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Tribune News Network
Doha
Qatar's economy has shown stability and strength that enabled it to cope with the effects of the siege imposed by the Saudi-led bloc in June last year, the Qatar News Agency (QNA) said in an analysis published on Wednesday.
The measures taken by Qatar succeeded in limiting the repercussions of the siege and turned it into an opportunity, which resulted in the expansion and development of different sectors, QNA said on its website.
"To find alternative sources for the goods coming from the siege countries and to encourage self sufficiency, Qatar has adopted several new projects that have strengthened the economy," the report said.
They were led by the inauguration of the Hamad Port, which is one of the biggest ports in the region. Cutting investors' rent for using logistics areas in the southern parts of Qatar by 50 percent in 2018-2019, launching a network of highways, logistics centres and special economic zones across the country and establishing projects aimed at supporting innovation and young entrepreneurs were some of the other major initiatives undertaken by Qatar to beat the siege, QNA said.
Besides, Qatar also expanded economic partnerships with several countries in the region and around the world.
These projects, initiatives and directives — coupled with the efforts of the public and private sectors — worked wonders as statistics representing almost all areas of the economy indicated growth since June, the report said.
Qatar's GDP grew by 1.9 percent in the third quarter of 2017 — when the real GDP was estimated at QR208.92 billion — compared with the same period in 2016, it noted.
"Qatar's economy registered one of the fastest growth rates in the region, with the GDP between July and September rising nearly 2 percent from the same period last year. Most economic sectors grew by about 4 percent, with the exception of the hydrocarbon sector, which grew by about 20 percent."
Being the fastest growing economy in the region, Qatar currently grows at 2.5 percent as the government pumps money into developing infrastructure related to the 2022 FIFA World Cup, QNA said.
The building and construction sector grew by 15 percent, which is a sign of Qatar's strong economic performance despite the ongoing siege, the report added.
"To achieve a balanced industrial development, the government made efforts to support industries and offered incentives such as fee exemption for industrial machinery and raw materials, especially for the small and medium sized enterprises.
"The government also saw to it that there was increased contribution from the manufacturing industries to the gross national income by providing constant support to targeted industries in sectors such as food processing, agriculture, pharmacy, environment and knowledge industries."
These efforts led to establishment of 730 industrial units with investments worth more than QR260 billion.
Despite the instability in the world economy and the unjust siege imposed on Qatar, its economy has shown resilient performance. Its macroeconomic indicators, including GDP growth, trade, current account balance and inflation, have improved markedly. Exports and imports rose steadily in July and August and total exports increased by 17.7 percent in August from a year before.
In addition, there has been no interruption in Qatar's gas exports and the country has maintained a smooth supply of gas exports to its trading partners.
Inflation in the consumer price index (CPI) in the first nine months of last year was less than 1 percent compared with the same period in 2016.
While oil and gas exports continued uninterrupted, new trade routes were established and the government was keen to achieve a high level of economic self-sufficiency.
According to the latest report by IMF, the real GDP growth is expected to rise from 2.5 percent in 2017 to 3.1 percent in 2018. The Qatari economy is expected to prove resilient and local sectors will benefit from increased self-reliance.
By August, the latest available trade data showed imports rebounding by 40 percent to an almost pre-siege level, thanks to a rapid adaptation to the situation as well as the creation of alternative sources of import and the establishment of new trade routes.
The value of non-oil exports to all countries of the world in November 2017 was about QR1.8 billion, compared with QR1.7 billion ib October — an increase of about 5.9 percent compared with QR1.8 billion in the same month in 2016. The total value of non-oil exports during the first 11 months of last year was QR16.8 billion.
Qatar aspires to make tourism the main driver of its economic growth and attract more than 7 million visitors annually by 2030 as part of its economic diversification strategy.
The total revenue from tourists' spending in Qatar will reach $11 billion, up from $1.3 billion in 2012 and the proportion of leisure tourists to 64 percent, up from 27 percent in 2012.
This year, Qatar aims to emerge 35th globally in the"Competitiveness of Travel and Tourism" to increase the sector's contribution to GDP to $ 3.1 billion, reaching a total of 2.4 million international tourists and 1.7 million domestic tourists.
In view of the fruitful cooperation of Qatar with the World Tourism Organisation, the country's presence in the world tourism scene is expanding.
Qatar's efforts in the tourism scene are being followed by the opening of representative offices in several capitals, from London to Paris to Berlin, as well as the opening of a representative office in the southeast Asian market, with special focus on Singapore, Malaysia and Hong Kong.
Despite the siege, the incoming movement of tourists did not stop. The first half of 2017 witnessed a growth in the number of tourists visiting Qatar with expectations of an increase in this number in the coming period, especially after the announcement of visa waiver for citizens of 80 countries.
