IMF hails Qatar’s ‘strong reform momentum’

The International Monetary Fund (IMF) has hailed Qatar for the “strong reform momentum”, which the IMF said should continue to build a knowledge-based, private sector-led, and sustainable economy.
Achieving Qatar’s vision to shift from a state-led growth model to a more knowledge-based and private sector-driven one requires enhancing human capital and economic complexity.
Strong reform momentum created by the Third National Development Strategy (NDS3) is encouraging, IMF said and noted the success hinges on proper prioritisation and enhanced inter-agency coordination in reform implementation.
Priorities are to build a highly skilled labour force, foster innovation, promote trade diversification, foreign direct investment (FDI) and domestic knowledge spillovers, and further enhance business efficiency.
Qatar is well positioned to benefit from AI adoption and broader digitalisation while due attention is needed to monitor their labour market impact.
A concerted effort among stakeholders is critical to fulfil Qatar’s climate goals. Enhancing data availability and quality would support the path forward.
Qatar’s economy has shown signs of a gradual rebound from the post-World Cup growth moderation, IMF said. Near-term real GDP growth is expected to reach 2%, and the medium-term outlook is more favourable, supported by the significant liquefied natural gas (LNG) production expansion and intensified structural reforms.
Broad fiscal prudence and progress in strengthening fiscal institutions in recent years are commendable. Sustaining fiscal discipline and accelerating revenue and expenditure reforms, underpinned by a medium-term fiscal framework, would help ensure fiscal sustainability and support economic transformation.
Qatar Central Bank (QCB)’s diligent policies have helped to safeguard banking sector stability.
QCB has broadly maintained the monetary policy in line with the US Federal Reserve, consistent with the currency peg to the dollar. Its progress in enhancing liquidity management is commendable, and continued efforts are important to further strengthen the effectiveness of the monetary operational framework.
The banking sector remains healthy, thanks to robust buffers, diligent QCB supervision and ample hydrocarbon liquidity.
However, continued vigilance to address pockets of vulnerabilities is important. Maintaining the momentum in deepening domestic financial market is also crucial, guided by the Third Financial Sector Strategy.
Strong reform momentum following the launch of the Third National Development Strategy should continue to build a knowledge-based, private sector-led, and sustainable economy.
The Third National Development Strategy for the State of Qatar 2024–2030, prepared under the guidance of His Highness the Amir Sheikh Tamim bin Hamad al-Thani, has outlined the plan for the next phase of Qatar’s development journey towards realising the Qatar National Vision (QNV) 2030.
The Third National Development Strategy defines bold and transformative initiatives and reforms designed to achieve the remaining QNV 2030 goals.
By implementing NDS3, Qatar will provide its citizens with the necessary skills required for them to succeed, with meaningful and fulfilling careers, in the workforce of tomorrow.
Through this strategy, Qatar seeks to sustainably develop its economy to remain competitive amidst a turbulent and rapidly changing global landscape.
This will entail diversifying through priority economic sectors and creating a leading investor and business-friendly environment, making Qatar a favoured destination for foreign investment and skilled talent.