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Boeing has a “very significant” growing commercial customer in Qatar Airways that is going to be the launch customer of some of its “newest and most innovative” products, noted company’s president in the Middle East, Turkiye and Africa, Kuljit Ghata-Aura.“We are proud to have been part of Qatar Airways’ success story. Since our partnership began (in 2006), Qatar Airways has made landmark orders of Boeing 777s, 777 Freighters, 777Xs, 737 MAXs, 787 Dreamliners and 747-8 Freighters.“As the launch customer of the new 777-8F, we recently announced two very significant deals for 74 777X passenger and freighter airplanes, and up to 50 737-10 passenger airplanes. In April, Qatar Airways took delivery of its first 737-8 airplane,” Kuljit said in an exclusive interview with Gulf Times in Doha.Currently, he noted, Qatar Airways operates more than 130 Boeing airplanes: three 737-8s; 89 777s, including 27 777 freighters; 41 787s; three 747 Boeing Business Jets and two 747-8 freighters.Kuljit noted Qatar Airways has more than 120 Boeing airplanes on order books, which include 74 777Xs; 19 787-9s; two 777 freighters, 25 737-10s and six 737-8s.In 2013, Qatar Airways ordered 60 777X new widebody airplanes. In January 2022, Qatar Airways expanded its commitment to the 777X family by becoming the launch customer for the newest 777-8 freighter, with a confirmed order of some 34 airplanes and options for an additional 16 freighters.In July 2022, Qatar’s national carrier committed to up to 50 Boeing 737-10s with a firm order for 25 airplanes and options for 25 more.In April this year, Qatar Airways took delivery of its first 737-8, the first Boeing single-aisle airplane in the airline’s fleet.“These new airplanes will support Qatar Airways as it expands its passenger and cargo capacity. Boeing is also supporting Qatar Airways Cargo in developing ‘connected cargo’ solutions to enable greater operational efficiency with a focus on the 777-8 freighter,” he said.During the FIFA World Cup Qatar 2022, Kuljit noted a dedicated team of 60 professionals was deployed to Doha to support airline customers with everything they needed to ensure a safe and timely service for the tournament.He said Boeing provides support to the Qatar Amiri Air Force by facilitating iconic platforms such as the F-15QA (Qatar Advanced) fighters, the C-17 Globemaster transport airplanes and the AH-64 Apache.All of them have been utilised to protect Qatar’s air, land and sea borders and have been deployed to conduct humanitarian missions across the globe and surveillance missions in Qatar during large-scale events like the 2022 FIFA World Cup.The F-15QA fleet conducted 52 sorties and the AH-64 Apache accomplished 96 missions during the 2022 FIFA World Cup in Qatar.Kuljit said Boeing works closely with the Qatar Amiri Air Force, providing training and sustainment for the C-17 fleet.Boeing is also providing spare parts, support and test equipment, maintenance support, performance-based logistics, training devices, and aircrew and maintenance training for Qatar’s fleet of the AH-64 Apache helicopters.In addition, Boeing is providing in-country spare parts, maintenance, training, programme management and logistics support for the F-15QA fighters.To ensure mission readiness and smooth support of all defence platforms, Boeing is growing its employee base in Qatar, he pointed out.On Boeing’s global production rates, he said, “On 737, we are transitioning production to 38 airplanes a month. As we move to the higher rate, we will continue to prioritise stability. We still plan to increase to 50 airplanes per month in the 2025/2026 timeframe.“On 767, the current rate is three a month, while on 777/777X – it is also three a month. We have said our plan is to go to four a month in the 2025-2026 timeframe.“On 787, we are producing at four a month and still plan to reach five a month by the year-end. We have said our plan is to get to 10/month by the 2025-2026 timeframe.”On supply chain issues impacting the airline industry, Kuljit noted, “At Boeing, we continue to focus on driving stability in our production system, including closely partnering with our suppliers to address challenges, meet our customer commitments and prepare for future rate increases. Our objective is unchanged: a healthy and stable production system.“There’s progress in many areas of the supply base, however we expect supply chain challenges to continue well into 2024. We continue to work through supply chain challenges on a case-by-case basis.“We regularly monitor our suppliers across the globe, including our sub-tier supply chain, to ensure their deliveries support our current and future airplane production needs. This includes a variety of different approaches, from top leadership engagements to daily communications to onsite and embedded teams, all ensuring alignment and stable, predicable execution.“We have also ramped up internal fabrication for surge capacity and increased inventory of select parts for risk protection,” he added.

Qatar's inflation is seen falling to 2.2% this year and 1.9% in 2024, Oxford Economics said in in an update.Inflation moderated to a two-year low of 2.5% year-on-year (y-o-y) in June, dragging down the second quarter (Q2) average to 3%, from 4.2% in Q1.Disinflation continued across most categories, but food and recreation and culture prices climbed, driving a 0.1% month-on-month (m-o-m) increase in the headline rate.“We expect inflation to ease further in the next few months and briefly turn negative in the fourth quarter,” Oxford Economics said.The researcher sees country's fiscal balance (relative to GDP) at 6.4% this year and 8.1% in 2024.Qatar’s current account (relative to GDP) has been forecast at 12.6% this year and 13.8% in 2024.The country’s real GDP growth has been forecast at 2.6% this year as well as next.Non-oil activity, Oxford Economics noted, is continuing to rise according to the PMI survey, ending Q2 strongly at 53.8 in June. Robust demand has been a key driver of the recovery in output and employment and has kept businesses optimistic, particularly in the manufacturing and services sectors.“We expect non-oil GDP growth to soften somewhat, slowing from 3.3% this year to 3.2% in 2024,” Oxford Economics said.In a constant battle between supply and demand, the price of Brent crude continues to fluctuate, faltering below $85pb as global concerns weigh on the oil sector. China's uncertain recovery, ongoing inflationary pressures, and interest rate hikes globally are dampening demand for oil, offsetting oil price gains from production cuts by Saudi Arabia and Russia of 1mn and 500,000 barrels per day (bpd), respectively, in August.“Given the current uncertainty clouding oil prices, it is not out of the question for Saudi Arabia to roll out its cut into October. As inflationary pressures settle and central banks pause aggressive rate hikes, we expect a slight recovery in prices," Oxford Economics said. “We think the price of Brent crude will average $81.9 this year and expect demand will wane further alongside potential reversal of production cuts next year.”

The price of jet fuel has a significant impact on airfares, as it is one of the most substantial operating costs for airlines..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[68843]**Jet fuel is a major expense that directly influences an airline's profitability and pricing strategy and accounts for up to 20% of an airline’s operating expenses.Higher fuel costs jack up ticket prices, and conversely, airfare drops with lower fuel costs. A lower fuel burn-per–hour rate reduces the cost of flying an aircraft. The less it costs to fuel an aircraft, the more airlines can reduce ticket prices, obviously attracting more travellers.The global average jet fuel price last week was down 0.3% compared to the week before at $122.80/barrel, according to IATA.Jet fuel prices in Europe fell in line with the decline in oil prices. There was no shortage of imports from East of Suez even as the peak summer demand starts to taper.In the US, market volatility has increased amid supply concerns stemming from local refinery shutdowns.However, jet fuel prices in the Asian market firmed as it continued to find arbitrage demand from Europe and US, IATA noted in its fuel price monitor.There are perceptions that oil supply will tighten towards the end of the year.Analysts say many airlines around the world are reviewing their hedging strategies in view of the situation.Currently, there is a huge demand for jet fuel with the international travel and tourism industry continuing its recovery run to pre-pandemic levels.Global traffic at the end of the second quarter (Q2) of the current year was at 94.2% of pre-Covid levels.For the first half (H1) of 2023, total traffic was up 47.2% compared to the year-ago period. Such figures are broadly indicative of the industry's post-Covid recovery largely sustaining its momentum.When jet fuel prices rise, airlines often seek to pass on some of the increased costs to passengers by adjusting airfares.While airlines might not fully pass on the entire fuel cost increase to passengers, they do tend to reflect a portion of it in their ticket prices to help maintain financial viability.Airlines sometimes engage in fuel hedging, a financial strategy where they lock in fuel prices at a certain level for a specified period.Invariably, this strategy provides a degree of predictability in fuel costs, even if market prices fluctuate.If an airline has effective fuel hedging in place, analysts point out it might be able to mitigate the immediate impact of sudden fuel price spikes on airfares.The airline industry is highly competitive, and airfares are influenced by various factors beyond just fuel prices.Airlines need to consider their competitors' pricing strategies, market demand, and customer sensitivity to price changes. When fuel prices rise, airlines may be cautious about increasing ticket prices too much, fearing that this might drive passengers away to lower-cost alternatives.Passenger demand for air travel is often sensitive to changes in ticket prices. When fuel prices increase, airlines carefully assess the elasticity of demand – that is, how much demand will drop in response to higher prices.If demand is highly elastic, airlines might be more hesitant to raise prices significantly, as it could lead to a noticeable drop in the number of passengers.The price of jet fuel is a critical factor influencing the operating costs of airlines, which in turn impacts their pricing decisions. While airlines often pass on a portion of increased fuel costs to passengers, they must balance this with considerations like competition, demand elasticity, and broader economic conditions. As a result, the relationship between jet fuel prices and airfares is complex and varies based on a multitude of factors.

Qatar was the second top liquefied natural gas exporter globally and led GECF member LNG producers in July, a report has shown.In its latest monthly report, Doha-headquartered GECF noted global LNG exports rose sharply by 5.4% (1.71mn tonnes) y-o-y, reaching 33.6mn tonnes and a record high in July.Stronger LNG exports from non-GECF countries boosted global LNG exports and offset weaker exports from GECF member countries and LNG reloads.As such, the share of non-GECF countries in global LNG exports increased from 48.6% a year earlier to 51.7% last month.In contrast, the share of GECF member countries and reloads in global LNG exports fell from 50.7% and 0.7%, respectively, to 47.8% and 0.5%, respectively.Between January and July this year, cumulative global LNG exports expanded by 4.2% (9.60mn tonnes) y-o-y to reach 238.88mn tonnes.“In July, the US, Qatar and Australia were the top LNG exporting countries,” GECF noted.Last month, LNG exports from GECF member countries and observers declined for the second consecutive month.GECF countries’ LNG exports fell by 0.7% (0.11mn tonnes) y-o-y to 16.06mn tonnes.Egypt, Equatorial Guinea, Malaysia, Nigeria, Russia, Trinidad and Tobago and the United Arab Emirates contributed to the decline and offset higher exports from Qatar, Algeria, Angola, Mozambique, Norway and Peru.From January to July this year, GECF countries’ cumulative LNG exports grew by 2.2% (2.13mn tonnes) y-o-y, totalling 99.93mn tonnes. The drop in LNG exports in Malaysia, Russia and Trinidad and Tobago was attributed to higher planned maintenance activity at the MLNG, Sakhalin 2 and Atlantic LNG facilities, respectively.In Egypt and Nigeria, lower feedgas availability led to a decline in LNG exports from both countries.Furthermore, an unplanned outage at the Das Island LNG facility drove the United Arab Emirates’ LNG exports lower.Conversely, lower planned maintenance at the Skikda, Angola and Peru LNG facilities supported higher LNG exports from Algeria, Angola and Peru.Higher feedgas availability also contributed to the increase in Algeria’s LNG exports.In Mozambique, the stronger LNG exports were supported by the continued ramp-up in LNG production at the Coral South FLNG facility.In July, gas and LNG spot prices in Europe and Asia reversed the previous month’s gains with overall bearish market fundamentals, GECF noted.The average Title Transfer Facility (TTF) spot gas prices in Europe stood at $9.56/MMBtu, marking an 8% decline compared to the previous month.Meanwhile, the average Northeast Asia (NEA) LNG spot prices experienced an increase of 8% m-o-m to reach $10.88/MMBtu. Global gas market fundamentals remain relatively weak due to tepid demand in both Europe and Asia, as well as high EU gas storage levels.However, increasing buying activity from LNG importers in South and Southeast Asia will support prices in the upcoming months, GECF noted.

Global inflation and slackening manufacturing output have had a toll on air cargo demand, which slumped by 3.4% in June, although it was the lowest decline in one and a half.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[66504]**years.Global demand, measured in cargo tonne-kilometres (CTKs), fell 3.4% in June compared to June 2022 (-3.7% for international operations), according to the International Air Transport Association (IATA).For the half year, demand slid 8.1% compared to the January-June period of 2022 (-8.7% for international operations). However, demand in June was only 2.4% below June 2019 levels (pre-pandemic).Capacity, as measured by available cargo tonne-kilometres (ACTKs), rose 9.7% compared to June 2022, which was a slower rate compared to the double-digit growth recorded between March and May.This reflects strategic capacity adjustments airlines are making amid a weakened demand environment. Capacity for the first half of 2023 was up 9.9% compared to a year ago. Capacity is now 3.7% above June 2019 (pre-pandemic) levels.Middle Eastern carriers posted a 0.5% increase in cargo volumes in June 2023 versus a year ago. This was a strong turnaround from the 2.9% year-over-year decline registered in May.Capacity rose 11.1% for the month.Both Middle East-Asia and Middle East-Europe route areas saw annual growth. For the first half of the year, cargo demand was down 5.6% compared to a year ago, with an 11.2% hike in capacity.Key factors influencing air cargo demand, IATA noted, include a decline in global manufacturing production and exports.In June, both manufacturing output Purchasing Managers Index or PMI (49.2) and new export orders PMI (47.1) were below the critical threshold represented by the 50 mark.Global cross-border trade decreased by 2.4% year-on-year in May, reflecting the cooling demand environment and challenging macroeconomic conditions.The difference between the annual growth rates of air cargo and the global goods trade narrowed to -2.6 percentage points in May, representing the smallest gap since January 2022.However, the gap still suggests that air cargo continues to suffer more than container cargo from the slowdown in global trade.Obviously, a decrease in manufacturing output will have a direct impact on air cargo demand, as air freight is often used for transporting raw materials, intermediate goods, and finished products between different stages of the manufacturing process.Inflation erodes consumers' purchasing power, leading to reduced spending on non-essential goods. This particularly affects the demand for high-end consumer products and electronics that are often transported via air cargo.Analysts say stubbornly high inflation in both developed and developing countries has prompted the most aggressive interest rate hike cycle in decades, causing financial conditions to tighten and exacerbating debt vulnerabilities. This continues to impact global trade, air cargo in particular.Reduced consumer spending, shifts in priorities for perishable goods, decreased business investments, disruptions in supply chains, and lower demand for manufacturing-related shipments all contribute to a decrease in air cargo demand.Undoubtedly, the combination of a global inflation crisis and declining manufacturing output lead to a complex interplay of factors affecting air cargo demand.“We remain hopeful that the difficult trading conditions for air cargo will moderate as inflation eases in major economies. This, in turn, could encourage the central banks to loosen the money supply, which could stimulate greater economic activity,” said Willie Walsh, IATA’s director general.

Crude spot prices rose on average month-on-month (m-o-m) in July driven by higher futures prices and stronger physical crude supply/demand fundamentals, Opec said in a report.Robust buying in the spot market including for near-term loading volumes for July and August trading cycles, concurrent with higher refinery intakes in July and firm demand from Asian buyers supported spot prices, Opec’s August monthly report showed.The Opec Reference Basket (ORB) value averaged higher m-o-m in July. This came amid firm gains in related crude benchmarks and higher official selling prices (OSP) of all medium and heavy components exported to Asia, Europe and the US markets.In July, the ORB increased by $5.87, or 7.8%, to settle at $81.06/barrel.Crude oil futures prices bounced back in July from low levels recorded in June, as selling pressure in futures markets ceased and market sentiment turned optimistic about improving global oil market fundamentals in the second half of 2023.Moreover, the expectations that central banks were approaching the end of their monetary tightening cycles, the sharp decline of the US dollar in the first half of July and expectations of economic stimulus in China added to the positive sentiment in financial markets.The ICE Brent front-month averaged $5.18, or 6.9%, higher in July to stand at $80.16/barrel, and NYMEX WTI rose by $5.76, or 8.2%, to average $76.03/b.DME Oman crude oil futures prices increased m-o-m in July by $6.25, or 8.3%, to settle at $81.16/b.Hedge funds and other money managers recovered a large part of their combined futures and options net long positions in July, after significantly cutting their bullish positions in May and June, mirroring an improved market sentiment and a change in speculators' strategy, Opec noted.Money managers rush to cover short positions built in the previous month, which contributed to pushing oil futures prices higher. The rise of net long positions was mainly due to the large drop in short positions.The crude market structure strengthened in July on an improving supply/demand balance outlook and signs of easing supply overhang for prompt loading volumes amid robust demand from refiners.Higher global refinery intakes boosted purchases of crude for prompt loading volume.The large decline in US crude oil stocks last month contributed to a strengthening of the structure of NYMEX WTI with the nearest month-spreads flipping into backwardation from contango in June.The sharp rise in bullish positions in the futures markets added support to prompt-month prices compared to forward-month contracts.The prospect of a tighter sour market and sustained supply availability of light sweet crude, including from the US, led to the further narrowing of the spread between the value of sweet and sour crude in almost all regions, although they widened slightly in Asia.Further strengthening of high sulphur fuel oil supported the value of heavy sour crude, while a sharp drop in the value of naphtha cracks weighed on the value of light sweet crude, which resulted in further narrowing of the naphtha-HSFO (high-sulphur fuel oil) spread to deep discount, Opec said.

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

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

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

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

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

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

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

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

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

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

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

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