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Chapter | Tourism & Culture from The Report: Qatar 2016

Backed by a coordinated government strategy and strong investments in key economic enablers such as infrastructure, Qatar’s tourism industry continues to grow at a steady clip. Since 2010 Qatar has seen arrival numbers rise more than 72% to reach 2.93m in 2015. The sector’s economic contribution hit QR39.5bn ($10.8bn) in 2014, and mid-2015 estimates projected 2015 growth at 6.6%, according to the World Travel & Tourism Council. Foreign arrivals rose an average of 11.5% a year in 2010-15 and were up 3.7% year-on year in 2015, falling just shy of 3m visitors, according to Qatar Tourism Authority. This chapter contains interviews with Hassan Abdulrahman Al Ibrahim, Chief Tourism Development Officer, Qatar Tourism Authority; and Khalid bin Ibrahim Al Sulaiti, General Manager, The Cultural Village Foundation-Katara.

Chapter | ICT from The Report: Qatar 2016

Twenty years ago, Qatar’s leadership set out to liberalize the country’s telecoms sector, transforming its state-run monopoly operator into a market-driven firm. This was part of an effort to transition the Qatari economy away from its traditional mainstays, oil and gas. To that end, the ICT sector has been instrumental to a broader process that continues today. As state and private players team up to roll out advanced infrastructure and increase ICT device penetration, they are driving growth in one of the country’s most dynamic non-energy sectors, improving communications, and building up infrastructure and expertise vital for the development of a knowledge economy. This chapter contains interviews with Mohammed Ali Al Mannai, President, Communications Regulatory Authority; and Ian Gray, CEO, Vodafone Qatar.

Chapter | Real Estate from The Report: Qatar 2016

Still an important and robust driver of non-hydrocarbons growth, Qatar’s real estate sector is nonetheless beginning to feel the impact of falling oil and gas prices, which have negatively affected the office and residential markets. There are also rising concerns about an oversupply of high-end residential and commercial space, with dozens of new projects still in the pipeline expected to come on-line in the medium term. Oversupply will be a major long-term concern for nearly all segments of the market, with the stock of retail, hotel and office space surging as developers rush to capitalise on population growth and rising tourist arrivals. Despite these challenges, smaller transactions have kept the market steady in early 2016, and although land prices and rental rates remain high, muted economic growth should help reduce inflationary pressures that have priced many middle- and lower-income families out of the market. This chapter contains an interview with Abdulla Hassan Al Mehshadi, CEO, Msheireb Properties; and Ibrahim Jassim Al Othman, President and CEO, United Development Company.

Chapter | Construction from The Report: Qatar 2016

Although growth has slowed following a banner year in 2014, Qatar’s construction industry remains one of the most vibrant and fast expanding in the Middle East, and a key driver of non-oil growth. Major infrastructure projects including the Doha Metro, Long Distance Rail, Hamad Port, the next phase of expansion at Hamad International Airport (HIA), and a network of new roads and drainage systems are expected to keep the industry on track in 2016, while new builds in the health, education, real estate and hospitality segments will further augment growth. Many of these projects benefit from enhanced government spending aimed at delivering critical projects in time for the 2022 FIFA World Cup, which should help offset some of the challenges contractors are facing as a result of project delays, high build costs, delayed payments and lack of available labour. This chapter contains an interview with Nasser bin Ali Al Mawlawi, President, Public Works Authority (Ashghal).

Chapter | Transport from The Report: Qatar 2016

Transport upgrades are leading construction industry growth in Qatar, following rapid expansion and billions of dollars worth of new contracts awarded in recent years. The 2022 FIFA World Cup has created an impetus to finish a number of critical transport projects on time, including thousands of kilometers of road and expressway upgrades and construction, the new Hamad Port and a major three-part rail programme. Expansion of the recently opened Hamad International Airport (HIA) also advanced in 2015 when authorities released detailed designs for the next phase of construction, which will nearly double existing capacity – a welcome upgrade, given that the airport is already operating above capacity. Under the broader Qatar National Vision 2030 (QNV 2030) development plan, these projects will pave the way for future growth across all sectors of the economy, reducing bottlenecks and traffic congestion, improving trade and investment opportunities, and supporting ongoing efforts to diversify the economy. This chapter contains interviews with Jassim bin Saif Ahmed Al Sulaiti, Minister of Transport and Communications; and Abdulla bin Abdulaziz bin Turki Al Subaie, Managing Director and Chairman of the Executive Committee, Qatar Rail.

Chapter | Industry from The Report: Qatar 2016

Though chiefly known for its success in the oil and gas sector, Qatar is also home to a number of non-hydrocarbons industries that are playing an increasingly important role in the economy, particularly in light of the government’s broader plans for greater diversification. According to the Ministry of Development Planning and Statistics (MDPS), the non-hydrocarbon sector accounted for all GDP growth in 2015, and was led by the services and construction sectors. Most of Qatar’s industry is relatively new, having been built up in the last few decades, largely as downstream components of the oil and gas sector. Qatar’s downstream petrochemicals sector forms a key pillar of its industrial base – and has maintained robust output despite depressed global oil prices. Qatar is also the largest producer of urea fertilizer in the GCC, accounting for 37% of the 15.2m tonnes produced in the region in 2014, up from 28% a decade earlier.

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