Qatar boosts liquidity in construction; ups public sector investments: SAK report

Qatar has increased liquidity in the building and construction sector, and increased major public sector investments contrary to the expectations of the siege countries, SAK Holding Group has said in its latest monthly report.SAK’s Market Watch Office said Qatar had also injected funds to ensure the continuation of major infrastructure projects and work in residential and industrial cities, as well as transportation projects such as the Doha Metro.“The government’s interest in the real estate sector stems from its numerous contributions to the growth of various sectors and the development of the Qatari economy in general. “It has also contributed significantly to the growth of the financial sector and to the reduction of inflation. It has a vital role in the expansion plans of Qatar National Vision 2030 and preparations for hosting the 2022 FIFA World Cup,” the report said.The report also said the Qatari government continues to pump billions of dollars to finance a wide range of development projects estimated to exceed $25bn, including more than 250 infrastructure and transport development projects, and World Cup-related projects. “In this way, they have provided real opportunities to the private sector and the local market, which benefited from the tenders and the strategy of awarding tenders aimed at upgrading and developing national companies,” the report continued.In addition, the report said the volume of government spending, which supported the growth of the economy and created valuable opportunities for local companies, especially small and medium-sized enterprises, “pushed them to develop and gain new experiences in many basic and marginal activities that resulted from various government projects.”The report said Qatar’s spending on development projects is expected to rise in the new budget. “The International Monetary Fund (IMF) is looking at it with great optimism, which could place Qatar at the forefront of development in the Middle East and North Africa,” the report said. It also said the IMF recently revealed an increase in the growth rate of Qatar’s economy resulting from the growth of the non-oil sector. This year, Qatar topped the list of reducing the state budget deficit, thanks to the measures taken by the government, which led to an improvement in the balance of trade. “The IMF report predicted the continuation of this improvement in 2018 and predicted a surge in revenues that would reduce budget deficit,” the report added.