) and insurance (0.09%); while real estate declined 0.59%. Major gainers in the main market included Ooredoo, QNB, Al Meera, Commercial Bank, QIIB, Baladna, Qatar Electricity and Water and Nakilat. In the venture market, Mekdam Holding saw its shares appreciate in value. Nevertheless, Al Khaleej Takaful, Mannai Corporation, Ezdan, Gulf International Services, Qatari German Medical Devices, Lesha Bank, QLM and Mazaya Qatar were among the losers in the main market. The Gulf institutions turned net buyers to the tune of QR2.36mn compared with net sellers of QR1.47mn on October 30. Qatari individuals’ net profit booking weakened substantially to QR17.75mn against QR71.19mn the previous day. However, the domestic institutions’ net selling expanded noticeably to QR34.33mn compared to QR25.53mn on Sunday. The Gulf individuals’ net selling strengthened markedly to QR12.64mn against QR8.83mn on October 30. The Arab retail investors were net sellers to the extent of QR10.07mn compared with net buyers of QR5.33mn the previous day. The foreign individuals turned net sellers to the tune of QR1.3mn against net buyers of QR3.68mn on Sunday. The foreign institutions’ net buying shrank considerably to QR73.72mn compared to QR98.01mn on October 30. The Arab institutions had no major net exposure for the second straight session. Total trade volume in the main market fell 77% to 123.99mn shares and value by 38% to QR563.73mn, while deals grew 64% to 20,993. The venture market saw 33% expansion in trade volumes to 0.12mn equities and 35% in value to QR0.92mn but on 12% shrinkage in transactions to 53.  

Gulf Times
Business
QSE listed firms earn QR39.42bn net profit in 9M-2022

Qatar's listed firms reported net profit of QR39.42bn during the first nine months (9M) of 2022 but their overall net earnings growth slowed on an annualised basis. The net earnings of the listed companies grew 19.29% year-on-year during January-September 2022 compared to 35.86% the previous year period, according to the data compiled by the Qatar Stock Exchange. The 9M-2022 net profitability expansion was still in double digit owing to similar growth pattern in the consumer goods, industrials, transport and real estate sectors. The banking and financial services and industrials sectors together contributed about 81% of the cumulative net profits during 9M-2022. The consumer goods and services sector, which has 10 listed entities, saw a 25.78% year-on-year expansion in total net profit to QR1.65bn at the end of nine-month ended September 2022 against a huge 105.48% growth the previous-year period. The sector contributed 4.19% to the overall net profitability in the review period. The industrials sector, which has 10 listed constituents, saw a 24.9% year-on-year surge in net profitability to QR11.85bn against a 228.74% surge the year-ago period. The sector contributed 30.06% to the overall net profitability of the listed entities during 9M-2022. Within the industrials sector, the country’s underlying firms that have direct linkages with the hydrocarbons sectors saw their earnings growth weaken substantially. The transport sector, which has three listed constituents, saw total net profits grow 18.67% year-on-year to QR2.16bn compared to 25.23% jump during the corresponding period of 2021. The sector's net profit constituted 5.48% to the total net profit of the listed companies during 9M-2022. The realty segment, which has four listed entities, saw total net earnings jump 12.08% year-on-year to QR1.3bn during 9M-2022 against an 11.47% increase the year-ago period. The sector constituted 3.3% to the overall net profitability in the review period. The banks and financial services sector, which has 12 listed entities, reported a 4.9% year-on-year jump in total net profit to QR19.89bn against a 15.42% expansion the comparable period of 2021. The sector contributed 50.46% to the total net profits of the listed companies in January-September 2022. The telecom sector, which has two constituents, reported net profit of QR2.38bn, which was 6.04% of the total net profits during 9M-2022. The insurance sector, which has six companies, registered a 79.08% annual plunge in net earnings to QR0.17bn, against 524.61% surge the year-ago period. The sector contributed 0.43% to the overall net profitability during the review period. The proposed mandatory health insurance and the substantial expansion planned in the North Field are expected to augur well for the insurance sector in the future, according to reports.

Gulf Times
Business
‘Qatar needs a national strategy for entrepreneurship education’

Qatar should develop a national strategy for entrepreneurship education (EE) and have a centralised government entity to unite the Ministry of Education and Higher Education (MoEHE) with multi-stakeholders as part of the five-pronged roadmap to have sustainable entrepreneurial ecosystem, according to a report from HEC Paris. “A national strategy for EE in Qatar should be drawn up and continually monitored and updated according to the populations’ needs,” Maryam al-Khalaf, a research associate at the World Innovation Summit for Education, an initiative of Qatar Foundation, said in the HEC Paris report, edited by Dr Allan Villegas-Mateos. This national strategy should be developed in line with the national development strategy and other regional and national visions, she said. “The new EE national strategy can be added to one of the pillars of Qatar National Vision 2030, such as the economic or human pillar, where EE could potentially play a significant role,” according to her. The MoEHE must lead or be a part of this national strategy as it is one of the responsibilities to improve EE in Qatar and to include it in primary or secondary schools, which could eventually improve the entrepreneurship ecosystem in the country, she said. This recommendation stems from the realisation that Qatar is trying to improve the entrepreneurship ecosystem but is not putting sufficient emphasis on the educational aspects or efforts to strengthen entrepreneurship, al-Khalaf said. “In terms of implementation, the government can establish a national strategy and include the MoEHE, along with relevant institutions in the country such as Qatar Development Bank, to set specific KPIs (key performance indicators) and, most importantly, a timeline to achieve this strategy,” she said. Pitching for a centralised government institution that connects MoEHE, private sector, semi-governmental and governmental agencies to improve EE in Qatar; the report said the current lack of such an entity makes it difficult to follow upon what each institution is doing or achieving. “A centralised government institution is needed to serve as a proactive platform to gather and disseminate knowledge, research and findings from different institutions offering EE. This platform could also support institutional collaboration on research and training,” al-Khalaf said. Highlighting that this institution could create specific, mandatory metrics for the effects of training programmes; she said these standardised metrics can be applied to all institutions to accurately examine the impact of their training programmes and modify them accordingly. The report recommended that the government body could include multiple stakeholders such as policymakers, the MoEHE, universities, research centres, government agencies, investors, incubators and accelerators. “It could create an advisory board with representatives from each institution who would be responsible for planning, setting objectives, analysing the situation and results, and suggesting improvement areas for EE in Qatar,” al-Khalaf said. The content of EE should be localised to fit the needs and goals of participants and in this regard, it suggested the content should include case studies from Qatar and support hands-on experience for participants. The report called for further academic and policy research on EE as it said such works could identify the current gaps and obstacles in developing the EE in the country. It also suggested that instructors and coaches should undergo extensive training in experiential learning methods, including new and updated teaching materials and would have to be funded by the specific institutions providing EE.

Gulf Times
Business
QSE index plummets 203 points; M-cap erodes QR9bn

Reflecting the weakened global energy markets, the Qatar Stock Exchange Wednesday saw its key index plummet more than 203 points and capitalisation erode about QR9bn. The insurance and industrials counters witnessed higher than average selling pressure as the 20-stock Qatar Index declined 1.64% to 12,207.61 points, but recovering from an intraday low of 12,095 points. The foreign institutions were increasingly net profit takers in the market, whose year-to-date gains truncated further to 5%. The Gulf institutions were also increasingly into net selling in the main bourse, whose capitalisation saw QR8.53bn or 1.24% plunge to QR680.63bn, mainly on the back of midcap segments. The Islamic index declined slower than the other indices in the market, which saw a total of 0.13mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR1.17mn changed hands across 63 deals. Trade turnover and volumes were on the increase in the main as well as venture market. The Arab individuals turned net buyers in the bourse, which saw no trading of sovereign bonds. The foreign retail investors were increasingly bullish in the main market, which saw no trading of treasury bills. The Total Return Index shrank 1.64% to 25,005.15 points, Al Rayan Islamic Index (Price) by 1.49% to 2,692.04 points and All Share Index by 1.29% to 2,889.05 points. The insurance sector index plummeted 2.62%, industrials (2%), banks and financial services (1.44%) and real estate (1.16%); while consumer goods and services gained 0.36%, telecom (0.25%) and transport (0.15%). More than 73% of the traded constituents were in the red in the main market and included Al Khaleej Takaful, Commercial Bank, Masraf Al Rayan, Dlala, Qatar Oman Investment, Lesha Bank, Alijarah Group, Industries Qatar, Aamal Company, Estithmar Holding, Qamco, Mesaieed Petrochemical Holding and Ezdan. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, Medicare Group, Doha Insurance, Qatar Industrial Manufacturing, Al Meera and Vodafone Qatar were among the gainers in the main market. The domestic institutions’ net selling increased significantly to QR49.79mn compared to QR14.07mn on October 25. The Gulf institutions’ net profit booking grew considerably to QR29.19mn against QR16.94mn the previous day. The Gulf individuals’ net buying weakened marginally to QR0.2mn compared to QR0.35mn on Tuesday. However, Qatari individuals’ net buying expanded substantially to QR70.37mn compared to QR46.63mn on October 25. The Arab retail investors turned net buyers to the tune of QR9.65mn against net sellers of QR1.75mn the previous day. The foreign individuals’ net buying expanded perceptibly to QR7.65mn compared to QR2.53mn on Tuesday. The Arab institutions were net buyers to the extent of QR0.27mn against net profit takers of QR3.57mn on October 25. The foreign institutions’ net profit booking weakened perceptibly to QR9.16mn compared to QR13.18mn the previous day. Total trade volume in the main market rose 37% to 211.79mn shares, value by 27% to QR670.72mn and deals by 9% to 21,476. The venture market saw trade volumes quadruple to 0.2mn equities and value more than tripled to QR1.37mn on 42% expansion in transactions to 47.

Gulf Times
Business
QSE sentiments dampen as index loses 88 points, M-cap erodes QR6bn

The Qatar Stock Exchange Tuesday fell more than 88 points, mainly dragged by the industrials and consumer goods sectors. The Gulf funds were increasingly into net selling as the 20-stock Qatar Index settled 0.71% lower at 12,411 points, but recovering from an intraday low of 12,353 points. The foreign institutions were seen bearish in the market, whose year-to-date gains truncated further to 6.75%. The Arab retail investors were also net profit takers in the main bourse, whose capitalisation saw QR6.08bn or 0.87% decrease to QR689.16bn, mainly on the back of micro and midcap segments. The Islamic index declined slower 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 QR0.42mn changed hands across 33 deals. Trade turnover and volumes were on the increase in the main as well as venture market. The domestic institutions continued to be net sellers but with lesser intensity in the bourse, which saw no trading of sovereign bonds. The local retail investors were increasingly bullish in the main market, which saw no trading of treasury bills. The Total Return Index shrank 0.71% to 25,421.76 points, Al Rayan Islamic Index (Price) by 0.62% to 2,732.79 points and All Share Index by 0.78% to 3,939.73 points. The industrials sector index tanked 1.14%, consumer goods and services (1%), banks and financial services (0.91%) and real estate (0.26%), while insurance gained 0.9%, telecom (0.39%) and transport (0.02%). About 69% of the traded constituents were in the red in the main market and included Qatari German Medical Devices, Dlala, Qamco, Salam International Investment, Lesha Bank, Commercial Bank, QNB, Alijarah Holding, Industries Qatar, Mesaieed Petrochemical Holding, Ezdan, Mazaya Qatar and Vodafone Qatar. In the venture market, Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, Aamal Company, Qatar General Insurance and Reinsurance, Qatar Electricity and Water, Qatar Insurance and QLM were among the gainers in the main market. The Gulf institutions’ net profit booking increased considerably to QR16.94mn compared to QR2.38mn on October 24. The foreign institutions turned net sellers to the tune of QR13.18mn against net buyers of QR7.77mn the previous day. The Arab institutions were net profit takers to the extent of QR3.57mn compared with no major net exposure on Monday. The Arab retail investors turned net sellers to the tune of QR1.75mn against net buyers of QR2.65mn on October 24. The foreign individuals’ net buying weakened perceptibly to QR2.53mn compared to QR4.4mn the previous day. However, Qatari individuals’ net buying expanded significantly to QR46.63mn against QR4.04mn on Monday. The Gulf individuals were net buyers to the extent of QR0.35mn compared with net sellers of QR0.15mn on October 24. The domestic institutions’ net selling weakened markedly to QR14.07mn against QR16.32mn the previous day. Total trade volume in the main market rose 59% to 154.54mn shares, value by 51% to QR526.14mn and deals by 65% to 19,793. The venture market saw a 67% surge in trade volumes to 0.05mn equities and value more than tripled to QR0.36mn on more than tripled transactions to 33.  

Gulf Times
Business
Domestic funds’ selling pressure drags QSE below 12,500 levels

The Qatar Stock Exchange Monday witnessed domestic funds turn net profit takers as its key barometer retreated below 12,500 levels and capitalisation erode more than QR5bn. The banks and real estate counters witnessed higher than average selling pressure as the 20-stock Qatar Index settled 95 points or 0.75% lower at 12,499.17 points, but recovering from an intraday low of 12,476 points. The Gulf individuals were also seen bearish in the market, whose year-to-date gains were at 7.51%. The Arab retail investors’ weakened net buying had its influence in the main bourse, whose capitalisation saw QR5.15bn or 0.74% decrease to QR695.24bn, mainly on the back of midcap segments. The Islamic index declined slower than the other indices in the market, which saw a total of 0.17mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.95mn changed hands across 45 deals. Trade turnover and volumes were on the increase in the main market, while the venture market saw declining turnover and volumes. The foreign institutions were seen net buyers in the bourse, which saw no trading of sovereign bonds. The local retail investors were also seen bullish in the main market, which saw no trading of treasury bills. The Total Return Index shrank 0.75% to 25,602.35 points, the Al Rayan Islamic Index (Price) by 0.67% to 2,749.92 points and the All Share Index by 0.71% to 3,970.62 points. The banks and financial services sector index declined 0.92%, real estate (0.82%), industrials (0.73%), insurance (0.66%) and consumer goods and services (0.59%); while transport and telecom gained 0.53% and 0.34% respectively. About 67% of the traded constituents were in the red in the main market and included Qatar General Insurance and Reinsurance, Aamal Company, Mazaya Qatar, QLM, Alijarah Holding, Commercial Bank, Masraf Al Rayan, Al Meera and Ezdan. Nevertheless, Qatar Insurance, Inma Holding, Nakilat, Doha Insurance, Widam Food, Gulf International Services and Qatar Islamic Insurance 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 domestic institutions were net sellers to the tune of QR16.32mn compared with net buyers of QR12.5mn on October 23. The Gulf individuals were net sellers to the extent of QR0.15mn against net buyers of QR0.29mn the previous day. The Arab retail investors’ net buying declined noticeably to QR2.65mn compared to QR7.49mn on Sunday. The foreign individuals’ net buying weakened perceptibly to QR4.4mn against QR9.33mn on October 23. However, the foreign institutions turned net buyers to the tune of QR7.77mn compared with net sellers of QR10.73mn the previous day. Qatari individuals’ net buying expanded significantly to QR4.04mn against QR0.29mn on Sunday. The Gulf institutions’ net profit booking fell considerably to QR2.38mn compared to QR19.36mn on October 23. The Arab institutions had no major net exposure against net buyers to the tune of QR0.19mn the previous day. Total trade volume in the main market rose 3% to 97.32mn shares and value by 11% to QR349.29mn, while deals were down 6% to 12,025. The venture market saw a 90% plunge in trade volumes to 0.03mn equities, 89% in value to QR0.11mn and 83% in transactions to 10.

QSE
Business
Foreign funds drag QSE 63 points; M-cap erodes QR3bn

The Qatar Stock Exchange on Sunday opened the week weak with its key index losing about 63 points, mainly dragged by the transport, telecom and industrials sectors. The foreign funds were seen net profit takers as the 20-stock Qatar Index shrank 0.5% to 12,594.14 points, although it touched an intraday high of 12,730 points. The Gulf institutions continued to be net sellers but with lesser vigour in the market, whose year-to-date gains were at 8.33%. The domestic funds were seen bullish in the main bourse, whose capitalisation however saw QR3.16bn or 0.45% decrease to QR700.39bn, mainly on the back of small and microcap segments. The Islamic index declined slower than the other indices in the market, which saw a total of 0.57mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR2.07mn changed hands across 53 deals. Trade turnover and volumes were on the decline in the main market, while the venture market saw increased turnover and volumes. The foreign individuals were increasingly net buyers in the bourse, which saw no trading of sovereign bonds. The Arab retail investors were also increasingly bullish in the main market, which saw no trading of treasury bills. The Total Return Index shrank 0.5% to 25,796.89 points, Al Rayan Islamic Index (Price) by 0.07% to 2,768.35 points and All Share Index by 0.43% to 3,998.93 points. The transport sector index tanked 1.3%, telecom (1.28%), industrials (0.74%), insurance (0.37%), consumer goods and services (0.36%) and banks and financial services (0.22%); while real estate gained 0.49%. Major losers in the main market included Dlala, Qatari German Medical Devices, Nakilat, Commercial Bank, Ooredoo, Medicare Group, Baladna, Industries Qatar and Estithmar Holding. In the venture market, Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, QLM, Salam International Investment, Gulf Warehousing, United Development Company, Vodafone Qatar and Barwa were among the gainers in the main market. The foreign institutions turned net sellers to the tune of QR10.73mn compared with net buyers of QR91.19mn on October 20. However, the domestic institutions were net buyers to the extent of QR12.5mn against net sellers of QR53.73mn last Thursday. The foreign individuals’ net buying grew substantially to QR9.33mn compared to QR2.31mn the previous trading day. The Arab retail investors’ net buying expanded noticeably to QR7.49mn against QR1.16mn on October 20. Qatari individuals turned net buyers to the tune of QR0.29mn compared with net sellers of QR13.3mn last Thursday. The Gulf individuals were net buyers to the extent of QR0.29mn against net profit takers of QR0.92mn the previous trading day. The Arab institutions turned net buyers to the tune of QR0.19mn compared with no major net exposure on October 20. The Gulf institutions’ net profit booking weakened perceptibly to QR19.36mn against QR26.69mn the previous trading day. Total trade volume in the main market shrank 17% to 94.37mn shares, value by 38% to QR315.63mn and deals by 39% to 12,819. The venture market saw trade volumes triple to 0.3mn equities and value grew 23% to QR0.96mn but on 11% shrinkage in transactions to 58.    

Hamad Port has handled around 4mn tonnes of building materials in the last five years; indicating the brisk pace of infrastructure development in the country, ahead of the FIFA World Cup
Business
Hamad Port handled 4mn tonnes of building materials in five years

Hamad Port has handled around 4mn tonnes of building materials in the last five years; indicating the brisk pace of infrastructure development in the country, ahead of the FIFA World Cup. The statistics regarding the building materials handled by the Hamad Port was disclosed by Mwani Qatar in a tweet. “Mwani Qatar process thousands of tonnes of goods every month through Hamad Port. In the last five years, around 4mn tonnes of building materials have been handled to meet the needs of the infrastructure projects in the country,” it said. This growth comes in the backdrop a strong double-digit growth in the total building permits issued in the country on an annualised basis, as per the figures of the Planning and Statistics Authority. The building permits data is of particular importance as it is considered an indicator for the performance of the construction sector which in turn occupies a significant position in the national economy. The latest report from the Planning and Statistics Authority suggest that Qatar registered a strong-double digit year-on-year increase in building permits issued in September with Doha, Al Rayyan and Al Wakra outpacing the national average. The Qatar Financial Centre's latest PMI (purchasing managers’ index) data suggests the rebound of the non-oil sector, particularly construction. The construction sector has been witnessing revived demand as the country races ahead to host the FIFA World Cup, which begin next month. The fast completion of infrastructure projects as well as PPP (public private partnership) model have hastened the rebound of the sector, market sources said. A total of 352,560 tonnes of building materials had been handled by Qatar's ports in the first nine months of this year, Mwani Qatar data said. The building materials handled by the ports amounted to 592,452 tonnes during 2021, showing a robust 66% year-on-year growth. During 2020, the level was 357,493 tonnes, which however was down 6% on an annualised basis. During 2019, it expanded about 17% year-on-year to 378,711 tonnes and during 2018, it stood at 324,248 tonnes, which nevertheless plummeted 44% year-on-year. It was 576,278 tonnes during 2017. The country's fastest-growing sector, construction is booming in Qatar, with the government planning to spend over $200bn as part of a major infrastructure revamp. Many big-ticket projects, especially in tourism, education and real estate builds are expected to strengthen the economic diversification efforts, as enshrined in Qatar National Vision 2030.    

Gulf Times
Business
Selling pressure in industrials, banks drags QSE sentiments

The foreign institutions were seen bullish in an otherwise bearish Qatar Stock Exchange, whose key barometer lost 61 points and market capitalisation shrank QR5bn this week. The industrials and banking counters witnessed higher than average selling pressure as the 20-stock Qatar Index settled 0.48 points lower this week which saw Qatar Islamic Bank report net profit of QR2.85bn in the first nine months (9M) of this year. More than 68% of the traded constituents were in the red in the main market this week which saw Commercial Bank report 9M net profit at QR2.2bn. The domestic institutions’ increased net selling rather dampened the sentiments this week which saw Nakilat register QR1.14bn net profit in January-September this year. The Islamic index was seen declining slower than the other indices this week which saw five of the seven sectors reel under selling pressure. The Gulf funds were also increasingly net profit takers this week which saw Qatar’s industrial production index soar 7.3% on an annualised basis this August. The local retail investors continued to be net sellers but with lesser intensity this week which saw a Kamco Invest report that highlighted $3.4bn worth of contracts being awarded in Qatar during the third quarter of this year. In the main market, trade turnover grew amidst lower volumes; while the venture market saw lower turnover and volumes this week which saw a total of 0.49mn Masraf Al Rayan-sponsored exchange traded fund QATR worth QR1.33mn trade across 41 deals. The foreign retail investors were seen bullish this week which saw as many as 0.36mn Doha Bank-sponsored QETF valued at QR4.4mn change hands across 252 transactions. Market capitalisation was seen eroding QR4.7bn or 0.66% to QR703.55bn on the back of microcap segments this week which saw the industrials and realty sectors together constitute more than 59% of the total trade volume in the main market. The Total Return Index shed 0.48%, All Share Index by 0.57% and All Islamic Index by 0.16% this week, which saw no trading of sovereign bonds. The industrials sector index shrank 1.35%, banks and financial services (0.62%), telecom (0.28%), consumer goods and services (0.13%) and insurance (0.04%); while transport and real estate gained 0.87% and 0.56% respectively this week which saw no trading of treasury bills. Major losers in the main market included Dlala, Qatari German Medical Devices, Commercial Bank, Lesha Bank, Al Khaleej Takaful, Qatar Oman Investment, Salam International Investment, Baladna, Industries Qatar, Gulf International Services and QLM. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value this week. Nevertheless, Masraf Al Rayan, Qatar Electricity and Water, Nakilat, Barwa, Mazaya Qatar, Woqod and Estithmar Holding were among the gainers in the main market this week. The domestic institutions’ net selling increased substantially to QR124.22mn compared to QR49.46mn the week ended October 13. The Gulf institutions’ net profit booking enhanced significantly to QR68.55mn against QR23.83mn a week ago. The Arab individuals’ net buying weakened markedly to QR5.89mn compared to QR18.91mn the previous week. However, the foreign funds’ net buying strengthened considerably to QR245.12mn against QR162.78mn the week ended October 13. The foreign individuals turned net buyers to the tune of QR9.16mn compared with net sellers of QR11.84mn a week ago. The local retail investors’ net selling shrank noticeably to QR65.19mn against QR91.39mn the previous week. The Gulf individuals’ net profit booking eased perceptibly to QR2.2mn compared to QR5.03mn on October 13. The Arab institutions’ net profit booking eased marginally to QR0.13mn against QR0.17mn a week ago. Total trade volume in the main market fell 20% to 606.31mn shares, while value grew 4% to QR2.02bn and deals by 12% to 62,428. The venture market reported 6% contraction in trade volumes to 0.33mn equities, 4% in value to QR2.43mn and 20% in transactions to 200.

This file photo taken on February 1, 2006 shows an oil refinery on the outskirts of Doha. Qatar's industrials sector continued to display robust performance in August on an annualised basis, mainly drawing strength from the hydrocarbons sector, according to the official data.
Business
Qatar's industrial sector keeps pace in August: PSA

Qatar's industrials sector continued to display robust performance in August on an annualised basis, mainly drawing strength from the hydrocarbons sector, according to the official data. The increased production of manufactured items such as food products, refined petroleum products and chemicals as well as higher extraction in the mining and quarrying sectors led Qatar's industrial production index (IPI) to jump 7.3% year-on-year and 1.2% month-on-month in August 2022, said the figures released by the Planning and Statistics Authority (PSA). The PSA introduced IPI, a short-term quantitative index that measures the changes in the volume of production of a selected basket of industrial products over a given period with respect to a base period 2013. The mining and quarrying index, which has a relative weight of 83.6%, saw a 7.3% surge on a yearly basis owing to a 7.3% increase in the extraction of crude petroleum and natural gas and 5.2% in other mining and quarrying sectors. On a monthly basis, the index was up a marginal 0.6% on account of a 0.6% jump in the extraction of crude petroleum and natural gas but other mining and quarrying sectors saw a 2.7% contraction. The manufacturing index, with a relative weight of 15.2%, shot up 7.1% year-on-year in August 2022 owing to 20.4% increase in the production of refined petroleum products, 12.6% in chemicals and chemical products, 10.6% in rubber and plastics products, 10.3% in food products and 4.1% in beverages. Nevertheless, there was a 12.4% shrinkage in the production of basic metals, 12% in cement and other non-metallic mineral products and 9.1% in printing and reproduction of recorded media in the review period. On a monthly basis, the manufacturing index zoomed 4.4% owing to a 6.8% increase in the production of chemicals and chemical products, 6.2% in food products, 5.4% in refined petroleum products, 3.2% in printing and reproduction of recorded media, 2.3% in beverages and 0.8% in rubber and plastics products; even as there was a 2.1% decline in the production of basic metals.in the review period. In its recent Article IV consultation report on Qatar, the International Monetary Fund said the industrial production in the country remained below pre-Covid levels as maintenances reduced hydrocarbon production in 2021. Electricity, which has 0.7% weight in the IPI basket, saw its index soar 5% and 2.8% year-on-year and month-on-month basis respectively this August. In the case of water, which has a 0.5% weight, there was a 27.5% surge on an annualised basis but shrank 1.2% month-on-month in August 2022.