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As the region’s leading transaction bank, HSBC “continues to grow its digital footprint and capabilities” across the country in support of the Qatar Central Bank’s digital strategy, noted Stephen Moss, Regional CEO, Middle East, North Africa and Turkiye, HSBC.“Financing of the region’s new economic models and energy transition is at the heart of the opportunities we see ahead,” Moss told Gulf Times in an interview.“As the world’s largest trade bank with a network covering 90% of the world’s trade and capital flows, combined with our long-standing presence in the region, we are uniquely placed to help our clients navigate the inbound and outbound opportunities in the Middle East.“The Qatar Free Zone Authority (QFZA) is one such example. As one of the most significant developments to support economic transformation, the QFZA is opening up great opportunities for new companies to establish a presence in Qatar. HSBC became the first bank to establish a presence in the QFZA in 2020, offering advanced digital services to the free zone’s more than 200 investors.”Another fast-growing area attracting international investment is infrastructure, which has received a boost from the emergence of public-private partnerships (PPPs).The size of the Gulf’s giga project pipelines, estimated to be worth approximately $3tn, reflects the extent of the opportunity.“The PPP model has been mainly focused on power and utilities sectors in the Middle East but we are now seeing it expand to fulfil much broader infrastructure requirements, with social infrastructure a major recipient. That is good news for international investors,” Moss said.Asked how important the Middle East to HSBC’s strategic growth ambitions is, Moss said: “The Middle East’s investment-led significant economic transformation drive, Asia’s economic dynamism, and the necessity of creating sustainable economies are coming together to create very substantial business opportunities. HSBC, positioned at both ends of the Middle East-Asia corridor and with more than a century of history in each, is directly supporting clients to capitalise on this megatrend.“The bright spots are plenty and according to HSBC research, annual two-way goods trade between the two regions is projected to more than double from around $950bn in 2022 to over $1.9tn by 2035.“Take here in Qatar, for example, which has witnessed accelerated trade and investment with Asia, with China becoming Qatar’s largest import and export partner. The country’s sovereign wealth fund, the Qatar Investment Authority, has invested $1bn in India’s Reliance Retail Ventures and has stated its intention for further public and private investments in China’s retail, healthcare, tech and logistics sectors.“There is clearly more to come; last week Hong Kong and Qatar signed an agreement to increase connectivity between the financial hubs, a move which will include sharing best practices and facilitating training to promote business.“In short, billions of dollars of trade and investment are flowing between Asia and the Middle East. HSBC is uniquely positioned to connect clients in the two regions, and to use our long established on the ground presence, track record, and heritage at either end of the corridor to support new business and investment.”He said the four pillars of the Qatar National Vision 2030 - economic, human, environmental and social development- provide clear opportunities for HSBC to contribute.HSBC Qatar actively invests in recruiting, developing, and retaining local Qatari talent. Qatari nationals currently make up 37% of HSBC’s total workforce in Qatar and the bank has a strong pipeline of Qatari talent, which it continually invest in.About future outlook for HSBC in Qatar, Moss stated: “As one of the first banks in Qatar, HSBC has helped lay the foundations of the banking and finance industry and played a part in several milestone developments.“Our growth story in Qatar is aligned directly to the country’s economic transformation, which has been shaped by visionary leadership – both in government and in institutions such as the Qatar Central Bank.”Across the Middle East, he noted HSBC covers $3.5tn of GDP, $2.6tn of trade, and processes $1.1tn of customer payments every year.“We support the region’s largest transactions and connect global investors to the Gulf’s fast-growing capital markets.“It is this perspective, which continues to give us great optimism about the outlook for the country, and the wider region and which makes HSBC truly proud to be celebrating our 70th anniversary in Qatar this year.”

With global cross-border trade and industrial production continuing to exhibit a steady upward trajectory, 2024 is poised to emerge as a robust year for the air cargo industry. .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[170938]** The air cargo sector stands as an indispensable linchpin in the realm of global trade, boasting unparalleled attributes of speed, global connectivity, reliability, and efficiency. In the fast-paced world of commerce, where time is of the essence, air cargo transportation reigns supreme as the swiftest mode for shipping goods across vast distances. This rapid transit capability proves especially invaluable for the transport of perishable goods, high-value commodities, and time-sensitive deliveries, empowering businesses to meet stringent deadlines and swiftly adapt to dynamic market demands. Spanning the globe with its extensive networks, air cargo services form the vital arteries that interconnect distant markets, fostering seamless international trade. This expansive reach not only facilitates access to diverse suppliers, manufacturers, and consumers worldwide but also empowers businesses to actively engage and thrive within the global economic landscape. Underpinning the seamless operation of air cargo services are substantial investments by airlines in cutting-edge infrastructure, advanced technology, and stringent safety measures. This unwavering commitment to excellence ensures the dependable and secure transportation of goods, thereby enabling businesses to mitigate supply chain disruptions and uphold consistent product availability in the marketplace. While it is a fact that air cargo transportation entails higher costs compared to alternative modes such as sea or land freight, its efficiency for specific types of goods and shipments cannot be overstated. By circumventing congested ports, customs delays, and curbing inventory carrying costs, air cargo emerges as a compelling and cost-effective choice for countless businesses seeking optimal logistics solutions. In essence, the air cargo sector stands as a cornerstone of global commerce, embodying the epitome of speed, reliability, and efficiency, and continues to serve as a driving force behind the interconnectedness and prosperity of the global economy. According to the International Air Transport Association (IATA), global air cargo markets continued to show strong annual growth in demand based on its data in March. Total demand, measured in cargo tonne-kilometres (CTKs), rose by 10.3% to 23.1bn CTKs in March compared to March 2023 levels (11.4% for international operations). This is the fourth consecutive month of double-digit year-on-year growth. Capacity, measured in available cargo tonne-kilometres (ACTKs), increased by 7.3% compared to March 2023 (10.5% for international operations). Middle Eastern carriers, including airlines based in the GCC, saw a 19.9% year-on-year demand growth for air cargo in March – the strongest of all regions. The Middle East–Europe market was the strongest performing with 38.3% growth, ahead of Middle East-Asia which grew by 19.6% year-on-year, IATA said and noted March capacity increased 10.6% year-on-year. Several factors in the operating environment should be noted, IATA noted. Global cross-border trade and industrial production increased by 1.2% and 1.6% respectively in February. In March, the manufacturing output Purchasing Managers’ Index (PMI) climbed to 51.9, indicating expansion. The new export orders PMI also rose to 49.5, remaining slightly below the 50 threshold that would indicate growth expectations. Inflation saw a mixed picture in March. In the European Union and Japan, inflation rates fell to 2.6% and 2.7% respectively, while rising in the US to 3.5%. In contrast, China experienced a slight deflation of -0.01%. This latest figure marks a return to deflation after February's brief period of inflation. IATA Director General Willie Walsh said, "Air cargo demand grew by 10.3% over the previous March. This contributed to a strong first quarter performance which slightly exceeded even the exceptionally strong 2021 first quarter performance during the Covid-19 crisis. With global cross-border trade and industrial production continuing to show a moderate upward trend, 2024 is shaping up to be a solid year for air cargo." Undoubtedly, air cargo sector serves as a vital artery of global trade, facilitating the movement of goods across borders with speed, reliability, and efficiency, thereby contributing significantly to economic growth and development on a global scale. Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn

Qatar is the second top global exporter of urea, Gulf Petrochemicals and Chemicals Association (GPCA) said and noted urea constitutes the biggest share of GCC agri-nutrient production, accounting for 43.6% of its total in 2022.Three other GCC countries - Saudi Arabia, Oman and UAE also rank among the global top 10 for urea exports, GPCA said in an update.According to GPCA, Saudi Arabia is the 5th largest global exporter followed by Oman (6) and UAE (9).Being an export-oriented and natural gas abundant region, the GCC stands as one of the primary global producers and exporters of urea, GPCA noted.GCC’s top five urea export partners (as of 2022) were India ($3.18bn), followed by Brazil ($2.33bn), US ($1.67bn), Australia ($1.43bn) and Turkey ($1.01bn), the update showed.It said Qatar’s urea production will scale up with the commencement of operations of the new Ammonia-7 plant, expected in 2026.QatarEnergy will develop and manage an integrated CCS in the new Ammonia-7 plant, which is expected to sequester 1.5mn tons of CO2 per year that can be used in the production of sustainable fertilisers, including urea.Total global production of urea in 2022 stood at 180mn tons. Global urea market demand stood at $131.54bn in 2022.Global urea production capacity is projected to grow at a CAGR of 5.15% between 2021 and 2030.Urea accounts for approximately 62% of the global demand for nitrogen fertilisers. The Asia-Pacific region dominates the global urea market, accounting for 45% of total global production in 2022.According to GPCA, the first fertiliser plant in the GCC commenced operations in 1966, when Petrochemical Industries Company (PIC) started up in Kuwait with a capacity of 200,750tons per year (tpy) of urea and ammonia.Qatar’s foray into urea production was in 1973, when Qatar Fertiliser Company (Qafco)’s first fertiliser plant commenced operations with a capacity of 365,000 tpy of urea.Qafco 3 plant came to life in 1997. This plant doubled Qafco’s existing urea capacity, producing 730,000 tpy.Qafco 4 plant entered production in 2004. This increased Qafco’s urea production capacity to 2.993mn tpy.Qafco’s 5th plant, completed in 2011, boosted the Qatari company’s urea production capacity to 4.3 mtpy.GCC has “competitive advantages” for urea production and exports owing to its strategic location and competitive and abundant natural gas resources, GPCA noted.The GCC’s strategic export location, situated in between both Europe and the Far-East allows for shipments to key international markets.The GCC is home to an immense quantity of natural gas, with Qatar, Saudi Arabia and the UAE ranking in the global top 10 for natural gas reserves. Its abundance sees the GCC benefit from low cost of urea production, GPCA said.According to Gulf Petrochemicals and Chemicals Association, urea contributes to GCC economic diversification by reducing dependence on oil revenue, creating jobs and industrial development and providing value addition.The GCC’s reliance on oil-based exports exposes the region to market volatility. By diversifying their economies through using natural gas, an alternative revenue stream is provided that is less susceptible to oil price fluctuations.By investing in urea production, GCC countries can create employment opportunities and develop a pool of skilled workers capable of contributing to a more proficient urea industry.Urea production represents a value-added industry that allows GCC countries to add value to their natural gas reserves by using them as a feedstock for urea production, GPCA added.Ends

Lower planned maintenance activity at Qatargas 4, compared to a year earlier, boosted LNG exports from the country, the Gas Exporting Countries Forum (GECF) said in its monthly report for April.Qatar was the top global LNG exporter in March, GECF said.In March this year, LNG exports from GECF member countries and observers rose by 1.8% (0.3mn tonnes year-on-year) to 17.21mn tonnes, which is the highest historic rate of exports for the month.Besides Qatar, Angola, Malaysia, Russia and the UAE drove the increase in GECF’s LNG exports, offsetting lower LNG exports from Egypt and Nigeria.For the period January-March 2024, GECF’s LNG exports grew by 3.3% (1.62mn tonnes) y-o-y to reach 51.27mn tonnes.In March, the Mena region’s LNG imports rose sharply by 53% (0.15mn tonnes) y-o-y to 0.44mn tonnes.Kuwait continues to be the sole LNG importer in the region, with stronger LNG imports from Qatar and the US driving the increase in its LNG imports.Between January and March this year, LNG imports in the Mena region rose by 78% (0.51mn tonnes) to 1.17mn tonnes.In March, pipeline gas imports to the EU surged by 12% m-o-m to reach 14bcm. In the meantime, global LNG imports increased by 2.6% y-o-y, reaching 35.3mn tonnes, primarily driven by the Asia- Pacific region, with minor upticks from the LAC and Mena regions, collectively compensating for a notable drop in European LNG imports.The stronger LNG imports in Asia Pacific were propelled by higher gas consumption alongside competitive spot LNG prices, which stimulated spot LNG in price sensitive markets.On the supply side, global LNG exports grew by 2.3% y-o-y to 36.3mn tonnes.The club of LNG exporters continues to expand with the Republic of the Congo exporting its first LNG cargo in March.According to GECF, gas and LNG spot prices in Europe and Asia experienced an uptick, following a three-month period of decline. The average Title Transfer Facility (TTF) spot price stood at $8.5/mmBtu, reflecting an increase of 5% m-o-m.In addition, the average Northeast Asia (NEA) spot LNG price experienced a 2% m-o-m increase, reaching $9/million British thermal units (mmBtu).In the meantime, in the US, Henry Hub prices continued to decline, reaching a multi-year daily low of $1.25/mmBtu during the month. “Looking ahead, it is anticipated that increased demand from price-sensitive countries in South and Southeast Asia will support prices in the forthcoming months,” GECF said.

Commercial Bank, a leader in innovative digital banking in Qatar, has announced an “exclusive partnership” with Novo Cinemas to offer a remarkable ‘Buy One Get One’ offer for its valued credit cardholders.The campaign, which is set to run from March 25-December 31 this year, “aims to transform the way customers enjoy their time at Novo Cinemas, turning it into an unforgettable cinematic experience.”Commercial Bank executive general manager and head (Retail Banking) Shahnawaz Rashid said: "This strategic alliance not only enhances the offerings for moviegoers but also underscores our commitment to deliver exceptional value to our credit cardholders. As Novo Cinemas continues to captivate audiences with immersive cinematic experiences, Commercial Bank is equally enthusiastic about extending exclusive deals and privileges to its customers. Together, we are poised to turn every cinema visit into a journey of entertainment and banking excellence.”Rashid told Gulf Times that a good number of Commercial Bank customers used their credit card to purchase tickets at Novo Cinemas.“I am sure this partnership is going to immensely benefit them,” Rashid said.Novo Cinemas chief executive officer Roger Abi Haidar said: "As an entertainment leader in GCC, we are thrilled to embark on this exciting partnership with Commercial Bank which underscores our dedication to delivering innovative cinematic experiences and high-value offerings in 7 locations across Qatar. Together, we look forward to creating memorable moments for Commercial Bank Cardholders, blending the magic of cinema with the convenience and rewards offered by Commercial Bank's innovative financial solutions."He told Gulf Times that Novo Cinemas are preparing to release many blockbuster movies in the coming months.He also said there is no “blackout period” for ticket purchase under Novo Cinemas partnership with Commercial Bank.Sudheer Nair, assistant general manager and head (Cards and Payments) at Commercial Bank, underscored the significance of the partnership with Novo Cinemas, stating: "The collaboration with Novo Cinemas marks a pivotal moment in redefining the customer experience for our selected Credit Cardholders.“Through this partnership, we are offering our Credit Cardholders exclusive benefits, making their leisure time even more memorable. Our commitment to providing an exceptional banking experience remains steadfast, and this collaboration is a testament to our dedication."Commercial Bank remains dedicated to redefining the very essence of banking for its customers in Qatar and beyond.To avail of this exclusive offer, customers can visit Novo Cinemas' official website at qa.novocinemas.com or use the Novo Mobile App for online purchases.

Energy exporter Qatar is expected to continue consolidating its public finances, reduce hydrocarbon exposure and support diversification efforts, the International Monetary Fund (IMF) said in its latest regional outlook.Overall fiscal surpluses, however, are projected to narrow among GCC members that rely on public finances for their economic diversification (Kuwait, Qatar and United Arab Emirates), due to moderating hydrocarbon prices, the IMF said.Beyond 2024, non-hydrocarbon fiscal deficits as a percentage of non-hydrocarbon GDP are expected to generally improve across Mena oil exporters.Alongside, lower oil production and hydrocarbon prices are expected to drive a persistent decline in the external positions over the medium term.While non-hydrocarbon primary balances as a share of non-hydrocarbon GDP improved for Qatar, Bahrain and Oman, they deteriorated for Kuwait, Saudi Arabia, and the UAE, the IMF said.Still, overall fiscal balances deteriorated in 2023 for most GCC economies due to lower oil revenues following oil production cuts and broadly stable oil prices.While overall balances also worsened among non-GCC oil exporters amid lower oil revenues, non- hydrocarbon primary balances are estimated to have generally improved, the IMF noted.Resilience in the global economy and easing global inflationary pressures are positive developments for economies in the Middle East and Central Asia, the IMF said.Overall growth is projected to strengthen to 2.8% in 2024 (from 2% in 2023) and 4.2% in 2025.The conflict in Gaza has caused immense human suffering. In addition, Red Sea shipping disruptions and oil production cuts have added to existing vulnerabilities related to high debt levels and elevated borrowing costs.Accordingly, growth is projected to remain subdued, improving moderately to 2.7% in 2024 (from 1.9% in 2023).In 2025, growth is projected to strengthen to 4.2% as the impact of these temporary factors is assumed to fade gradually.Among the Gulf Cooperation Council members, non-hydrocarbon activity is set to be the main contributor to growth as countries continue to pursue growth diversification plans.Meanwhile, Mena emerging market and middle-income countries face rising fiscal pressures, with elevated interest payments eroding efforts to strengthen fiscal positions.The conflict in Gaza and Israel is adding to uncertainty, with the duration and impact of the conflict remaining highly uncertain, the IMF said. In addition, conflicts are also adversely impacting activity in some fragile and low-income countries, though the tide may start to turn for a few economies, with economic conditions projected to improve in 2025 as growth-dampening factors gradually wane.On the positive side, monetary tightening cycles appear to have ended in most countries as inflation is approaching its historical average in many Mena economies, with inflation close to or even below average in one-third of economies, the IMF said.

All roadmaps assume that sustainable aviation fuels (SAF) will be responsible for the greatest amount of CO2 reductions by 2050, according to a high-level joint review.The International Air Transport Association (IATA), together with the Air Transportation Systems Laboratory at University College London (UCL), the Air Transport Action Group (ATAG), the International Council on Clean Transportation (ICCT) and the Mission Possible Partnership (MPP), released the Aviation Net Zero CO2 Transition Pathways Comparative Review.This is the first publication to compare 14 leading net zero CO2 transition roadmaps for aviation. The report aims to provide a “one-stop shop” for airlines, policymakers and all aviation stakeholders to better understand the key similarities and differences between the various roadmaps, and their visions for achieving net-zero carbon emissions for aviation by 2050.Specifically, the report compares the selected roadmaps in terms of their scope, key input assumptions, modelled aviation energy demand, respective CO2 emissions, and the emissions reduction potential of each mitigation lever (new aircraft technologies, zero-carbon fuels, SAF, and operational improvements).Key findings from this analysis include:• Possible pathways to net-zero CO2 emissions by 2050 differ significantly depending on the key assumptions of the authors regarding how decarbonisation technologies and solutions may evolve. Depending on these assumptions, the resulting role of particular levers in aviation’s decarbonisation will be more or less important.• All roadmaps assume that sustainable aviation fuels (SAF) will be responsible for the greatest amount of CO2 reductions by 2050. The role of SAF varies from 24-70% (with a median value of 53%). This wide range reflects the uncertainties regarding potential supportive government action, the level of investments, cost of production, and profit potential, as well as access to feedstocks.• Technology and operational efficiency improvements are expected to have a similar role in the net zero transition across the roadmaps, together contributing to about 30% of the emissions reduction in 2050 in all scenarios.• The estimated emissions savings by hydrogen and battery-powered aircraft vary greatly across the roadmaps, depending on whether a strong pro-hydrogen policy is adopted, and on whether there is a rapid decline in renewable energy prices, enabling swifter uptake of electricity-based technologies.• To achieve net-zero CO2 emissions in 2050, almost all the global roadmaps suggest that the aviation sector will need help from market-based measures and carbon removals to address the residual emissions in 2050.Even if carbon removal technologies are considered an ”out-of-sector” mitigation measure, it is still both urgent and critical to develop these technologies as CO2 will be needed as feedstock for producing power-to-liquid (PtL) fuels.IATA’s senior vice-president (Sustainability) and chief economist Marie Owens Thomsen noted: “The Aviation Net Zero CO2 Transition Pathways Comparative Review demonstrates that there are multiple levers that can be used in different combinations to achieve the objective of decarbonizing aviation by 2050. All these levers will be needed in aviation’s transition.“While the impact of each varies across the roadmaps, all roadmaps expect the greatest decarbonisation in 2050 to stem from SAF. This report provides airlines, policymakers and all stakeholders with a useful tool to analyse and improve their policy, investment, and business choices.“It is particularly important for SAF where strong and urgent public policy support is needed to increase production. Without that, no version of the roadmaps will get us to net zero carbon emissions by 2050.”

Air passengers these days demand seamless and secure payment solutions that match their fast-paced lifestyles. With modern payment methods like mobile payments, digital.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[165431]**wallets, and contactless transactions, booking flights and making purchases is not only convenient but also swift, regardless of location or device preference.For airlines, embracing these cutting-edge payment technologies is not just a choice but a necessity in remaining competitive and thriving in the industry. These methods drive revenue growth, enhance the overall customer experience, and streamline operational efficiency.Airlines heavily depend on ticket sales and ancillary services for revenue, and modern payment methods empower them to attract a diverse range of customers by offering flexible payment options tailored to individual preferences and requirements.Given the global reach of airlines, catering to passengers from various regions with different banking systems and currencies is imperative. Modern payment solutions facilitate seamless international transactions, enabling airlines to broaden their customer base and strengthen their market presence.The IATA Financial Settlement System (IFSS) stands as a cornerstone in the global aviation ecosystem, facilitating the secure and efficient movement of funds throughout the air travel value chain. Continuously evolving, IFSS has adapted lessons learned from unprecedented challenges such as the pandemic, enhancing its resilience and effectiveness.As customer behaviour evolves and new business models emerge, IFSS remains agile, accommodating the needs of a dynamic industry landscape while upholding its commitment to security and efficiency."“We want to know where we need to move to in the next three-to-five years,” noted Mohamed Albakri, IATA’s senior vice-president (Financial Settlement and Distribution Services).“Where is the value in the IFSS and how should the scope be improved? It must continue to be aligned with airline needs.One obvious answer is accepting new forms of digital payment. The Billing and Settlement Plan (BSP), one of the IFSS services, is based on a “collect on behalf” model from the travel agencies and also processes debit and credit cards.But airlines—responding to customer requirements—must be ready to accept many different forms of payment.The pandemic was an accelerator in the use of different payment instruments, a trend that Albakri believes is here to stay.In fact, there are estimated to be close to 200 forms of payments around the world, many of which are unique to a region or even a country.As many airlines are global entities, they need to assess which forms are the most relevant for their markets and their customer base. Studies have shown that sales can be lost if a customer’s preferred method of payment is not available.But being all things to all customers is easier said than done. Airlines have a multitude of costly back-office processes to integrate for every payment method, including reconciliation and reporting.“As indicated by participants in the IATA Financial Settlement System, potential opportunities could bring the value the IFSS offers to these other forms of payment as it does for BSP sales,” says Albakri.“In BSP sales, there are strong standards. But the same cannot be said about new digital processes. How is the payment managed, which data element is captured at what point, and exactly how does it get handed over?“At IATA, efforts are underway through the work of related standard management groups assessing the development of standards to facilitate the adoption of payment instruments that are relevant to airlines and their customers,” he adds. “We are also making solutions available to facilitate payment orchestration and instant bank transfers.”Albakri highlights a number of trends in the payment sphere. One of the most significant is digital currencies. This refers to the digitalisation of public money or cash from the central bank as opposed to cryptocurrency digital assets.Europe is getting closer to implementing the digital euro, China has already piloted the digital yuan (e-CNY), and the United Arab Emirates will have the digital dirham by end 2025.In fact, more than 130 countries around the world, representing 98% of global GDP, are reported to be studying the possibilities.Digital currencies, IATA says will give central banks better control and full visibility on every transaction and will allow them to incorporate additional services to merchants such as digital invoicing and statements. And it should also help merchants to negotiate better terms with incumbent payment service providers.Beyond digital currencies, Albakri notes that the digital payment sector has yet to mature. Failures, mergers and acquisitions will therefore be the order of the day over the next few years.Perhaps most importantly, payment is at the heart of modern airline retailing. Payment encapsulates the end-to-end journey and is a central pillar of the offer and order management process.If airlines aim to be truly customer-centric, then they must have seamless, secure, and frictionless payment at the core of their product.“A superior customer experience starts by making sure that customers can buy and pay without friction, using the payment method of their choice,” says Albakri. “Offering the service that customers want and making available their preferred payment method creates a win-win proposition for airlines and their customers.”Albakri added: “The payment landscape is larger and even more complicated than distribution. Airlines have taken back control of distribution, and they now need to take back control of payment.”

Qatar's real GDP growth has been forecast at 2.1% this year and 3.2% in 2025, World Bank said in its latest update Monday.The country’s debt to GDP stood at 42.4% in 2022 and 41.4% in 2023, World Bank noted.World Bank’s new Middle East and North Africa Economic Update, entitled ‘Conflict and debt in the Middle East and North Africa’, shows that lackluster growth, rising indebtedness and heightened uncertainty due to the conflict in the Middle East are impacting economies across the region.According to the report, MENA economies are expected to return to low growth akin to the decade prior to the pandemic. MENA’s gross domestic product (GDP) is forecast to rise to 2.7% in 2024, which is a tepid increase from 1.9% in 2023.As in 2023, oil importing and oil exporting countries are likely to grow at less disparate rates than 2022, when higher oil prices boosted growth in oil exporters.For Gulf Cooperation Council (GCC) countries, the World Bank noted the 2024 growth uptick reflects expectations of robust non-oil sector activity and fading out of oil production cuts towards the end of the year. GDP growth in almost all oil importing countries is expected to decelerate.The report looks at the economic impact of the conflict in the Middle East on the region. Economic activity in Gaza has come to a near standstill. The GDP of the Gaza strip dropped by 86% in last quarter of 2023.The West Bank has plunged into a recession, with simultaneous public and private sector crises.A recent World Bank report goes into further depth on damages to the Gaza Strip and catastrophic impacts on the people of Gaza.The economic impact of the conflict on the rest of the region has remained relatively contained, but uncertainty has increased. For example, the shipping industry has coped with shocks to maritime transport by rerouting vessels away from the Red Sea, but any prolonged disruptions to routes through the Suez Canal could increase commodity prices regionally and globally.The report also looks at rising indebtedness in the MENA region. Between 2013 and 2019, the median debt-to-GDP ratio for MENA economies increased by more than 23 percentage points.The pandemic made things worse as declines in revenue, together with pandemic support spending, increased financing needs for many countries.This rising indebtedness, the World Bank noted is heavily concentrated in oil-importing economies, which now have a debt-to-GDP ratio 50% higher than the global average of emerging market and developing economies.Approaching 90% of GDP in 2023, oil-importing countries in MENA have a debt-to-GDP ratio almost three times higher than that of oil exporting countries in the region.The World Bank report presents evidence that oil-importing countries in MENA have been unable to grow out of debt or inflate their debt away, making fiscal discipline essential to curb indebtedness.Critically, off-budget items which have played a large role in some MENA economies have been to the detriment of debt and fiscal transparency. The challenge for oil exporters is one of economic and fiscal-revenue diversification, given the structural change in global oil markets and the rising demand for renewable sources of energy. “Overall, MENA economies need to undertake structural reforms, chief among them transparency, to unlock growth and forge a sustainable path ahead,” the World Bank said.

Point of sale (POS) transactions were valued at QR8.13bn in March this year, Qatar Central Bank (QCB) said Sunday.In comparison, point of sale transactions amounted to QR7.72bn in March 2023 and QR6.6bn in March 2022, QCB said in its post on X.The volume of point of sale transactions stood at 32.43mn in March this year, while it was 29.5mn in March last year and 23.2mn in March 2022.According to QCB, the number of point of sale devices in Qatar totalled 70,567 in March this year compared with 63,832 in March 2023 and 50,103 in March 2022.A POS or point-of-sale system is a combination of hardware, software and payment services that businesses use to make sales.E-commerce transactions in Qatar, QCB said, totalled QR3.66bn in March this year.In March 2023, e-commerce transactions in Qatar amounted to QR2.55bn, while it stood at QR3.09bn in March 2022.Qatar registered 6.44mn e-commerce transactions in March this year, QCB said.In March last year, the volume of e-commerce transactions in the country was 4.9mn. And in March 2022, it stood at 4.34mn.The number of active bank debit cards in the country totalled 2,246,677 in March, Qatar Central Bank said.QCB said credit cards in Qatar totalled 686,347 and pre-paid cards 723,395 in March.

Qatar Airways has resumed services to Amman, Beirut and Baghdad, the national airline said in a post on X.The airline has urged customers “to monitor its website for near-term travel schedules or call the Contact Centre on +974-41445555”.Other major airlines across the Middle East region announced they would resume operations in the region after cancelling or rerouting some flights as Iran launched dozens of drones and missiles at Israel through Saturday night into Sunday.Emirates Airlines, which had cancelled some of its fights and rerouted others due to temporary airspace closures in the region, was resuming scheduled operations to and from Jordan, Lebanon, and Iraq from Sunday afternoon, a spokesperson said.Etihad Airways said it is planning to operate scheduled passenger and cargo services between Abu Dhabi and Tel Aviv, Amman and Beirut starting from Monday.Etihad warned that as services return to normal after the temporary closure of airspace across parts of the Middle East, "there may still be a risk of some knock-on disruption across Monday, April 15"."Some of our flights have been affected by the temporary closure of a number of airspaces in the region," a statement from the United Arab Emirates' Fly Dubai was quoted on state news agency WAM as saying.The attack had spurred similar announcements from Lebanon, Egypt and Kuwait following several Arab countries announcing the temporary closure of their airspace.Jordan, Iraq and Lebanon announced on Sunday morning that they had reopened their airspace following the overnight attacks.

Qatar's food inflation remained low in most part of 2023 and was less than 4.5% year-on-year in 10 months of last year up to December, according to the World Bank’s latest food security update.Qatar’s food inflation is also among the lowest in the category of “high income countries”, where it figures.According to the World Bank, Qatar’s food inflation stood at 0.7% in March 2023.The country’s food inflation in the remaining part of 2023 were: April (1.4%), May (-2.2%), June (-0.7%), July (1%), August (0.5%), September (1.9%), October (3.7%), November (3.8%) and December (4.5%).In the seven months from March 2023 to September last year, Qatar’s food inflation donned the green colour code, which denoted it was less than 2%.From October to December 2023, the colour code was yellow, which denoted the price increase was between 2% and 5%.World Bank’s data indicate that Qatar performed well in tackling food inflation when compared to neighbouring GCC countries and among high-income countries.According to the World Bank, domestic food price inflation remains high across the world. Inflation higher than 5% is experienced in 60% of low-income countries (no increase since the last update on March 18, 2024), 63.8% of lower-middle-income countries (no change), 39% of upper-middle-income countries (7.0 percentage points lower), and 27.3% of high-income countries (no change).In real terms, food price inflation exceeded overall inflation in 58.9% of 168 countries where data is available.According to the Food and Agriculture Organisation (FAO), there is a pressing need for external food assistance in 45 countries worldwide: 33 in Africa, nine in Asia, two in Latin America and the Caribbean, and one in Europe.The primary drivers of acute food insecurity in these regions are conflicts in Near East Asia and West and East Africa and widespread dry weather conditions in southern Africa.The list of countries requiring external assistance can be categorised into three broad, non-mutually exclusive groups: those with exceptional shortfalls in food production and supplies due to factors such as natural disasters, conflict, and supply chain problems; those with widespread lack of access to food due to conflict and economic factors such as low incomes and high food prices; and those with severe food insecurity in some areas due to factors such as refugee influx and crop failures combined with extreme poverty.The latest FAO monthly report on food price trends reveals a global downturn in the prices of major cereals during February 2024, primarily due to abundant supplies and fierce competition among exporters resulting in decreases in international wheat, maize, and rice prices.Despite these international declines, domestic staple food prices remained high in many countries, primarily because of factors such as extreme weather events, conflict, insecurity, and currency depreciation. Disruptions in shipping routes, such as in the Panama Canal and the Red Sea, pose further challenges by increasing food import costs, the report said.

Qatar's power generation sector has been forecast to provide a slight increase in natural gas use due to rising renewables capacity, according to Doha- headquartered Gas Exporting Countries Forum.The country targets 5GW of solar capacity by 2035, driven by two additional solar power projects in Mesaieed and Ras Laffan industrial cities, GECF said in its ‘Global Gas Outlook 2050’.The 800-MW Al Kharsaah solar PV plant was commissioned in 2022. Two additional solar power projects in industrial cities, Mesaieed and Ras Laffan, with a combined capacity of about 880 MW are planned within the next two years, GECF noted.The Al Kharsaah Solar PV Power Plant (KSPP) is owned by a joint venture between affiliates of QatarEnergy Renewable Solutions (60%), Marubeni (20.4%) and TotalEnergies (19.6%). QatarEnergy Renewable Solutions is QatarEnergy’s investment arm specialising in renewable and sustainable energy investments and projects.QatarEnergy is consolidating its position in the renewables business and is delivering a mid-term target of generating 5GW of solar power by 2035 as part of its Sustainability Strategy.In addition to increasing solar capacity to over 5GW, the strategy targets reducing greenhouse gas emissions, and deploying carbon capture and storage technology to capture over 11mn tonnes per year of CO2 in Qatar by 2035.In Qatar, natural gas demand is set to grow by 18bcm over the outlook period (up to 2050), GECF said. Most of additional demand comes from rising gas use linked to energy sector-related needs amid the expansion of LNG export production capacity.Moreover, the country is exploring ways to diversify the economy and investments in low-carbon gas-based solutions are key to this diversification.In this context, blue hydrogen generation and its derivatives are poised to present additional natural gas demand growth opportunities.For example, Qatar recently unveiled plans to build the world’s largest blue ammonia plant: scheduled to be operational in 2026, the facility is expected to generate sales of 1.2mn tonnes per year.Qatar’s proposed blue ammonia facility is part of the country's strategy to offer low-carbon energy solution for a sustainable future.QatarEnergy’s affiliates, QatarEnergy Renewable Solutions and Qatar Fertiliser Company (Qafco) signed the agreements for the construction of the Ammonia-7 project, the industry’s first world-scale as well as the largest blue ammonia train, which is expected to come into operation by the first quarter of 2026.Blue ammonia is produced when the carbon dioxide generated during conventional ammonia production is captured and stored. It can be transported using conventional ships and then be used in power stations to produce low-carbon electricity.The new plant, which is estimated to cost $1.156bn, will be located in the Mesaieed Industrial City and operated by Qafco as part of its integrated facilities.

Stable rents will limit the rise in inflation in Qatar, Oxford Economics said as the researcher projects the country's inflation to slow to average 2.6% in 2024.Headline inflation rose to 1.7% in December last year, “defying” what Oxford Economics said of “expectations of a slowdown”, from 1.3% in November 2023.Prices rose 0.9% month-on-month, the third highest monthly increase last year.The key drivers behind the monthly rise were the food category and prices of recreation and culture, but clothing prices also surged. Housing, which has the largest share in the CPI basket were stable, leaving prices 2.9% lower than in the same month the year before. “This supportive base effect will continue in the coming months. Overall, inflation averaged 3% in 2023, slightly higher than the 2.9% we projected, but will slow to average 2.6% this year,” Oxford Economics noted.After inflation turned negative in 2020, it climbed to 2.3% in 2021 and 5% in 2022 amid rising global food and energy prices and increasing demand in the runup to the World Cup.In its latest country update, Oxford Economics said, “We now forecast average inflation at 2.6% in 2024, up from 2.2% in our previous projection, after it averaged 3% last year.“Inflation was higher than we expected in December at 1.7%, pushed up by food, recreation and culture, and communication prices. We see no implications of this modestly higher inflation forecast for Qatar's monetary policy. Our revised baseline assumes the central bank will follow the US Federal Reserve in lowering rates once per quarter, starting in May.”The researcher's updated baseline assumes interest rates will stay at 6% until May, when Qatar Central Bank starts to gradually loosen policy.High borrowing costs will continue to undermine non-energy growth, notwithstanding supportive energy and fiscal trends.Banks in Qatar, the researcher noted, “have been resilient and are well-capitalised and profitable, with low levels of non-performing loans.”Due to improved domestic liquidity, banks' reliance on foreign funding has relaxed but is still high.Qatar has passed various reforms to attract foreign capital, but diversification efforts across the region suggest competition, with all GCC countries trying to tap into a similar pool of resources and demand, Oxford Economics noted.

The Middle East region requires $1.1tn investment until 2050 to achieve projected natural gas production of 1,165 bcm, the Gas Exporting Countries Forum (GECF) said in its ‘Global Gas Outlook 2050’.Qatar is estimated to account for 14% of the required investment until 2050, GECF said.Iran, Qatar, Saudi Arabia, and the UAE are poised to account for 87% of the gas upstream required investment in the region, the report said.The Middle East region holds substantial natural gas reserves and significant potential for further production growth, the outlook said.Looking ahead to 2050, the outlook anticipates a significant surge in natural gas production, with the region projected to reach 1,165 bcm by 2050. This additional increase of 480 bcm is expected to elevate the region’s share in global natural gas production to 21% by 2050, up from its 17% share in 2022.According to GECF, the majority of upstream investments are expected to be directed toward conventional gas reservoirs, while unconventional assets are anticipated to require 28% of the investment in the region, specifically in the UAE, Saudi Arabia, and Oman.In 2022, Qatar’s upstream capital investment witnessed a remarkable doubling, reflecting an increase of $2.2bn.This surge, GECF noted, can be attributed to two substantial expansions within the world’s largest natural gas field, the North Field.“The outlook considers the initiation of both the North Field East and North Field South expansions, slated for 2026 and 2028 respectively. These expansions are anticipated to propel Qatar’s production to 310 bcm in 2050, requiring a total upstream investment of $160bn,” GECF said.Global gas production is anticipated to reach 5.3 tcm by 2050, GECF said.Achieving this substantial growth in gas supply will necessitate sustained investment across all segments of the natural gas value chain.The natural gas sector is expected to require $9tn of investments along the value chain.The total upstream global investment required is projected to amount to $8.2tn.The lion’s share of gas investments is expected to be allocated to conventional assets, accounting for $5.3tn.In contrast, unconventional investments are projected to make up $2.8tn, representing 34% of the total global upstream gas investment.Natural gas investment exhibits regional disparities in distribution. In that order, leading the way in upstream investment are the Asia Pacific and North America, followed by Eurasia, Africa, the Middle East, Latin America and Europe.GECF noted the differences in required capital expenditure across regions can be attributed in part to factors like the type of hydrocarbon, location, and project type of natural gas supply. Globally, the projected rise in natural gas supply is anticipated to primarily come from non-associated conventional hydrocarbons located in offshore and YTF fields.However, the degree of this transition varies from region to region. As a result, the capital expenditure necessary for each unit of marginal production varies across these regions. This divergence is likely to impact the allocation of invested funds and consequently influence natural gas prices, GECF said.

Middle Eastern airlines have recorded a 19.7% year-on-year (y-o-y) increase in passenger demand in February, IATA said in its latest update.Regional passenger capacity (including GCC) increased 19.1% year-on-year and the load factor rose to 80.8%, IATA said.The Middle East’s total demand, measured in revenue passenger kilometres (RPKs), was up 21.5% compared to February 2023.Total capacity, measured in available seat kilometres (ASK), was up 18.7% year-on-year. The February load factor was 80.6% (+1.9ppt compared to February 2023).International demand rose 26.3% compared to February 2023; capacity was up 25.5% year-on-year and the load factor improved to 79.3% (+0.5ppt on February 2023).Domestic demand rose 15.0% compared to February 2023; capacity was up 9.4% year-on-year and the load factor was 82.6% (+4.0 ppt compared to February 2023), IATA said.All regions showed double-digit growth for international passenger markets in February 2024 compared to February 2023.For the first time, demand for international services exceeded pre-pandemic levels (+0.9% compared to February 2019). This, however, is skewed by February 2024 being a leap-year with an extra day compared to February 2023.Asia-Pacific airlines saw a 53.2% year-on-year increase in demand. Capacity increased 52.1% year-on-year and the load factor rose to 84.9% (+0.6ppt compared to February 2023), the highest among all regions.Domestic demand growth was led by China (+35.1% compared to February 2023) which benefitted from unrestricted Lunar New Year travel.IATA’s Director General Willie Walsh said, “The strong start to 2024 continued in February with all markets except North America reporting double-digit growth in passenger traffic. There is good reason to be optimistic about the industry’s prospects in 2024 as airlines accelerate investments in decarbonisation and passenger demand shows resilience in the face of geopolitical and economic uncertainties.“It is critical that politicians resist the temptation of cash grabs with new taxes that could destabilise this positive trajectory and make travel more expensive. In particular, Europe is a worry as it seems determined to lock in its sluggish economic recovery with uncompetitive tax proposals.”

Qatar banking sector deposits increased 1.4% during February to reach QR1,028.6bn, driven by both the public and private sectors, according to QNB Financial Services (QNBFS).Deposits growth in February was mainly due to an increase by 2.2% in the public sector and 1.1% in the private sectorDeposits grew by an average 4.1% over the past five years (2019-2023), QNBFS said in its ‘Qatar monthly key banking indicators’.The overall loan book went down 0.5% in February to QR1,312.9bn.The loans decline in February was mainly due to a drop by 0.4% in the private sector and 0.7% in the public sector.Loans increased by 1.9% in 2024, compared to a growth of 2.5% in 2023. Loans grew by an average 6.5% over the past five years (2019-2023)Loan provisions to gross loans stood at 3.8% in February and 4% in January, QNBFS said.Total assets edged down by 0.2% during February to QR1.97tn.The total assets loss in February was mainly due to a slide by 0.4% in domestic assets.Total assets was marginally higher in 2024, compared to a growth of 3.4% in 2023. Assets grew by an average 6.8% over the past five years (2019-2023)Liquid assets to total assets was at 30.6% both in February and January 2024, QNBFS said.In terms of overall deposits, the government institutions’ segment (represents 55% of public sector deposits) went up by 2.3% MoM (+5.6% in 2024), while the semi-government institutions’ segment rose by 5.1% MoM (+1.6% in 2024).The government segment (represents 30% of public sector deposits) moved up by 0.7% MoM (+15.2% in 2024) in February.Private sector deposits expanded 1.1% MoM (+2.7% in 2024) in February. On the private sector front, the consumer segment increased by 1.2% MoM (+3.4% in 2024), while the companies and institutions’ segment gained by 0.9% MoM (+1.9% in 2024).Non-resident deposits added 0.7% MoM (+2.1% in 2024) in February.The overall loan book went down 0.5% in February 2024. Total private sector loans moved lower by 0.4% MoM (+0.5% in 2024). Consumption and others, general trade and real estate were the main drivers for the private sector loan drop.Consumption and others (contributes 21% to private sector loans) fell 1.5% MoM (+0.3% in 2024), while general trade (contributes 21% to private sector loans) moved down 0.5% MoM (+1% in 2024), and the real estate segment (contributes 20% to private sector loans) slid 0.4% MoM (+0.4% in 2024).However, the services (contributes 32% to private sector loans) moved up 0.6% MoM (+1% in 2024) in February.Outside Qatar loans edged down by 0.2% MoM (-1.1% in 2024) during February.Total public sector loans contracted 0.7% MoM (+5.7% in 2024) in February 2024. The government segment (represents 31% of public sector loans) was the main catalyst for the public sector with a drop by 3.2% MoM (+12.3% in 2024).However, the semi-government institutions’ gained 4.2% MoM (+4.8% in 2024) and the government institutions’ segment (represents 63% of public sector loans) rose marginally MoM (+2.8% in 2024).Qatar banking sector’s loan provisions to gross loans was at 3.8% in February, compared to 4% in January, QNBFS noted.An analyst told Gulf Times: “The banking sector continued to make sizeable gains in overall deposits, with both the public and private sector gaining by 2.2% and 1.1%, respectively. The public sector was pushed higher mainly by government institutions and semi-government institutions, while the private sector was lifted up by both the personal and companies and institutions”.

As demand for air travel rebounds to pre-pandemic levels, the cost of flights is soaring, compounded by escalating expenses such as baggage fees. These surging fees are reportedly placing a considerable strain on travellers' finances. .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[160148]** A recent study conducted by IdeaWorksCompany, a leading airline ancillary revenue consultancy, in collaboration with car rental firm CarTrawler, revealed that airlines worldwide raked in an estimated $33.3bn from baggage fees alone last year. This comprehensive report, analysing revenue disclosures from some 120 major airlines globally, underscores the significant financial impact of ancillary charges on travellers. Primarily focused on checked baggage, these fees also encompass additional charges for overweight bags and larger carry-ons. Notably, numerous North American carriers have recently upped the ante on checked bag prices, with higher fees imposed for last-minute or airport check-ins compared to online pre-flight arrangements. Several carriers are encouraging customers to pay to check their bags ahead of their flight, an approach the airlines argue will free up employees at check-in areas and get travellers to their gates faster. “Luggage fees are a big moneymaker for airlines”, according to CNBC. In the first nine months of 2023, US airlines brought in more than $5.4bn from baggage fees, up more than 25% from the same period of 2019, according to the Transportation Department’s latest data. Airlines have argued that higher costs such as labour and fuel, their biggest expenses, mean they had to raise bag fees. Some airlines are urging passengers to prepay for checked bags, citing streamlined check-in processes and expedited boarding as benefits. However, these additional charges are becoming a “lucrative” revenue stream for certain airlines, with US carriers reporting a staggering $5.4bn in baggage fees in the first nine months of 2023 alone, a 25% increase from pre-pandemic levels. While airlines argue that rising operational costs necessitate these fee hikes, industry experts caution that escalating baggage fees are driving more travellers to rely on carry-ons to avoid additional charges. Consequently, overhead storage space becomes increasingly scarce, resulting in delays and passenger inconvenience during boarding. "If you are charging for checked bags, you better start charging for carry-on as well," an official remarked. "Otherwise, people are going to do the only logical thing...they are going to shift from checked bags to carry-ons, which are free." The prevailing sentiment among experts suggests that the proliferation of ancillary fees, including baggage, seat selection, and priority boarding, substantially inflates the overall cost of travel, particularly impacting budget-conscious travellers and families. Budgeting for a trip becomes even more challenging when travellers are confronted with a myriad of potential add-on fees, often excluded from the initial ticket price, leading to unexpected financial burdens while travelling. Moreover, the proliferation of diverse fee structures and add-on options often complicates the booking process, requiring travellers to navigate through various offerings and decipher associated terms and conditions. The result is that travellers will have to navigate through various options and understand the terms and conditions associated with each add-on, which can be time-consuming and confusing. This lack of transparency impedes travellers' ability to compare prices effectively and make informed decisions, resulting in frustration and dissatisfaction among passengers. Pratap John is Business Editor at Gulf Times. Twitter handle: @PratapJohn