The Qatar Financial Center (QFC) is increasingly targeting Asia, which is set to be the world's growth engine for the next decade.
"Asia is the next destination for growth as I don't see growth coming from Europe. There will be growth in the US but Asia will be taking the growth levels into next decade," QFC Authority chief executive Yousuf bin Mohamed al-Jaida told a webinar on 'Economic Development in Qatar and Opportunities', organised by Doha Bank.
Stressing that Asia will continue to be an important continent for Qatar; he said "we intend to invest in Asia for the future."
Terming that the Asian markets have always been "significant" to Qatar, he pointed out that the bulk of the country's exports went to the Asian countries.
According to the latest data from the Planning and Statistics Authority, the rebound in the country's merchandise trade has been mainly on account of robust high two-digit expansion in exports, especially to Asian countries.
The Asian region accounted for more than 64% of Qatar's exports, with Japan, China and India occupying the first three slots.
In April this year, Qatar's shipments to Japan amounted to QR2.81bn or 13.4% of the total exports of the country, followed by China QR2.76bn (13.2%), India QR2.67bn (12.7%), South Korea QR2.12bn (10.1%) and Singapore QR1.01bn (4.8%).
On the prospects of the domestic economy, al-Jaida said Qatar's real GDP (gross domestic product) is forecasted to grow third fastest in the GCC (Gulf Co-operation Council) in the coming two years.
"The major factors supporting the growth are events such as FIFA World Cup 2022, the planned increase in oil and gas capacities and investments in infrastructure with recovery driven by pandemic subsiding globally," he said.
Post-Covid, there will be a spike in demand across multiple sectors, whether it is consumption or investment, and Qatar will be part of this world boom, he said.
Highlighting that the business conditions has shown signs of improvement in the first quarter (Q1) of 2021; he said the headline purchasing managers index or PMI is above 50, signalling new orders and output are gaining momentum.
"Qatar's economy is set on a gradual recovery," he said, observing that Q1 indicators such as trade, business conditions and credit growth signal the continuation of economic activity.
Expecting 2.8% to 2.9% growth this year, al-Jaida said by 2022 onwards, the economy is expected to see a “very high single digit” growth, which will have its positive impact on the financial, consumption, retail and real estate sectors.
"In the medium term, the hydrocarbon sector is expected to realise a better performance due to continued relative recovery in oil prices as well as production expansion plans by Qatar Petroleum, which will solidify the country's position as the largest liquefied natural gas (LNG) exporter in the world," al-Jaida said.
With increase in the planned expansion in LNG production and expected recovery of oil prices, the country's current account is estimated to remain "positive" in the coming medium term horizon, according to him.
In this regard, Doha Bank chief executive Dr R Seetharaman said although Qatar conservatively estimated oil price to be $40 a barrel in this fiscal’s budget, the prices averaged $62.5 in the first quarter and is expected to harden to $65 in the second quarter of this year.
“So we will have a current account surplus and possibly fiscal surplus too,” he said.
"Asia is the next destination for growth as I don't see growth coming from Europe. There will be growth in the US but Asia will be taking the growth levels into next decade," QFC Authority chief executive Yousuf bin Mohamed al-Jaida told a webinar on 'Economic Development in Qatar and Opportunities', organised by Doha Bank.
Stressing that Asia will continue to be an important continent for Qatar; he said "we intend to invest in Asia for the future."
Terming that the Asian markets have always been "significant" to Qatar, he pointed out that the bulk of the country's exports went to the Asian countries.
According to the latest data from the Planning and Statistics Authority, the rebound in the country's merchandise trade has been mainly on account of robust high two-digit expansion in exports, especially to Asian countries.
The Asian region accounted for more than 64% of Qatar's exports, with Japan, China and India occupying the first three slots.
In April this year, Qatar's shipments to Japan amounted to QR2.81bn or 13.4% of the total exports of the country, followed by China QR2.76bn (13.2%), India QR2.67bn (12.7%), South Korea QR2.12bn (10.1%) and Singapore QR1.01bn (4.8%).
On the prospects of the domestic economy, al-Jaida said Qatar's real GDP (gross domestic product) is forecasted to grow third fastest in the GCC (Gulf Co-operation Council) in the coming two years.
"The major factors supporting the growth are events such as FIFA World Cup 2022, the planned increase in oil and gas capacities and investments in infrastructure with recovery driven by pandemic subsiding globally," he said.
Post-Covid, there will be a spike in demand across multiple sectors, whether it is consumption or investment, and Qatar will be part of this world boom, he said.
Highlighting that the business conditions has shown signs of improvement in the first quarter (Q1) of 2021; he said the headline purchasing managers index or PMI is above 50, signalling new orders and output are gaining momentum.
"Qatar's economy is set on a gradual recovery," he said, observing that Q1 indicators such as trade, business conditions and credit growth signal the continuation of economic activity.
Expecting 2.8% to 2.9% growth this year, al-Jaida said by 2022 onwards, the economy is expected to see a “very high single digit” growth, which will have its positive impact on the financial, consumption, retail and real estate sectors.
"In the medium term, the hydrocarbon sector is expected to realise a better performance due to continued relative recovery in oil prices as well as production expansion plans by Qatar Petroleum, which will solidify the country's position as the largest liquefied natural gas (LNG) exporter in the world," al-Jaida said.
With increase in the planned expansion in LNG production and expected recovery of oil prices, the country's current account is estimated to remain "positive" in the coming medium term horizon, according to him.
In this regard, Doha Bank chief executive Dr R Seetharaman said although Qatar conservatively estimated oil price to be $40 a barrel in this fiscal’s budget, the prices averaged $62.5 in the first quarter and is expected to harden to $65 in the second quarter of this year.
“So we will have a current account surplus and possibly fiscal surplus too,” he said.
