Qatar

Having ended 2011 on a high, with its economy growing at break-neck speed, inflation under control and a stepped-up programme of infrastructure investments being rolled out, Qatar is well placed to continue similar growth this year. Yet with the spectre of recession hanging heavy in the air in Europe, and a scaling back of expectations in some major Asian economies, the country may find that in 2012 many of its achievements are consolidated rather than eclipsed.

Qatar’s tourism sector will be one of the big winners of the 2022 FIFA World Cup, with an accelerated building programme of hotels, hospitality facilities and entertainment centres aimed at making sure fans will enjoy their stay, though care has to be taken to ensure that once the World Cup is over, visitors keep coming through the turnstiles.

A series of ongoing development programmes in information and communications technology (ICT) have resulted in rapidly improving technology indicators across the board in Qatar. With guidance from the Supreme Council of Information and Communication Technology, known as ictQATAR, the government’s industry regulator, the sector is primed to see future growth under a new national broadband network and development strategy.

Qatar’s economy is set to post near record high growth again this year, after leading the world in 2010, though there are some concerns that this rapid expansion could lead to overheating. Meanwhile, Doha will be keeping a wary eye on the economic health of its major trading partners.

Having established itself as the world’s leading supplier of liquefied natural gas (LNG), Qatar is now looking to bring a new processing facility online to support a projected jump in local industrial activity.

The first sale of an Islamic finance portfolio since Qatar’s decision to ban conventional lenders from conducting sharia-compliant banking operations is a harbinger of what’s to come as the Islamic finance sector begins to benefit from the ruling. The domestic segment, however, may have to contend with greater competition from foreign Islamic banks keen to enter the lucrative market.