With the fall in oil prices underlining the dangers of an over reliance on hydrocarbons revenues, Qatar has continued to forge ahead with its economic diversification drive in 2016. Non-hydrocarbons growth now outstrips hydrocarbons growth, with several big-ticket construction projects, an increasingly dynamic financial services sector and a growing reputation as a tourist destination all fuelling non-oil expansion.
Two years ago, when the Qatar Stock Exchange (QSE) was upgraded from “frontier” to “emerging” market status, many rightly heralded this as a major step forward for the state’s capital markets.
December’s news that oil and gas prices were descending below their recent historic low inched up the pressure on the government budget. With many major new infrastructure projects rolling out or in the pipeline, too, alongside the ordinary demands of state, the hunt for alternative sources of financing is on in earnest.
In recent years, Qatar has placed an increasing emphasis on the importance of small and medium-sized enterprises (SMEs) in the state’s overall development plans.
Given present jitters around the Gulf – as investors, businesses and governments face the prospect of sustained oil and gas price softening – international ratings agency S&P’s recent reaffirmation of Qatar’s high investment grades came as a welcome vote of confidence for many in Doha.
With the assets of the world’s growing number of Islamic banks now standing at around $1.8 trillion, Qatar’s sharia-compliant lenders have rapidly become key players in a major global industry.
Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.
Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.
Register Here×