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For several years the insurance sector has undergone major regulatory changes, as the industry positions itself in alignment with international best practices. The sector has been expanding considerably in recent years, often with double-digit growth. Furthermore, penetra¬tion rates are still relatively low, meaning there is plenty of room for new products, services and customers. However, recent economic slowdowns have made the business environment more competitive, causing companies to put a greater focus on lowering costs. At the same time, the maturation of a number of large construction projects has prompted a redeployment of resources by many companies towards operational and liability coverage, which is likely to continue throughout 2018. An expected expansion in health care lines should help offset this, alongside the construc¬tion and property segments, which continue to grow in the run-up to the 2022 FIFA World Cup.

It was more challenging operating environment for the Islamic financial services (IFS) sector in 2016, as the continuing effects of low oil prices fed into the domestic economy, leading to a sizeable decline in government deposits and a tightening of liquid¬ity. Nonetheless, asset growth continued, and as oil prices began to pick up towards the end of the year and into 2017, liquidity conditions improved. How¬ever, with the sharia-compliant market beginning to mature and the cost of borrowing remaining high, there is evidence of key players within IFS looking to domestic consolidation and overseas expansion as part of their future strategies for growth. This chapter contains an interview with Bassel Gamal, Group CEO, Qatar Islamic Bank.

Following a somewhat muted year for trading in 2016, additional listings and new products helped to boost activity on the Qatar Stock Exchange (QSE) in 2017. Recent and forthcoming measures, including covered short selling, exchange-traded funds and corporate bonds are expected to lift liquidity and further deepen the market, while family-owned firms entering the exchange offer the potential to greatly expand the QSE’s sectoral penetration within the broader economy. Challenges remain, however, with improving market coverage by brokers, researchers and ratings agencies a priority.

Tightening liquidity conditions and a squeeze on profit growth proved to be the hallmarks for Qatar’s banking sector in 2016, as financial institutions across the Gulf were forced to respond to the effects of weak oil prices on the local economy. Despite tougher operating conditions, however, the sector remains resilient, with strong underly¬ing fundamentals marked by high capital adequacy ratios and one of the world’s highest savings rates. Even though the diplomatic fallout within the GCC had ramifications for the sector in 2017, the authorities are implementing mitigation strate¬gies. Looking ahead, Qatar’s lenders are considering overseas expansion and domestic consolidation as strategies to drive future growth. This chapter contains an interview with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; Ali Ahmed Al Kuwari, CEO, Qatar National Bank; Abdul Hakeem Mostafawi, CEO, HSBC Qatar; and Sheikh Faisal bin Abdulaziz bin Jassem Al Thani, Chairman and Managing Director, Ahli Bank.

As a major hydrocarbons-exporting economy, Qatar owes both its prosperity and much of its continued growth to international trade. Indeed, in any given year the combined value of imports and exports can exceed three-quarters of the country’s GDP. As a result, and despite recent efforts towards economic diversification, the economy remains exposed to swings in the price of oil, with 2016 having proved especially challenging in this regard. Another test came in June 2017 when several of its regional neigh¬bours imposed a blockade on Qatar, which saw the disruption of certain trade flows. The government is committed to opening the domestic economy to further inward investment and is also seeking to encourage the private sector to step in where possible to deliver new infrastructure, with new legal instruments being prepared to improve the framework for public-private partnerships. This chapter contains an interview with Fahad Rashid Al Kaabi, CEO, Manateq; and Yousuf Mohamed Al Jaida, CEO and Board Member, Qatar Financial Centre Authority.

Following a challenging 2016, when the price of Brent Crude dipped briefly below $30 per barrel and governments across the GCC were compelled to significantly adjust their fiscal plans, 2017 has brought the region some respite – both to current accounts and the wider economy. Qatar remained better insulated from the effects of oil price volatility than most countries in the Gulf, owing chiefly to the unintended countercyclical effects of its infrastructure investment boom. None¬theless, a return of oil prices to above $50 per barrel will certainly reduce strain on the economy, which was beginning to experience tightening in liquidity. Stronger energy prices will provide the government with a positive platform for the launch of its new six-year strategic plan, which will aim to further deliver on the economic diversification mandated by Qatar National Vision 2030. This chapter contains an interview with Sheikh Ahmed bin Jassim bin Mohammed Al Thani, Minister of Economy and Commerce, and Vice-Chairperson, Qatar Investment Authority; and Abdulaziz bin Nasser Al Khalifa, CEO, Qatar Development Bank.