The impact of the Covid-19 crisis on the global economy has cast a shadow on the Qatari economy, but the measures taken by the State of Qatar and the economic stimulus packages for the affected economic sectors contributed to the resilience of its economy, as many indicators show.
The proactive attitude and quick adaptation to changes formed a basic pillar of the country's plans and programmes, and flexibility was adopted to be the main approach in dealing with various regional and international challenges, especially during the current situation witnessed by all countries of the world following the pandemic and the drop in oil and gas prices, as affirmed by HE the Minister of Commerce and Industry and Acting Minister of Finance Ali bin Ahmed al-Kuwari on more than one occasion.
Since the spread of Covid-19 in March 2020, the state adopted a set of flexible proactive measures to prevent the spread of the virus, accompanied by financial stimulus policies for the affected sectors at a value of QR75bn, while exempting food and medical commodities from customs duties for a period of six months as an early response to future repercussions or consequences of the pandemic. These policies had an important role in reviving the resilience of the Qatari economy.
Qatar Central Bank (QCB) also directed the banks to postpone loan payments and its interest/profits for those from the affected sectors covered by the decisions of the Supreme Committee for Crisis Management for a period of six months, as well as additional liquidity to banks operating in the country. Qatar Development Bank (QDB) was directed to postpone the instalments of all borrowers for a period of six months. Government funds also increased their investments in the stock exchange by QR10bn.
This coincided with the State of Qatar adopting a balanced monetary policy to face the repercussions of the pandemic by reducing its main interest rates, to include the official deposit rate, lending rate and the repurchase rate, in addition to a set of measures to provide the necessary liquidity for banks to face any possible recession.
In mid-April this year, the Cabinet approved additional support packages for the sectors affected by the closures due to the precautionary measures in place to deal with the spread of Covid-19.
The support packages included the exemption from electricity and water fees for closed sectors until the end of September 2021, the extension of the work of the National Guarantee Programme at QDB until the end of September 2021, and the extension of the interest exemption period for an additional year for the National Guarantee Programme making it two years without interest, in addition to two years of payment with interest that does not exceed the QCB +2% rate.
The packages also included raising the limits of financing for salaries and wages for closed sectors to QR15mn for a single personal card, while maintaining the rest of the relevant terms and conditions, and QCB continuing to support local banks' liquidity as needed.
These policies were not the only ones that contributed to the resilience of the Qatari economy in the face of the coronavirus crisis, as it came at a time when the country was moving forward in developing economic legislation that reflected a forward-looking vision for the future, which mitigated the repercussions of crises and challenges facing the global economy.
Among the most prominent of these legislations was the regulation of the investment of non-Qatari capital in economic activities, which allows non-Qatari to invest in all sectors, including banks and insurance companies. The law also allows foreign investors to own 100% in most sectors of the economy, in addition to Law No 12 of 2020 regulating the partnership between the public and private sectors, and the law regulating the ownership and use of real estate by non-Qataris, which allows foreigners to own real estate in accordance with specified controls.
Since the spread of Covid-19 in March 2020, the state adopted a set of flexible proactive measures to prevent the spread of the virus, accompanied by financial stimulus policies for the affected sectors at a value of QR75bn, while exempting food and medical commodities from customs duties for a period of six months as an early response to future repercussions or consequences of the pandemic. These policies had an important role in reviving the resilience of the Qatari economy.
Qatar Central Bank (QCB) also directed the banks to postpone loan payments and its interest/profits for those from the affected sectors covered by the decisions of the Supreme Committee for Crisis Management for a period of six months, as well as additional liquidity to banks operating in the country. Qatar Development Bank (QDB) was directed to postpone the instalments of all borrowers for a period of six months. Government funds also increased their investments in the stock exchange by QR10bn.
This coincided with the State of Qatar adopting a balanced monetary policy to face the repercussions of the pandemic by reducing its main interest rates, to include the official deposit rate, lending rate and the repurchase rate, in addition to a set of measures to provide the necessary liquidity for banks to face any possible recession.
In mid-April this year, the Cabinet approved additional support packages for the sectors affected by the closures due to the precautionary measures in place to deal with the spread of Covid-19.
The support packages included the exemption from electricity and water fees for closed sectors until the end of September 2021, the extension of the work of the National Guarantee Programme at QDB until the end of September 2021, and the extension of the interest exemption period for an additional year for the National Guarantee Programme making it two years without interest, in addition to two years of payment with interest that does not exceed the QCB +2% rate.
The packages also included raising the limits of financing for salaries and wages for closed sectors to QR15mn for a single personal card, while maintaining the rest of the relevant terms and conditions, and QCB continuing to support local banks' liquidity as needed.
These policies were not the only ones that contributed to the resilience of the Qatari economy in the face of the coronavirus crisis, as it came at a time when the country was moving forward in developing economic legislation that reflected a forward-looking vision for the future, which mitigated the repercussions of crises and challenges facing the global economy.
Among the most prominent of these legislations was the regulation of the investment of non-Qatari capital in economic activities, which allows non-Qatari to invest in all sectors, including banks and insurance companies. The law also allows foreign investors to own 100% in most sectors of the economy, in addition to Law No 12 of 2020 regulating the partnership between the public and private sectors, and the law regulating the ownership and use of real estate by non-Qataris, which allows foreigners to own real estate in accordance with specified controls.