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Qatar’s budget for the current fiscal is heading towards a surplus, probably higher than envisaged, as Qatari crude averaged $80 per barrel from January to July in place of the budgeted $65 per barrel for fiscal 2023. Earlier, the Ministry of Finance estimated the budget surplus at QR29bn for the entire 2023. Qatari crude (including Dukhan and Marine) averaged $83.61 per barrel in January this year, $83.52/b (February), $75.80/b (March), $84.59/b (April), $76.13/b (May), $75.94/b (June) and $80.45/b (July), according to QNBFS calculations based on Bloomberg Data. In January, Dukhan averaged $84.98/b, while Marine $82.23/b. Data for the following months are as follows: February: $84.19/b (Dukhan) and $82.84/b (Marine), March: $76.15/b (Dukhan) and $75.45/b (Marine), April: $84.76/b (Dukhan) and $84.41/b (Marine), May: $76.33/b (Dukhan) and $75.93/b (Marine), June: $75.94 (Dukhan) and $75.94 (Marine) and July: $80.35 (Dukhan) and $80.55 (Marine). In the first quarter (Q1) of this year, Qatar already generated budget surplus of QR19.7bn, the Ministry of Finance revealed in June. In its briefing on the actual data of Qatar's budget in Q1 of 2023, the ministry said the total revenues for the quarter amounted to QR68.6bn, of which QR63.4bn were oil and gas revenues, while non-oil revenues amounted to QR5.2bn. The total expenditures in the same quarter of 2023 amounted to QR48.9bn, of which QR15.6bn was spent on salaries and wages and QR17.3bn on current expenses, while secondary capital expenditures amounted to QR1bn and major capital expenditures amounted to QR15.1bn, the statement noted. While releasing Qatar's budget for the fiscal year 2023, HE the Minister of Finance Ali bin Ahmed al-Kuwari had said the surplus would be directed towards paying off Qatar's public debt, supporting the reserves of Qatar Central Bank, and increasing the capital of the Qatar Investment Authority. He pointed out that an average oil price of $65 per barrel, on the basis of which the general budget for the year 2023 was built, is a conservative price adopted by the Ministry of Finance as part of its strategy to ensure the ability to allocate financial resources for existing commitments expected during the year, besides financing programmes and projects included in the national development strategy.

Qatar’s budget surplus has been forecast to average 9% of GDP this year given favourable oil and gas prices, Oxford Economics noted in its latest country report.The state budget turned surplus in 2021, and widened above 10% of GDP in 2022, due to higher oil and gas revenues, Oxford Economics said.Qatar’s budget showed deficit in 2017, but that was temporary, Oxford Economics said and noted it returned to surplus in 2018. But it began to narrow again in 2019 and, given the slump in oil and gas prices, moved into deficit of 2.1% of GDP in 2020.The 2023 budget, based on an oil price of $65 per barrel, up from $55/b in the 2022 budget, projects a surplus of QR29bn, equivalent to 3.4% of GDP.“Our 2023 forecast for Brent is now at $80/b, down from 81.5/b last month, but still well above the budgeted price, and LNG prices are softening. But with spending growth moderating, we expect a budget surplus of about 9% of GDP this year.“According to the first quarter (Q1) budget data, revenues rose 5.5% year-on-year (y-o-y) while spending fell 4.9% y-o-y, widening the quarterly budget surplus to QR19.7bn.”While Qatar’s external debt burden became large due to heavy investment in a relatively short period of time, it trended up between 2013 and 2021 before declining last year, a trend Oxford Economics expect to continue this year and next.This is balanced by the large foreign assets, including official reserves, current account surpluses, sustained economic growth, and access to cheap external borrowing due to its high sovereign credit ratings.The country’s large external surpluses have been invested abroad in property, financial, retail, and other sectors by the Qatar Investment Authority (QIA), which is estimated by the Sovereign Wealth Fund Institute to have assets of more than $300bn, and the aim is to reduce the state’s reliance on oil and gas earnings.Crude production will rise modestly this year, Oxford Economics said. Oil output in the country declined in 2021-2022.But as Qatar isn't involved in the OPEC+ agreement on production quotas, Oxford Economics expects production to rise this year, nearing 600,000 barrels per day (bpd).A recovery in oil production will drive further growth in the energy sector after it expanded 1.7% last year, marking the first positive annual performance since 2012, Oxford Economics noted.The gas sector remains Qatar’s priority, it said. The North Field gas expansion project will have a positive medium- term impact, increasing LNG capacity nearly 65% to 126mtpy by 2027, from 77mtpy.

Qatar's gross government debt as a percentage of GDP has been forecast to drop to 40.4% this year and 33.2% in 2026.In its latest country report, Oxford Economics noted the gross government debt as a percentage of GDP may fall to 36.9% next year and 34.1% in 2025.“The decrease in the ratio of government debt to GDP is a positive signal of the government's ability to manage its finances prudently. It suggests that the government is making progress in managing its budget deficit and is taking steps to reduce its debt obligations, which will lead to increased confidence in the country's financial stability and economic growth,” an analyst noted.According to Oxford Economics the 2023 Qatar budget, based on an oil price of $65 per barrel (pb), up from $55 pb in the 2022 budget, projects a surplus of QR29bn, equivalent to 3.4% of the country’s GDP.Oxford Economics has revised its 2023 forecast for Brent to $80 pb, down from 81.5 pb last month, but still well above the budgeted price, and LNG prices are softening.“But with spending growth moderating, we expect a budget surplus of about 9% of GDP this year,” Oxford Economics noted.Oxford Economics has kept its GDP growth outlook unchanged at 2.6% for this year and next, as both the energy and non-energy sectors slow down.Commodity prices have softened amid weaker global growth but remain elevated, supporting the macroeconomic environment.“We think GDP data for Q1, 2023 will show that growth slumped to 4.8% year-on-year from 8% in Q4, 2022. The economy grew by 4.9% last year overall, the fastest pace since 2014,” Oxford Economics said.Non-oil activity is continuing to rise according to the PMI survey, ending Q2 strongly at 53.8 in June. Robust demand has been a key driver of the recovery in output and employment and has kept businesses optimistic, particularly in the manufacturing and services sectors.“We expect non-oil GDP growth to soften somewhat, slowing from 3.3% this year to 3.2% in 2024,” Oxford Economics said.The latest industrial output data show the mining sector's performance continues to improve, albeit at a slower pace of just 0.8% y-o-y in May.The trend is consistent with Oxford Economics’ energy GDP growth outlook, which it thinks will ease to 1.3% this year, from 1.7% in 2022.Still, the North Field gas expansion project is driving a more positive medium-term outlook for the sector, the researcher noted.

Dolphin Energy has replaced plastic and foil food delivery containers with more sustainable materials at its upstream sites in Qatar as part of the company’s pro-environment waste management initiatives. In 2022, total waste generated (both hazardous and non-hazardous) increased, Dolphin Energy noted.This was due to a number of factors, including the more people returning to offices following the Covid-19 pandemic, the addition of offices at Kizad (industrial zone) to its data scope, and the new generation of emulsion (hazardous waste). The energy company also saw recycling rates fall due to less recyclable material being generated (e.g., electronics, paper/cardboard, and catalysts).In its ‘Sustainability Report 2022’ Dolphin Energy said it seeks to dispose of all waste in accordance with laws and industry standards, while at the same time identifying opportunities to recycle and “close the loop” on waste and resources.To reduce quantities of waste disposed into landfill, the company identifies opportunities and synergies with other industries so that the waste it generates is taken by another industry for reuse.“We have recycling programmes in place not only for our office waste but also for electronics and several of our non-hazardous industrial waste,” Dolphin Energy noted.The company’s notable environmental achievements last year include a 1.2% decrease in total Greenhouse Gas Emissions (GHG), an 81% reduction in venting and a 69% decrease in SO2 emissions. Furthermore, the company recorded a 14.7% decrease in water consumption. There were zero recordable spills and a 1.7% reduction in direct energy consumption.In 2022, Dolphin Energy increased environmental expenditure by 13%. The company also unveiled a decarbonisation roadmap, building on a program launched in 2012, backed by a strong governance and accountability framework comprising HSE&S, GHG and sustainability policies.Dolphin Energy’s major strategic initiative, the Dolphin Gas Project, involves the production and processing of natural gas from Qatar’s North Field, and transportation of the dry gas by sub-sea export pipeline from Qatar to the UAE, which began in July 2007.Dolphin Energy’s upstream activities are focused mainly at Ras Laffan Industrial City. Here, the company’s gas processing and compression facilities receive and process gas from the North Field.Valuable by-products are stripped before the lean gas is transported to the Taweelah receiving facilities in Abu Dhabi, UAE.

Travelling light will make any trip less stressful. While a traveller saves time and money, by doing so, one may even get to enjoy one’s destination even better!Packing light makes more sense in an aircraft, which obviously uses more fuel when it carries more weight.Obviously, travellers these days comprise both heavy packers and those who pack light.An airline in Japan is now offering travellers an option to pack less clothing with the aim of reducing their luggage weight and consequently cut greenhouse gas emissions.In a bid to reduce their carbon footprint, Japan Airlines (JAL) and trading house Sumitomo Corporation are now offering to lighten travellers’ luggage by renting them clothes for their trip catered to seasonal needs.According to JAL, a reduction of 1kg for a flight from New York to Tokyo will reduce carbon dioxide emissions by 0.75kg as the aircraft would consume less fuel.According to reports, users of the service will be required to submit information at least a month in advance covering their flight details, duration of stay and preferred clothing size. The clothes will be delivered to their hotels in Japan.Rental costs will start from ¥4,000 ($28) and will vary depending on the number of items.Passengers travelling light can indeed help flights save fuel, industry experts say.The fuel efficiency of an aircraft, they say, is influenced by its total weight, and this includes the combined weight of passengers, baggage, cargo, and the aircraft itself.When passengers travel with fewer belongings and carry-ons, the overall weight of the aircraft is reduced, leading to several fuel-saving benefits such as reduced weight, less fuel consumption and emissions reduction among others.Carrying excess weight requires more energy (fuel) to lift off, maintain altitude, and land. Lighter loads mean the aircraft requires less thrust and fuel consumption to achieve the desired speed and altitude.The amount of fuel required to carry the aircraft's weight directly affects its fuel efficiency. Reduced weight leads to decreased fuel consumption over the course of the flight, making the journey more environmentally friendly and cost-effective for airlines.A lighter aircraft can potentially allow for more efficient flight profiles, including climbing to cruising altitude more quickly and using optimal cruising speeds and altitudes. These adjustments further contribute to fuel savings.Burning less fuel leads to lower greenhouse gas emissions and pollutants being released into the atmosphere. This aligns with airlines' efforts to reduce their carbon footprint and contribute to environmental sustainability.When passengers travel light, airlines may be able to accommodate more passengers within the same aircraft weight limits. This higher load factor can then distribute operational costs over more passengers, potentially leading to cost savings for both passengers and the airline.While the weight of passengers and their belongings is one factor affecting fuel efficiency, there are numerous other variables that also play a role, such as weather conditions, flight distance, altitude, and aircraft design.Nonetheless, every effort to reduce unnecessary weight contributes to more fuel-efficient and environmentally conscious air travel.Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn

An estimated 4,700 apartments and villas were added during the second quarter of the year, increasing Qatar's residential stock to 341,140 units, ValuStrat noted even as the researcher expects market corrections to continue across all segments of the real estate sector through the end of 2023.In its ‘Qatar Real Estate Market Overview Q2, 2023’ released yesterday, ValuStrat noted market corrections were recorded across all rental sectors, with median rental rates in the residential, commercial, and industrial segments declining to reach Q2, 2022 levels.However, during the first half of this year, there was a surge of 144% YoY in the volume of international visitors.Compared to last year, median monthly rental rates reduced by 2.4% quarterly to QR9,000. Market corrections have been more prominent in the apartment sub-market, with the median monthly asking rent falling by 5.3% YoY and 2.2% QoQ, standing at QR6,250.While asking rents in the villa sub-market remain 1.6% higher than in the same period last year, with the median quoted monthly rent at QR11,000, this is still 3.3% lower relative to the previous quarter.After the completion of 25,000 sq m gross leasable area (GLA) in Q2, 2023, office stock has increased to 6.8mn sq m, with 65% falling within the Grade A category.An estimated 465,000 sq m GLA remains in the pipeline for the second half of 2023. The citywide median monthly asking rent for offices recorded a quarterly reduction of 2%, standing at QR69 per sq m, 3.5% lower than in Q2, 2022.The ValuStrat Price Index (VPI) for Q2, 2023 recorded a mild 0.3% quarterly decrease, standing at 64.8 points, corresponding to the level of Q2 2022.The VPI is a valuation-based price index set at 100 points as of Q1 2016.ValuStrat's general manager (Qatar) Pawel Banach commented, "We expect market corrections to continue across all segments of the real estate sector through the end of 2023. Qatar's economy experienced an exceptional year in 2022, and the sudden fall in demand in the first half of 2023 widened the oversupply gap.“On the other hand, the consequent decline in rents and prices continue to improve affordability for tenants and buyers. As supply expands in all real estate sectors, the extent of market adjustments directly depends on initiatives taken within the private and public sectors to mitigate a long-term detrimental response."ValuStrat Qatar Research analyst Farah Ali noted, "Despite the general downward trend in all leasing markets within the real estate sector, we anticipate a reduced rate of decline in rental rates for the second half of 2023.“With projects across various segments of the real estate sector, particularly in the retail and office markets, being put on hold or experiencing delivery delays, we expect occupancy levels of commercial projects to improve in the medium-term.”

Qatar is estimated to have recorded the “second highest growth in student enrollment” across the GCC region, growing at 3.9% CAGR between 2016 and 2021, according to Alpen Capital.In its latest report on ‘GCC education industry’, Alpen Capital noted Qatar allocated 9% of the total budget towards education in 2023, marginally higher than in 2022.“The Qatari government has consistently demonstrated its commitment to support education through its budget statements. The allocation of funds aligns with the nation's objective to enhance the education sector through the expansion and advancement of schools and educational institutions,” Alpen Capital noted.As part of the Qatar Public-Private Partnership Schools Development Programmes, the Ministry of Education and Higher Education (MOEHE) in collaboration with the Ministry of Finance (MoF) had announced plans in 2019 to establish 45 schools with a PPP model over a five-year period.The schools are planned to be built in six phases, with some eight schools to be set up by 2021 in the first phase, followed by six to eight schools in each of the following phases by 2022-23.Five of the eight new schools in the first phase started operating at the beginning of 2022-23 academic year. Each of these five schools will accommodate 786 students.The project is expected to use the design, build, finance, operate, maintain and transfer model and is estimated to cost approximately QR4bn, Alpen Capital said.The total number of enrolled students in K-12 and tertiary education across the country is estimated to have reached 378,297 in 2021. The country’s overall gross enrollment ratio (GER) is estimated to have increased from 62.5% in 2016 to 70.9% in 2021, primarily driven by a rise in enrolments across the primary, secondary, and tertiary segments.Primary and secondary segments cumulatively accounted for over 86.8% of the student enrollments in the K-12 education system and recorded a GER of 102.2% and 101.7%, respectively, in 2021. Enrollments at primary and secondary education segments increased at a CAGR of 3.2% and 5.7%, respectively, between 2016 and 2021.The tertiary segment is estimated to have expanded at a CAGR of 7.5% over the five-year period.The total number of K-12 enrollments is estimated to have grown at a CAGR of 3.6% over the five-year period, whereas the share of K-12 enrollments to total enrollments declined marginally from 90.9% in 2016 to 89.2% in 2021.Private schools in Qatar is estimated to account for 59.8% of the total K-12 enrollments as of 2021.Between 2016 and 2021, the K-12 private-school sector enrollment is estimated to have grown at a CAGR of 3.1% while public school sector enrollments expanded at a CAGR of 4.3%, Alpen Capital noted.

Qatar's takaful (Islamic insurance) sector remained the GCC's most profitable market, with insurers reporting an average combined loss and expense ratio of lower than 80% in 2022, S&P Global Ratings has said in a report. Aggregate post-tax earnings in of GCC Islamic insurers improved by almost 70% in 2022 when compared with 2021. First-quarter 2023 results suggest it could be another profitable year, thanks to rate adjustments in previously underperforming lines and potentially stronger investment returns, S&P noted. However, earnings were not equal and some Islamic insurance markets continued to be more profitable than others, it said. S&P expects favorable economic conditions and higher insurance prices--reflecting increased claims frequency and costs--and demand will boost business growth prospects for takaful insurers in the GCC over the next 12-18 months. This, it said comes after strong year-on-year gross written premium/contribution (GWP/C) growth of about 23% in 2022. Some Islamic insurers in GCC countries adopted IFRS 17 from January 1 this year with most remaining insurers likely to adopt on the same date next year. IFRS 17 requires a company to measure insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and any uncertainty relating to insurance contracts. “We believe the adoption of IFRS 17 will improve transparency, making it easier to identify and compare insurers' profit generation and risk management. While the implementation presents new challenges for all insurers in the region, including Islamic insurers, we expect our ratings on them to remain broadly stable. “However, any significant implementation delays or inconsistencies in financial reporting standards could lead to negative rating actions in isolated cases,” S&P said. Across the GCC region, S&P still sees substantial differences in insurers' level of preparedness for IFRS 17. Many smaller and midsize Islamic insurers yet to implement will likely encounter difficulties given the lack of resources. This is because IFRS 17 requires internal process and IT system updates, resulting in additional costs and time constraints. Alongside high competition and other increasing regulatory demands, this has already led to several mergers, with more likely to come. Consolidation is particularly prevalent among smaller and midsize insurers in Saudi Arabia and the UAE. “Although we do not currently expect any significant delays or inconsistencies in the adoption of IFRS 17 among rated GCC Islamic insurers, we think that such eventualities could potentially lead to negative rating actions in isolated cases,” S&P noted.

Dolphin Energy reduced total energy consumption by 1.7% last year compared to 2021, according to a company report.In its 14th sustainability report Dolphin Energy said its energy management system guides efforts to drive down direct and indirect energy consumption across its operations.“In 2022, we reduced total energy consumption by 1.7% compared to 2021, with most of our consumption in upstream operations. We increased electricity generated at our own plant upstream, thus reducing the requirement to import from the grid,” Dolphin Energy noted.Dolphin Energy’s major strategic initiative, the Dolphin Gas Project, involves the production and processing of natural gas from Qatar’s North Field, and transportation of the dry gas by sub-sea export pipeline from Qatar to the UAE, which began in July 2007.Since 2016, Dolphin Energy has implemented several initiatives designed to optimise its energy use, save costs, and reduce GHG emissions.These include replacing super heater coils and evaporators on the Stream 1 Sulfur Recovery Unit (with Stream 2 to be completed this year), eliminating the use of the de-methaniser steam reboiler on Trains 1, 2 and 3, with Train 4 being completed in 2023, replacing upstream plant and administration building lighting with LED lights, installing occupancy sensors for automatic controls, installation of solar power systems in its upstream plant, downstream at the Taweelah Receiving Facility, and along its pipeline network thus reducing grid imported electricity.In terms of emissions and air quality, Dolphin Energy said managing greenhouse gas (GHG) emissions and other emissions to air is vital to its decarbonisation roadmap and to maintaining clean, healthy air for company employees and communities.In calculating and reporting its operational GHG emissions, Dolphin Energy follows the European Union Monitoring and Reporting Regulation 2012.In 2022, Dolphin Energy’s total absolute GHG emissions decreased by 1.2%, thanks to the decrease in its total direct emissions associated with operational activities upstream and downstream. Since our 2010 baseline year of GHG accounting, Dolphin Energy has decreased emissions by 15%, despite business growth.“Our vision is to manage greenhouse gas emissions in an economically viable and sustainable manner by mitigating potential risks and leveraging opportunities associated with GHG-induced climate change,” Dolphin Energy said.Environmental Management system is part of the company’s wider Health, Safety, Environment, and Security (HSES) system. It outlines environmental performance standards covering all significant impacts of our operations, promoting continuous improvement.Dolphin Energy determines its significant impacts on the environment through Environmental Impact Assessments, continuous updates of its environmental aspects and impact registers, and ongoing monitoring and evaluation.Its environmental performance standards are supplemented by project and operations specific procedures and management plans. Dolphin Energy said it regularly track indicators of environmental performance and progress at our plants, sites, and offices. “Compliance with applicable environmental regulations and legislation in Qatar and the UAE is integral to our daily operations. Our HSES division maintains an internal database of all relevant legislation, regulations, and international conventions ratified by the UAE and Qatar that are relevant to the company’s business activities,” Dolphin Energy noted.The company said it aims to raise awareness of environmental issues among our employees by issuing tips and bulletins, implementing “green office” initiatives, and participation and volunteering in environmental events.In 2022, Dolphin Energy participated in Earth Hour, the Qatar National Dialogue on Climate Change (hosted by the Qatar Foundation), and several clean-up campaigns.

Total trade between the UK and GCC countries rose by more than 70% to £64.5bn ($82.7bn) in the fiscal year that ended in March, driven by rising oil prices and a demand for services as Gulf countries’ move to diversify their economies.According to an analysis of statistics released by the UK’s Department for Business and Trade by AGBI, which is a new platform that provides intelligence and analysis around the Middle East’s commercial opportunities and challenges, trade in goods and services eclipsed last year’s figure of £37bn.Over £15bn of trade consisted of UK imports of oil and gas from Qatar and other GCC countries.The fourth round of negotiations on a free trade agreement took place last week in London.Discussions were held across 23 policy areas over 44 sessions and “good progress” was made, a government statement said.Freddie Neve, senior Middle East associate at analyst Asia House, told AGBI that oil still accounts for a significant portion of UK-Gulf trade.Average prices rose to $100 a barrel last year, compared with almost $70 in 2021.“The UK has increased its purchases of Gulf oil and gas since the start of the Ukraine conflict to compensate for supplies it previously received from Russia,” Neve said.Neve added that trade also continues to be boosted by the GCC’s efforts to diversify away from oil. This has encouraged growth in Gulf imports of UK professional services to assist delivery of various projects.UK exports of services to the region rose significantly last year to nearly £18bn.Chris Innes-Hopkins, UK executive director of the Saudi British Joint Business Council, said the latest figures reflected a “growing engagement” by UK companies in new sectors of the fast-growing Saudi economy.“The services sector is particularly buoyant and it’s good to see many smaller UK companies getting involved in fintech, creative industries and education opportunities among others,” he said.Foreign secretary James Cleverly highlighted the UK’s growing partnership with Gulf countries last week during a three-day visit to Qatar, Kuwait and Jordan.The UK government has announced that citizens from Qatar and other GCC countries besides Jordan will be among the first to benefit from the UK’s new Electronic Travel Authorisation visa scheme, which will make travel to the British isles cheaper and easier for visitors.Bradley Jones, executive director of the UAE-UK Business Council, said the COP28 environmental conference, which will be hosted in Dubai later this year, is “really drawing attention” to opportunities for UK-UAE collaboration in sustainability and decarbonisation.Lord Dominic Johnson, a minister of state in the UK’s Department for Business & Trade, added: “We are seeing extraordinary rates of growth for British companies operating in the Gulf.“I spoke to one of the big accounting firms. They’re looking at 35% annual growth.”He said that he met a number of construction and infrastructure companies last month at the prime minister’s business reception in Downing Street who are reporting ”phenomenal rates of growth”, particularly in Saudi Arabia.UK secretary of state for business and trade, Kemi Badenoch, had visited Qatar, Saudi Arabia and the UAE in May to maintain momentum on the potential trade deal.

Qatar’s current account surplus will remain in double digits this year and in 2024, Oxford Economics said in its latest country update.The surplus widened to over 26% of GDP in 2022, Oxford Economics noted.Oxford Economics expects Qatar's overall GDP to grow by 2.6% this year and next. Non-oil activity is continuing to rise according to the purchasing managers' index (PMI) survey, ending second quarter (Q2) strongly at 53.8 in June.Robust demand has been a key driver of the recovery in output and employment and has kept businesses optimistic, particularly in the manufacturing and services sectors.“We expect non-oil GDP growth to soften somewhat, slowing from 3.3% this year to 3.2% in 2024,” Oxford Economics said.The latest industrial output data show the mining sector's performance continues to improve, albeit at a slower pace of just 0.8% year-on-year (y-o-y) in May.The trend is “consistent” with Oxford Economics’ energy GDP growth outlook, which the researcher thinks will ease to 1.3% this year, from 1.7% in 2022.“Still, the North Field gas expansion project is driving a more positive medium-term outlook for the sector,” Oxford Economics noted.Budget data for the first quarter (Q1) showed revenues rose 5.5% compared to the same quarter last year, driven by energy income. Meanwhile, spending fell 4.9% y-o-y amid reduced capital and project spending, which widened the quarterly budget surplus to QR19.7bn.Notwithstanding lower global commodity prices, Oxford Economics anticipate a full year budget surplus of 9.2% of GDP this year, before it narrows to 8.4% in 2024.Inflation moderated to a two-year low of 2.5% y-o-y in June, dragging down the Q2 average to 3%, from 4.2% in Q1.Disinflation continued across most categories, but food and recreation and culture prices climbed, driving a 0.1% month-on-month (m-o-m) increase in the headline rate.“We expect inflation to ease further in the next few months and briefly turn negative in Q4. We have hardly changed our 2023 forecast, now at 2.2%, and expect inflation to average 1.9% next year,” Oxford Economics said.Qatar's central bank raised interest rates by 25bps in July, mirroring the move by the US Fed. This, it said, is likely to be the final hike of this cycle given that both inflation and demand are cooling, though further tightening is still a potential.Moreover, the shift to rate cuts will likely be delayed well into 2024, with policy easing only gradually, Oxford Economics added.

Qatar's GDP per capita has been revised to $84,261 this year and $112,353 in 2027 by researcher FocusEconomics.In its latest monthly update, FocusEconomics said Qatar's GDP per capita will scale up to $87,241 next year, $95,159 (2025) and $102,868 (2026).The country’s GDP, according to FocusEconomics, will be $221bn this year, $226bn (2024), $244bn (2025), $261bn (2026) and $282bn (2027).GDP growth has been estimated to be 2.4% this year and in 2024, rising to 4.8% (2025), 4.4% (2026) and 4.3% (2027).Qatar’s merchandise trade balance, FocusEconomics said, will be $73.7bn this year, $71bn (2024), $69.6bn (2025), $72.8bn (2026) and $80.2bn (2027).Current account balance will be $37.3bn this year, $34.1bn (2024), $37.9bn (2025), $35.4bn (2026) and $37.4bn (2027).Fiscal balance (as a percentage of the country’s GDP) will be 6.5% this year, 5.6% (2024), 5.2% (2025), 6.3% (2026) and 7.1% (2027).Public debt (as a percentage of Qatar’s GDP) will be 45.3% this year, 43.8% (2024), 43.8% (2025), 41% (2026) and 38% (2027).Unemployment (as a percentage of the country’s active population) has been estimated at a meagre 0.2% until 2027.According to FocusEconomics, the Qatari economy appears to have “performed well” so far this year. PMI data points to a “solid” expansion in the non-oil private sector in H1, aided by a booming tourism industry; visitor arrivals were up over 300% in annual terms in January–May and well above pre-pandemic levels.Moreover, energy output rose by close to 4% year on year through May.That said, higher interest rates and the end of the World Cup building boom weighed on the construction sector.In late June, Qatar signed a long-term gas supply deal with a Chinese state-controlled company, following an identical deal with a different Chinese state firm last November and a similar supply agreement with Bangladesh reached earlier in June.“This bodes well for long-term energy exports, and further energy contracts with Asian and European nations will likely be announced in the coming months,” FocusEconomics noted.GDP growth is projected to roughly halve this year on a weaker construction sector and tighter monetary policy.However, improved relations with Arab neighbours, a lasting boost to tourism from the World Cup and ongoing energy sector investment—both in fossil fuels and renewables—will provide support, the researcher noted.Higher-than-expected interest rates are a downside risk. FocusEconomics panellists see GDP expanding 2.4% in 2023, which is down by 0.1 percentage points from one month ago, and expanding 2.4% in 2024.Qatar Central Bank hiked rates from 6.00% to 6.25% in late-July, following the Federal Reserve’s same-sized hike.Panellists see inflation moderating on average this year from last on tighter monetary policy, the end of the World-Cup-related demand surge and lower commodity prices.Inflation fell to 2.5% in June from 2.6% in May.FocusEconomics panellists see consumer prices rising 2.9% on average in 2023, which is up by 0.1percentage points from one month ago, and rising 2.3% on average in 2024.

Qatari banks credit to the real estate sector grew annually by 5.4% in 2021, QCB said and noted ‘real estate developers’ constituted the major category with 38.8% share in total real estate loans.In its 13th Financial Stability Review, the Qatar Central Bank noted the real estate sector constitutes an important part of Qatar’s economy by virtue of its role in the economy.This, QCB said, is evident from the share of real estate credit as proportion of the nation’s GDP (24.5% of 2021 GDP) as well as the share of real estate in the banking system’s total credit (13.2%).Accordingly, QCB accords a “high importance” towards monitoring the developments in the real estate sector.During 2021, which was still recovering from the pangs of global pandemic, Real Estate Price Index (REPI), which experienced a decline trend in 2020 revived.The end year price index recorded a growth of 2.1% annually. Even though volume of transactions took a significant dip during the year, median price exhibited stickiness as it fell by lesser extent.The demand side indicator as reflected in the Rental Index (a sub-index in CPI) showed the index stabilised in the second half of the year and shows upward momentum towards the end of the year.Bank credit to the real estate sector grew annually by 5.4%, QCB revealed.A break-up of the composition of real estate loans showed loans to ‘real estate developers’ constituted the major category with 38.8% share in total real estate loans.Among other categories of real estate loans, ‘Commercial housing’ loans stood at 31.7% while ‘Private housing’ loans had a share of 11.5%.An annual change in the issue of completion certificates revealed that non-residential segment saw a higher supply compared to residential segment.Within the residential segment, higher supply of apartments and villas were in line with anticipated demand on the eve of mega sporting event.In general, economic activity started to revive with gradual lift-off of most Covid-19 restrictions and the same accelerated owing to Qatar’s hosting of the 2022 FIFA World Cup and the associated preparations.According to QCB, new areas developed or being developed are experiencing increase in real estate sale transaction of late.The reforms on ownership laws resulted in expansion of freehold zones and consequently increase in demand for residential units.After a period of decline in rental prices, rents have stabilised and is expected to persist for some time at an elevated level, post the FIFA world cup event, QCB said.

Qatar Airways clocked ‘best-in-class’ baggage performance in fiscal 2022/23 with a “low mishandling rate” of only 0.72 items per 1,000 passengers, the national airline said in a report.Annually, the team is serving over 35mn passengers and handles more than 57mn pieces of baggage, Qatar Airways said in its latest annual report.“All the hard work has resulted in the best-in-class baggage performance and enhanced customer experience,” Qatar Airways noted.Qatar Aviation Services (QAS), which is Qatar Airways Group’s ground-handling organisation, achieved an “efficient” on-time delivery of cargo, exceeding 2.1mn tonnes per year with an average growth rate of 2% a year.On the ramp, the QAS team maintained an operational capability of more than 99% for over 2,600 motorised and over 5,800 non-motorised units of ground servicing equipment.Established in 2000 and headquartered at Hamad International Airport (HIA), QAS provides premium end-to-end ground services to international airlines, heads of state and VIPs, private fleets, executive charter flights, and cargo operators using state-of-the-art equipment and cutting-edge technologies.A member of the IATA Ground Handling Partnership, QAS proactively participates in a variety of world-leading technical groups, such as the IATA Ground Operations Manual, Load Control and Messaging, Ground Service Equipment and Environment and Airside Safety Group, implementing recommendations to improve and enhance safety standards in the aviation industry.In August last year, QAS announced its partnership with the International Air Transport Association (IATA) to become the first ground handler globally to join the new expansion of the IATA Environmental Assessment Programme (IEnvA) for ground service providers, playing an instrumental role in helping HIA gain its world-class standing as an environmental leader.Through its participation, it aims to meet and exceed the highest environmental standards whilst developing future expansion strategies.Between November 18 and December 19, QAS achieved a significant milestone by being the sole ground-handler during the FIFA World Cup Qatar 2022 event, the first in the history of world cup tournaments.During the FIFA World Cup, QAS successfully handled more than 200 flight operators between scheduled and private flights.The team managed more than 25,000 movements between arrival and departure with 99.4% on-time performance rate, this includes handling 3.7mn passengers, with nearly 54,000 passengers with restricted mobility.Additionally, QAS FIFA World Cup operations saw more than 2.9mn items of baggage handled with as low as 0.12 baggage missed per 1,000 passengers and more than 3,000 operations segmented between private jets, freighters, and charter flights, Qatar Airways said.

Reducing global food waste by 50% is a key goal of the United Nations and enshrined in its Sustainable Development Goals (SDGs). .text-box { float:left; width:250px; padding:1px; border:1pt white; margin-top: 10px; margin-right: 15px; margin-bottom: 5px; margin-left: 20px;}@media only screen and (max-width: 767px) {.text-box {width: 30%;}}**media[61171]**This goal aims to end hunger, achieve food security and improved nutrition, and promote sustainable agriculture. Reducing food waste is crucial in achieving this goal as it ensures that the food produced is efficiently utilised and reaches those in need.The global aviation industry is a key stakeholder in the noble initiative. Airlines are working collaboratively with regulators to ensure that aviation makes a positive contribution to this SDG target.The average passenger generates approximately 1.43kg of waste per flight, equating to nearly 6mn tonnes of waste per year once air traffic fully recovers in 2024. Approximately 20% of this is untouched food and drink.That alone is worth about $4bn, money that is effectively incinerated and that could be allocated to environmental initiatives, according to the International Air Transport Association (IATA).Of course, the fact that this food and drink is sealed and untouched also suggests it could be used—perhaps for humanitarian efforts. Or, if bio-treated, it could be a critical energy source. Not so. International Catering Waste (ICW) rules effectively prevent reuse, donation, recycling and bio-treatment.It should be noted that in 2019, IATA’s Cabin Waste Handbook identified some 23 actions that could improve an airline’s cabin waste performance, including meal selection at time of check-in. Even so, it is clear that smarter regulation would alleviate much of the problem.Airline meals are produced using Hazard Analysis and Critical Control Points (HACCP) food safety procedures, initially designed by NASA for the Apollo space programme.“And yet meals produced to such standards are deemed a bio-hazardous waste when discarded by a passenger, requiring specialist handling and treatment,” says Jon Godson, IATA’s Assistant Director, Sustainability.To demonstrate a potential way forward, IATA will work with six airlines on a TransAltantic reuse and recycling trial in 2023. The aim is to show aviation’s ability to recycle uncontaminated waste.Handling cabin waste in airlines poses several challenges due to various factors such as limited storage capacity, weight and balance considerations and hazardous materials.Aircraft cabins have limited storage capacity, and finding adequate space to store waste during a flight can be difficult. As the flight progresses, the volume of waste generated increases, making it necessary to manage the space efficiently to accommodate all waste without obstructing passenger movement or compromising safety.Airlines have strict weight and balance limits for flights. Excessive accumulation of waste impact the aircraft's weight distribution, potentially affecting the plane's performance and safety.As a result, cabin crews must carefully monitor and manage waste to ensure it doesn't exceed the permissible limits.Some waste generated in the cabin, such as batteries, broken glass, or potentially infectious items, are often classified as hazardous materials.Proper handling, storage, and disposal procedures are essential to mitigate the risk associated with such waste and to ensure the safety of passengers and crew.The waste collected during the flight needs to be properly disposed of at the destination airport. Ensuring that adequate waste disposal facilities and processes are available at various airports is a logistical challenge.To address these challenges, airlines continuously work on improving waste management practices, implementing recycling programs, and educating both passengers and crew on the importance of responsible waste disposal during flights. Co-operation from all stakeholders, including passengers, crew, and airport authorities, is vital to mitigate the environmental impact of cabin waste in airlines.With a huge growth in passenger numbers expected in the coming decade, the volume of cabin waste could more than double in the next 10 years!This certainly calls for urgent action towards proper cabin waste recycling across the global airline industry.

Qatar Airways transported more than 1,541,041 tonnes of air freight, accounting for an 8.14% share in the global market from April 2022 to March 2023, according to the national airline’s annual report for 2022/23.The world’s largest cargo carrier serves over 70 freighter destinations and more than 150 belly-hold passenger destinations worldwide.Qatar Airways Cargo said it maintained its position as the world’s leading air cargo carrier throughout the 2022/2023 financial year, forging ahead with a strategic focus on growth, sustainability and digitalisation, and supporting the continuity of global trade, despite ongoing market challenges.With a tonnage of 159,730,903 kg in chargeable weight, Qatar Airways Cargo declined by 9.39% in chargeable weight compared to the same period in the previous year.In 2022/2023, Qatar Airways Cargo successfully managed a broad range of demanding shipments. With an overall 84,000 tonnes of pharmaceutical products transported, including 4,000 tonnes of vaccines and over 1,200 tonnes of Covid vaccines, the cargo carrier maintained its strong engagement in helping curb the pandemic. Moreover, providing safe transportation of 12,600 horses has confirmed its leading position in this field.Qatar Airways Cargo has also achieved a considerable number of charter operations with more than 1,400 charter flights last year, which includes charters for e-commerce, animals, music band tours and FIFA related activities.In addition to this, throughout 2022/2023, Qatar Airways Cargo continued its expansion around the globe by adding freighter frequencies to Athens, Cairo and Riyadh, as well as the passenger freighter flights to Colombo and Penang.By applying its Next Generation vision to all areas of its business, Qatar Airways Cargo has brought enhancements to its services and sharply accelerated its digital transformation.In that respect, another key event in 2022 was the launch of the ‘Digital Lounge’, Qatar Airways Cargo’s new web platform, designed to provide a more streamlined and connected booking experience for customers.As part of the carrier’s omni-channel strategy, the platform offers users direct access to the main three bookings platforms of the industry.Safety and security continues to be the number one priority for the cargo carrier and, in 2022, the carrier received IATA CEIV Lithium Batteries certification for its strict adherence to the highest standards and regulations, becoming the second airline in the world, and the first in the Middle East, to be CEIV Lithium Batteries certified.

Qatar’s banking sector has seen a pickup in loans with total credit moving up 0.3% to reach QR1.26tn in June, latest data provided by QNB Financial Services (QNBFS) has shown.Deposits with Qatari banks edged up by 0.1% to reach QR955.1bn, while their total assets increased 1.4% month-on-month (up 0.05% in 2023) in June to reach QR1.906tn, QNBFS said.An analyst told Gulf Times Tuesday that the banking sector loan book continued to rise and was pushed higher by both the public and private sectors.“From the public sector it was the semi-government institutions that rose significantly by 42.9% in June this year, while from the private sector it was a 1.3% growth in personal consumption,” the analyst noted.Loans gain in June, according to QNBFS was mainly due to a rise by 0.6% in the public sector and 0.2% in the private sector.Loans have edged up marginally by 0.01% so far in 2023, compared to a growth of 3.3% in 2022.Bank loans grew by an average 6.7% over the past five years (2018-2022).Qatari bank loan provisions to gross loans stood at 3.8% for both May and June this year.In terms of loans, the semi-government institutions’ segment shot up 42.9% M-o-M (38.1% in 2023), while the government segment (represents 28% of public sector loans) moved higher by 0.7% M-o-M (-11.5% in 2023).However, the government institutions’ segment (represents 65% of public sector loans) loan book declined by 2.5% M-o-M (-0.3% in 2023).Deposits increase in June this year was mainly due to a rise by 1.5% in non-resident deposits, QNBFS noted.Deposits have declined by 4.4% in 2023, compared to a growth of 2.6% in 2022. Deposits grew by an average 4% over the past five years (2018-2022).Loans to deposits ratio moved to 131.5% in June this year, QNBFS noted.Non-resident deposits increased by 1.5% M-o-M (-7.1% in 2023) in June, partly supporting the overall deposits increase for the month.Private sector deposits edged up by 0.1% M-o-M (-1.4% in 2023) in June 2023.On the private sector front, the consumer segment increased by 0.3% M-o-M (+4.1% in 2023), while the companies and institutions’ segment declined by 0.2% M-o-M (-7.0% in 2023) during June.Public sector deposits went down by 0.7% M-o-M (-6.8% in 2023) for the month of June 2023.Looking at segment details, the government institutions’ segment (represents 57% of public sector deposits) mainly pulled down the public sector, with a drop by 6.0% M-o-M (-5.3% in 2023), while the government segment (represents 28% of public sector deposits) moved lower by 2% M-o-M (-13.8% in 2023).However, the semi-government institutions’ segment increased significantly by 29.7% M-o-M (2.3% in 2023) in June 2023.Total assets rise in June was mainly due to an increase by 5.3% in foreign assets and 0.5% in domestic assets, QNBFS noted.Total assets are marginally up by 0.05% so far in 2023, compared to a growth of 4.2% in 2022.Assets grew by an average 6.9% over the past five years (2018-2022)Liquid assets to total assets was at 31.1% in June this year, compared to 30.4% in May, QNBFS said.

In a first for the country, Qatar Airways added some 65 new catering hi-loaders in its fleet compliant with ‘Euro 6 emission standards’.In the financial year 2022/2023, Qatar Airways Group subsidiary Qatar Aircraft Catering Company (QACC) achieved the environmental sustainability milestone of continuously recycling more than 1.7mn kg of solid waste year on year and donating more than 100,000 portions of food, condiments and more than 47,000 pieces of blankets, duvets and other useful fabrics to needy people across the globe.This marks a major milestone towards QACC’s ambitious sustainability goal of achieving zero waste to landfill by 2030.Spanning an extraordinary 69,000 square metres, QACC is one of the world’s largest self-contained catering facilities.QACC’s in-flight-catering facility is located at Hamad International Airport, the hub of Qatar Airways.Comprised of more than 35 nationalities, QACC is committed to raising industry standards across a wide range of operations and has a unified purpose of exceeding expectations.QACC delivers premium in-flight and lounge catering services seamlessly to passengers travelling around the world.It currently prepares an average of 175,000 meals and 70 international cuisines per day in its state-of-the-art kitchen and bakery at HIA.Current renovations entail the installation of fully automated and sustainable industrial equipment, which will enhance product quality, improve delivery efficiency and increase production capacity.Some of the innovative methods adopted by QACC to reduce the overall carbon footprint include reduction of Qatar Airways equipment and linen loading weight by almost 257 tonnes, which ultimately contributes to a reduction in aircraft fuel consumption and carbon dioxide emissions.QACC is also installing energy efficient equipment in its new state-of-the-art catering facilities, including washing systems, which significantly reduce water, energy and detergent consumption and efficient refrigeration units.It is pursuing an “ambitious” vertical farming niche technology that will not only revolutionise the agriculture industry in Qatar but will also guarantee QACC self-sustenance of green leafy vegetables that are currently airfreighted hence greatly reducing its overall carbon footprint.