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Tribune News Network
Doha
Qatar was not only able to withstand the economic challenges of the pandemic better than its GCC peers, it is also well placed for recovery, buoyed by rising demand for LNG and downstream products in Asia, according to Oxford Business Group’s (OBG) latest COVID-19 Response Report on the country.
“Qatar, like the rest of the region, was hit hard by the COVID-19 pandemic and the sharp decline in hydrocarbons prices and demand in 2020. However, its economic recovery is expected to pick up in 2021, supported by plentiful natural gas reserves, high purchasing power among the population, construction activity related to the North Field expansion and the growth of non-hydrocarbons industries,” the report said. The 2022 FIFA World Cup would also help, it added.
OBJ noted that Qatar’s economy was in a resilient position at the start of the pandemic, having had invested heavily in upgrading its trade-related infrastructure and health care. These investments, the report noted, enabled the country absorb the economic shock and maintain one of the lowest COVID-19 mortality rates in the world since breakout.
The construction of the $7.4 billion Hamad Port, one of the largest container ports in the region, is a case in point. It has significantly boosted the country’s maritime trade capacity since its inauguration in 2017, the report said.
Qatar was also able to manage the economic fallout of the pandemic through fiscal and monetary measures, it added. The government’s QR75 billion fiscal stimulus was the cornerstone of Qatar’s economic policy response to the COVID-19 pandemic, with the package partly funded through a $10bn sovereign bond issuance in April 2020 that was oversubscribed.
OBG said trade faced disruptions in 2020 but began to recover as the year progressed.
Although sharp declines in monthly trade volumes were registered in March and April 2020 as the severity of the pandemic became apparent, Qatar maintained a positive trade balance throughout the year as volumes steadily increased.
Qatar’s export basket is quite evenly spread across four of Asia’s largest economies, and foreign trade is likely to receive a further boost in 2021 from accelerated growth in India and China in particular.
The report said diversification and development efforts are set to aid Qatar’s economic recovery, singling out Milaha’s diversification strategy and sustainable development plan for boosting Qatar’s resilience.
“[Milaha] entered the pandemic in a resilient position thanks to consistent profit growth. The company had also diversified its service offering, which meant that business areas impacted by the pandemic were compensated by positive performance elsewhere.”
Jana Treeck, OBG’s Managing Editor for the Middle East, said that while Qatar, like the rest of the region, was hit hard by the pandemic and the sharp decline in hydrocarbon prices in 2020, its economic recovery is expected to gain pace this year.
“Qatar is set to benefit from its strong relations with high-growth markets in Asia, where rising demand for LNG and downstream products will boost exports in 2021 and beyond,” Treeck said. “Looking ahead, we expect the ongoing development of downstream industries and emerging growth engines to further boost external trade and support Qatar’s efforts to diversify its economy, in line with the targets mapped out in the National Vision 2030.”
OBG’s COVID-19 Response Report on Qatar forms part of a series of tailored reports which the global research and advisory company is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Growth and Recovery Outlook articles and interviews.
Doha
Qatar was not only able to withstand the economic challenges of the pandemic better than its GCC peers, it is also well placed for recovery, buoyed by rising demand for LNG and downstream products in Asia, according to Oxford Business Group’s (OBG) latest COVID-19 Response Report on the country.
“Qatar, like the rest of the region, was hit hard by the COVID-19 pandemic and the sharp decline in hydrocarbons prices and demand in 2020. However, its economic recovery is expected to pick up in 2021, supported by plentiful natural gas reserves, high purchasing power among the population, construction activity related to the North Field expansion and the growth of non-hydrocarbons industries,” the report said. The 2022 FIFA World Cup would also help, it added.
OBJ noted that Qatar’s economy was in a resilient position at the start of the pandemic, having had invested heavily in upgrading its trade-related infrastructure and health care. These investments, the report noted, enabled the country absorb the economic shock and maintain one of the lowest COVID-19 mortality rates in the world since breakout.
The construction of the $7.4 billion Hamad Port, one of the largest container ports in the region, is a case in point. It has significantly boosted the country’s maritime trade capacity since its inauguration in 2017, the report said.
Qatar was also able to manage the economic fallout of the pandemic through fiscal and monetary measures, it added. The government’s QR75 billion fiscal stimulus was the cornerstone of Qatar’s economic policy response to the COVID-19 pandemic, with the package partly funded through a $10bn sovereign bond issuance in April 2020 that was oversubscribed.
OBG said trade faced disruptions in 2020 but began to recover as the year progressed.
Although sharp declines in monthly trade volumes were registered in March and April 2020 as the severity of the pandemic became apparent, Qatar maintained a positive trade balance throughout the year as volumes steadily increased.
Qatar’s export basket is quite evenly spread across four of Asia’s largest economies, and foreign trade is likely to receive a further boost in 2021 from accelerated growth in India and China in particular.
The report said diversification and development efforts are set to aid Qatar’s economic recovery, singling out Milaha’s diversification strategy and sustainable development plan for boosting Qatar’s resilience.
“[Milaha] entered the pandemic in a resilient position thanks to consistent profit growth. The company had also diversified its service offering, which meant that business areas impacted by the pandemic were compensated by positive performance elsewhere.”
Jana Treeck, OBG’s Managing Editor for the Middle East, said that while Qatar, like the rest of the region, was hit hard by the pandemic and the sharp decline in hydrocarbon prices in 2020, its economic recovery is expected to gain pace this year.
“Qatar is set to benefit from its strong relations with high-growth markets in Asia, where rising demand for LNG and downstream products will boost exports in 2021 and beyond,” Treeck said. “Looking ahead, we expect the ongoing development of downstream industries and emerging growth engines to further boost external trade and support Qatar’s efforts to diversify its economy, in line with the targets mapped out in the National Vision 2030.”
OBG’s COVID-19 Response Report on Qatar forms part of a series of tailored reports which the global research and advisory company is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Growth and Recovery Outlook articles and interviews.
