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The 17th Gulf Petrochemicals and Chemical Association (GPCA) forum concluded yesterday with the active participation of key decision makers and industry experts, and the next session will be held in Muscat, Oman.This year's forum titled 'Mobilising Chemistry for Impactful Transformation' witnessed the ministers and subject experts discuss challenges and issues faced by the industry and also deliberated on low carbon and circular solutions.Inviting members and delegates to the 18th session in Muscat, Salim bin Nasser bin Said al-Aufi, Minister of Energy and Minerals, Oman, said "we will definitely take the actions and the learnings from this forum and the previous ones and will try to address as much as we can at the next forum,"The Doha forum, which saw keynote address from HE Saad bin Sherida al-Kaabi, Minister of State for Energy Affairs, Qatar; Abdulaziz bin Salman al-Saud, Minister of Energy, Saudi Arabia; and al-Aufi; acknowledged that chemicals are needed for a sustainable development.The Saudi Arabian oil minister categorically said the petrochemicals segment is a crucial element in the global campaign to reduce greenhouse gas emissions and emerged as a driving force in fostering positive changes in the fight against climate change.Earlier addressing the opening session, al-Kaabi outlined three point agenda which includes greater investment in energy efficiency and low carbon innovation and co-ordinated policies and incentives, for equitable, secure and sustainable energy transition, which not only protects earth but also propels economic growth.Various panellists at the meeting of petrochemicals and chemicals grouping were of the view that fossil fuels cannot be wished away, even as the recently concluded COP28 in the neighbouring UAE saw negotiations on “orderly and just" phase out of fossil fuels."As the chemical industry continues to be faced with new challenges and opportunities, our aim has been to facilitate the partnerships and collaboration needed to mobilise the industry around alignment and concrete action on issues such as sustainability, trade, circular economy, plastics waste management and so much more," according to Dr Abdulwahab al-Sadoun, secretary-general, GPCA.Dedicated sessions allowed the audience to engage in immersive discussions, learn about the latest trends in procurement, innovative sourcing strategies focused on localisation and sustainability, the impact of procurement on enhancing the agility and resilience of supply chains.The youth forum, now in its second edition, saw awareness creation on the chemical industry and a holistic networking experience for the more than 400 attendees by bridging the gap between leaders and young professionals.Solutions Xchange, an interactive knowledge-sharing platform that happened parallel with the forum, saw the sponsors and exhibitors come together to address industry challenges and discover practical solutions, Xchange insights, and unlock new possibilities that will shape the chemical industry’s future.

Reflecting the volatile geopolitical situation and concerns on Chinese economy, the Qatar Stock Exchange (QSE) on Wednesday fell 73 points as the Gulf institutions were seen.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[110238]**increasingly into net profit booking.The banks, transport and telecom counters witnessed higher than average selling pressure as the 20-stock Qatar Index shed 0.73% to 9,872.1 points.The foreign institutions turned bearish in the main market, whose year-to-date losses widened further to 7.57%.About 76% of the traded constituents were in the red in the main bourse, whose capitalisation melted QR4.59bn or 0.79% to QR577.28bn with midcap segments losing the most.The Arab individuals continued to be net sellers but with lesser vigour in the main market, which however touched an intraday high of 9,962 points.The local retail investors were increasingly net buyers in the main bourse, which saw as many as 0.02mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.04mn trade across 10 deals.The domestic funds were seen bullish in the main market, which saw no trading of sovereign bonds.The Islamic index was seen declining slower than the other indices in the main bourse, which witnessed no trading of treasury bills.The Total Return Index lost 0.73%, the All Islamic Index by 0.65% and the All Share Index by 0.72% in the main bourse, whose trade turnover grew amidst lower volumes.The banks and financial services sector index shrank 0.94%, transport (0.79%), telecom (0.78%), industrials (0.67%) and real estate (0.15%); while insurance gained 0.29%. The index of consumer goods and services was rather flat.Major shakers in the main market include Medicare Group, Inma Holding, Masraf Al Rayan, Qamco, Dlala, QNB, Lesha Bank, Industries Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Ezdan, Mazaya Qatar, Gulf Warehousing and Nakilat. In the venture market, Mahhar Holding saw its shares depreciate in value.Nevertheless, Qatar General Insurance and Reinsurance, Aamal Company, Barwa, Qatar Industrial Manufacturing and Mannai Corporation were among the gainers in the main market. In the junior bourse, Al Faleh Educational Holding saw its shares appreciate in value.The Gulf institutions’ net profit booking increased noticeably to QR35.85mn compared to QR27.41mn on December 5.The foreign institutions turned net sellers to the tune of QR11.13mn against net buyers of QR15.68mn the previous day.However, the local retail investors’ net buying strengthened significantly to QR22.12mn compared to QR14.71mn on Tuesday.The domestic institutions were net buyers to the extent of QR18.86mn against net sellers of QR1.14mn on December 5.The foreign retail investors’ net buying expanded markedly to QR6.53mn compared to QR2.59mn the previous day.The Gulf individual investors turned net buyers to the tune of QR0.34mn against net sellers of QR0.02mn on Tuesday.The Arab individuals’ net profit booking weakened considerably to QR0.88mn compared to QR4.47mn on December 5.The Arab institutions had no major net exposure against net buyers to the extent of QR0.06mn the previous day.Trade volumes in the main market were down 3% to 109.33mn shares, whereas value shot up 6% to QR360.52mn and deals by 5% to 13,827.The venture market saw a 9% contraction in trade volumes to 0.29mn equities and 18% in value to QR0.28mn but on 71% surge in transactions to 36.

Qatar’s banking sector will see the advent of new products to support growth in priority sectors, expansion of trade and export finance for corporates, special finance for small and medium enterprises (SMEs), and savings and investment products for expatriates.Moreover, Islamic and ESG (environment, social and governance) products are also on the pipeline. These figured among the important suggestions made by the Qatar Central Bank (QCB) in the recently released third financial sector strategy as part of efforts to unlock the full economic potential of the country.The strategy, through which the central bank aims to enhance the financial sector's contribution to QR84bn in gross domestic product, highlighted the select growth areas within the banking pillar such as tailored financing, specialised advisory services and digital banking and payment solutions.The banking pillar suggested launching of new products to support growth ambitions in priority sectors, expansion of trade and export finance for wholesale and corporate segments, developing special financing programmes to support SME growth, offering savings and investment products for the expats to encourage them to invest in Qatar (mortgages and investment products) and providing a range of Islamic and ESG product offerings.The initiative should be to increase financial service solutions to fill gaps and broaden market offerings, including digital and virtual asset service solutions, and net zero transaction offerings, the strategy said.It suggested initiatives to implement targeted market infrastructure guidelines to foster the growth of the fintech industry and facilitate the digital transformation of the banking sector.For improving the financial stability and operational effectiveness, the QCB suggested initiatives to develop measures to enhance the banking system's resilience and establish cybersecurity and business continuity frameworks that adapt to changes in banks' business models, market trends and external risks.On specialised advisory services, the strategy highlighted the need to create sophisticated capabilities to increase non-interest revenues; support local players to grow beyond Qatar and expand abroad; implement mentoring and coaching programmes for SMEs on financing, digital, and green transition; and develop wealth management services for premium retail customers.On digital banking and payment solutions, the strategy is to develop a payment hub with real-time transaction monitoring, fraud detection and to achieve increased efficiency; and expand advanced payment solutions such as digital wallets, virtual cards, and personal financial management tools.The strategy "will be achieved through eight initiatives and 68 action items including 29 priority action items", the central bank said.Highlighting that aspiration and set of outcomes were defined for each strategic step to ensure and measure success, it said the need of the hour is sophisticated and resilient banking sector excelling in diverse financial services and products, providing specialised advisory and structured funding built on regulatory and digital excellence.

The demand for virgin and circular polyethylene is expected to be strong and the Gulf Co-operation Council (GCC) is well-positioned to provide feedstocks and has access to wider geographies, according to a top official of Chevron Phillips Chemicals."We expect demand to be strong for virgin polyethylene and circular polyethylene, so there is clearly a push and will be for native materials and then for circular materials. This region is well positioned because it plays an important role in providing feedstocks," Bruce Chinn, president and chief executive officer of Chevron Phillips Chemical told CEOs fireside chat at the 17th annual Gulf Petrochemicals and Chemical Association (GPCA) forum.The GCC is also well-positioned because it has access to markets, whether it be Europe or Asia, he said, adding it has a long history of partnerships here in the region, he said at the session themed Chemical industry’s role in becoming the ultimate ‘hidden climate champion’.Highlighting that the Gulf region will play a key role in access to capital, he said its partners have demonstrated the willingness to ‘seek growth, recognise growth and invest in growth’.“It's clear the region recognises the challenges of transformation and the role that chemistry will play in that,” Chinn said."There is a potential and growing opportunities for circular economy and we are also focused on low carbon footprint," he said, highlighting that it has set a target of 15% reduction in carbon dioxide by 2030.The circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting.Chemicals are part of the fabric of the societies, with as much as 96% of everything that is produced needing chemicals. That means, when chemical products become more sustainable, there is a huge multiplier effect, according to GPCA.Peter Vanacker, chief executive officer of LyondellBasell said the global demand for circular products is slated to be 15mn tonnes and supply of 10mn tonnes by 2030, so there is the supply shortage."We need to engage with entire value chain," he said, adding waste management infrastructure is going to be key way to evolve the circular economy.In this regard, he said in Belgium, 60% of the basic waste is being recycled. There are good cases not just in Belgium, but in other European countries where these schemes work fine, according to him.Chinn said collaboration is the key as he highlighted the joint effort of Chevron Phillips Chemical, Technip Energies and LyondellBasell on the design, construction and operation of a demonstration unit for Technip Energies’ electric steam cracking furnace technology, designed to cut the greenhouse gas emissions associated with the olefins production.Vanacker said plastics are needed for a sustainable future and circular solutions are not going to be replaced in foreseeable future.In mature economies, as much as 50% of the growth is going to be in circular solutions, he added.Dr. Bernd Elser, who leads Accenture's global Chemicals and Natural Resources practices and was the moderator for the fireside chat, said various reports suggest that as much as $200bn worth demand has been estimated for sustainability-related chemicals by 2027.

Qatar's non-energy private sector continued to see improved business conditions towards the end of 2023, with growth of new business and output accelerating in November, spurring further investments, according to the Qatar Financial Centre (QFC).New business increased for the 10th successive month in November, with strong sales for the goods producers and construction firms in particular, according to the QFC's purchasing managers’ index (PMI) survey data.Output has risen every month since July 2020, except for a brief correction in January following the conclusion of the FIFA World Cup Qatar 2022.The PMI registered 51.5 in November, up from 50.8 in October, signalling a tenth successive month-on-month improvement in business conditions, and the first acceleration in growth since July."The rise in the headline PMI is welcome news towards the end of 2023, reflecting faster rates of expansion in both new business and output," said Yousuf Mohamed al-Jaida, chief executive officer of QFC Authority.November's rise in outstanding business, the first in over a year, suggests that companies are increasingly busy, he said, adding "this will spur further investment as customer numbers rise and companies bring improved products and services to the market."The pick-up in demand in November translated into a rise in outstanding business for the first time in 16 months. This increase in pressure on capacity occurred despite a sustained expansion in employment.The headline PMI is a composite single-figure indicator of non-energy private sector performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.The PMI is compiled from survey responses from a panel of around 450 private sector companies. The panel covers the manufacturing, construction, wholesale, retail, and services sectors, reflecting the structure of the non-energy economy according to official national accounts data.Supply chains continued to improve in November, as lead times for inputs shortened for the nineteenth consecutive month.Purchasing of inputs expanded for the ninth straight month and at the fastest rate in four months as firms aimed to address rising backlogs. Input stocks rose for the first time in three months as a result, the QFC said.Highlighting that the overall cost pressures at Qatari firms rose slightly in November, having fallen in October; it said, the rate of input price inflation was relatively weak, with only slight increases in both staff and non-staff costs.Prices charged for goods and services were broadly stable following increases in September and October."Inflationary pressures remain manageable, with only a slight rise in input prices and broadly stable charges in the latest period," al-Jaida said.Qatari financial services companies recorded another jump in total business activity in November. The seasonally adjusted Financial Services Business Activity Index posted 54.7, still comfortably above the overall private sector figure of 52.5 albeit the lowest in over two years.Growth of total activity remained solid despite the slowest increase in new business in over a year, the QFC said."That said, demand was strong overall and more robust than the non-energy sector average, and the 12-month outlook for activity improved," it added.

Qatar's hospitality sector witnessed improved rooms' yield in October 2023 on an annualised basis on higher occupancy, according to the Planning and Statistics Authority (PSA).The growth in revenue-per-available room came largely due to the five-star hotels as well as deluxe and standard hotel apartments; while occupancy increase was witnessed across the board, notably in the hotel apartments and three-star hotels in the review period.The higher rooms’ yield year-on-year comes amidst 288,831 visitor arrivals, which registered 60.8% and 16.9% increase year-on-year and month-on-month respectively in October 2023.Qatar's hospitality sector overall saw a 7.94% year-on-year jump in average revenue per available room to QR272 and occupancy by 10% to 66%, even as the average room rate declined 9.66% to QR414 in October 2023.The five-star hotels witnessed the average revenue per available room surge 11.89% to QR367 and occupancy by 7% to 62%, even as average room rate was down 1.49% to QR594 in the review period.The visitor arrivals from other Asia (including Oceania) were 81,878 or 28% of the total, the Gulf Co-operation Council or GCC 78,130 (27%), Europe 76,053 (26%), other Arab countries 23,549 (8%), Americas 22,008 (8%), and other African countries 7,213 (2%) in October this year.On an annualised basis, the visitor arrivals from other Asia (including Oceania) zoomed 113.8%, Europe by 104.3%, Americas by 63.5%, GCC by 29.7% and other Arab countries by 17.6%, while those from other African countries fell 30% in October 2023.On a month-on-month basis, the visitor arrivals from Europe shot up 71.6%, Americas by 24%, other Arab countries by 13.7%, other Asia (including Oceania) by 12.3% other African countries by 8%, whereas those from the GCC declined 7.8% in the review period.The deluxe hotel apartments registered a 7.94% year-on-year increase in average revenue available per room to QR231 this October with occupancy jumping 14% to 68%, even as the average room rate in the category was seen dipping 14.21% on an annualised basis to QR338 in the review period.In the case of standard hotel apartments, the room yield improved by 5.56% year-on-year to QR152 and occupancy by 16% to 71%, even as the average room rate shrank 17.94% to QR215 in October 2023.However, the average revenue per available room in the four-star hotels plummeted 12.5% on a yearly basis to QR140 in October 2023 as the average room rate were lower by 27.67% to QR217, but the occupancy zoomed 10% to 64%.The three-star hotels saw a 2.61% year-on-year contraction in average revenue per available room to QR149 as the average room rate shrank 18.78% to QR173, even as the occupancy rose 14% to 86% in the review period.The two-star and one-star hotels' average revenue per available room was down 0.69% year-on-year to QR143 this October as the average room rate tanked 11.11% to QR152, even as the occupancy grew 10% to 94% at the end of October this year.

Reflecting the volatile geopolitical situation, the Qatar Stock Exchange (QSE) on Monday fell more than 76 points and its key index retreated below 10,000 points..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[110238]**The industrials and real estate sectors saw higher than average selling pressure as the 20-stock Qatar Index shed 0.76% to 9,959.96 points.The Gulf institutions were increasingly net profit takers in the main market, whose year-to-date losses widened to 6.75%.More than 67% of the traded constituents were in the red in the main bourse, whose capitalisation melted QR4.41bn or 0.75% to QR582.92bn with midcap segments losing the most.The Arab individuals were seen bearish in the main market, which however touched an intraday high of 10,063 points.The foreign retail investors were net sellers in the main bourse, which saw as many as 8,632 exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.03mn trade across six deals.The local individuals continued to be net profit takers but with lesser intensity in the main market, which saw no trading of sovereign bonds.The Islamic index was seen declining faster than the other indices in the main bourse, which witnessed no trading of treasury bills.The Total Return Index lost 0.76%, the All Islamic Index by 1.01% and the All Share Index by 0.7% in the main bourse, whose trade turnover and volumes were on the increase.The industrial sector index tanked 1.43%, realty (1.08%), telecom (0.69%), banks and financial services (0.59%), consumer goods and services (0.24%) and insurance (0.16%), while transport gained 0.19%.Major shakers in the main market include Mazaya Qatar, Ezdan, Masraf Al Rayan, Gulf International Services, Inma Holding, Lesha Bank, Qatari German Medical Devices, Salam International Investment, Baladna, Industries Qatar, Mesaieed Petrochemical Holding and Qamco. In the venture market, Al Faleh Educational Holding saw its shares depreciate in value.Nevertheless, Ahlibank Qatar, Estithmar Holding, Gulf Warehousing, Dukhan Bank, Meeza and Nakilat were among the gainers in the main market. In the juniour bourse, Mahhar Holding saw its shares appreciate in value.The Gulf institutions’ net profit booking increased substantially to QR28.59mn compared to QR7.99mn on December 3.The Arab individual investors turned net sellers to the tune of QR4.87mn against net buyers of QR3.6mn the previous day.The foreign retail investors were net sellers to the extent of QR1.24mn compared with net buyers of QR1.61mn on Sunday.However, the domestic institutions’ net buying strengthened significantly to QR21.77mn against QR5.38mn on December 3.The foreign institutions’ net buying zoomed drastically to QR16.02mn compared to QR2.55mn the previous day.The local retail investors’ net profit booking declined perceptibly to QR2.96mn against QR4.65mn on Sunday.The Gulf individual investors’ net selling eased marginally to QR0.13mn compared to QR0.49mn on December 3.The Arab institutions had no major net exposure for the sixth straight session.Trade volumes in the main market shot up 17% to 145.81mn shares, value by 26% to QR403.94mn and deals by 52% to 16,065.The venture market saw a 7% jump in trade volumes to 0.29mn equities, 23% in value to QR0.38mn and 6% in transactions to 30.

Qatar has suggested three point-agenda, which includes greater investment in energy efficiency and low carbon innovation and coordinated policies and incentives, for equitable, secure and sustainable energy transition, which not only protects earth but also propels economic growth.This suggestion was made by HE Saad bin Sherida al-Kaabi, Minister of State for Energy Affairs, at the ministerial session of the 17th Gulf Petrochemicals and Chemicals Association (GPCA) forum in the presence of Abdulaziz bin Salman al-Saud, Minister of Energy, Saudi Arabia; and Salim bin Nasser bin Said al-Aufi, Minister of Energy and Minerals, Oman.Hamad Rashid al-Mohannadi, former general manager, Qatar Petrochemicals Company (QAPCO), was chosen for the fifth GPCA legacy award in recognition of extraordinary contributions to foster and strengthen the chemical industry.The forum featured an exhibition that showcased new projects, industry journey, youth pavilion, sustainability district, cultural majlis and publications.Highlighting that secure, equitable sustainable energy transition will not only help protect the planet but also provide economic growth; al-Kaabi said "to achieve this goal, we need to remain focused on three important areas that are essential in energy transitioning."The first and foremost, according to him, was the greater investment in energy efficiency and low carbon innovation.This includes renewable energy integration, carbon capture and sequestration, low carbon solutions for reduced greenhouse gas emissions, and the carbon intensity in the chemical manufacturing, he said.Other areas include optimising resources use, waste reduction, waste management and developing circular economies through improving recycling and the reuse of materials."We need coordinated policies and incentives to support the petrochemical industry's success," al-Kaabi said.Terming the third enabler as awareness; he said it was not fair to put the onus on energy producers alone as there was a need for the real story to be told within workforce, across societies and among consumers about the critical role chemical industries plays in bettering lives worldwide.In Qatar, the growth and evolution of petrochemical industry has been on a steady path of success, al-Kaabi said, adding the country is building the world's largest blue ammonia plant with annual 1.2mn tonnes capacity."This plant will be most sustainable facility of its kind. As part of this project, we are implementing CCS technologies to capture and sequester 1.2mn tonnes of carbon dioxide. Furthermore, the electricity for this project comes from a solar power plant currently under construction," he said.He reminded that QatarEnergy in partnership with Chevron Phillips recently announced the start of the construction of two ethane crackers with a capacity of more than 2mn tonnes per annum each, one in Qatar and one in the US. The expected start is before the end of 2026, he added.The Saudi oil minister said the demand for petrochemicals is expected to grow by more than 50% by 20240 with demand for basic chemicals such as ethylene and propylene slated to expand more than 60%, quoting market report and analysts.The sector is also advancing through innovative technologies to maximise the yield of crude oil, he added.

Lenders in Qatar registered the biggest quarter-on-quarter increase in net interest income (NII) and topline growth and the lowest operating cost within the Gulf banking industry during the third quarter (Q3) of 2023, according to Kamco Invest, a regional economic think-tank."Qatari banks recorded the biggest quarter-on-quarter increase in net interest income during Q3-2023 at 10.8%, followed by Kuwaiti and the UAE-listed banks with growth of 6.9% and 5.5%, respectively. Saudi banks were next with a growth of 3.8%," Kamco said in its latest report.The quarterly trend in the GCC (Gulf Co-operation Council) remained largely positive with only Omani banks seeing a decline during the quarter while the rest of the GCC aggregates showed growth, the report said.The aggregate net interest income reported by banks listed in the GCC witnessed growth for the second consecutive quarter to reach a record during Q3-2023, it said, adding the increase came despite cost of funds reaching one of the highest levels on record at 3.7% compared to 3.2% in the second quarter (Q2) of 2023.On topline, Kamco Invest said total bank revenue for the GCC banks once again registered quarter-on-quarter growth during Q3-2023 by 5.3% to a new record high of $30.7bn. A growth in aggregate net interest income as well as non-interest income supported the growth in total revenues.The quarterly increase was led by a broad-based improvement in revenues across the GCC lenders during the quarter, barring Omani banks."Qatari banks reported the biggest increase during the quarter at 9.2% followed by Kuwaiti and the UAE-listed banks with growth of 7.9% and 5.1%, respectively. Saudi-listed banks also reported a healthy quarter-on-quarter growth of 3.5% during Q3-2023," the report said.Referring to operating costs, the Kamco report said Qatari banks reported the lowest ratio of 35.9% despite reporting the biggest quarter-on-quarter jump of 200bps (basis points) during Q3-2023.Saudi and the UAE-listed banks followed with the ratio at 37.9% (+110bps quarter-on-quarter increase) and 40.7%, respectively.After remaining subdued for the previous seven quarters at the sub-40% mark, the cost-to-income ratio for the GCC banks increased by 80bps during Q3-2023 to 40.1% compared to 39.2% in Q2-2023. The increase was broad-based as seen from growth in the ratio for five out of six country aggregates during the quarter.The aggregate return on equity (RoE) for the GCC banking sector continued to show improvement during Q3-2023, reaching one of the highest levels over the last few years at 13.3% against 13% at the end of Q2-2023, reaching almost pre-pandemic levels, Kamco Invest said.At the country level, the UAE-listed banks once again topped in the region with the highest RoE at the end of Q3-2023 at 16.5%; closely followed by Saudi Arabian and Qatari banks with RoE of 12.9% and 12.3%, respectively.The aggregate gross loans of the GCC banks reached a new record high of $1.95tn, up 1.5% quarter-on-quarter and 6.8% year-on-year, mainly led by strong growth in banks in Saudi Arabia and the UAE, and marginal growth in Qatar, according to Kamco Invest.Saudi-listed banks once again reported the strongest quarter-on-quarter growth in lending at 2.8% at the end of Q3-2023. The UAE-listed banks followed with a growth of 2.4% in gross loans, followed by Qatari-listed banks with a growth of 0.3%.

Ahead of the oil grouping’s meeting to discuss the output strategy, the Qatar Stock Exchange saw its key index plunge 167 points and capitalisation erode QR8bn this week, which saw the Qatar Central Bank unveil third financial sector strategy.The transport and industrials counters witnessed higher than average selling pressure as the 20-stock Qatar Index plummeted 1.63% this week which saw Qatar register trade surplus of QR19bn in October 2023.As much as 59% of the traded constituents were in the red in the main market this week which saw Qatar’s real gross domestic product estimated to have grown 1% year-on-year during the second quarter of 2023, mainly on faster expansion in hydrocarbons.The Gulf institutions were seen increasingly net profit takers in the main bourse this week which saw Edaa reduce the capital of Mazaya Qatar by 13.61%.The local retail investors were also increasingly net sellers in the main market this week which saw Team Services and Rentals, a subsidiary of Mahhar Holding, secure a three-year contract from a downstream operating company.The Gulf individuals turned bearish in the main bourse this week which saw a total of 0.22mn Masraf Al Rayan-sponsored exchange-traded fund QATR worth QR0.48mn trade across 49 deals.The Arab institutions were seen net profit takers this week which saw as many as 0.01mn Doha Bank-sponsored exchange-traded fund QETF valued at QR0.07mn change hands across 13 transactions.The Islamic index was seen declining slower than the main barometer this week which saw the industrials and banks together constitute more than 65% of the total trade volume main market.Market capitalisation was seen eroding QR7.54bn or 1.27% to QR587.49bn on the back of large and midcap segments this week, which saw no trading of sovereign bonds.Trade volumes and turnover were on the increase both in the main bourse and venture market this week, which saw no trading of treasury bills.The Total Return Index shed 1.63%, the All Share Index by 1.37% and the All Islamic Index by 1.62% this week which saw Wasata Financial Securities intent to provide market making for as many as 11 constituents.The transport sector index tanked 3.54%, industrials (3.06%), realty (1.49%), consumer goods and services (0.81%), banks and financial services (0.74%) and insurance (0.13%), while telecom shot up 1.09% this week.Major losers in the main market included Doha Bank, Milaha, Industries Qatar, Doha Insurance, Qatar General Insurance and Reinsurance, Masraf Al Rayan, Dukhan Bank, Qatari German Medical Devices, Salam International Investment, Mannai Corporation, Qatar Electricity and Water, Qamco, Beema, Mazaya Qatar and Gulf Warehousing. In the venture market, both Al Faleh Educational Holding and Mahhar Holding saw their shares depreciate in value this week.Nevertheless, Mesaieed Petrochemical Holding, Mekdam Holding, Medicare Group, Beema, Qatar Insurance, Meeza, Estithmar Holding, Ooredoo and Vodafone Qatar were among the gainers in the main market this week.The Gulf institutions’ net selling increased substantially to QR56.09mn compared to QR23.87mn the week ended November 23.The local retail investors’ net profit booking strengthened noticeably to QR28.07mn against QR34.64mn the previous week.The Gulf individual investors turned net sellers to the tune of QR12.57mn compared with net buyers of QR0.98mn a week ago.The Arab institutions were net sellers to the tune of QR0.1mn against no major net exposure the week ended November 23.The domestic institutions’ net buying weakened drastically to QR9.79mn compared to QR34.64mn the previous week.The Arab individual investors’ net buying shrank markedly to QR4.29mn against QR8.38mn a week ago.However, the foreign institutions turned net buyers to the extent of QR77.46mn compared with net sellers of QR5.95mn on November 23.The foreign retail investors’ net buying expanded perceptibly to QR5.3mn against QR1.62mn the previous week.The main market witnessed a 4% jump in trade volumes to 693.33mn shares and 16% in value to QR2.37bn but on 6% fall in deals to 69,434 this week.In the venture market, trade volumes almost quadrupled to 8.83mn equities and value more than doubled to QR8.74mn on 60% surge in transactions to 469.

Reflecting the general mood in the regional markets on strengthening international oil prices, the Qatar Stock Exchange yesterday gained 50 points on the back of foreign institutions' strong buying interests.The telecom, insurance and industrials counters witnessed higher than average demand as the 20-stock Qatar Index rose 0.5% to 10,041.72 points.The foreign retail investors turned net buyers in the main market, whose year-to-date losses truncated to 5.99%.About 67% of the traded constituents extended gains in the main bourse, whose capitalisation added QR2.08bn or 0.36% to QR587.49bn with small and midcap segments gaining the most.The Gulf individuals were seen bullish, albeit at lower levels in the main market, which regained from an intraday low of 9,966 points.However, the Gulf institutions were increasingly net profit takers in the main bourse, which saw as many as 5,055 exchange traded funds (sponsored by Masraf Al Rayan) valued at QR0.01mn trade across three deals.The domestic funds and the local retail investors turned net sellers in the main market, which saw no trading of sovereign bonds.The Islamic index was seen declining faster than the other indices in the main bourse, which witnessed no trading of treasury bills.The Total Return Index shed 0.5%, the All Islamic Index by 0.63% and the All Share Index by 0.36% in the main bourse, whose trade turnover and volumes were on the increase.The telecom sector index soared 2.5%, insurance (0.87%), industrials (0.69%), consumer goods and services (0.31%), banks and financial services (0.13%) and transport (0.01%); while real estate declined 0.72%.Major gainers in the main market included Mesaieed Petrochemical Holding, Ooredoo, Qatar Islamic Bank, Lesha Bank, Estithmar Holding, Medicare Group, Qatari Investors Group, Gulf International Services, Qatar Insurance and Nakilat.Nevertheless, Beema, Qatar General Insurance and Reinsurance, Barwa, Milaha and QNB were among the shakers in the main bourse. In the venture market, Al Faleh Educational Holding and Mahhar Holding saw their shares depreciate in value.The foreign institutions’ net buying strengthened drastically to QR90.67mn compared to QR11.89mn on November 29.The foreign retail investors turned net buyers to the tune of QR0.65mn against net sellers of QR1.34mn on Wednesday.The Gulf individuals were net buyers to the extent of QR0.14mn compared with net sellers of QR0.11mn the previous day.However, the Gulf institutions’ net selling increased substantially to QR45.52mn against QR24.37mn on November 29.The domestic institutions turned net sellers to the tune of QR24.46mn compared with net buyers of QR5.44mn on Wednesday.The local retail investors were net profit takers to the extent of QR20.74mn against net buyers of QR6.55mn the previous day.The Arab individual investors turned net sellers to the tune of QR0.74mn compared with net buyers of QR1.95mn on November 29.The Arab institutions had no major net exposure for the fourth straight session.Trade volumes in the main market zoomed 90% to 214.36mn shares and value more than doubled to QR918.47mn on 26% jump in deals to 17,464.The venture market saw 75% plunge in trade volumes to 0.16mn equities, 70% in value to QR0.24mn and 67% in transactions to 27.

Qatar registered a trade surplus of QR19.03bn this October with Asia accounting for about 64% of the country's exports, according to the official estimates.The country's total exports (valued free on board) amounted to QR29.09bn, while the total imports (cost, insurance and freight) was QR10.06bn in the review period, said the figures released by the Planning and Statistics Authority.However, the trade surplus shrank 24.2% and 4.2% year-on-year and month-on-month respectively in October 2023.The share of petroleum gases in the country's total export basket was seen declining substantially on an annualised basis, while those of crude and non-crude increased robustly in the review period.Qatar’s exports to Singapore and China were on the rise year-on-year this October.The country's total exports of domestic goods amounted to QR28.13bn, which however declined 24% and 0.6% year-on-year and month-on-month respectively in the review period.In October 2023, Qatar's shipments to China amounted to QR6.11bn or 21% of the total exports of the country, followed by India QR3.52bn (12.1%), South Korea QR2.51bn (8.6%), Japan QR2.19bn (7.5%), and Singapore QR2.08bn (7.2%).On a yearly basis, the country's exports to South Korea plummeted 45.55%, India by 23.9% and Japan by 5.19%; while those to Singapore and China grew 20.23% and 8.53% respectively in the review period.On a monthly basis, Qatar's exports to South Korea plunged 27.03% and Singapore by 22.39%; whereas those to China shot up 22.44%, Japan by 12.31% and India by 2.92% in October 2023.The country’s exports of petroleum gases and other gaseous hydrocarbons were valued at QR16.38bn, which fell 35.7% on an annualised basis in October 2023, and other commodities QR2.96bn, which shrank 24.9%.However, the exports of crude and non-crude rose 18.1% and 8.7% to QR6.36bn and QR2.43bn respectively in October 2023.On a monthly basis, the exports of non-crude were seen declining 22.9%, other commodities by 2.8% and petroleum gases by 2%; while those of crude shot up 18.5% in the review period.Petroleum gases accounted for 58.23% of the country’s export basket in October 2023 against 68.77% the previous year period, crude 22.61% (14.56%), non-crude 8.64% (6.05%) and other groups of commodities 10.52% (10.64%).Qatar's total imports showed a 22.1% decrease year-on-year; even as it zoomed 6.9% on a monthly basis in October 2023.The country's imports from China amounted to QR1.74bn or 17.3% of the total imports; followed by the US QR1.42bn (14.1%), India by QR0.66bn (6.6%), Italy QR0.58bn (5.7%) and Germany QR0.39bn (3.9%) in the review period.On a yearly basis, the country's imports from Germany declined 45.67%, the US by 35.45% and China by 16.75%; whereas those from Italy and India grew 7.65% and 5.56% respectively in October 2023.On a monthly basis, Qatar's imports from China soared 30.83% and India by 27.94%; while those from the US tanked 31.07%, Germany by 22.04% and Italy by 13.49% in the review period.In October 2023, the group of "Turbojets, Turbo propellers and Other Gas Turbines; Parts Thereof" was at the top of the imported group of commodities and valued at QR0.6bn, showing an annual increase of 19.2%.In second place was "Motor Cars & Other Motor Vehicles for The Transport of Persons”, with QR0.5bn, which was up 2.4% year-on-year in October 2023.The "Electrical Apparatus for Line Telephony/Telegraphy, Telephone Sets Etc. and parts thereof" group saw imports of QR0.4bn, which however fell 15.7% on an annualised basis in October 2023.

The Qatar Stock Exchange yesterday lost more than 15 points as the transport counter witnessed higher than average selling pressure.The Gulf institutions were increasingly net sellers as the 20-stock Qatar Index was down 0.15% to 9,991.81 points, with investors remaining cautious ahead of a crucial meeting of the oil grouping to decide on the output.The foreign retail investors turned bearish in the main market, whose year-to-date losses widened further to 6.45%.More than 54% of the traded constituents were in the red in the main bourse, whose capitalisation was down QR0.08bn or 0.01% to QR585.41bn with microcap segments losing the most.The Gulf individuals were increasingly net profit takers in the main market, which touched an intraday high of 10,002 points.The Arab retail investors’ weakened net buying had its influence in the main bourse, which saw as many as 0.01mn exchange traded funds (sponsored by Masraf Al Rayan) valued at QR0.03mn trade across three deals.However, the foreign institutions were increasingly net buyers in the main market, which saw no trading of sovereign bonds.The Islamic index was seen declining faster than the main barometer in the main bourse, which witnessed no trading of treasury bills.The Total Return Index shed 0.15%, the All Islamic Index by 0.11% and the All Share Index by 0.05% in the main bourse, whose trade turnover and volumes were on the decline.The transport sector index fell 0.94%, industrials (0.15%), insurance (0.14%) and real estate (0.04%); while telecom gained 0.42%, consumer goods and services (0.11%) and banks and financial services (0.06%).Major losers in the main market included Qatar Islamic Insurance, Meeza, Dukhan Bank, Doha Bank, Commercial Bank and Nakilat.In the venture market, Al Faleh Educational Holding saw its shares depreciate in value.Nevertheless, Beema, Vodafone Qatar, Estithmar Holding, Gulf International Services, Qatar General Insurance and Reinsurance and Untied Development Company were among the movers in the main market. In the juniour bourse, Mahhar Holding saw its shares appreciate in value.The Gulf institutions’ net selling increased substantially to QR24.37mn compared to QR2.19mn on November 28.The foreign retail investors turned net sellers to the tune of QR1.34mn against net buyers of QR4.51mn on Tuesday.The Gulf individuals’ net profit booking grew marginally to QR0.11mn compared to QR0.09mn the previous day.The Arab individual investors’ net buying weakened noticeably to QR1.95mn against QR5.37mn on November 28.However, the foreign institutions’ net buying strengthened perceptibly to QR11.89mn compared to QR8.39mn on Tuesday.The local retail investors were net buyers to the extent of QR6.55mn against net sellers of QR17.86mn the previous day.The domestic institutions’ net buying expanded markedly to QR5.44mn compared to QR1.87mn in November 28.The Arab institutions had no major net exposure for the third straight session.Trade volumes in the main market shrank 14% to 113.02mn shares, value by 12% to QR364.18mn and deals by 12% to 13,856.The venture market saw a 59% plunge in trade volumes to 0.64mn equities, 59% in value to QR0.79mn and 47% in transactions to 83.

Qatar's inflation-adjusted (real) economy is estimated to have grown 1% year-on-year during the second quarter (Q2), mainly on faster expansion in hydrocarbons, according to the official data.The real gross domestic product (GDP) was up 0.5% on a quarterly basis during the review period as the mining sector growth masked the decline in non-hydrocarbons, according to the Planning and Statistics Authority data.The mining and quarrying sector, under which hydrocarbons fall, is estimated to have grown 2.3% year-on-year and the non-mining and quarrying sector by 0.1%.The agriculture, forestry and fishing sectors soared 4% on an annualised basis in Q2-2023, but was down 1.1% quarter-on-quarter.On a quarterly basis, the real GDP (at constant prices) growth during Q2-2023 was mainly due to a 1.6% jump in the mining sector, even as non-mining and quarrying sector reported a marginal 0.1% decrease.Within non-hydrocarbons, the accommodation and food service segment is estimated to have expanded 18% year-on-year in Q2-2023, followed by transport and storage by 5.6% and real estate by 4.2%.Nevertheless, information and communication saw a 9.1% decline year-on-year, wholesale and retail trade 6%, finance and insurance 3%, construction 2%, manufacturing 1.5% and utilities 1% during the review period.On a quarterly basis, the information and communication sector plummeted 19.6%, wholesale and retail trade (9.8%), accommodation and food service (5.5%), and transport and storage (4.2%) during Q2-2023.However, the utilities sector reported a 16.8% surge, finance and insurance (4.4%), real estate (2.8%), manufacturing (1.7%) and construction (0.2%) during the review period.On a nominal basis (at current prices), Qatar's GDP is estimated to have declined 13.7% and 5% year-on-year and quarter-on-quarter respectively at the end of Q2-2023.The mining and non-mining sectors plummeted 25.5% and 3.9% on yearly basis respectively during Q2-2023.On a quarterly basis, both mining and non-mining sectors witnessed 9.2% and 2.1% contraction, leading to a decline in nominal economy during Q2-2023.Within non-hydrocarbons (in nominal terms), there was a 32.3% year-on-year plunge in manufacturing, 4.6% in wholesale and retail trade, and 0.5% in transport and storage during Q2-2023.Nevertheless, the finance and insurance sector soared 21.4% on an annualised basis, real estate (12.2%), accommodation and food service (12.1%), utilities (9.9%), construction (1.5%) and information and communication (0.7%), during the review period.On a quarterly basis in nominal terms, the accommodation and food services segment plunged 17.5%, manufacturing 11.1%, wholesale and retail trade (9.6%), information and communication (8.7%), finance and insurance (7.5%), and transport and storage (5%) during Q2-2023.However, the utilities segment saw a 16% jump in nominal terms on a quarterly basis, 11.1% in construction, and 2.7% in real estate during Q2-2023.The import duties, on real terms, are estimated to have risen 2.8% year-on-year but shrank 5.7% quarter-on-quarter at the end of Q2-2023.On nominal terms, the import duties reported a 1.3% contraction year-on-year, whereas it shot up 5.9% on a quarterly basis during the review period.

The Qatar Stock Exchange (QSE) Tuesday declined 20 points on the back of selling pressure, especially in transport, telecom, industrials and insurance counters. .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[107417]**The local retail investors were seen net profit takers as the 20-stock Qatar Index was down 0.2% to 10,007.21 points.The Gulf institutions turned bearish in the main market, whose year-to-date losses widened further to 6.31%.More than 55% of the traded constituents were in the red in the main bourse, whose capitalisation was down QR0.31bn or 0.05% to QR585.49bn with microcap segments losing the most.The domestic institutions’ weakened net buying had its influence in the main market, which however regained from an intraday low of 9,953 points.The foreign institutions were net seen net buyers in the main bourse, which saw as many as 0.03mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.08mn trade across 12 deals.The Arab retail investors were increasingly net buyers in the main market, which saw no trading of sovereign bonds.The Islamic index was seen declining faster than the other indices in the main bourse, which witnessed no trading of treasury bills.The Total Return Index shed 0.2%, the All Islamic Index by 0.39% and the All Share Index by 0.08% in the main bourse, whose trade turnover and volumes were on the increase.The transport sector index tanked 1.52%, telecom (1.28%), industrials (0.59%), insurance (0.34%), real estate (0.12%) and consumer goods and services (0.07%); while banks and financial services gained 0.45%.Major losers in the main market included Doha bank, Doha Insurance, Milaha, Mannai Corporation, Ooredoo, Lesha Bank, Industries Qatar, Estithmar Holding, United Development Company and Nakilat. In the venture market, Mahhar saw its shares depreciate in value.Nevertheless, Qatar Islamic Insurance, Meeza, Gulf Warehousing, Beema, Ezdan and Vodafone Qatar were among the movers in the main market. In the junior bourse, Al Faleh Educational Holding saw its shares appreciate in value.The local retail investors turned net sellers to the tune of QR17.86mn compared with net buyers of QR3.94mn on November 27.The Gulf institutions were net sellers to the extent of QR2.19mn against net buyers of QR2.01mn the previous day.The domestic institutions’ net selling weakened considerably to QR1.87mn compared to QR25.87mn on Monday.However, the foreign institutions turned net buyers to the tune of QR8.39mn against net sellers of QR15.6mn on November 27.The Arab individuals were net buyers to the extent of QR5.37mn compared with net sellers of QR2.84mn the previous day.The foreign retail investors turn dent buyers to the tune of QR4.51mn against net profit takers of QR1.2mn on Monday.The Gulf retail investors’ net selling weakened noticeably to QR0.09mn compared to QR12.18mn on November 27.The Arab institutions had no major net exposure for the second straight session.Trade volumes in the main market grew 4% to 131.5mn shares, value by 15% to QR413.08mn and deals by 25% to 15,680.The venture market saw a 75% plunge in trade volumes to 1.56mn equities, 65% in value to QR1.94mn and 6% in transactions to 158.

The Qatar Central Bank (QCB) on Monday unveiled the third financial sector strategy (TFSS), as part of efforts to enhance the sector's contribution to QR84bn in gross domestic product (GDP) by 2030 and transform the country into an innovation hub and global centre for cutting-edge financial services.The strategy, built upon four pillars and supported by five cross-cutting themes, was launched by HE the Prime Minister Sheikh Mohamed bin Abdulrahman bin Jassim al-Thani in the presence of Minister of Commerce and Industry HE Ali bin Ahmed al-Kuwari, QCB governor Sheikh Bandar bin Mohamed bin Saoud al-Thani, Qatar Stock Exchange acting chief executive officer Abdulaziz Nasser al-Emadi, and other dignitaries including top officials of banks, insurance companies and other financial entities.The strategy "aims at innovation and diversification to enhance our country’s position as an advanced global center in the field of financial services. This plan is an extension of the first and second strategies, which are considered a roadmap for achieving a sound and flexible financial system that supports sustainable economic growth," the premier said in his social media handle X.The four pillars are banking, insurance, digital finance ecosystem and capital markets. The five cross-cutting themes are governance and regulatory oversight, Islamic finance, digital innovation and advanced technologies, ESG (environment, social and governance) sustainability, and talent and capabilities."The TFSS will not be mere ink on paper, but rather a reflection of aspirations for strong growth in the coming years. It is expected to drive strong growth in the coming years with a projected 4.7% compound annual growth rate for the financial sector and targeted overall contribution of QR84bn to the GDP by 2030," Sheikh Bandar said.The strategy would not only support the economy and financial institutions but also promote the financial sector through innovation and efficiency and provide appropriate solutions, which safeguard stakeholders' interests and help promote growth, he added.The QCB seeks to diversify and innovate in the financial sector in line with Qatar National Vision 2030 with the new strategy aiming to enhance Qatar’s attractiveness for foreign direct investment and attract talents, which contributes to knowledge-based economy.The QCB governor categorically said it would "spare no effort" during the coming period to develop the infrastructure, including the regulatory and legislative frameworks for the financial markets in the country to create an attractive environment for local and international investments.Sheikh Bandar said through the new strategy, it aims to spread the culture of insurance in the society in order for this sector to be a pioneer in the region."We believe in the importance of digital finance ecosystem in supporting the development process. As a result, we have adopted this ecosystem as a third pillar within our strategy to lead the digital financial transformation" for the sector to be a pioneer in the adoption of modern technologies, according to him."We will promote Islamic finance to transform Doha into a destination for Islamic financial services to achieve the growth of this promising sector," he said.Terming the strategy as a new chapter in the process of development of the economy, al-Emadi said it not only showed the clear vision and commitment in enhancing the financial services but also boost economic growth and increase competitiveness.The bourse has laid solid infrastructure and taken several measures to improve liquidity in the system as it aims to enhance the investment universe, including the launch of derivatives in the future, he said.

The Qatar Stock Exchange on Sunday opened the week on a weaker note with its key index losing 72 points on an across the board selling, especially in the industrials sector.The bearish sentiments continued for the third consecutive day as the 20-stock Qatar Index closed 0.71% lower at 10,136.5 points.The foreign institutions turned net profit takers in the main market, whose year-to-date losses widened to 5.1%.About 61% of the traded constituents were in the red in the main bourse, whose capitalisation melted QR3.55bn or 0.6% to QR591.48bn with midcap segments losing the most.The Gulf individuals were seen net sellers in the main market, which touched an intraday high of 10,218 points.The domestic institutions’ weakened net buying had its influence on the main bourse, which saw as many as 0.14mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.32mn trade across 28 deals.The Arab institutions were seen bearish, albeit at lower levels, in the main market, which saw no trading of sovereign bonds.The Islamic index was seen declining faster than the other indices in the main bourse, which witnessed no trading of treasury bills.The Total Return Index shed 0.71%, the All Islamic Index by 0.79% and the All Share Index by 0.62% in the main bourse, whose trade turnover shrank amidst higher volumes.The industrials sector index declined 1.05%, banks and financial services (0.56%), consumer goods and services (0.47%), transport (0.46%), telecom (0.37%, insurance (0.32%) and realty (0.18%).Major losers in the main market included Doha Insurance, Vodafone Qatar, Milaha, Qatar Islamic Bank, Industries Qatar, Woqod, Qatari German Medical Devices, Qatar National Cement and Al Khaleej Takaful.In the venture market, both Al Faleh Educational Holding and Mahhar Holding saw their shares depreciate in value.Nevertheless, Zad Holding, Beema, Aamal Company, Mekdam Holding and Nakilat were among the shakers in the main bourse.The foreign institutions turned net sellers to the tune of QR17.89mn compared with net buyers of QR5.46mn on November 23.The Gulf retail investors were net sellers to the extent of QR0.35mn against net buyers of QR0.43mn the previous trading day.The Arab institutions turned net profit takers to the tune of QR0.1mn compared with no major net exposure last Thursday.The domestic institutions’ net selling decreased considerably to QR1.08mn against QR8.33mn on November 23.However, the Gulf funds were net buyers to the extent of QR13.98mn compared with net sellers of QR8.71mn the previous trading day.The foreign individual investors turned net buyers to the tune of QR2.68mn against net sellers of QR0.54mn last Thursday.The Arab individuals were net buyers to the extent of QR0.54mn compared with net sellers of QR3.72mn on November 23.The local retail investors turned net buyers to the tune of QR0.05mn against net profit takers of QR1.26mn the previous trading day.Trade volumes in the main market was up less than 1% to 107.67mn shares, while value shrank 8% to QR319.36mn and deals by 21% to 9,924.The venture market witnessed a 30% contraction in trade volumes to 0.21mn equities, 52% in value to QR0.23mn and 49% in transactions to 23.

Qatar has one of the highest institutional and governance scores within the Gulf and wider Middle East and North Africa (Mena) regions to manage water-related challenges, even as the Gulf Co-operation Council (GCC) needs "significant" additional investments for water infrastructure, according to Moody's, a global credit rating agency.In general, sovereigns with stronger institutions and governance frameworks and those with larger fiscal resources (lower debt levels and substantial government financial assets) will be better prepared to mitigate the effects of water stress, manage water scarcity, and adapt to the longer-term impact of climate change and global warming on freshwater availability, Moody's said in its latest report."In our institutional strength and governance scores, the sub-score for quality of legislative and executive institutions in particular is a good proxy for such preparedness, which is highest in Qatar, Saudi Arabia, the UAE, Jordan and Morocco and lowest in Iraq, Lebanon and Kuwait," the rating agency said.These scores are broadly consistent with readiness for adaptation to the negative impact of climate change as estimated by the Notre Dame Global Adaptation Initiative, reflecting a country's ability to leverage investments and convert them to adaptation actions.Moody’s said “significant" additional investments are required for water infrastructure in the Gulf region, where water management risks are mitigated by higher per-capita incomes."In the energy-abundant GCC, risks are mitigated by higher per-capita incomes, implying lower dependence on domestic agricultural output, and the capacity to supplement renewable water resources with energy-intensive seawater desalination," the rating agency said.However, even in the GCC, improving water security will require "significant" additional investments in water infrastructure, it said; adding water-related exposures are largest for sovereigns with lowest per capita incomes.The GCC governments have greater fiscal capacity to support large-scale desalination and water treatment projects; as such, in many of these countries, water for agriculture is increasingly supplied from treated municipal wastewater and from desalinated seawater, which reduces pressure on renewable freshwater resources, it said.By contrast, middle-income Egypt relies almost entirely on withdrawals of external surface water (from the Nile, which flows from Sudan) for direct and agricultural use: its cereal production is almost entirely dependent on irrigation.The smaller size of agricultural sectors, which consume by far the largest share of water resources, is reflected in the significantly higher water productivity in the GCC vis-à-vis the rest of Mena.In response to extreme water stress, the GCC countries became early adopters of desalination and wastewater reuse technologies, and started investing in these water scarcity solutions in the 1980s.As a result, nearly half of the world's desalination capacity is currently based in Mena (48%), with Saudi Arabia (15.5%), the UAE (10.1%) and Kuwait (3.7%) accounting for some of the largest shares.Some GCC countries, including Qatar, Bahrain and the UAE, currently meet more than 40% of their total freshwater demand from desalination.