Currency pegs to the dollar will remain in place in Qatar and four other Gulf Co-operation Council (GCC) countries over the coming decade, BMI Research has said in a report.
However, the government will continue to cover its budget shortfalls through debt issuance, but faces little risk of any credit event, BMI said in a report.
Qatar, which is planning to build three new liquefied natural gas (LNG) trains to target the tighter LNG market expected in the mid-2020s, could rather look to partner with companies that have strong existing relationships with Chinese buyers to bolster its position in this market, according to BMI,
According to BMI, a Fitch Group company, the development of non-oil industries and improvement of the infrastructure network are part of government’s ambitious economic transformation programmes in Qatar.
Qatar, which can easily defend its foreign exchange peg with the greenback, has the ability to inject dollar liquidity in order to narrow the gap between the onshore and offshore currency rates, according to BMI, a Fitch company.
Firming economic activity will support stronger fuel consumption in the GCC region in 2018, but continued energy sector reforms will anchor growth substantially below the pre-oil price crash norms ...
Robust outlook beckons Qatari construction industry, notwithstanding the economic blockade by the siege countries, according to BMI, a Fitch company.
Qatar's decision to enhance liquefied natural gas (LNG) production by 30% to 100mn tonnes per annum (Mta) makes "strong" commercial sense and it could lift Doha's market share in global LNG market, according to BMI.
Qatar is slated to outperform the other Gulf Cooperation Council (GCC) countries on its first-mover advantage in diversification, and that the oil price recovery will support the GCC, enabling the governments ease their austerity drive to help boost investors and consumers' sentiments.
Qatar's private healthcare expenditure is expected to grow at 8.8% in the next 10 years, faster than the 5.8% in public healthcare, offering abundant opportunities especially for global drug manufacturers, according to BMI.