A glorious year for Qatari economy
DOHA THE Year 2011 was a recordbreaking year for the Qatari economy, reaffirming Qatar’’s position as one of the world’’s fastest growing economy amid fears of the ongoing European sovereign debt crisis and the US budget deficit.
In 2010 Qatar achieved a 16 percent growth rate, and is projected to reach 20 percent growth in 2011driven by Qatar National Vision 2030’’ (QNV 2030) aimed at cultivating a “ knowledgebased economy.” Qatar’’s nominal gross domestic is expected to jump from 547 billion riyals ($150 billion) this year to QR 775 billion in 2016, according the statistics announced by the first National Development Strategy (NDS) 2011-2016 meant to translate the QNV 2030 into specific actions and targets.
The five year NDS predicts that the country’’s gross domestic investment will reach QR820 billion.
With record growth rates, the Qatari economy has pursued a path of development. In fact, Qatar’’s real GDP jumped by around 16.6 percent in 2010 while the GDP yearly growth reached 15.7 percent during 2006-2010. Qatar has developed a long-term programme of diversification into a more broadly based economy.
Established as a key innovator in the global LNG market after achieving 77 million tonnes per annum (Mta) of liquefied natural gas (LNG) production capacity, Qatar succeeded during this year to launch a number of projects that would enhance its place as a major player in LNG and (Gas To Liquified) GTL industries.
Launched in November, the $10.3 billion Barzan project, will able Qatar to produce 14 million tonnes of liquefied petroleum gas (LPG) yearly, four million tonnes more than current production average of LPG.
The Barzan project will help meet growing domestic energy demand in the world’’s top liquefied natural gas exporter. Besides 1.4 billion cubic feet a day of lean sales gas, which is mainly methane, Barzan’s Ras Laffan facility will also produce about 29,000 barrels per day (bpd) of both field and plant condensates, 1,900 tonnes per day (tpd) of ethane, 860tpd of propane and 680tpd of butane,.
The first Barzan gas production line is expected to become operational in 2014 with the second in 2015, with an initial production of 700 million cubic feet a day.
Qatar has successfully managed national strategies and plans thanks to the continuous pursuit of partnerships that help transfer experiences through establishing giant projects locally and abroad to take advantage of Qatar’’s richness in gas and oil and guarantee a diverse economy for future generations.
QP agreements with China National Petroleum Corporation (CNPC) and Royal Dutch Shell to build a refining and petrochemical complex in Taizhou, China stand out as a remarkable partnership.
Economic feasibility studies started for the agreement that was signed in October. QP negotiated oil and gas projects abroad such as engaging in talks to take a stake in the Arctic LNG project of Yamal developed by second biggest Russian gas producer Novatek.
Yamal project will develop the South Tambey field located in the Arctic area of Yamal peninsula.
Qatari expansion in LNG field continued in 2011 with Qatari firms RasGas and Qatargas signing longterm deals with North American countries to supply them with LNG.
Launching such a huge number of multi-billion dollar projects is done according to well-advised economic feasibility studies that go in line with budgets, and put the projects away from investment risks.
Qatar recorded its largest budget ever in 2011-2012 both quantitatively and qualitatively. On the quantitative side, Qatar’’s total estimated revenue increased to QR162.474 billion, 27 percent more than previous fiscal year, while total estimated expenditure was QR139.93 billion, an increase of 19 per cent from figures of last fiscal year.
Rises in expenses and revenues meant Qatar managed a surplus of QR 22.5 billion as price of a barrel of oil is set at $55 while calculating budgets of the two fiscal years. On the qualitative side, Qatar continued its steady progress towards sustainable development according to its developmental policy seen in finalising LNG projects ahead of schedule to take the country’’s production capacity to 77 million cubic metric tonnes per annum compared to a total production capacity of 30 million cubic metric tonnes in 2008.