4/15/2023 – | Last updated: 4/15/2023 09:10 AM (Makkah)
Doha – A number of business and financial experts in Qatar attributed the resilience of the Qatari economy in the face of the global challenges that the world has witnessed in recent years, starting from the Covid-19 epidemic to the Russian war on Ukraine, to 5 main factors that contributed significantly to achieving a growth of 8%. In the fourth quarter of 2022, according to data from the Qatar Planning and Statistics Authority.
They explained in an interview with Al-Jazeera Net that these factors are:
- Organizing a global event such as the FIFA World Cup 2022.
- High energy prices, of which Qatar is one of the largest producers in the world.
- Local legislation that contributed to increasing investments.
- Expansion of foreign investments.
- The contribution of non-oil sectors to the increase of national income.
The Planning and Statistics Authority in Qatar had confirmed in its latest data that the Qatari economy achieved a real growth rate – constant prices – of 8% during the fourth quarter of 2022 on an annual basis, compared to the same period of 2021.
The data showed that the quarterly GDP estimates at constant prices reached about 179.99 billion riyals in the fourth quarter of 2022, compared to the revised fourth quarter estimates for 2021, which amounted to 166.68 billion riyals, and this resulted in an increase of 8% (the dollar equals 3.64 riyals).
The same data also revealed an increase of 2.7% on a quarterly basis, compared to the revised estimates for the third quarter of 2022, amounting to 175.32 billion riyals, while the gross domestic product at current prices (nominal) jumped by 26.2% on an annual basis, to about 220.43 billion riyals in the quarter. The fourth of 2022, compared to the revised fourth quarter estimates for the year 2021, which amounted to 174.65 billion riyals.
revenues from the energy sector
Economic expert Abd al-Rahim al-Hour told Al-Jazeera Net that while the world is facing great economic pressures accompanied by armed conflicts that rise to the level of major wars, and in light of international reports, the latest from the World Bank indicating a remarkable slowdown in the global economy, most of the vital indicators of the Qatari economy reverse this trend.
He explained that one of the most important reasons that make the Qatari economy in a state of steadfastness and strength is the revenues of the energy sector, which are witnessing a noticeable increase due to the increase in demand, especially with the repercussions of the war in Ukraine, pointing out that the Qatari economy is classified as an emerging economy with steady growth rates in line with the economic component of the state. between rentier, industrial and cognitive.
Al-Hour focused on the appropriate investment environment provided by Qatar through the development of the legislative and legal structure, the structure of advanced technology and the structure of a skilled human element capable of dealing with local and global changes and developments, as well as the balanced and distinguished presence of the State of Qatar at the global political level, which reflected positively on the smooth establishment of Trade, investment and other relations with a large segment of countries around the world.
Associate Professor of Finance at the College of Business and Economics at Qatar University, Rami Zaitoun, told Al-Jazeera Net that the Qatari economy in 2022 achieved a general growth of 5.3%, outperforming the expectations of the International Monetary Fund, which was estimated at 3.4%, attributing the achievement of this rate to several reasons, including the rise in oil and gas prices. Which led to the provision of huge financial surpluses that were used for the 2022 World Cup projects, the purchase of part of the public debt, and the support of the Qatar Investment Authority.
He pointed out that one of the reasons for the high economic growth in Qatar is the positive and direct impact of the 2022 World Cup on non-oil sectors such as real estate, finance, insurance, food, operation, storage, hotels, information, and communications, which made economic growth in the last quarter of Last year, it reached 8%, which made the overall growth rate last year 5.3%.
He explained that the percentage of non-oil sectors’ contribution to the GDP during the fourth quarter of last year amounted to 9.9%, as a result of organizing the World Cup and the return of economic activities to full capacity after the Covid-19 pandemic, noting that Qatar’s budget for the year 2022 achieved a surplus of 89 billion riyals, which is what It is the third largest surplus in the history of Qatar's budgets, which contributed to the increase in revenues, and part of these surpluses was used to reduce the public debt from 5.7% to 4.4%.
The finance professor expected that the current year would witness a continuation of the growth of the Qatari economy, supported by the 2023 budget surpluses and the rise in oil prices during the current year, especially after the decision of the OPEC group to reduce production, expecting that the price of a barrel of oil would reach 90-95 dollars in the event of the continuation of the Ukrainian crisis and the continuation of OPEC in policy towards reducing production.
Although Zaytoun expects that the growth rate during the current year will not reach the same rate as last year, he believes that the performance of the Qatari economy will continue to withstand and not decline, despite the expectations of the International Monetary Fund for a difficult economic year, explaining that the non-oil sectors, including the tourism sector, in Qatar will be It also has a positive contribution during the current year to the gross domestic product.
Global inflation crisis
For his part, the Qatari businessman Ali al-Khalaf said that the growth of the Qatari economy during the last quarter of last year at a rate of 8% is a real rate, not an imaginary one, as a result of several factors that contributed to achieving it, in light of a global inflation crisis affecting the entire world due to high energy prices and before that a crisis. COVID-19 and supply chains affected right up to the Ukraine war.
Al-Khalaf indicated in his speech to Al-Jazeera Net that the organization of the 2022 World Cup and the rise in energy prices are at the forefront of the main factors for the country's growth rate to reach this important figure in light of the inflation crisis, which is unusual in global economies, expecting that the Qatari economy will continue to grow steadily. As a result of relying mainly on energy exports, in which Qatar represents an important element at the global level.
Al-Khalaf praised the government's legislative role, which witnessed great development during the recent period through new legislation that contributes to stimulating investment work, especially by the private sector in all economic sectors, which will have a significant positive impact in the long run.
Despite Al-Khalaf's expectations of continuing economic growth in Qatar in a distinct manner, he expected that the real estate sector would be affected during the current year, explaining that this sector is in a state of reorganization after a state of great recovery thanks to the 2022 World Cup.