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**media[9839]**The United States’ friendship with Qatar is not built of boundaries, but one that’s based on shared optimism for the future, noted US ambassador Timmy T Davis in an exclusive interview with Gulf Times.“We have so many areas of common interest...be it global security, humanitarian assistance or education. We like to get together formally once a year to have a grand conversation...it is the kind of conversation you have with friends,” the ambassador said, referring to the forthcoming session as part of the “5th Strategic Dialogue” between the two countries that will be held in Doha on February 20-21.The envoy said top officials from both the countries are expected for the session.The 5th Qatar-US Strategic Dialogue session was kicked off in November last year, co-chaired by HE the Deputy Prime Minister and Minister of Foreign Affairs, Sheikh Mohamed bin Abdulrahman al-Thani, and US Secretary of State Antony J Blinken.“We are delighted that Qatar is part of a conversation globally about countries that care about humanitarian assistance, dignity of the individual, or ensuring that victims of tragedies like flooding in Pakistan, earthquake in Turkiye and Syria, plight of those in Lebanon still suffering the effects of years of misfortune as they look for leadership, are cared for.“Our relationship with Qatar is not a relationship, where one of the partners is leading the other in a direction. Our relationship with Qatar is about two friends...two allies... identifying areas where we can do the most good and have the greatest impact.“For example, in North Africa, Qatar is a leader in thinking about how many of those governments’ progress and come together and take care of the people who live in those countries. About the future of our relationship, I am absolutely optimistic about it. I know Qatar’s goal is to be a good neighbour regionally...to be a good partner globally... and that they are as interested in doing it as friends with the United States as the US is doing it with our friends in Qatar.”The strategic dialogue aims to discuss ways to enhance co-operation between the two countries in various fields and develop exceptional bilateral relations that depend on common interests and mutual respect.Ambassador Davis noted there is a “steady stream of interest” in the US about Qatar.“They include Members of Congress and CEOs of Fortune 500 companies, besides members of the administration. This is a conversation that requires our best and holistic efforts. Qatar is moving towards National Vision 2030 that has laid an ambitious timeline and also an ambitious set of goals, many of which were met by the World Cup.”The ambassador emphasised that his country’s relationship with Qatar “will be an example not just for the region, but for the world.”“Our friendship with Qatar is not built of boundaries, but one that’s built on shared optimism for the future and also an outlook that we have in common to make the lives of our neighbours, friends, partners and people in need even better,” he noted.Ambassador Davis particularly highlighted Qatar’s timely assistance of $100mn to help the victims of Hurricane Katrina in the US Gulf Coast in August 2005.“If you talk to people in that area, they have known about them (Qatar) since 2005. Our people in the affected places are grateful to Qatar for everything that they did to help rebuild their lives. They have such a fondness for this country,” he added.

Robust economic performance supported by elevated hydrocarbon prices, the recovery from Covid-19 pandemic and the impact of theFIFA World Cup Qatar 2022 “accelerated the execution of the Qatar National Vision 2030 and assisted in the transition towards a knowledge-based economy”, noted QNB Group Chairman HE Ali bin Ahmed al-Kuwari.He was addressing QNB shareholders at their ordinary general assembly meeting in Doha yesterday.Presenting a detailed report of QNB Group’s financial results for 2022 and sharing the business plan for 2023, al-Kuwari, also the Minister of Finance, said, “In line with our purpose, vision and strategy, QNB Group has delivered another year of robust performance and growth. This year was both exceptional and unforgettable for the State of Qatar.”The QNB chairman noted, “We acknowledge that sustainability is not a choice, but a strategic imperative that we embed into our business and operating model to make a positive contribution to the societies in which we present.“As a responsible business, we also recognise the importance of sustainable finance, sustainable operations and ‘beyond banking’ to support the communities in which we live and work. All three pillars are a crucial part of our purpose and support QNB’s objective of sustainable growth. We recognise that our strategy entails new components that require us to uplift our capabilities, also with regard to the way we work and interact.“Consequently, QNB aims to adopt a corporate culture and values that support the execution of the strategy. This year was marked by our efforts to continue to deliver upon our strategy while at the same time leveraging our brand and nurturing our relationships to further strengthen our business proposition.”Meanwhile, the general assembly of shareholders approved the QNB Group’s financial statements for 2022 and a recommendation by the Board of Directors to distribute a cash dividend of 60% of the nominal share value (which translates into QR0.60 per share).QNB Group delivered “record” financial results for the year that ended on December 31, 2022 with net profit reaching QR14.3bn, up 9% on 2021.Total assets increased by 9% to reach QR1,189bn.Replying to a query by a shareholder, al-Kuwari termed the QNB Group’s dividend payout as “fair”.“I strongly believe our dividend payout of 60% safeguards the interests of our shareholders and the company alike. And the dividend payout is higher than it was in the previous year,” al-Kuwari said.QNB Group is currently ranked as the “most valuable bank brand” in the Middle East and North Africa.

Powered by Qatar's North Field, the Middle East region will add 140mn tonnes per year LNG liquefaction capacity until 2050, according to the Gas Exporting Countries Forum.Globally, around 560mn tonnes per year of additional liquefaction capacity poised to launch from 2021 through 2050. This includes projects under construction and in all FEED (front-end engineering and development) stages, along with proposed, potential, stalled, and speculative ventures, GECF said in its latest ‘Global Gas Outlook 2050’.North America will supply the largest liquefaction gains, adding nearly 160 mtpy supported by unconventional gas.Global liquefaction capacity has grown from 270 mtpy in 2010 to 462 mtpy in 2021 and will more than double to about 1,032 mtpy by 2050.LNG demand expected to reach 850 mtpy by 2050 will utilise over 80% of liquefaction capacity, making markets well-supplied throughout the forecast periodQatar exported 77mn tonnes in 2021, GECF noted. QatarEnergy is working to increase its liquefaction capacity to 110 mtpy by 2026 and 126 mtpy by 2027.Both pipeline and LNG infrastructure will grow by 2050, the report noted. Liquefaction and regasification capacity will dominate spending through 2030, while expansion is set to slow after 2040.Export pipeline developments will endure through 2050, particularly in Eurasia and Europe.Globally LNG demand will more than double from 372mn tonnes in 2021 to 850mn tonnes by 2050, fuelled by developing Asia’s strong demand.The largest regasification capacity additions are expected to be in the Asia Pacific region.Global regasification capacity grew from 630 mtpy in 2010 to 993 mtpy in 2021. By 2050, capacity could surge to almost 1,840 mtpy, when operating, under construction proposed; mothballed and stalled projects are considered. This would be more than double expected LNG demand of around 850mn tonnes.Roughly 1,060 mtpy, or 60% of global capacity, will be located in the Asia Pacific region by 2050. Some 380 mtpy, or 20%, will be in Europe.GECF has revised the European capacity figure upward by 100%, with growth being implemented before 2030.Asian LNG demand remains subdued in the short term, also supported by an increase in domestic coal use where possible. High LNG spot import prices and a weakening global economic outlook dampen overall Asian gas demand growth, especially in price-sensitive markets.China and South Asia are at the greatest risk of demand downgrades.However, demand will rebound strongly when LNG supply availability increases and prices moderate around 2026.China, Southeast Asia, and South Asia account for all the medium to long-term growth upside, while Northeast Asian demand remains flat and declines after 2030. Southeast Asia and South Asia will be the fastest growing LNG markets, GECF noted.Several companies in China are building out some 50 mtpy of regasification capacity over the next two years, with total capacity reaching about 225 mtpy by 2050 – even as price sensitivity remains a key demand headwind.Japan will be home to 210 mtpy, while South Korea and India will follow with around 140 mtpy and 145 mtpy, respectively.European governments and utility companies have been quick to develop new regasification capacity but have yet to move meaningfully to long-term LNG contracts to secure supply.European LNG imports will increase from 81 mtpy (111 bcm) in 2021 to 135mn tonnes (186 bcm) by 2030, while Europe is set to develop 72 mtpy (100 bcm) of additional regas capacity by 2025.LNG deliveries to Europe in 2022 are expected to grow by over 40mn tons over 2021.However, location and availability of existing regas capacity, along with connectivity constraints within the European gas network, limit access options for many potential European buyers.As a result, GECF noted multiple countries have announced plans to install additional regas capacity via new or operating proposals. There are some 10 expansions planned at seven terminals between 2022 and 2030 totalling more than 30 bcm a year, it said.

Qatar's non-oil sector growth will be stronger (3.3%) this year than in 2021 (2.7%) but weaker than the estimated 6% in 2022, Oxford Economics said in a report.The country’s tourism sector will benefit from international arrivals for major events, including the Asian Football Cup and Formula 1 Qatar Grand Prix this year, Oxford Economics noted in its latest country report.Non-oil sector recovery will slow in 2023 after a strong 2022, it said. The non-oil sector is likely to have expanded by 6% in 2022, marking the fastest pace since 2015.However, this is weaker than the 7.6% pace Oxford Economics projected previously, given historical data revisions.Specifically, non-oil activities are now thought to have expanded by 6.5%, down from 9.7% earlier.The pace will slow to 3.3% in 2023 as momentum eases with the conclusion of the FIFA World Cup Qatar 2022.But this will still be stronger than the 2.7% expansion in 2021, which followed a decline of 4.7% in 2020.The latest figures show almost 600,000 tourist arrivals in November last year, taking the total in January-November (2022) just shy of 2mn, more than triple the 2021 figure overall, thanks to a surge in arrivals from across the world.Arrivals likely remained strong in December, with the total number of visitors possibly exceeding the 2.36mn projected in the Oxford Economics baseline.The report noted some $200bn has been spent on Qatar's infrastructure, partly related to the 2022 football World Cup, and partly to an expanding population and the country’s long-term strategy, National Vision 2030.In addition, Qatar is developing into a significant regional financial and educational centre.As a result of strong growth, GDP per capita (on a purchasing power parity basis) has also risen rapidly to make Qatar officially the wealthiest country in the world. It also has one of the most advanced and extensive welfare and free education systems in the GCC region.A heavy investment and diversification strategy has transformed the economy, driving a doubling of GDP and exports in five years and producing budget and current account surpluses until the downturn in the oil price in 2015.The country’s inflation rose to 5.9% in December last year, as the FIFA World Cup Qatar 2022 resulted in a larger-than-expected increase in the price of food and recreational and cultural services.This brought the 2022 average to 5%, the highest in the current series.“We expect inflationary pressures to subside, but with housing prices barely budging, we have lifted our 2023 projection by 0.7ppts, to 3.2%,” Oxford Economics noted.

The oil price is turning bullish on solid Chinese rebound and Russian supply losses, the National Bank of Kuwait said in a report.NBK consensus estimates see oil prices ranging higher to average $91 per barrel in 2023, although oil prices traded sideways for most of January before retreating on global economic uncertainty.The International Energy Agency (IEA) estimates that China’s oil consumption is set to account for half of the 1.9mn barrels per day of global oil demand growth the agency forecasts this year, with demand for jet fuel (travel) and diesel (industry) greatly improved.It expects world oil demand to reach a record high of 101.7mn bpd in 2023. This comprises a drop in oil demand of 0.8mn bpd quarter-on-quarter in Q1,2023 amid a contraction in industrial activity in Europe, followed by a rise through the remainder of the year to reach 103.5mn bpd by Q4,2023.On the supply side, NBK noted the oil market is expected to tighten going forward, with the impact on oil market balances of the EU’s crude and refined products embargo on Russian oil supply greatest in the second half of the year.The tightness in the diesel market could be especially acute. However, there is considerable variation among energy houses on the extent of Russian crude output curtailments in 2023, especially with the G-7 crude price cap seemingly achieving (so far) its intended purpose of reducing Russian oil export revenues without disrupting Russian supplies too much.The IEA puts the decline at 1.3mn bpd on average from 2022’s level.“The oil market is in a state of extreme flux, with uncertainty high and volatility elevated. The threat of a global recession hangs over the outlook in 2023,” NBK noted.Nevertheless, it said international energy and research houses have in recent weeks nudged up their global economic, oil demand and oil price forecasts (to $91) for the year.“We believe the balance of risks is to the upside, with prices expected to move higher on the back of rebounding Chinese demand, projected Russian supply losses, Opec+ supply restraint and underwhelming non-Opec output increases. The market should get materially tighter in the second half of the year,” NBK added.

**media[8345]**For the aviation industry, 2022 started with lots of uncertainties mainly due to a surge in Covid cases in some parts of the world and escalation in tension between Russia and Ukraine.But the industry left 2022 in far stronger shape than it entered, as most governments lifted pandemic-related travel restrictions during the year and people took advantage of the restoration of their freedom to travel.This momentum, experts say, is expected to continue in 2023, despite some governments’ over-reaction to China’s re-opening last month.Total traffic in 2022 (measured in revenue passenger kilometres or RPKs) rose 64.4% compared to 2021. Globally, full year 2022 traffic was at 68.5% of pre-pandemic (2019) levels.December 2022 total traffic rose 39.7% compared to December 2021 and reached 76.9% of the December 2019 level.Despite the setbacks caused by lingering travel restrictions, international traffic took off significantly in 2022 wherever these restrictions were taken down, International Air Transport Association data reveal.As a result, international RPKs surged from 26.8% of 2019 levels in 2021 to 62.2% in 2022. The year-on-year (y-o-y) growth was 152.2% in 2022.December 2022 international traffic climbed 80.2% over December 2021, reaching 75.1% of the level in December 2019.Globally, domestic operations ramped up quicker than international as domestic travel policies offered more certainty to passengers, IATA noted.Domestic traffic for 2022 rose 10.9% compared to the prior year. 2022 domestic traffic was at 79.6% of the full year 2019 level. December 2022 domestic traffic was up 2.6% over the year earlier period and was at 79.9% of December 2019 traffic.FIFA World Cup Qatar 2022 and the Dubai Expo 2020 (held between October 2021 and March 2022) were mainly responsible for a 157.4% traffic rise in the Middle East region last year compared to 2021.Monitored domestic markets continued to show resilience and steady traffic levels. International passenger traffic within and between the Asia Pacific region and the rest of the world also continued to show positive trends.International passenger traffic recovered substantially last year. All regions experienced strong growth propelled by pent-up demand for air travel and easing restrictions globally. In December 2022, international RPKs tracked 24.9% under the same month in 2019 and conserved momentum with steady performance from all regions.Airlines of the Asia Pacific region continue to display the highest y-o-y growth rates. In December, international RPKs increased 302.7% y-o-y.International traffic within Asia maintained its growth momentum this month and increased to 79.1% of December 2019 levels.Although, different route areas between this region and the rest of the world present uneven levels of recovery, a strong positive trend persisted until the end of 2022.Middle Eastern carriers recorded 69.8% y-o-y growth this month and international RPKs are now 16.3% under pre-pandemic levels.Recovery trends for traffic in the premium and economy cabin classes remain broadly aligned, IATA noted.Economy class RPKs, which include premium economy (and accounts for 92% of total RPKs) reached 73.6% of their November 2019 level in November 2022.Premium RPKs, which capture travel in first and business class cabins – fared nearly as well at 77.3% of November 2019 level.After Covid-19 brought the world to a standstill in early 2020, airports and airlines soon found themselves scrambling for survival, as passenger traffic essentially eroded, particularly on international routes.In its history, the industry has never experienced such a turbulent period.IATA’s Director General Willie Walsh noted: “Let us hope that 2022 becomes known as the year in which governments locked away forever the regulatory shackles that kept their citizens earthbound for so long. It is vital that governments learn the lesson that travel restrictions and border closures have little positive impact in terms of slowing the spread of infectious diseases in our globally inter-connected world.“However, they have an enormous negative impact on people’s lives and livelihoods, as well as on the global economy that depends on the unfettered movement of people and goods.”Undoubtedly, the commercial aviation industry finds itself at a critical inflection point - ready to take off after several years of disruption and uncertainties, but still grappling with fundamental issues that threaten its long-term growth and success.Pilot shortages, supply chain issues and infrastructure investment among other issues will plague the industry and have a major impact on it this year, and probably in the medium-term.

Qatar may receive in excess of 300,000 visitors during the cruise season in 2023; researcher ValuStrat said citing official figures.The country is also expected to host some 81 sports events including 14 major tournaments this year3, ValuStrat said in a report Monday.Notable occasions include: AFC Champions League 2023, Geneva International Motor Show, Least Developed Countries (LDC5) Conference, Expo 2023 (horticulture), Grand Prix 2023 and Formula 1.FIFA estimated 5bn viewers around the world watched the World Cup matches in November - December last year, it is possible 40mn people will seek to visit Qatar in the future.Upcoming hospitality establishments in the country include Corniche Park Towers, Doha live, Four Seasons Luxury Residence and Burj Damac Seaviews.According to ValuStrat, Qatar rents in both residential and retail segments may fall up to 10% year-on-year (y-o-y) in 2023 on “oversupply and slowdown in demand”.For 2023, it is expected that the ValuStrat Price Index (VPI) – Residential will experience an annual depreciation reflecting gradual market correction in the sales market.Some 8,000 residential units are expected to be added in 2023, ValuStrat said.Approximately 90% of the pipeline supply is concentrated in Lusail and The Pearl. Notable projects under construction include residential buildings in La Plage South and Gewan Island mixed-use development.“Demand is projected to fall during 2023 compared to 2022, which might put downward pressures on rents of up to 10% y-o-y,” ValuStrat said.In terms of retail, ValuStrat said the existing oversupply and slow-down in demand are expected to soften rents by an estimated average of 10% y-o-y during 2023.Notable shopping centres in the pipeline for 2023: Boulevard Mall in Al Kheesa, Doha Mall in Al Maamoura and La Plage Mall in The Pearl.An estimated 700,000sq m gross leasable area (GLA) of office space is underway for 2023 handover, bringing the total office space supply up to 7.3mn sq m GLA.Oversupply is projected to exceed 2mn sq m GLA, which may continue to put downward pressure on the performance of the commercial sector, it said.

Qatar will comprise approximately 40,000 hotel keys, 330,000 residential units and an office supply of 6.5mn sq m GLA by end-2023, assuming all projects are delivered on time, says consultancy firm ValuStrat.ValuStrat noted the opening of some 46 hotels last year comprising at least 9,000 keys. An estimated 62% belonged to the 5-star category. Lusail and West Bay comprised 40% of the total hotel rooms.The number of visitors amounted to 1.9mn by the end of November 2022, as per Planning and Statistics Authority data. FIFA estimated a cumulative attendance of 3.4mn spectators, including 1.2mn international visitors equalling 96% total occupancy for the tournament. Additionally, there was a rise in ADRs as well; as of November, YTD 2022, the average ADR (average daily rate) was QR577, 38% higher y-o-y.There was a significant surge in supply in the residential market with the addition of at least 13,000 units, which majorly concentrated in Al Wukair, Lusail and The Pearl. The largest project launched was a master plan named Madinatna, in Al Wukair, to be developed by Barwa Real Estate, comprising 6,780 apartments and 20,000sq m of retail space.Excess supply was outstripped by growth in demand arising from "Eskan leases" and a temporary increase in population. As a result, residential rents increased an estimated 15% annually.While home rents saw a substantial increase, residential sales stabilised; the ValuStrat Price Index recorded marginal declines during the first half of 2022.The retail market saw significant growth in terms of supply. This includes opening a super-regional mall in Lusail, Place Vendome and regional and community malls in The Pearl, Msheireb and Lusail.Additionally, handing over of new street shops was seen, notably on Lusail Boulevard, West Bay Beach, Qetaifan Island North, and Al Maha Island.As a result, an increase in demand for retail was corroborated by the opening of new brands and expansion of existing brands in malls and street retail in Qatar. However, by Q3, 2022, there was downward pressure on rents, with supply surpassing the demand.According to ValuStrat, 90% of the upcoming 8,000 residential units will be concentrated in The Pearl and Lusail. Once the projects are handed over, the pipeline supply might negatively impact the market rent in the areas relatively more than others.The durability of 'Eskan Leases' might provide a buffer against a steep decline in demand and rental performance. However, by the end of the year, most of the leases are predicted to complete. As a result, prices and rents are expected to decline by 10% during the year.The “oversupply” in the office sector is estimated to exceed 2mn sq m GLA, including the 700,000 sq m GLA in the pipeline for 2023. The significant gap in demand and supply is expected to put downward pressure on rents of office spaces, especially in Lusail, where most of the pipeline supply is concentrated.The hospitality sector is expected to see an addition of the following notable establishments: Corniche Park Towers, Doha Live, Four-Season Luxury Residence and Burj Damac Seaviews.However, the “significant” jump in supply in Q4, 2022 and pipeline supply for 2023 is projected to dampen performance in the year as the volume of tourists is not predicted to catch up in proportion but grow gradually. Hosting major events, cruise season and transit passengers were deemed to be the main drivers of tourism growth during the year.FIFA estimated 5bn people around the world watched the World Cup matches; it is possible 40mn people will seek to visit Qatar in the medium to long term, ValuStrat said.

Demand for real estate is not expected to grow as much as supply in Qatar this year, so market corrections are predicted to be pervasive across all real estate sectors during 2023, according to consulting group ValuStrat. However, Qatar’s real estate market saw a “gainful” year despite a global slowdown in 2022, it said in a report. There was a significant surge in supply in the residential market with the addition of at least 13,000 units, which majorly concentrated in Al Wukair, Lusail and The Pearl, ValuStrat said. The largest project launched was a master plan named Madinatna, in Al Wukair, to be developed by Barwa Real Estate, comprising 6,780 apartments and 20,000sq m of retail space. Excess supply was outstripped by growth in demand arising from "Eskan leases" and a temporary increase in population. As a result, residential rents increased an estimated 15% annually. While home rents saw a substantial increase, residential sales stabilised; the ValuStrat Price Index recorded marginal declines during the first half of 2022. The retail market saw significant growth in terms of supply. This includes opening a super-regional mall in Lusail, Place Vendome and regional and community malls in The Pearl, Msheireb and Lusail. Additionally, new street shops were handed over notably on Lusail Boulevard, West Bay Beach, Qetaifan Island North, and Al Maha Island. As a result, an increase in demand for retail was corroborated by the opening of new brands and expansion of existing brands in malls and street retail in Qatar. However, by Q3, 2022, there was downward pressure on rents, with supply surpassing the demand. Pawel Banach, ValuStrat Qatar general manager commented, "2022 was transformative for Qatar with a considerable influx of supply across all sectors. In H2, 2022, we saw the opening of no less than 40 hospitality projects and the addition of more than 10,000 residential units. The market conditions should have put downward pressure on rents. However, due to the hosting of FIFA World Cup 2022, there was upward movement in prices and rents across all sectors". The International Monetary Fund (IMF) forecasted the real GDP of Qatar to grow by 2.4% during 2023, even though it expects a third of the world to go into recession amid the conflict in Ukraine. In addition, the demand for Qatari gas continues to rise, and the economy is projected to benefit from their ongoing major investments in energy infrastructure. Consequently, Qatar's budget surplus is predicted to grow to QR70.3bn in 2023 (oil price assumed at $55 per barrel). ValuStrat Qatar head (Research) Anum Hasan commented, "From a macroeconomic point of view, Qatar has a positive economic outlook for 2023. However, in the context of the real estate sector, the market will have to grapple with the huge influx of supply in 2022 resulting from the hosting FIFA World Cup 2022. Demand is not expected to grow as much as supply, so market corrections are predicted to be pervasive across all real estate sectors during 2023."

Qatari banking sector saw a growth in its total assets, overall deposits and loans in December, QNB Financial Services (QNBFS) said in a report.Total assets increased by 3.3% MoM (up 4.2% in 2022) in December 2022 to reach QR1.905tn, it said.Overall loans increased by 2.7% to reach QR1.26tn mainly due to both public and private sector.The government segment increased by 9.5% and can be attributed to flexibility in using short-term financing even as oil and gas prices remained elevated and added to government revenues.Government institutions also increased by 5% and showed “positive signs” on government related corporate entities business activities picking up.On the private sector front, real estate and services continued to increase in December 2022 to likely meet the needs mainly arising from the FIFA World Cup Qatar 2022, while loans to the general trade segment likely increased from both higher trade activities related to energy related commodity exports and imports related to the World Cup.Overall deposits, QNBFS said, increased by 4.3% in December to reach QR999.1bn, mainly due to government deposits surging by 31.3% and can be attributed to higher oil and gas prices and increased government revenues.As deposits gained by 4.3% in December, the Loans to Deposits ratio (LDR) moved down to 125.7% in December as opposed to 127.6% in November 2022.“Overall there is a better liquidity in the banking system and it is likely to improve since the shift from government commitments for FIFA World Cup Qatar 2022 will refocus towards diversifying the economy and long-term sustainability, while capitalising on the successful hosting of the best ever edition of the FIFA World Cup,” an analyst told Gulf Times Wednesday.Domestic private sector loans increased by 2.1% MoM (+7.4% in 2022) in December 2022, QNBFS noted.The real estate, services and the general trade segments were for the second consecutive month the main contributors toward the private sector loan growth.The real estate segment (contributes 23% to private sector loans) shot up by 6% MoM (+15.2% in 2022) in December 2022.Services (contributes 29% to private sector loans) moved up by 2.6% MoM (+11.3% in 2022).General trade (contributes 21% to private sector loans) went up by 2.7% MoM (3.5% in 2022).However, consumption and others (contribute 20% to private sector loans) declined by 2.4% MoM (+2.6% in 2022) during December 2022.Outside Qatar loans dipped by 7.1% MoM (-16.7% in 2022) during the month of December 2022, the report noted.Public sector deposits increased substantially by 9.5% MoM (+20.7% in 2022) for the month of December 2022.Looking at segment details, the government segment (represents 30% of public sector deposits) shot up by 31.3% MoM (+4.9% in 2022), while the government institutions’ segment (represents 56% of public sector deposits) increased by 2.0% MoM (+28.4% in 2022) and the semi-government institutions’ segment moved up by 2.9% MoM (+31.8% in 2022).Private sector deposits went up by 1.1% MoM (+13.2% in 2022) in December 2022.On the private sector front, the consumer segment increased by 2.4% MoM (+4.4% in 2022). However, the companies and institutions’ segment declined marginally by 0.1% MoM (+23.7% in 2022) during December 2022.Non-resident deposits slightly reversed its sharp fall for the year during the month of December 2022 and pushed up by 2.9% MoM. However, for the year 2022 non-resident deposits fell by 31.4%, QNBFS said.

**media[8345]**Fuel is a major cost component of operating an airline, often accounting for 20-30% of operating costs.China’s lifting of Covid-19 travel restrictions and US refinery outages are expected to have an impact on jet fuel price this year, which have recently risen to levels not recorded before.Chinese flight activity has more than tripled since early December 2022 to more than an average of 10,700 flights per day now, Reuters said quoting flight tracking firm Airportia. This, obviously has triggered demand for jet fuel worldwide. Consequently, prices are climbing in Asia, Europe and the United States. Refining outages in the United States are feeding the price run-up.Jet fuel this year will be the largest source of oil demand growth, points out the International Energy Agency, which monitors energy consumption.Higher jet fuel prices are likely to impact airline ticket prices in the near term, industry analysts say.In 2023, the airline fuel bill is forecast to be nearly $230bn, accounting for around 30% of total operating expenses at an oil price of around $92.3 per barrel Brent, International Air Transport Association noted.The jet fuel price ended last week up 1.6% at 146.05/barrel, IATA analysis showed.Jet fuel price average for 2023 estimated by IATA is $137.93/b.This month's demand should hit 6.6mn barrels per day, the highest reading since February 2020, said Viktor Katona, an analyst at data firm Kpler.Cold weather along the US Gulf Coast recently knocked out some processing plants and pushed up the premium for jet fuel, said Gary Simmons, chief commercial officer at Valero Energy."Overall, we expect jet demand to increase significantly this year," he said recently, as air travel continues to rise. US East Coast supplies are likely to remain scarce until mid-February, he said.A February 5 European Union embargo on imports of seaborne Russian refined products will also pressure European supplies and will increase the call on US refiners to fill the gap, a Reuters’ dispatch said.US jet fuel inventories ended last year at 34mn barrels, the lowest since 1990, according to federal government data. Total jet fuel supplied, a proxy for demand, stood at 1.56mn barrels per day in 2022, the highest since 2019.Aviation fuel prices have remained high, and are likely to impact ticket prices in the near term.The ‘crack spread’ – or the difference between the price of Brent crude and jet fuel price – is at its widest since the beginning of the year, said Willie Walsh, Director General, International Air Transport Association (IATA).If this gap doesn’t reduce, we are looking at a hike in airfares, Walsh said.“Airlines don’t have the capacity to absorb the cost,” he added.Jet fuel prices have long driven airline profitability and the aviation industry as a whole, representing between 14% and as much as 31% of airline operating costs in the past decade, an IATA estimate shows.One report, however, suggests 40% of the raw material cost in any airline, is for jet fuel or aviation turbine fuel (ATF).Consequently, airlines hedge a large portion of their annual fuel consumption at lower oil prices in order to protect themselves from the volatility in oil prices. But given the global economic uncertainties, it is easier said than done.“Because of oil price volatility, we cannot hedge anymore as banks are not ready to hedge. This is because they don’t know where the price is going – north or south,” Qatar Airways Group Chief Executive HE Akbar al-Baker said at an industry event in Doha a few months ago.“That said, oil price is not in the hands of anyone – it is based on demand and supply and the political climate around the world,” he noted.

The decline in Qatari banking system’s external debt is expected to continue in the next 12-24 months, S&P Global has said in a report.GCC countries are back to pre-pandemic levels, S&P said and noted the region’s banks’ margins, cost to income, and cost of risk are all improving.“We expect cost of risk to stay at normalised levels of about 1% and margins to continue improving although at a slower pace than in 2022,” S&P noted.GCC banks’ efficiency continues to support profitability, but inflation will increase operating costs. Low cost of labour and limited taxation help, it said.S&P expects GCC banks’ asset quality indicators to deteriorate only slightly because of slowing growth and higher interest rates. Although banks have absorbed the impact of the pandemic, they also continued to build provisions and write off nonperforming loans (NPLs) to make space for new ones.Profitability has recovered to pre-pandemic levels in most GCC countries thanks to higher interest rates and stable cost of risk. Although banking sector efficiency remains strong, inflation will increase operating costs.Lower global liquidity is likely to have a limited impact on GCC banks because of their strong net external asset positions or limited net external debt positions.Strong capitalisation and potential extraordinary government support, in case of need, continue to support banks’ creditworthiness.Rating bias remains positive, driven by sovereign and idiosyncratic factors. The Russia-Ukraine conflict has more limited implications for the region and its banks than other Middle Eastern or North African countries, S&P said.On non-performing loans of GCC banks, S&P said the NPL ratio dropped slightly, thanks to the stronger economic environment, reaching 3.3% of total loans on average for its sample of banks on September 30, 2022, compared with 3.5% at year-end 2021.“We expect a small deterioration of asset quality indicators because of the expected slowdown of the GCC economies and higher interest rates. In our view, banks have already absorbed the impact of the pandemic and continue to build provisions for difficult times. Overall, we expect the NPL ratio to remain below 5% in the next 12-24 months,” S&P said.GCC banks' capitalisation levels will continue to support their creditworthiness in 2023 and 2024, it said.GCC banks stepped up their additional Tier 1 (AT1) issuances (both conventional and Islamic) in the past few years to benefit from supportive market conditions. As interest rates increase, S&P sees lower issuance and potential decisions to not call hybrids approaching their first optional call date.GCC banks are mainly funded by domestic deposits, which have proved stable through different cycles. Deposit growth was insufficient to finance lending growth in some countries, particularly in Saudi Arabia, where the central bank intervened to alleviate the pressure.

Hamad International Airport (HIA) witnessed a significant increase in passenger traffic in 2022, with a 101.9% year-on-year surge, making this a “milestone” year as the airport welcomed 35,734,243 passengers.The airport also saw an increase in overall aircraft movements of 217,875, a 28.2% growth compared to 2021, and concluded 2022 with 44 airline partners operating to and from Hamad International Airport. The airport currently serves over 170 destinations around the world.In 2022, Hamad International Airport retained its title as the “Best Airport in the World” for the second consecutive year and launched phase A of its expansion project. As part of the MATAR, the Qatar Company for Airports Operation and Management - Airport Operations Plan, Hamad International Airport and Doha International Airport (DIA) further enhanced its airport operations during the FIFA World Cup Qatar 2022 and introduced customer-centric activities and operations in order to deliver a safe, seamless and memorable experience.Reflecting on 2022, Hamad International Airport chief operating officer Badr Mohammed al-Meer said: “The year 2022 will remain a significant and memorable year as Hamad International Airport maintained operational excellence as our passenger and aircraft movements increased. This is attributed to our forward-thinking and preparedness for the expected increase in passenger numbers, investing in our people to deliver the best customer experience to our passengers”.“For the year 2023, phase B of our expansion plan started in January, as a part of our strategy to further increase our airline and commercial partners and introduce bespoke retail and F&B offering for passengers”, he added.During the FIFA World Cup Qatar 2022, both airports implemented a robust airport operations plan, which proved its effectiveness throughout the tournament. The plan included a dedicated Event Management Centre operated 24x7 by experienced staff on-ground, coordination with all stakeholders to ensure smooth connectivity from and to the airport, the city and the stadiums and training and development.Doha International Airport (DIA), played an instrumental part in MATAR’s airport operations plan, welcoming some 13 scheduled airline operators to its premises, to help ease air traffic during the FIFA World Cup Qatar 2022. Both airports also welcomed six new strategic airline partners attributed to the FIFA World Cup Qatar 2022.As part of its operational preparations to welcome millions of visitors, MATAR also introduced a Passenger Overflow Area at both Hamad International Airport (DOH) and Doha International Airport (DIA), offering fans an extended memorable experience and seamless connectivity throughout both airports.Passengers arriving and departing from Hamad International Airport got to experience FIFA-themed events comprised of match day performances which included over 30 parades. The airport also introduced a mosaic photo wall, several fan zones and viewing zones as well as dedicated kids’ zones, in addition activities like augmented reality virtual football with interactive La’eeb Mascot, a dedicated “try your teams’ jersey” booth for football fans to take photos with their favourite team jersey and more.In 2022, Hamad International Airport was recognised as the “Best Airport in the World 2022” for the second year in a row by the prestigious Skytrax Airport Awards. The airport’s excellent service and commitment to ensuring a memorable experience also helped receive the “Best Airport in the Middle East” for a sixth time in a row.The airport was also awarded the International Standards Organisation ISO 14001 Environmental Management certification from international standards body British Standards Institution (BSI) Group and four projects from phase A of its expansion plan achieved a 4-star rating under the Global Sustainability Assessment System (GSAS) from Gulf Organization for Research & Development (GORD).In November 2022, Hamad International Airport officially unveiled phase A of its impressive airport expansion plan, which included nine projects to the world, enriching passengers’ experiences and transforming the airport into an extraordinary memorable destination. The expansion increases the capacity of the airport to over 58mn passengers per year and offers visitors an abundance of world-class services, a second airport hotel, multiple lounges and a futuristic, modern indoor tropical garden – the ‘Orchard’.Consisting of one expansive terminal, the two-time world’s best airport enables travellers to seamlessly transfer from one area to another, exploring the wonders that the premises has to offer with instilled relaxation and hospitality.Previously located at an area of 600,000 square meters, the expansion has increased the facility to 725,000 square meters – an increase of 125,000 square meters of ultimate tranquillity and profound culture.Hamad International Airport continues to grow and connect global travellers through its world-class premises – offering exquisite options for passengers and businesses alike. In 2023, the airport headed into phase B of its growth plan, with the plans of increasing its capacity to over 70mn passengers and constructing two new concourses within the existing terminal.As part of the Qatar National Vision 2030, Hamad International Airport also plans to enhance its sustainability efforts, by investing in new technologies and introducing industry firsts as it looks to sustain its dominance in the aviation industry.

Saudi carrier 'flynas', a leading low-cost airline in the Middle East, sees tremendous potential to scale up operations between Qatar and Saudi Arabia, its vice-president (International Sales) Abdulilah Suliman Aleadi said Monday.Currently, flynas operates daily to Riyadh and Jeddah with the state-of-the-art Airbus A320neo, Aleadi told Gulf Times.flynas is the only budget airline, which operates daily flights from Doha to Jeddah and Riyadh.He said flynas looks to serve many more Qataris and expatriates living in the country as Saudi Arabia offers many attractive touristic destinations in the Kingdom.Expatriates, he said, can make use of kingdom’s new ‘Stopover visa’ facility, which is offered free of charge, under which all passengers travelling either on Saudia or flynas through any airport in Saudi Arabia to their final destination are eligible.A passenger can apply for the ‘Stopover visa’ at the time of booking his / her flight through flynas.flynas passengers can apply electronically for the ‘Stopover visa’ through its website. The stopover visa application will be passed automatically to the unified national visa platform at Saudi Arabia’s Ministry of Foreign Affairs to process and issue the electronic visa immediately within four hours as maximum and send it to the beneficiary via e-mail, the airline said on its website.Aleadi said flynas now operates 1500 weekly flights to more than 70 domestic and international destinations including those across the GCC, India, Egypt, Turkey, Georgia, Azerbaijan and CIS.A recent flynas press release said the airline doubled annual growth in operation and performance during 2022, by recording 91% growth in passenger numbers to 8.7mn; flights by 45% to 66,000 and seat capacity by 46%.Additionally, flynas launched some 16 new destinations and 30 new routes as its fleet upscaled to 43 aircraft.Moreover, the company's board of directors approved raising the booking orders of 250 aircraft, in line with the goals of the Saudi Vision 2030, and the civil aviation strategy to reach 330mn passengers, 250 international destinations and 100mn tourists annually.Meanwhile, flynas opened its office in Doha in Fereej Abdul Aziz on B-Ring Road, adjacent to Avens Travel and Tours.Abdulilah Sulaiman Aleadi, Abdulla M al-Mousa, senior manager (planning and bilateral relations) and Ahmed al-Rayes, chairman of Al Rayes Group, jointly opened the office in the presence of Mousa al-Bahri, flynas corporate communications manager, Fahad al-Qahtani, senior manager (Ground operations), and Syed Mazharudheen, regional manager (Gulf and Middle East).Naser Karukappadath , managing director of Avens Travel and Tours, the GSA of flynas in Qatar, along with Ali Anakkayan, flynas Doha manager, welcomed the dignitaries.

Qatar will record the fastest annual growth in gas production in the Middle East until 2050, delivering 2.6% annual growth, the Gas Exporting Countries Forum (GECF) said in a report.Qatar and Iran and Saudi Arabia, will remain “production hotspots” through 2050 and supply slightly less than 78% of the total output in the region, Doha-headquartered GECF said in its ‘Annual Global Gas Outlook 2050’ released on Sunday.Gas production in Iran and Saudi Arabia will grow by 2.1% and 1.5%, respectively, on an annual basis over the long term. Their share of regional production will reach almost 82%, while accounting for 18% of the world’s gas output.The GECF outlook expects regional production to grow by 140 bcm by 2030. This, it said, will represent around 24% of global growth, driven by Qatar’s North Field expansion projects, along with Iran, UAE and Saudi Arabia increases as well.But longer-term growth will be even more substantial. Output will jump by 520 bcm to 1,190 bcm by 2050.The share of global output will reach 22%, while the region will account for more than 33% of global growth.The Middle East is the world’s third-largest gas-producing region, accounting for almost 17% of global output.Annual production has been growing at a rapid 6% umping from 190 bcm in 2000 to 670 bcm in 2021. By comparison, Asia Pacific and African production grew by only 4.1% and 3.7%, respectively over that period.Meanwhile, upstream investment worth $9.7tn is required in the gas sector up to 2050, GECF said.By 2050, energy demand is expected to rise by 22% while the share of natural gas in the energy mix will go up to 26%.During the review period, natural gas supply will increase by 36% while natural gas trade will expand by more than a third, led by LNG, which will overtake pipeline trade by 2026.Global GDP will more than double, from $95tn today to $210tn in real terms by 2050. Population growth will see 1.8bn additional people in 2050 with most of this rise taking place in Africa and the Asia Pacific.GECF secretary general Mohamed Hamel emphasised that all energy sources and technologies will be required to satisfy the world’s growing energy needs, while improving air quality and reducing greenhouse gas emissions.Hamel said, “The uncertainties have never been so large, and the challenges so profound. What is nevertheless clearer, and more crucial, is the energy trilemma: how to ensure a secure, affordable, and sustainable energy system over the short- to long-term? What steps should be taken to ensure that energy is available for socio-economic development, while concurrently protecting the environment?”The outlook, he said, seeks to answer these pressing questions by examining the global and regional economic growth prospects, demand and supply of energy, natural gas trade and investment, the effects of policies, technological developments, and various other drivers.

Qatar's budget balance (as a percentage of GDP) has been forecast at 15.4 this year and 10.6 in 2024, while country’s nominal GDP may scale up to $227.3bn this year and $228.8bn in 2024, an analysis has shown.The country’s real GDP growth, Emirates NBD said, may be 2.7% this year and 3% in 2024. Current account (as a percentage of GDP) is expected to be 32.6% this year and 28.4% in 2024.Consumer price inflation in Qatar has been forecast at 3% this year and 2.5% in 2024.While oil and gas output growth is expected to slow this year, continued investment to boost production capacity in the GCC region should see the sector contribute positively to headline GDP again in 2023, Emirates NBD noted.“The outlook for 2023 is more cautious given the weaker external environment, although the GCC will likely continue to outperform many developed economies in terms of GDP growth,” the regional banking group said.It expects non-oil sector growth to slow to varying degrees across the GCC in 2023.2022 was a stellar year for the GCC economies, which have grown at the fastest pace in almost a decade, underpinned by a double-digit increase in oil production and strong non-oil sector activity as well. Emirates NBD estimates GCC real GDP growth at 7.4% in 2022 on a nominal-GDP weighted basis, more than double the growth rate achieved in 2021.It noted the budgets of major GCC oil producers are likely to remain in surplus this year, allowing governments to push ahead with significant investment in infrastructure and strategic sectors.This, it said, will help to mitigate the impact of weaker external demand and slowing private sector consumption and investment. Consequently, the GCC is likely to be a relative outperformer in terms of growth this year.The global economy, the analysis noted, is likely to see much slower growth this year as the aggressive monetary policy tightening of 2022 starts to bite.However, it expects energy prices to remain elevated, with Brent oil averaging over $100 per barrel in 2023, as supply remains constrained and there is limited capacity to increase production within Opec+.A faster than expected reopening of China’s economy could lead to stronger demand for oil and other commodities in the second half of 2023, Emirates NBD said.

GCC’s chemical industry has planned or committed investments worth $61bn until 2025 despite “considerable reduction” in global investments, an analysis has shown.GCC chemical producers continued to invest in environmentally responsible projects as part of their ESG agenda, mainly in energy efficiency and air pollution in 2021, Gulf Petrochemicals and Chemicals Association (GPCA) said.The GCC's share in global chemical revenue has increased to 2.4% in 2021, almost reaching the historical average.However, the GCC chemical industry’s capital investments reduced by more than half to $4bn in 2021 as companies are rationalising their investments post-pandemic, putting many projects on hold, and prioritising recovery, while others are coming close to completion.GPCA noted the GCC is well positioned as the world entered uncertain times. The regional chemical industry exceeded pre-pandemic sales figures and recorded the “highest sales value” of $95.9bn (since 2013), a 77.2% increase on sales in 2020. This was due to the increasing demand and prices of chemical products globally.GPCA said strong demand for both commodity and specialty chemicals had kept prices robust throughout 2022 as well.Although the GCC chemical industry is export-oriented, exporting 68.8mn tonnes in 2021, the region imported 20mn tonnes resulting in a positive trade balance of 48.6mn, up by 12% Y-o-Y.China and India remain the top destinations for GCC chemical exports, accounting for 26% and 14%, respectively, of total exports. Petrochemicals and polymers dominate GCC chemical exports, while value added chemicals are the top imported chemicals into the region.Global competition and collaboration have made it crucial for the GCC to establish leadership and nurture its trade relationships as more and more countries compete and collaborate with each other. The existing GCC Free Trade Agreements (FTA) with Singapore, the Greater Arab Free Trade Area (GAFTA) and the European Free Trade Association (EFTA), as well as the negotiations under consideration with the UK, India, South Korea, Australia and China and other key markets play an important role to achieve this vital objective.“Businesses in each country can focus on producing and selling goods that best utilise their resources, while other businesses import goods that are scarce or unavailable locally,” GPCA said.In terms of the chemical industry’s contribution to the manufacturing GDP, GPCA analysis finds that it behaves in a similar trend to oil prices along the years.The GCC chemical sector’s economic impact is substantial, making it a key industry in the region’s economy contributing 5.6% to total GDP and 51% to manufacturing GDP in 2021.The industry’s economic value is also demonstrated by supporting more jobs across different channels with a total employment of 210,200, and a 64% nationalisation rate, GPCA noted.

**media[5895]**Since 1998, the African Union has been seeking to create a pan-African domestic air transport market, which is clearly lagging behind the rest of the world vis-a-vis aviation development.AU’s flagship project has been aimed at improving the continent’s aviation, which has been badly hurt mainly because of the incapacity of African governments to develop the continent’s aviation industry.The African Union comprises some 55 African member states, which is committed to the AU Single African Air Transport Market (SAATM) initiative, which was rolled out in 2018.In 2002, the AU through the ‘Yamoussoukro Decision’ (YD), made it legally binding for the African countries to create a pan-African domestic air transport.However, two decades on, only 35 countries recommitted to YD under the 2018 AU Single African Air Transport Market (SAATM) initiative, and even fewer have begun implementation.According to the Aviation Week Network, only 30-35% of African cities are now connected by air and only 15% of flights use fifth-freedom rights.Adefunke Adeyemi, the new secretary general of the African Civil Aviation Commission (AFCAC), which is the AU body responsible for overseeing the liberalisation project, aims to increase fifth-freedom flying from 15% to 30% by 2025. She is also hoping to encourage more interlining between African carriers, which could lead to more efficient use of capacity.Adeyemi is planning to break the SAATM “elephant” down into more manageable chunks, made up of specific actions and targets, Aviation Week Network said. This includes grouping together countries in new ways, such as those with shared languages, whose trade would benefit most from new air links.For example, Angola, Cape Verde, Equatorial Guinea and Mozambique are all Portuguese-speaking and tourism is a major source of income, but Adeyemi is not aware of any existing air links between them.AFCAC hopes to facilitate discussions between their governments, airlines, trade-development and tourism bodies, with business in mind.Industry analysts say Africa has the oldest aircraft fleet in the world. Despite Africans representing more than 17% of the world’s population, their aircraft fleets amount to roughly 6% of global commercial passenger and cargo aircraft in 2020, the African Airlines Association (AFFRA) data indicates. This means that Africa has the lowest level of aircraft per capita of any other region in the world.For the past two decades, the average age of global aircraft fleets has varied between 10 and 12 years. In comparison, the average fleet age across Africa stands at around 17 years, the oldest of any world region.Only a few airlines in Africa such as Ethiopian Airlines, South African Airways, EgyptAir and Royal Air Maroc ensure a significant connectivity with the rest of the world.Although Africa makes up more than 17% of the world’s population, it only caters to 3.1% of the world’s air travellers.Ironically, Africa accounts for 19% of global incidents and accidents. With such a low record of safety, it is difficult to gain the trust of costumers. It has prompted some countries to even restrict their airspace to certain African airlines!A pre-pandemic estimate showed by 2035, Africa may see an extra 192mn passengers a year to make up a total market of 303mn passengers, travelling to and from African destinations.It also said the continent is set to become one of the fastest growing aviation regions in the next 20 years with an annual expansion of nearly 5%.While it is evident that aviation has the potential to fuel economic growth in Africa, several barriers still exist.One major obstacle, the International Air Transport Association (IATA) points out, is the slow pace of implementing the proposed ‘open skies programme’ in Africa.It was designed to open up Africa’s skies, allowing airlines to fly between any two African cities without having to do so via their home hub airport, boosting intra-Africa trade and tourism as a result.But progress in realising ‘African open skies’ has been rather tardy, analysts say.Despite its rosy outlook, Africa’s aviation sector still faces enormous challenges. Indeed, protectionist trends have resulted in a rather lacklustre response from many member countries, concerning competition rules, ownership and control, consumer rights, taxes, and commercial viability.Weak infrastructure, high ticket prices, poor connectivity and lack of proper liberalisation are some of the headwinds on African aviation’s path, albeit the continent currently sees an economic boom with tourism started benefiting from greater prosperity.As discussed in these columns earlier, airport infrastructure in most African countries remains outdated and cannot effectively serve the growing passengers or cargo volumes.Airlines and airports are often managed by government entities or regulatory bodies while foreign investment is generally discouraged.Undoubtedly, Africa’s aviation potential remains massive. SAATM was clearly a bold step towards unlocking Africa’s aviation potential.