5-year Qatar strategy boosts Vision 2030

The Qatar National Development Strategy 2011-2016 will help the country meet the challenges of Qatar National Vision 2030, Doha Bank Group chief executive R Seetharaman has said.Addressing a panel session on “Finance & Banking” at the Business & Investment in Qatar Forum in New York on Wednesday, he said that Qatar’s economy is expected to have “robust growth” in 2011, with the outlook broadly favourable in the next five years.“Beyond 2011 the real GDP (gross domestic product) growth can drop as current investments in hydrocarbon get completed.“Aggregate GDP growth in 2012-2016 is expected to average 6.9%, of which hydrocarbon GDP growth will be 4.4% and non-hydrocarbon GDP 9.1%,” he added.Highlighting the industrial trends in Qatar, Seetharaman said: “The services sector is going to be the major driver. By 2016, the sector could account for 40% of the total output, up from 36% in 2009.“The transport and communications and financial services sectors could grow vigorously.

Qatar Prime Minister and Foreign Minister HE Sheikh Hamad bin Jassim bin Jabor al-Thani with some of the participants of the ‘Business & Investment in Qatar Forum’ at the Waldorf Astoria Hotel in New York, on Wednesday

“Potential is also seen in construction and manufacturing. The conduct of FIFA World Cup 2022 may provide opportunities in tourism and other areas,” the banker said.“The World Cup will create opportunities to form strategic alliances externally and to connect to global value chains.”He said during 2011-2016, the total gross domestic investment might be about QR820bn, of which private non-hydrocarbon sector is expected to account for QR389bn.“During the period, Qatar’s population is expected to be steady and grow at an average of 2.1%. “The rapid population growth of the recent past is not expected to continue,” Seetharaman said. “Qatar’s budget 2011-12 has a surplus of QR22bn and focuses on education, health care and infrastructure projects.”

Some Qatari dignitaries who have attended the two-day ‘Business & Investment in Qatar Forum’ at the Waldorf Astoria Hotel in New York, which concluded yesterday. Seen here are Qatar Chamber of Commerce & Industry chairman Sheikh Khalifa bin Jassim bin Mohamed al-Thani (second right), Qatari Businessmen Association first deputy chairman Hussain Alfardan (third right), Qatari Businessmen Association second deputy chairman Sheikh Dr Khalid bin Thani al-Thani (right), Sheikh Mohamed bin Abdulaziz al-Thani, Sheikh Ahmed bin Ali al-Thani and Sheikh Turki bin Khalid al-Thani

Seetharaman also spoke about the recent banking trends in Gulf Co-operative Council (GCC). In Qatar, lending and funding in foreign currency has increased in recent times. Private sector has shown a revival in recent times. In the near future, improvement in net interest income and decline in provisioning is expected in the GCC banking industry. On investment opportunities in the GCC region, Seetharaman said: “The price earnings and price book multiples of Qatar exchange are still attractive when compared to the emerging economies. Abu Dhabi and Qatar banks provide good investment opportunities. “Petrochemicals are also a good segment to consider for investment apart from banking due to higher capacity utilisation in the industry. The insurance industry also should be watched in Qatar, Kuwait and Saudi Arabia”.The panel session was also attended by QNB Group chief executive Ali Shareef al-Emadi, Qatar International Islamic Bank chief executive Abdulbasit A al-Shaibei and Qatar Stock Exchange chief executive Andre Went.