Qatar Economy

While diversification strategies aimed at moving economies away from hydrocarbon dependency have become commonplace around the Gulf in recent years, the practical implementation of these strategies has often proved challenging.

As one of the principle pillars of Qatar’s non-oil and gas economy – and a leading light in the country’s private sector – the financial services industry has recently been a particular focal point in moves to strengthen the drive to Qatarisation.

Indeed, the replacement of a number of expat banking CEOs with Qatari nationals in recent months has been one of the more visible signs of...

As the 2013/14 fiscal year drew to a close, the IMF expressed its optimistic outlook for Qatar for the upcoming year, following a recent visit. That report – combined with a cheery business sentiment survey from the private sector and a jump in 2013 profits for Qatar Exchange-listed firms – reflects refreshed momentum for the Gulf nation, despite ongoing global economic uncertainty and regional tensions, both in the Middle East and Europe.

Growth outpaced expectations in Qatar this past year, while 2014 is widely expected to see an uptick in economic activity, as the non-energy sector further expands on the back of high levels of infrastructure spending and consumer demand.

With the 2022 FIFA World Cup less than a decade away, Qatar’s government is poised to up the tempo of its infrastructure and development programme after raising expenditures on April 1 for the new financial year. Spending has been increased by 18% in the budget for fiscal year 2013/14, paving the way for the state’s infrastructure investment programme to gather yet further momentum.

A bid by Qatar’s government to consolidate several years of economic expansion, while channelling a budgetary surplus towards large-scale capital works projects, helped the country achieve its aim of more moderate growth for 2012.