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Satyendra Pathak
Doha
Qatar’s export volume is expected to increase significantly this decade as Qatar Petroleum (QP) has commissioned six new LNG trains and a new petrochemical cracker capable of producing 1.9 million tonnes of ethylene per year, Oxford Business Group (OBG) has said in its latest report.
These projects will boost LNG output by 64 percent by 2027 and polyethylene by 82 percent by 2025, QBG said citing QP estimates.
“There will also be implications for many of QP’s downstream subsidiaries and joint ventures, some of which are trading products that are not directly tied to the price of oil. The vast North Field contains only a 0.04 percent trace of helium, but the scale of the deposit means this could meet total global demand for the next 30 years,” the report said.
The two plants supply between 25 percent and 30 percent of the world’s helium at full capacity, the report said adding the third plant is due to come on-line in mid-to-late 2020.
In line with Qatar National Vision 2030, the government has been working to transform the economy to create export-focused manufacturing clusters that could ensure fewer planes and ships that import goods into Qatar leave comparatively empty.
Qatar’s wealth of hydrocarbons puts it at the centre of global trade as its LNG is feeding factories in China and powers stations in Japan, while its helium is used in everything from MRI scanners to aircraft parts.
“The revenue that has flowed into Qatar in the two and a half decades since gas exports were first shipped from its ports has enabled the country to build an investment portfolio that includes prominent London landmarks, as well as significant stakes in a leading Swiss bank and one of the world’s most valuable car manufacturers,” the report said.
“There are signs the country’s sovereign wealth fund is pursuing new global investment strategies aligned with technology and green infrastructure, while on the home front, investors are working to develop industrial segments that can draw on Qatar’s multiple economic strengths to make innovative products that can leverage its modern port and airport infrastructure to develop new overseas markets,” it said.
Qatar is dealing with the impact of the Covid-19 pandemic, which has put pressure on economic activity, including trade, and health care systems around the world.
In the face of adversity, the report said, Qatar has become significantly more self-sufficient for some goods while ensuring continuity in other imports by swiftly switching trading lanes.
“In 2020, QTerminals, the operator of Hamad Port, plans to double its container capacity at the facility, allowing it to handle an additional 2 million twenty-foot equivalent unit (TEUs) from 2021,” the report said.
To leverage the strengths of its air and sea trade sectors, the report said, the Qatar Free Zones Authority (QFZA) was created in 2018. Its two flagship zones are Ras Bufontas, near Hamad International Airport, and Umm Alhoul, adjacent to Hamad Port focus on sectors where Qatar has a strong value proposition and identified logistics, chemicals, and new technologies as target growth areas.
By March 2020, QFZA had approved projects worth more than QR3 billion. The country’s focus on diversification is providing food for thought for Qatari conglomerates.
“Although we are currently focusing on our core businesses, we would like to create a division in the future with an annual investment fund to provide seed funding for technology start-ups,” Salam International CEO AbdulSalam Abu Issa told OBG. Creating manufacturing clusters in its free zones should also enable businesses to establish factories in the country to share related expertise.
Financial services companies already benefit from the Qatar Financial Centre (QFC), which has its own tax and regulatory infrastructure, including a legal system based on UK common law.
Over 500 firms from 60 countries are based in the QFC, employing 3500 people with combined assets under management totaling more than $20 billion, the report said.
Doha
Qatar’s export volume is expected to increase significantly this decade as Qatar Petroleum (QP) has commissioned six new LNG trains and a new petrochemical cracker capable of producing 1.9 million tonnes of ethylene per year, Oxford Business Group (OBG) has said in its latest report.
These projects will boost LNG output by 64 percent by 2027 and polyethylene by 82 percent by 2025, QBG said citing QP estimates.
“There will also be implications for many of QP’s downstream subsidiaries and joint ventures, some of which are trading products that are not directly tied to the price of oil. The vast North Field contains only a 0.04 percent trace of helium, but the scale of the deposit means this could meet total global demand for the next 30 years,” the report said.
The two plants supply between 25 percent and 30 percent of the world’s helium at full capacity, the report said adding the third plant is due to come on-line in mid-to-late 2020.
In line with Qatar National Vision 2030, the government has been working to transform the economy to create export-focused manufacturing clusters that could ensure fewer planes and ships that import goods into Qatar leave comparatively empty.
Qatar’s wealth of hydrocarbons puts it at the centre of global trade as its LNG is feeding factories in China and powers stations in Japan, while its helium is used in everything from MRI scanners to aircraft parts.
“The revenue that has flowed into Qatar in the two and a half decades since gas exports were first shipped from its ports has enabled the country to build an investment portfolio that includes prominent London landmarks, as well as significant stakes in a leading Swiss bank and one of the world’s most valuable car manufacturers,” the report said.
“There are signs the country’s sovereign wealth fund is pursuing new global investment strategies aligned with technology and green infrastructure, while on the home front, investors are working to develop industrial segments that can draw on Qatar’s multiple economic strengths to make innovative products that can leverage its modern port and airport infrastructure to develop new overseas markets,” it said.
Qatar is dealing with the impact of the Covid-19 pandemic, which has put pressure on economic activity, including trade, and health care systems around the world.
In the face of adversity, the report said, Qatar has become significantly more self-sufficient for some goods while ensuring continuity in other imports by swiftly switching trading lanes.
“In 2020, QTerminals, the operator of Hamad Port, plans to double its container capacity at the facility, allowing it to handle an additional 2 million twenty-foot equivalent unit (TEUs) from 2021,” the report said.
To leverage the strengths of its air and sea trade sectors, the report said, the Qatar Free Zones Authority (QFZA) was created in 2018. Its two flagship zones are Ras Bufontas, near Hamad International Airport, and Umm Alhoul, adjacent to Hamad Port focus on sectors where Qatar has a strong value proposition and identified logistics, chemicals, and new technologies as target growth areas.
By March 2020, QFZA had approved projects worth more than QR3 billion. The country’s focus on diversification is providing food for thought for Qatari conglomerates.
“Although we are currently focusing on our core businesses, we would like to create a division in the future with an annual investment fund to provide seed funding for technology start-ups,” Salam International CEO AbdulSalam Abu Issa told OBG. Creating manufacturing clusters in its free zones should also enable businesses to establish factories in the country to share related expertise.
Financial services companies already benefit from the Qatar Financial Centre (QFC), which has its own tax and regulatory infrastructure, including a legal system based on UK common law.
Over 500 firms from 60 countries are based in the QFC, employing 3500 people with combined assets under management totaling more than $20 billion, the report said.
