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While the real estate sector has experienced a lull in recent years, property prices have remained stable over the past 12 months – a significant improvement on three years ago when prices were in freefall. The sector has recovered from the global economic crisis, and government plans to expand the non-hydrocarbons sector bode well for the market. In addition, new luxury real estate developments are expected to come on-line throughout 2012, indicating there is still sufficient demand for high-value property. Furthermore, bank credit to the sector grew 91.5% from October 2010 through October 2011. The sharp increase and still relatively low penetration levels imply that the majority of credit is going to the commercial segment, and that there is room for expansion in the sector as a whole. This chapter includes interviews with Abdulla Abdulaziz Turki Al Subaie, Group CEO, Barwa Real Estate Company.

Having gone from being a minor actor on the world energy stage to a pivotal player in less than a decade as part of an expansive strategy, Qatar has tapped its vast gas reserves by engaging international oil companies and building a comprehensive infrastructure network. This approach has allowed Qatar to become the largest liquefied natural gas (LNG) exporter in the world. The state has also pushed its crude oil production levels upwards: production stood at 742,000 bpd in January 2012, up from 732,000 bpd a year earlier. However, the government is also looking to the long-term future of energy security, as there is a strong opportunity cost associated with solar energy providing savings on natural gas usage in the domestic market. This development is an indicator of the growing confidence and maturity of the sector. This chapter includes interviews with Mohammed bin Saleh Al Sada, Minister of Energy and Industry; Christophe de Margerie, CEO of TOTAL; and Wael Sawan, Executive Vice-President and Chairman of Qatar Shell and Managing Director of Pearl GTL.

A string of global natural disasters in 2011 did have an impact on some of Qatar’s local insurers that have overseas exposure, with the sector overall seeing a general slowdown. Cumulative net profits for the five Qatar Exchange-listed insurers rose 5.17% in 2011, a decline in profit growth from 2010. Yet while penetration rates for insurance products are low, at 0.89%, more than 85% of Qataris are in the 15- to 64-year-old demographic, and there is optimism that growth from this base can be high. Another reason to expect growth is that there are few compulsory insurance rules in Qatar. Third-party motor liability and professional liability for engineers are the only two categories currently obligatory. Given these factors, the sector is expected to remain competitive, within an increasingly regulated market.

With strong banking and financial services segments, combined with an expanding insurance sector and global demand for Islamic bonds, sharia-compliant finance in Qatar is expected to see continued growth in 2013. Indeed, the sharia-compliant segment has recently shown some of the best growth figures in a country where expansion is generally high. In particular, takaful (Islamic insurance) and re-takaful has proved increasingly important to the market, and selling through Islamic banks’ channels remains a significant distribution mechanism for insurance. While insurance penetration is low at present, Qatar’s Islamic insurance sector is expected to expand in the future. This chapter includes an analysis on sukuks, sharia-compliant bonds.

High oil and natural gas prices, combined with a 20-year strategic investment programme, have catapulted Qatar into the ranks of the highest per-capita income economies in the world. Yet the country continues to demonstrate an ability to leverage its significant natural resources to drive growth and is well placed to meet the goals and vision for economic diversification outlined by the National Vision 2030. The state has used its vast oil and gas revenues to create a strong foundation upon which other sectors can expand. The non-hydrocarbons economy is estimated to grow by between 9% and 10% until 2016. Moreover, winning the right to host the 2022 FIFA World Cup means that infrastructure expansion will likely support economic growth over the next 10 years to the tournament. This chapter includes interviews with Yousef Hussain Kamal, Minister of Economy and Finance; Sheikh Jassim bin Abdulaziz Al Thani, Minister of Business & Trade; and Saleh Al Nabit, Secretary-General, General Secretariat for Development and Planning (GSDP).

With Qatar’s exchange the best performing in the GCC region for the last two years, the capital markets look set for further development. In comparison to the GCC exchange averages, the Qatar Exchange (QE) scored higher both in terms of price to earnings and price to book value in 2011. In addition, in April 2011, the QE became the first in the region to offer a full delivery-versus-payment (DvP) system, an important step for bringing Qatar in line with international best practices in the arena of settlement services. Going forward, as the country looks to get its new infrastructure development programme under way, the capital markets may play an increasingly vital role in financing these projects. This chapter includes an interview with Emad Mansour, CEO of Qatar First Investment Bank (QFIB). It also includes a viewpoint with Adel Abdulaziz Khashabi, Head of QNB Financial Services.