The Middle East Economy

With the latest economic figures showing that 2012 will ultimately end up being part of a longer slowdown than originally thought, officials in the kingdom are now looking at ways to use foreign investment to ensure the country is primed for a rebound and long-term economic growth.

Some of the heat seems to be going out of the Qatari economy, as the rate of expansion is expected to ease back to single figures over the next few years. However, the more modest growth forecast by analysts will still place the country among the global leaders.

Officials remain confident of solid economic growth this year, although there are concerns that domestic and regional unrest will leave the kingdom falling short of its objectives for 2012.

The government has announced plans to increase allocations to a key investment fund although there are still questions on how this move will affect state spending at home. The decision to strengthen the investment fund comes at a time when the government is also seeking to boost the domestic economy through its latest five-year National Development Plan (NDP).

The local economy appears set to sustain its recent upward momentum, as investor confidence returns and some core sectors rebound. However, there are still concerns that weak performance of key trading partners and tight liquidity could hold back expansion.

Stepping up efforts to attract foreign investment to its shores, Sharjah is reaching out to the global market to spur growth at home, though the emirate is facing stiff competition in an increasingly tight global market.