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Sunday, December 22, 2024 | Daily Newspaper published by GPPC Doha, Qatar.
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 Pratap John
Pratap John
Pratap John is Business Editor at Gulf Times. He has mainstream media experience of nearly 30 years in specialties such as energy, business & finance, banking, telecom and aviation, and covered many major events across the globe.
The survey collected bank’s opinion on the level of risk on various risk factors. Seven risk factors are provided under ‘global risks’ while six factors are provided under domestic macroeconomic risks.
Business
Majority of Qatari banks consider cyber risks 'high to very high', says QCB

Majority of Qatari banks consider “risks from cyber world” has "high to very high risk", Qatar Central Bank (QCB) said in its Financial Stability Report.Vulnerabilities on account of ‘risk from fraud’ is also considered to be reckoned among high risk factors as opined by banks, QCB said in its ‘Risk perception survey – 2022’.The Risk Perception Survey (RPS) was conducted among 16 banks including the Qatar development Bank.The survey collected bank’s opinion on the level of risk on various risk factors. Seven risk factors are provided under ‘global risks’ while six factors are provided under domestic macroeconomic risks.The survey also sought bank’s opinion on various risk elements on ‘credit risk’, ‘liquidity risk’, ‘market risk’ and ‘operational risk’. The risk levels are captured through a five-point ‘Likert scale’ ranging from ‘very low’ to very high’.The responses received on each risk variables are converted into an index ranging from 0 to 100, where zero represents no risk and 100 represents very high risk as per the opinion of the surveyed banks.The heat map on “global risks” suggests uncertainty around Covid-19 pandemic’ is considered as very high risk in 2021.However, the risk levels will have been moderated in 2022 and further reduce in 2023 as expected by the banks.According to QCB, ‘geopolitical uncertainties’ and ‘uneven global recovery’ are considered as next major risks in 2022 and 2023.Among the domestic macroeconomic risks ‘reduction in market liquidity’ is considered as the major risk event by the respondents followed by "volatility in equity market" and "fall in residential/commercial property prices".In 2023, banks consider fall in property prices will be major risk event followed by lower domestic growth.The survey also captured banks perception on the major risk factors from the given set of events pertaining to credit, liquidity, market, and operational risks.Among the given vulnerabilities, “default from real estate developers” and ‘default from large borrowers” are considered by majority of the banks as the major risk factors.“Deposit withdrawal from wholesale depositors” is considered as the major risk factor in case of liquidity risk, QCB said in its 13th Financial Stability Review.“Banks also opined that the risk level due to ‘reduced liquidity inflows from foreign inter- bank market’ may increase in 2022 and 2023. Among market risk factors, interest rate shock from domestic and developed countries are of high risk and the risk level is expected to (have) increased in 2022 and increase in 2023,” QCB noted.

NAPS
Business
NAPS processes 148mn debit card transactions worth QR92.1bn in 2021: QCB

Qatar's National ATM and Point of Sale System (NAPS) processed 148mn debit card transactions worth QR92.1bn in 2021, up 23% on 2020, according to the Qatar Central Bank's 13th Financial Stability Review.Almost two-thirds of these transactions were merchant payments performed at POS terminals deployed across the State by the banks and other e-commerce transactions.However, in terms of the value, ATM transactions accounted for more than half of the total NAPS payments and the ATM transactions saw an increase in 2021 compared to the previous year, indicating that cash payments in the economy were gaining momentum again, after a sharp decline seen during 2020 due to the Covid-19 pandemic.The e-commerce payments through the QCB’s QPay system continued to grow as in the previous years.In 2021, transactions through the QPay channel, grew by 53% whereas the number of transactions through the ATM channel grew by 8.4% and the POS transactions grew by 25.5% as compared to the previous year.The seamless support extended by the financial institutions and the merchants in providing contactless card payments for in-store and online purchases to the consumers during the pandemic to avoid cash and contact with payment terminals as well as more and more merchants moving to e-commerce platforms attributed to such a large-scale migration from cash payments to POS and e-payments, the QCB said.The retail payment system QATCH that facilitates the settlement of bulk direct credit and direct debit transactions handled nearly 10mn transactions in 2021.As in the previous years, transactions processed in QATCH grew in both value (13.8%) and volume (13.6%) terms over the previous year.NAPS is primarily used for the settlement of interbank merchant payments and ATM transactions. NAPS connects all automated teller machines (ATMs), point-of-sale (POS) terminals, and payment gateways offered by the local banks to a central payment switch that in turn re-routes the debit card transactions between a merchant’s bank and the card issuer bank and settles the transactions on central bank money.In addition, the system supports routing and settling of GCC interbank debit card transactions.

Gulf Times
Business
Transactions processed in QCB's payment and settlement systems total QR4.4tn in 2021

The total number of transactions processed in various payment and settlement systems of the Qatar Central Bank amounted to QR4.4tn in 2021, the QCB said in its 13th Financial Stability Review.The usage of electronic payment methods in Qatar has increased significantly in recent years due to changes in consumer behaviour in view of the coronavirus pandemic as well as the regulatory measures initiated by QCB.As a result, the number of transactions processed in various payment and settlement systems operated by the QCB crossed 162mn in 2021 compared to 133.5mn transactions processed in 2020, registering an overwhelming growth of 21.7%.“This was primarily characterised by the increased usage of debit card transactions,” QCB noted.Of the total transactions, customer payments accounted for 45.8%, followed by central bank operations (39.6%) and other interbank payments (15.2%).The QCB manages a number of payment and settlement systems such as Real Time Gross Settlement System (RTGS), Electronic Cheque Clearing System (ECCS), QATCH that facilitates fund transfers, NAPS (National ATM and Point of Sale Switch) that acts as an electronic payment gateway for switching and settling of ATM/POS/e-commerce transactions and the Qatar Mobile Payment System (QMPS).As in the previous years, RTGS and NAPS continued to remain the most systemically important systems with RTGS handling 82.2% of the total customer and interbank payments in value terms, and NAPS handling 91.1% of the payments in terms of volume.Although the second wave of the coronavirus pandemic had a marginal impact on payments volume, particularly in the first and second quarters of 2021, overall, the year witnessed a sharp increase in volume and a moderate growth in value indicating that the Qatar economy is indeed in the growth trajectory.While the total value of customer payments grew by 4.3% in 2021, that of interbank payments remained unchanged, the QCB said.Regarding the central bank market operations, as in the previous years, the value and volume of QMR deposits remained much higher than those of QMR loans indicating that the banking system had adequate liquidity during the year, the QCB noted.

QNB Financial Services (QNBFS) continues to remain “positive” longer-term on the Qatari market due to the country's macro strengths and expects flat second quarter normalised earnings for listed companies but a strong rebound in the remaining part of the year
Business
QNBFS continues to remain 'positive' longer-term on Qatari market primarily on country's macro strengths

QNB Financial Services (QNBFS) continues to remain “positive” longer-term on the Qatari market due to the country's macro strengths and expects flat second quarter normalised earnings for listed companies but a strong rebound in the remaining part of the year.“While the Qatar Stock Exchange (QSE) second quarter (Q2) reporting season should generally be perceived positively, it is unlikely to drive near-term equity performance as the economy readjusts from elevated oil/gas prices and World Cup related activities. Global monetary conditions and recession fears should also continue to dominate sentiment,” QNBFS said in an earnings preview.While QNBFS expects the market to remain "volatile", it continues to remain "positive" longer-term on the Qatari market due to the following reasons.First, sanctions by Western countries on Russia are still causing global oil and gas supply concerns. While the recent US banking turmoil has increased global recession fears with oil and gas prices teetering at their lows since late 2021 (although recent Opec+ cuts will likely provide a floor), resilient consumers/labour markets and China’s reopening negates some of these effects.Overall, still decent oil and gas prices should lead to higher government revenue/surplus for Qatar, enable flexibility in government expenditures and improve overall money supply (liquidity).Second, with the recent successful hosting of the World Cup, perceived as one of the best editions and putting Qatar in the global spotlight, QNBFS is of the view that pockets of Qatari stock market should benefit from this success.Some of the impact has been immediate, with Qatar registering record visitor arrivals thus far this year.Third, over the medium- to long-term, the North Field Gas Expansion, a nascent but growing tourism/sporting sector and the Qatar National Vision 2030 investments will continue to be major growth drivers for local companies.Fourth, on top of Qatar’s macro strengths, Qatari companies enjoy robust balance sheets backed by low leverage and decent RoEs, while Qatari banks stand out with their exceptional capital adequacy ratios, strong provision coverage and high profitability. This should help as global monetary conditions remain tight.Fifth, the proposal by the QIA and General Retirement and Social Insurance Authority (GRSIA) recently announced restructuring their local equity portfolios, worth up to $3bn under a separate entity in a bid to increase market liquidity, is a potential tailwind for the overall stock market.Such a move could lead to a minimum of $500mn in inflows according to market estimates. Additionally, also in May, the QIA committed up to QR1bn over five years to establish a permanent market-making programme.This builds on the successful initial initiative launched in September, and is set to run over the next five years covering about 90% of the QSE market capitalisation.Qatari valuations are looking cheaper historically and we stay bullish longer-term on Qatari equities given their defensive characteristics backed by their strong fundamentals.The QSE’s aggregate valuation metrics look attractive considering the fact that QNBFS does not see any marked near-term earnings recession. Even as the economy moderates, it notes the QSE’s current PE is lower than its historical median.Moreover, from a technical viewpoint, the QSE has not experienced two consecutive down years since 2001 – it has, on average, returned 19.6% the year following a negative annual performance, though with a wide range of 0.1% to 37.2%, QNBFS noted.“We expect Q2, 2023 earnings for Qatari stocks under coverage to decline 21.4%/5.5% YoY/QoQ. The YoY decline in earnings mostly stems from Industries Qatar (IQCD’s) skewed base effects with its profit expected to more than halve; otherwise, we see flat earnings on the back of a moderating but strong economy, the ramping up of Qatar’s massive LNG expansion project as well as some pockets of post-World Cup momentum.“Overall, excluding IQCD from aggregate earnings, we expect normalised aggregate earnings for our coverage universe to edge lower by 0.8% YoY/ 3.0% QoQ,” QNBFS said.

Bait Al-Mashura vice-chairman Prof. Dr. Khalid bin Ibrahim al-Sulaiti
Business
Islamic finance assets in Qatar grow 6.5% to QR635bn in 2022: Bait Al-Mashura

Islamic finance assets in Qatar grew 6.5% reaching QR635bn last year, ‘Islamic Finance in Qatar Report 2022’ by research firm Bait Al-Mashura Finance Consultations has shown.Islamic banks accounted for 87% of such assets, while Islamic sukuks accounted for 11.3%, Bait Al-Mashura noted.According to the report, the assets of Islamic banks’ grew 7.3% in 2022, reaching QR544.3bn, deposits grew 1.6%, totalling QR317.8bn and financing increased by 12.3% amounting to QR380.5bn.In the takaful insurance sector, the assets of such companies amounted to approximately QR5bn, registering a growth of 11.9%.Policyholders’ assets amounted to approximately QR2.6bn with a growth of 8.9%. Insurance contributions reached QR1.5bn, an increase of 9.3%.The business of takaful insurance companies “varied” between achieving insurance surpluses amounting to approximately QR73.4mn and an insurance deficit amounting to QR5.7mn.In Islamic finance companies, the assets amounted to QR2.5bn, down by 1.9%. Financing provided by these companies last year decreased by 3.3%, amounting to QR1.69bn.Revenues amounted to QR224.5bn, up 2%, revenues from financing and investment activities accounted for 90% of such total revenues. In Islamic investment companies, their assets grew by 1.3%, amounting to QR509mn last year.Their revenues amounted to QR62.3mn, a growth of 52.8%, and their profits exceeded QR16mn, Bait Al-Mashura said in its report.Issued Islamic sukuks decreased by 48%, as Islamic banks stopped issuing sukuks during 2022, the report said.Qatar Central Bank issued sukuks amounting to QR5.4bn during the year, down 29% on 2021.Bait Al-Mashura vice-chairman Prof. Dr. Khalid bin Ibrahim al-Sulaiti asserted that Islamic Finance endeavour to establish a “fair financial system” that promotes moral values and strives for the economic well-being of the individual and society on the basis of transparent, well-governed foundations.Transparency and clarity are fundamental pillars for stakeholders in legitimate financial transactions. Hence, the role of reports that support such a purpose and illustrate the weaknesses and strengths in the industry, development, and innovation areas.“We, at Bait Al-Mashura, are keen to strengthen such rules, which are considered a basic starting point for researchers, interested parties, and even institutions, through our series of reports, research, and studies that discuss the Islamic finance sector in Qatar, and give a clear picture of its reality and a forward-looking vision for its future,” al-Sulaiti noted.He stated that Qatari economy outperformed projections in 2022, expanding at a rate of 4.8%. Qatar’s Planning and Statistics Authority (PSA) estimates that the country's GDP at constant prices (2018) reached QR690.1bn, up from QR658.3bn in 2021.At current prices, the GDP rose to QR863.8bn, up 32% on 2021. The projected GDP growth rate for fiscal 2023 is anticipated to surpass 3%.“The financial and insurance activities sector made a significant contribution to the GDP, accounting for 8.1% of the total. This amounted to QR70.4bn at current prices, representing a growth rate of 11.9% compared to the previous year’s QR62.9bn,” Bait Al-Mashura noted.

Qatar Executive's growth has been represented by a tremendous increase in commercial sales revenue and total live lying hours, fleet growth, improvements made to better serve passengers lying with QE, and a record number of arrivals and departures at the Doha International Airport QE Premium Terminal
Business
Qatar Executive sees 'significant' year-on-year growth in fiscal 2022-23

Qatar Executive (QE), the VIP charter jet division of Qatar Airways, has seen significant year-on-year growth in fiscal 2022/23, the national airline said in its annual report.This has been represented by a tremendous increase in commercial sales revenue and total live lying hours, fleet growth, improvements made to better serve passengers lying with QE, and a record number of arrivals and departures at the Doha International Airport QE Premium Terminal.Fiscal 2022-23 was also a year “truly like no other” for Discover Qatar (DQ), the report said.“Through meticulous planning and extensive preparation, the team enhanced its customer-centric focus to deliver excellence. Over the past 12 months, DQ delivered a multitude of logistical arrangements and tourist experiences before and during the hugely successful FIFA World Cup Qatar 2022, to a wide variety of visitors and customers including FIFA delegates, tour operators, commercial partners, sponsors, and football fans,” the report noted.Over the period of the tournament, Qatar Airways operated some 14,000 flights bringing more than 2.4mn fans from all six continents to Qatar, to witness the greatest sporting show on Earth.Some 5bn fans engaged with the FIFA World Cup Qatar 2022 across the tournament delivering vast media return on investment to the Qatar Airways brand and more than 63% media return than the 2018 FIFA World Cup Russia.The social media engagement of the tournament increased followers by more than 83%.Located conveniently within a six-hour light from more than 80% of the world’s population, Hamad International Airport (HIA) is “ideal” for business or leisure travellers.HIA Phase B expansion started in January this year, and will see airport capacity increase to 70mn passengers annually.At the 2023 Skytrax World Airport Awards, HIA was ranked the Second-Best Airport in the World and World Best Airport Shopping.Additionally, HIA was ranked Best Airport in the Middle East for the ninth time in a row.

Willie Walsh, director general of the International Air Transport Association.
Business
Middle East airlines see 30.8% y-o-y traffic increase in May: IATA

Strong air travel growth continues in May as load factor rises to 2019 levels, IATA said an noted Middle Eastern airlines saw a 30.8% traffic increase compared to the same period last year.For Middle Eastern airlines, capacity climbed 25% and the load factor pushed up 3.6 percentage points to 80.2%. The region is leading the recovery with May traffic at 17.2% above 2019 levels.Total traffic in May 2023 (measured in revenue passenger kilometres or RPKs) rose 39.1% compared to May 2022. Globally, traffic is now at 96.1% of May 2019 (pre-pandemic) levels.Domestic traffic for May rose 36.4% compared to the year-ago period. Total domestic traffic in May was 5.3% above the May 2019 level. This is the second month in a row domestic traffic has exceeded pre-pandemic levels.International traffic climbed 40.9% versus May 2022 with all markets recording strong growth, led once again by carriers in the Asia-Pacific region. International RPKs reached 90.8% of May 2019 levels, with Middle East and North American airlines exceeding pre-pandemic levels.The total industry load factor rose to 81.8%, led by North American carriers at 86.3%.“We saw more good news in May. Planes were full, with the average load factors reaching 81.8%. Domestic markets reported growth on pre-pandemic levels. And, heading into the busy Northern summer travel season, international demand reached 90.8% of pre-pandemic levels,” noted Willie Walsh, IATA’s director general.“People need and love to fly. The strong demand for travel is one element supporting a return to profitability by airlines. In 2023 we expect airlines globally to post a $9.8bn net profit. It’s an impressive number, particularly after huge pandemic losses.“But a 1.2% average net profit margin is just $2.25 per departing passenger. As a return, that is not sustainable in the long-term.Moreover, it appears that, while the pandemic has changed many things in aviation, it has not righted aviation’s famously unbalanced value chain. The latest indication came last week as European airports announced a $7bn collective profit in 2022.In comparison, IATA estimates that European airlines made a $4.1bn profit for the same year.“We don’t begrudge any business hard-earned profits. But this does raise an interesting question. Is airport economic regulation effectively defending the public interest when a monopoly supplier (airports) can generate seemingly much healthier returns than the competitive businesses (airlines) they supply? Governments should at least take a look,” Walsh said.

Passengers board a plane at Bill and Hillary Clinton National Airport in Little Rock, Arkansas. Recent IATA data show that there was one unruly incident reported for every 568 flights in 2022, up from one per 835 flights in 2021. The most common categorisations of incidents in 2022 were non-compliance, verbal abuse and intoxication.
Business
Spike in unruly passenger incidents worries airlines; bad behaviour rises sharply in 2022

Strengthening passenger traffic following the removal of Covid-19 restrictions in major markets is certainly good news for the industry, which has been decimated by the pandemic.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[48451]**since early 2020.Increasing traffic, however, sees a worrying trend of a rise in unruly passenger incidents, which spiked in 2022 compared with the year before.Recent IATA data show that there was one unruly incident reported for every 568 flights in 2022, up from one per 835 flights in 2021. The most common categorisations of incidents in 2022 were non-compliance, verbal abuse and intoxication.Physical abuse incidents remain very rare, but these had an alarming increase of 61% over 2021, occurring once every 17,200 flights.Unruly passenger incidents will have a significant impact on the airline industry. These include disruption of flight operations, safety and security concerns, and increased costs, regulatory and legal consequences.When an unruly passenger disrupts the normal course of a flight, it leads to delays or even diversions. Pilots and crew members will then need to take immediate action to ensure the safety and security of all passengers, which results in unplanned landings or changes in flight routes.Obviously, this disruption causes inconvenience to other passengers and lead to scheduling challenges for the airline.“The increasing trend of unruly passenger incidents is worrying,” IATA, the global body of airlines, says.IATA’s deputy director general Conrad Clifford noted: “Passengers and crew are entitled to a safe and hassle-free experience on board. For that, passengers must comply with crew instructions. While our professional crews are well-trained to manage unruly passenger scenarios, it is unacceptable that rules in place for everyone’s safety are disobeyed by a small but persistent minority of passengers. There is no excuse for not following the instructions of the crew.”Although non-compliance incidents initially fell after the mask mandates were removed on most flights, the frequency began to rise again throughout 2022 and ended the year some 37% up on 2021. The most common examples of non-compliance were smoking of cigarettes, e-cigarettes, vapes and puff devices in the cabin or lavatories, failure to fasten seat belts when instructed, exceeding the carry-on baggage allowance or failing to store baggage when required and consumption of own alcohol on board.The association has put in place a two-pillar strategy for the much needed zero-tolerance approach to unruly behaviour. This revolves round regulation and guidance to prevent and de-escalate incidents.Regulation: Ensure governments have the necessary legal authority to prosecute unruly passengers, regardless of their state of origin and to have a range of enforcement measures that reflect the severity of the incident.Such powers exist in the Montreal Protocol 2014 (MP14), and IATA is urging all states to ratify this as soon as possible. To date, some 45 nations comprising 33% of international passenger traffic have ratified MP14.Guidance to prevent and de-escalate incidents: Prevent incidents through collaboration with industry partners on the ground (such as airports, bars and restaurants and duty-free shops), including for example awareness campaigns on the consequences of unruly behaviour.Additionally, share best practices, including training, for crew to de-escalate incidents when they occur. A new guidance document was published (in 2022) gathering best practices for airlines and providing practical solutions to governments on public awareness, spot fines, and fixing jurisdiction gaps.“In the face of rising unruly incident numbers, governments and the industry are taking more serious measures to prevent unruly passenger incidents. States are ratifying MP14 and reviewing enforcement measures, sending a clear message of deterrence by showing that they are ready to prosecute unruly behaviour. For the industry’s part, there is greater collaboration. For example, as the vast majority of intoxication incidents occur from alcohol consumed prior to the flight, the support of airport bars and restaurants to ensure the responsible consumption of alcohol is particularly important.“No one wants to stop people having a good time when they go on holiday—but we all have a responsibility to behave with respect for other passengers and the crew. For the sake of the majority, we make no apology for seeking to crack down on the bad behaviour of a tiny number of travellers who can make a flight very uncomfortable for everyone else,” Clifford added.Collaborative efforts among airlines, regulatory bodies, and law enforcement agencies are therefore crucial to maintain safety, security, and the overall integrity of the airline industry.

Gulf Times
Business
Qatar converges towards developed nations' performance in UNCTAD Productive Capacities Index

Qatar is gradually converging towards the performance of developed countries in United Nations Conference on Trade and Development’ Productive Capacities Index, a report by UNCTAD has shown.PCI measures countries’ abilities to produce goods and deliver services, which are critical for international trade and global production value chains.Along with Qatar, some economies like Chile and China also converge gradually towards the performance of developed countries with the average score of 61.The PCI shows that developed economies have higher productive capacity scores, with economies such as Denmark, Australia and the United States leading the pack with an average score of 70 out of 100 on the composite index.On the other extreme are African economies such as Chad, Malawi and Niger, which each register an overall PCI score of below 20.Among developing regions, Asia and Latin America, overall, perform better than the African region.PCI maps the productive capacities of some 194 economies and provides a better measure of development than other traditional benchmarks such as gross domestic product (GDP). It’s multidimensional and measures economic inputs and potential as opposed to outputs.For governments, the PCI is a powerful and practical tool to track progress over time and forge informed policies to plug development gaps. It can help countries respond to a call by UN Secretary-General Antonio Guterres to move beyond GDP and measure the things that really matter to people and their communities.UNCTAD secretary-general Rebeca Grynspan said: “No nation has ever developed without building the required productive capacities, which are key to enabling countries to achieve sustained economic growth with accelerated poverty reduction, economic diversification and job creation.”UNCTAD defines productive capacities as “the productive resources, entrepreneurial capabilities and production linkages that together determine the capacity of a country to produce goods and services and enable it to grow and develop.”According to UNCTAD, countries need reliable tools that respond to changing global conditions. In view of the Covid-19 pandemic, the war in Ukraine and climate change, external shocks increasingly affect countries’ abilities for sustainable development.While headline economic indicators like GDP capture economic production as a measure of output, the PCI takes a novel approach to measuring development progress.Originally released by UNCTAD in 2021, the newly updated index is an enhanced data-driven tool to help countries improve their development policies. It follows a robust, revised methodology and updates the data for the period 2000 to 2022.The PCI has helped several developing countries to assess their productive capacities and develop programmes to plug gaps.

Qatar’s fiscal breakeven point has ranged between $35 and $55 per barrel of crude oil over the past decade. Hence the government has recorded large annual fiscal surpluses in most years, except for 2016-2017 when oil and gas prices had been persistently low for some time, says Allianz Trade.
Business
Qatar's debt-to-GDP ratio may fall further on economic recovery: Allianz Trade

Qatar's debt-to-GDP ratio is expected to fall further in the wake of economic recovery, Allianz Trade said and noted the country’s fiscal reserves remain solid.Qatar’s fiscal breakeven point has ranged between $35 and $55 per barrel of crude oil over the past decade. Hence the government has recorded large annual fiscal surpluses in most years, except for 2016-2017 when oil and gas prices had been persistently low for some time.Even in 2020 a small surplus of +1.3% of GDP was achieved. The surplus widened to around +4.4% in 2021 and Allianz Trade estimates it to have increased to more than 10% in 2022, thanks to surging gas prices.Allianz Trade projects continued robust surpluses close to 10% of GDP in 2023-2024. Meanwhile, public debt rose from 25% of GDP in 2014 to 73% in 2020, in part due to declining nominal GDP. However, the debt-to-GDP ratio eventually declined to 58% in 2021 and Allianz Trade expects it to fall further over 2022-2024 in the wake of the economic recovery.Yet, in a recent forecast Allianz Trade noted the ratio to remain elevated and it should be monitored closely. Overall, however, Qatar will remain a large net external creditor, thanks to the huge foreign-asset position in the Qatar Investment Authority (QIA, a sovereign wealth fund currently estimated at approximately $475bn).According to Allianz Trade, Qatar’s external liquidity will remain unproblematic in the next two years. Qatar has recorded large, sometimes huge annual current account surpluses for more than two decades, with the exceptions of 2016 and 2020 when global oil and gas prices were particularly low. These surpluses have contributed to the build-up of the QIA.Higher oil and gas prices moved the current account back into a surplus of nearly +15% of GDP in 2021 and more than 20% in 2022. That ratio is likely to narrow somewhat in 2023-2024 but should remain well in the double digits.Meanwhile, external debt is relatively high; it rose to 126% of GDP in 2020, incurred by oil and gas investments since the 2000s, but repayment obligations are unlikely to present liquidity problems, Allianz Trade said.The ratio is estimated to have fallen to approximately 84% in 2022 and should decline further. The annual debt-service-to-export-earnings ratio is forecast at a manageable 16% or so in 2023. “Financial resources will remain strong. The combined FX reserves of the central bank and the QIA represent over 200% of annual GDP and cover more than 80 months of imports,” Allianz Trade added.

Qatar's sovereign credit strengths are large fiscal and current-account surpluses, which are expected to limit borrowing, and huge external assets, according to EIU.
Business
High energy prices to support Qatar's strong trade position in 2023-24; keep external liquidity comfortable: EIU

High energy prices, despite falling below their recent peaks, will support Qatar's strong trade position in 2023-24 and keep external liquidity comfortable, EIU said in its latest country update.Qatar's sovereign credit strengths are large fiscal and current-account surpluses, which are expected to limit borrowing, and huge external assets. Qatar’s public debt has fallen sharply over the past two years, EIU said and assigned ‘A’ sovereign risk rating.Although the “negative” net foreign asset position of Qatar's banks remains large, the authorities are taking steps to limit reliance on short-term non-resident deposits and external funding. The sector is "well regulated" and "strong prudential indicators" insulate banks from a deterioration in asset quality.Bank profitability has been bolstered by higher interest rates and a larger net interest margin, EIU said and assigned ‘BBB’ risk rating to the banking sector.According to EIU, the currency risk rating is also ‘BBB’. The rating is supported by strong international demand for Qatar's hydrocarbons exports, a large current-account surplus and an appropriate monetary policy stance.The riyal's peg to the dollar will continue to be backed by healthy foreign reserves and the huge assets of the Qatar Investment Authority (the sovereign wealth fund), which holds assets worth an estimated $475bn.The economic structure risk rating is ‘BB’. Qatar's over-reliance on hydrocarbons exports remains a vulnerability, exposing the country to global energy price movements, EIU noted.In a previous update, EIU said the country’s real economic growth will remain stable throughout most of the long-term forecast period (2022-2050).Elevated global hydrocarbons prices and investment in the Qatar National Vision development plan will sustain robust growth until 2030, after which growth will start to edge down. There remains potential for bursts of high growth if the government approves further gas export projects, beyond those planned for the mid-2020s.Diversification and the expansion of the services sector, funded by the state's hydrocarbons wealth, will also provide opportunities for growth. The population will gradually rise in the long term, to 3.1mn in 2050.As a result, growth in real GDP per head will be slower than growth in real GDP, EIU noted.Qatar's overall business environment score has improved, from 6.60 for the historical period (2017-21) to 7.74 for the forecast period, EIU said. This has helped Qatar's global ranking to improve by 15 places, from 36th to 21st, although it retains its regional ranking, in third place.The largest improvements in terms of scores are in the infrastructure and market opportunities categories.“Qatar's fairly open foreign investment regime, open trading relationships with regional partners and sophisticated capital markets will remain strong aspects of its business environment. The main shortcomings are in policy towards private enterprise and competition and in access to financing for small and medium-sized enterprises; these are expected to improve in the medium term,” EIU said.

Travellers at LaGuardia Airport in the Queens borough of New York. Hundreds of flights across the US and Canada were cancelled this month as smoke from Canada’s blazing forest fires blanketed the region, cut visibility and hugely impacted air travel in the two countries.
Business
Wildfires pose challenge to safety and efficiency of flights

Hundreds of flights across the US and Canada were cancelled this month as smoke from Canada’s blazing forest fires blanketed the region, cut visibility and hugely.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[48451]**impacted air travel in the two countries.Smoke spreading from wildfires in Canada delayed hundreds of flights recently at New York’s LaGuardia Airport, New Jersey’s Newark Liberty International Airport and Philadelphia International Airport because of limited visibility.The US Federal Aviation Administration (FAA) said in an update that it will likely need to take steps to manage the flow of air traffic into Washington, DC, and Charlotte as well.And as the winds shift, federal aviation officials are warning smoky skies could be seen in the US Midwest and as far as the southeast.Wildfire smoke causes more flight delays than rain or fog, according to FAA spokesman Kevin Morris.Safety experts say when aircraft need to land during periods of poor visibility, they rely on advanced navigation systems both onboard the aircraft and on the ground.Smoke from wildfires have a significant impact on air travel, affecting both the safety and efficiency of flights.They result in reduced visibility, flight diversions and cancellations.Obviously, smoke reduce visibility by creating a haze in the air, making it difficult for pilots to see landmarks, runways, or other aircraft. Reduced visibility poses a safety risk, especially during takeoff, landing, and taxiing.Smoke can also affect airport operations, such as air traffic control systems and ground services."Commercial airliners fly through mild and moderate smoke without problems in most cases," aerospace engineer Ben Frank, the founder of aircraft maintenance software company Rotabull, told TripSavvy. "However, volcanic ash or very thick smoke can cause visibility and air quality issues, in addition to degrading jet engine performance."It all boils down to the composition of smoke. "Smoke from wildfire contains different compounds such as carbon monoxide, volatile organic compounds, carbon dioxide, hydrocarbons, and nitrogen oxides, which are far from the hazard of volcanic ashes," noted José Godoy, CEO of flight operations company Simpfly."Volcanic ashes are made up of tiny fragments of rock, minerals, and volcanic glass, which are hard and abrasive.”So while smoke typically gets pulled through a jet engine without a problem, the particles of volcanic ash can damage different surfaces of an aircraft.That’s why air traffic in Europe was halted during the 2010 eruption of Eyjafjallajökull in Iceland, but the majority of air traffic on the West Coast, other than the brief hiatus by Alaska (which was more for the health of ground crews than the planes themselves), has mostly continued as usual.Smoke from wildfires contains various pollutants, including particulate matter, ash, and harmful gases. These pollutants can have adverse effects on air quality, potentially leading to respiratory issues and other health concerns for passengers, crew, and airport personnel.Airlines and airports prioritise the well-being of individuals and may adjust operations accordingly.However, most modern aircraft now are equipped with modern high efficiency particulate air (HEPA) filters, which theoretically can remove at least 99.97% of dust, pollen, mold, bacteria, and any airborne particles with a size of 0.3 microns.These are the same type of filters used in hospitals around the world.So, one need not necessarily worry about smoke entering the cabin as one if flying through it, even though one might smell it.Cabin air, experts say is a roughly 50-50 mix of recirculated and outside air. The recirculated air passes through a highly-engineered filtration system, and turns over every few minutes.That said, smoke introduce airborne hazards such as ash particles into the atmosphere. These particles can be damaging to aircraft engines, leading to decreased performance or even engine failure. Consequently, airlines and aviation authorities closely monitor air quality and take precautions to protect aircraft from potential damage.

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Business
Qatar tops average 5G download speeds in GCC region at 312Mbps: Opensignal

Qatar has topped average 5G download speeds in the GCC region at 312Mbps, latest report by independent analytics company Opensignal has shown.The report said 5G video experience in Qatar is "good".5G speeds continue to be impressive across the GCC, Opensignal noted. In five of the markets, average 5G download speeds top 200Mbps with only users in Oman missing out.In Qatar average 5G download speeds are even higher at 312Mbps. 5G peak download speeds are even more impressive, with every market seeing peak speeds over 500Mbps and Bahrain topping the region with a 5G peak download score of 1163.4Mbps.Upload speeds remain much more modest as operators and network vendors have targeted download for the initial improvements in 5G experience.With 5G, users’ experience is considerably better than using older 4G network technology across Gulf Co-operation Council (GCC) markets, Opensignal said.Across the region average download speeds are between 5.2 times faster (Oman) and an astonishing 10.8 times faster (Kuwait) with 5G compared with 4G. This enormous speed increase is because 5G is able to use new high capacity spectrum bands — such as 3.5GHz — which are not suitable for 4G.Saudi Arabia and Kuwait see the biggest jump across the GCC in video experience using 5G. With mobile video streaming there are also significant increases in every market but the improvement is less marked than it is for speed. In Saudi Arabia and Kuwait the video experience score is 19% higher with 5G.In three GCC markets, 5G users spend more than one fifth of their time with an active 5G connection. Top is Kuwait with a 5G availability of 39.4%.However, the GCC market with the largest land area — Saudi Arabia with 23.5% 5G availability — is part of this leading group, an impressive achievement for such a sizeable market.Turning to multiplayer gaming, mobile video streaming and real-time voice app communication, the smaller GCC markets again top the 5G tables, Opensignal noted.Kuwait has the highest 5G video experience score (75.9). On the other two measures, Kuwait drops to second. Instead, Bahrain is top for 5G games experience (81.4) and also for 5G voice app experience (83.2).Despite the complexity of deploying 5G network technology to a much larger country, Saudi Arabia is fourth for 5G video experience with a score of 72.5 and is a creditable third for 5G voice app experience with 81.3, Opensignal said.

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Business
Qatar fiscal balance to GDP may reach 8.9% this year and 8.2% in 2024: Oxford Economics

Qatar's fiscal balance as a percentage of GDP is expected to be 8.9% this year and 8.2% in 2024, Oxford Economics has said in a report.The country’s current account as a percentage of GDP is expected to be 16% this year and 14.5% in 2024.Qatar’s real GDP growth has been forecast at 2.6% this year and 2.6% in 2024.Oxford Economics estimates Qatar’s inflation to average 2.3% (year-on-year) in 2023 and 1.8% in 2024.In its last update, Oxford Economics noted although commodity prices have softened amid weaker global growth, they remain elevated, providing support to Qatar's macroeconomic environment.Qatar is not involved in the Opec+ agreement on production quotas, and output will likely rise further above 600,000 barrels per day (bpd) this year. That said, following two years of production increasing, output slipped 0.6% last year.The North Field gas expansion project will have a positive medium-term impact, increasing LNG capacity nearly 65% to 126 mtpy by 2027, from 77 mtpy.Qatar is in the process of signing other multi-year supply contracts, following agreements with China and Germany for LNG output set to be added in the first phase of the project due in 2026.The non-energy sector expanded by 6.8% in 2022, exceeding Oxford Economics’ 6.3% projection and marking the fastest pace since 2015. But growth will slow to 3.2% this year, as momentum eases after the World Cup, maintaining a similar pace in 2024/25.Tourism will be among the sectors that will support non-oil recovery this year, thanks to major events, including the Asian Football Cup and Formula 1 Qatar Grand Prix, and in the medium term.Qatar attracted 2.56mn tourists in 2022, and data for January and February show foreign arrivals were about three and four times higher than in the respective months last year.The 2023 budget, based on an oil price $65/b, up from $55/b in 2022 budget, projects a surplus of QR29bn, equivalent to 3.4% of GDP.“Our 2023 forecast for Brent is now at $87/b (up from $85 last month), above the budgeted price, though LNG prices undershot our projection in Q1. On that basis and with spending growth moderating, we see a budget surplus of 9.6% of GDP this year,” Oxford Economics said.The government ran a surplus of QR89bn (10.3% of GDP) in 2022.Oxford Economics noted Qatari banks have been resilient and are well capitalised and profitable, with low levels of non-performing loans. Banks' reliance on foreign funding has eased, thanks to improved domestic liquidity and a decline of 31% y/y in non-resident deposits, but remains high.

Gulf Times
Business
Qatar fiscal balance to GDP may reach 8.9% this year and 8.2% in 2024: Oxford Economics

Qatar's fiscal balance as a percentage of GDP is expected to be 8.9% this year and 8.2% in 2024, Oxford Economics has said in a report.The country’s current account as a percentage of GDP is expected to be 16% this year and 14.5% in 2024.Qatar’s real GDP growth has been forecast at 2.6% this year and 2.6% in 2024.Oxford Economics estimates Qatar’s inflation to average 2.3% (year-on-year) in 2023 and 1.8% in 2024.In its last update, Oxford Economics noted although commodity prices have softened amid weaker global growth, they remain elevated, providing support to Qatar's macroeconomic environment.Qatar is not involved in the Opec+ agreement on production quotas, and output will likely rise further above 600,000 barrels per day (bpd) this year. That said, following two years of production increasing, output slipped 0.6% last year.The North Field gas expansion project will have a positive medium-term impact, increasing LNG capacity nearly 65% to 126 mtpy by 2027, from 77 mtpy.Qatar is in the process of signing other multi-year supply contracts, following agreements with China and Germany for LNG output set to be added in the first phase of the project due in 2026.The non-energy sector expanded by 6.8% in 2022, exceeding Oxford Economics’ 6.3% projection and marking the fastest pace since 2015. But growth will slow to 3.2% this year, as momentum eases after the World Cup, maintaining a similar pace in 2024/25.Tourism will be among the sectors that will support non-oil recovery this year, thanks to major events, including the Asian Football Cup and Formula 1 Qatar Grand Prix, and in the medium term.Qatar attracted 2.56mn tourists in 2022, and data for January and February show foreign arrivals were about three and four times higher than in the respective months last year.The 2023 budget, based on an oil price $65/b, up from $55/b in 2022 budget, projects a surplus of QR29bn, equivalent to 3.4% of GDP.“Our 2023 forecast for Brent is now at $87/b (up from $85 last month), above the budgeted price, though LNG prices undershot our projection in Q1. On that basis and with spending growth moderating, we see a budget surplus of 9.6% of GDP this year,” Oxford Economics said.The government ran a surplus of QR89bn (10.3% of GDP) in 2022.Oxford Economics noted Qatari banks have been resilient and are well capitalised and profitable, with low levels of non-performing loans. Banks' reliance on foreign funding has eased, thanks to improved domestic liquidity and a decline of 31% y/y in non-resident deposits, but remains high.

In 2014, Qatar inaugurated Hamad International Airport (HIA) in Doha, replacing the older Doha International Airport. A world-scale airport, HIA is designed to handle a large volume of passengers and aircraft and is Qatar’s gateway to the world
Business
A decade of major accomplishments for Qatar's aviation industry

Qatar has made significant achievements in the field of aviation over the last decade, establishing itself as a major player in the global aviation industry, thanks to the wise leadership and guidance of His Highness the Amir, Sheikh Tamim bin Hamad al-Thani.Last year, the State of Qatar won membership of the International Civil Aviation Organisation (ICAO) Council for the first time in its history on Group C (for three years up to 2025), through an election.Qatar achieved a landslide victory in elections and garnered some 160 votes, making it one of the “highest-scoring” candidates on Group C, emphasising the country’s significant contributions and efforts in the civil aviation industry.According to HE the Minister of Transport, Jassim bin Saif al-Sulaiti, Qatar's winning the membership of ICAO Council emphasises the country’s status and recognition in international forums regionally and globally under the leadership of His Highness the Amir.Qatar Airways has experienced tremendous growth and expansion in the past decade. It has become one of the world's leading airlines, known for its extensive global network, high-quality service, and state-of-the-art fleet. Qatar Airways consistently receives accolades and awards for its excellence in the aviation industry.National carrier Qatar Airways operated nearly 14,000 flights during the FIFA World Cup Qatar 2022, which concluded on December 18 last year and was chosen as ‘The Greatest Tournament in the 21st Century’ in a BBC News poll.Qatar Airways provided “dedicated” passenger overflow spaces outside Hamad International Airport and Doha International Airport, at no cost, where football festivities and live entertainment could be enjoyed while also providing storage space for luggage and carry-ons. This space allowed fans to continue enjoying the celebrations before they departed to their respective destinations.In 2014, Qatar inaugurated Hamad International Airport (HIA) in Doha, replacing the older Doha International Airport. A world-scale airport, HIA is designed to handle a large volume of passengers and aircraft and is Qatar’s gateway to the world.It has state-of-the-art facilities, including a stunning terminal building, advanced passenger amenities, and efficient operations. HIA has become a major transit hub, connecting passengers from around the world.In November last year, Hamad International Airport opened the newly expanded terminal as part of its ‘Phase A’ expansion, which meant the state-of-the-art airport would now be able to cater to 58mn passengers annually.The newly expanded terminal houses HIA’s second airport hotel – ‘Oryx Garden’ and ‘Orchard’ – an indoor tropical garden that has sourced 300 plus trees and 25,000 plants from sustainable forests around the world.Drenched in natural light and featuring sustainably sourced plants and shrubs, it offered a show-stopping, luxury shopping experience to fans with many first-of-a-kind retail outlets.In the expanded terminal, Qatar Duty Free started offering retail and F&B options with more than 65 retail and dining outlets spread across its three levels.The expansion now enables travellers to “seamlessly transfer” from one area to another, greatly reducing their wait time at the airport.Qatar Airways launched Qatar Executive, its business jet subsidiary in 2009. Over the past decade, Qatar Executive has established itself as a leading provider of luxury private jet services, offering a fleet of modern aircraft and premium services to meet the demands of high-end travellers.Qatar has made strategic investments in several international airlines, expanding its influence and partnerships across the aviation industry.The Qatar Airways Group holds stakes in renowned carriers such as International Airlines Group (IAG), the parent company of British Airways and Iberia, and these investments have provided the national airline with valuable alliances and strengthened its global network.Qatar Airways currently flies to more than 160 destinations worldwide, connecting through its Doha hub, Hamad International Airport, voted by Skytrax as the ‘World’s Best Airport’ in 2021 and 2022 consecutively.Qatar's achievements in the field of aviation over the last decade under the leadership of His Highness the Amir clearly demonstrate its commitment to becoming a global aviation powerhouse.Through the expansion of Qatar Airways, the development of world-class airports, strategic investments, and infrastructure projects, Qatar has successfully positioned itself as a key player in the global aviation industry.

A view of the Ras Laffan Industrial City, Qatar's principal site for the production of liquefied natural gas and gas-to-liquids (file). Qatar has made significant strides in the energy sector over the past decade, thanks to the guidance and unlimited support of His Highness the Amir, Sheikh Tamim bin Hamad al-Thani.
Business
Qatar energy sector sees decade of accomplishments, leveraging huge natural gas resources

Qatar has made significant strides in the energy sector over the past decade, thanks to the guidance and unlimited support of His Highness the Amir, Sheikh Tamim bin Hamad al-Thani.Significant accomplishments include boost in liquefied natural gas production, expansion of LNG facilities and diversification of markets, investment in renewable energy, energy efficiency initiatives, research and development and carbon capture and storage.In the past decade, Qatar has implemented world-scale projects to boost its liquefied natural gas production.Qatar is the world's largest exporter of LNG and has consistently expanded its production capacity. Qatari LNG now reaches all continents and the country holds the enviable record of uninterrupted supplies to customers, even during challenging times.The country has actively pursued market diversification for its LNG exports. It has expanded its reach to new customers and regions, including Asia, Europe, and the Americas. Qatar has established long-term supply agreements with various countries, securing its position as a reliable LNG supplier.In 2021, Qatar announced the North Field Expansion project, which comprises North Field South (NFS) and North Field East (NFE) that will increase Qatar’s LNG production capacity from the current 77 MTPY to 126 MTPY by 2026 or 2027.Global energy majors such as TotalEnergies, ExxonMobil, Shell, Eni and ConocoPhillips are QatarEnergy’s partners in the multi-billion dollar North Field expansion project, the largest LNG development in global history.This unique project is characterised by the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible.The North Field expansion plan includes six LNG trains, of which four trains will be part of the North Field East and the remainder part of the North Field South project.The North Field expansion will provide significant benefits for all sectors of the Qatari economy during the construction phase and beyond.Ras Laffan, located on Qatar's northern coast, is now home to the state-of-the-art LNG infrastructure, including massive LNG export terminals.In March 2022, His Highness the Amir Sheikh Tamim bin Hamad al-Thani inaugurated the Barzan Gas Plant in a special ceremony held at the Ras Laffan Industrial City.The Barzan Gas Plant is capable of producing almost 1.4bn standard cubic feet of sales gas per day for local power generation and water desalination; 2,000 tonnes of ethane per day as feedstock for the local petrochemicals industry; 1,500 tonnes per day of liquid petroleum gas (LPG) for export to international markets; 30,000 barrels of condensate per day for processing in the Laffan Refinery and export to international markets; and 3,500 tonnes of sulphur per day for export to international markets.It will also produce associated hydrocarbon products for supply to local refinery and petrochemical industries as well as for export to international markets.Qatargas operates the Barzan Gas Plant on behalf of its shareholders: QatarEnergy (93%) and ExxonMobil (7%).Qatar owns a fleet of LNG carriers, enabling efficient transportation of LNG to global markets. Qatari companies, such as Nakilat, have made substantial investments in building and managing LNG vessels, ensuring a robust shipping infrastructure.Industries Qatar (IQ) and Mesaieed Petrochemical Holding (MPHC) have already given their approval to Qatar Vinyl Company (QVC) for a new PVC (polyvinyl chloride) project with 350,000 tonnes per annum capacity at an estimated cost of $239mn.Qatar has been committed to environmental sustainability in its LNG operations. It has implemented advanced technologies and practices to reduce greenhouse gas emissions, improve energy efficiency, and minimise the environmental impact of LNG production and transportation.In October last year, Qatar’s first and one of the region’s largest solar plants was inaugurated by His Highness the Amir at Al Kharsaah.The multi-billion dollar 800MW Al Kharsaah Solar PV Power Plant (KSPP) was constructed on a 10sq km land area and can provide the national grid with about 10% of peak electricity demand.Qatar has invested in research and innovation to enhance its LNG industry. Institutions like Qatar University and the Qatar Science & Technology Park have collaborated with international partners and conducted research in areas such as LNG technologies, carbon capture and storage, and clean energy solutions.Qatar has played a leading role in developing and implementing advanced LNG technologies. It has continuously improved its LNG production processes, including the utilisation of integrated production facilities, optimised liquefaction techniques, and efficient management of LNG projects.The decade also saw significant achievements in the Dolphin Energy Project, which recorded the first gas flow from Qatar to the UAE on July 10, 2007.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.Undoubtedly, these achievements have solidified Qatar's position as a global LNG powerhouse and contributed to its economic growth and international influence in the energy sector.

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Business
Qatar: A dynamic and vibrant player in global economy

A decade of Qatar’s efforts to diversify the economy culminated in the successful hosting of the 2022 FIFA World Cup, which was highly praised by the International Monetary Fund recently.Over the past decade, Qatar has experienced significant economic development, driven primarily by its vast reserves of natural gas and ambitious economic diversification efforts.Despite challenging situations borne out of the blockade in 2017 and the Covid-19 pandemic three years later - in 2020, Qatar smoothly navigated and managed the situation very well, pursuing prudent policies under the wise leadership of His Highness the Amir, Sheikh Tamim bin Hamad al-Thani.These created a safe environment for the successful conduct of the greatest sporting spectacle on earth – the FIFA World Cup Qatar 2022.Qatar is well placed to leverage the top-notch infrastructure built and capitalise on the momentum and visibility created by the World Cup as the government lays out its 3rd National Development Strategy to help achieve the ambitions of the Qatar National Vision 2030.The country’s real GDP growth is expected at 2-2.5% in 2023-24 on robust domestic demand and the ongoing LNG expansion, with inflation moderating gradually to around 3%.”Qatar’s medium-term growth is likely to rise to around 4-4.5% after the North Field expansion starts boosting LNG production, the IMF said in a recent report.Aided by buoyant export revenue and public spending, Qatar’s fiscal and external current accounts are projected to be in surpluses throughout the medium term. Importantly, the outlook remains relatively favourable.Qatar is the world's largest exporter of liquefied natural gas (LNG), and its natural gas reserves have played a pivotal role in driving economic growth. The country has successfully leveraged its gas wealth to attract foreign investments and foster economic development.The country has invested heavily in infrastructure projects to support its economic growth and meet the needs of 2022 FIFA World Cup.In the last 10 years, the country constructed new transportation networks, including the Hamad International Airport and the Doha Metro, as well as numerous stadiums, hotels, and other facilities.Recognising the need to reduce dependence on hydrocarbons, Qatar implemented an ambitious diversification strategy known as the Qatar National Vision 2030. This initiative aims to develop non-energy sectors such as finance, tourism, education, healthcare, and logistics, with the goal of creating a sustainable and knowledge-based economy.Qatar's financial sector has experienced considerable growth over the past decade. The Qatar Financial Centre (QFC) has attracted numerous multinational corporations and financial institutions, establishing itself as a regional financial hub.The country has also witnessed the development of Islamic banking and finance, which aligns with its cultural and religious values.Qatar has actively pursued foreign investments, both domestically and internationally. The Qatar Investment Authority (QIA), the country's sovereign wealth fund, has made substantial investments in various sectors worldwide, including real estate, technology, and infrastructure. These investments have helped diversify Qatar's assets and enhance its global influence.Qatar has focused on developing its tourism and hospitality industry to attract international visitors. The country has invested in luxury hotels, resorts, and cultural attractions, such as the National Museum of Qatar and the Museum of Islamic Art.Qatar's hosting of major sporting events, like the FIFA World Cup 2022, is expected to boost tourism and further stimulate economic growth.Qatar has prioritised investments in education and human capital development. It has established several world-class educational institutions, including Qatar Foundation's Education City, which hosts branch campuses of renowned international universities.These efforts aim to nurture a skilled and knowledge-driven workforce to support economic diversification.Qatar has made strides in promoting sustainability and reducing its carbon footprint. The country has set targets for increasing the share of renewable energy in its energy mix and has invested in solar power projects.Additionally, Qatar has implemented various initiatives to enhance environmental conservation and water resource management.Qatar has made remarkable progress in its economic development over the last decade. By leveraging its natural gas wealth, diversifying its economy away from hydrocarbon resources, investing in infrastructure, and attracting foreign investments, the country has positioned itself as a vibrant and dynamic player in the global economy.