Qatar’s fiscal account surplus will widen in 2022 owing to recovering global oil and gas prices, easing public debt pressures, the Economist Intelligence Unit (EIU) has said in a report.
The country’s macroeconomic indicators have improved in 2021, with positive economic growth resuming both globally and domestically, EIU said in its latest economic update.
Qatar's debt obligations are high, but its ability to fully service them is not in doubt, with the support of ample foreign reserves and the assets of the Qatar Investment Authority (QIA, the sovereign wealth fund), EIU said.
According to EIU the riyal's peg to the US dollar will continue to be backed by healthy foreign reserves and QIA assets.
EIU has put the currency risk rating at ‘BBB’. The rating is supported by elevated international hydrocarbons prices and a widening current-account surplus, and by rebounding financing and liquidity metrics.
According to the researcher, the country’s banking sector risk is ‘BB-rated’. The net negative foreign-asset position of banks is large but stable.
The sector is well regulated, and although net external liabilities pose risks, strong prudential indicators insulate banks from a deterioration in asset quality arising from the longer-term impact of the 2020 recession. The non?performing loan ratio is low, and profitability levels are moderate.
Economic structure risk is BB-rated. Qatar's over-reliance on hydrocarbons exports remains a vulnerability, exposing the country to global energy price movements.
The Qatar National Vision 2030 diversification programme will shape policy. Qatar's large stock of public debt weighs on the outlook, but a sound financial system is supportive, EIU said.
In an earlier update, EIU said Qatar's overall business environment score has improved from 6.56 for the historical period (2016-20) to 7.35 for the forecast period. This has helped Qatar's global ranking to improve by eight places from 36th to 28th, although its regional ranking remains steady at third. The largest improvements, in terms of scores, are in the categories of infrastructure and market opportunities.
Qatar's fairly open foreign investment regime, open trading relationships with regional partners and sophisticated capital markets will remain strong aspects of its business environment. The main shortcomings are in policy towards private enterprise and competition and in access to financing for small and medium-sized enterprises, EIU said.
The country’s macroeconomic indicators have improved in 2021, with positive economic growth resuming both globally and domestically, EIU said in its latest economic update.
Qatar's debt obligations are high, but its ability to fully service them is not in doubt, with the support of ample foreign reserves and the assets of the Qatar Investment Authority (QIA, the sovereign wealth fund), EIU said.
According to EIU the riyal's peg to the US dollar will continue to be backed by healthy foreign reserves and QIA assets.
EIU has put the currency risk rating at ‘BBB’. The rating is supported by elevated international hydrocarbons prices and a widening current-account surplus, and by rebounding financing and liquidity metrics.
According to the researcher, the country’s banking sector risk is ‘BB-rated’. The net negative foreign-asset position of banks is large but stable.
The sector is well regulated, and although net external liabilities pose risks, strong prudential indicators insulate banks from a deterioration in asset quality arising from the longer-term impact of the 2020 recession. The non?performing loan ratio is low, and profitability levels are moderate.
Economic structure risk is BB-rated. Qatar's over-reliance on hydrocarbons exports remains a vulnerability, exposing the country to global energy price movements.
The Qatar National Vision 2030 diversification programme will shape policy. Qatar's large stock of public debt weighs on the outlook, but a sound financial system is supportive, EIU said.
In an earlier update, EIU said Qatar's overall business environment score has improved from 6.56 for the historical period (2016-20) to 7.35 for the forecast period. This has helped Qatar's global ranking to improve by eight places from 36th to 28th, although its regional ranking remains steady at third. The largest improvements, in terms of scores, are in the categories of infrastructure and market opportunities.
Qatar's fairly open foreign investment regime, open trading relationships with regional partners and sophisticated capital markets will remain strong aspects of its business environment. The main shortcomings are in policy towards private enterprise and competition and in access to financing for small and medium-sized enterprises, EIU said.
