DOHA:Standard Chartered's 'The Bank' recent global research highlights Qatar's ability to restore government revenues to pre-2014 oil price shock levels and notes that it is on track to double the size of its economy by 2031.
This significant recovery is a testament to Doha's strategic positioning within the global energy market and its ongoing efforts in economic diversification.
Chief Executive Officer and Head of CCIB at Standard Chartered Muhannad Mukahall said: "Qatar's return to pre-2014 government revenue levels marks a significant milestone in its economic journey."
"However, this achievement was neither coincidental nor accidental but in fact strategically driven by a combination of higher hydrocarbon prices, increased global demand for LNG, and substantial economic diversification efforts within sectors such as manufacturing, tourism, and finance. This is a remarkable turnaround and one that is welcome as we continue to face volatile oil prices and an ever-shifting, vulnerable geopolitical landscape," he added.
The report pointed out the pivotal role played by the State of Qatar in the liquefied natural gas (LNG) market, as the increase in oil and gas prices, along with the rise in hydrocarbon prices and the increase in global demand for energy, contributed to strengthening this strong economic recovery.
The report indicated that the State of Qatar, through its ambitious strategy, seeks to strengthen its position as a major player in the global LNG market, as evidenced by the massive expansion project of the North Field, which is expected to increase gas production by 85 percent by 2025.
The bank's recent Global Focus Economic Outlook Q2-2024 forecast points towards a 'calm before the upsized gas boom.' The Bank's research expects Qatar's gas production to last for 140 as per the current rate.
The Third National Development Strategy (2024-2030), which was launched at the beginning of this year, has formed the cornerstone of economic diversification efforts and has achieved tangible results, such as its contribution to enhancing state revenues, reducing economic dependence on hydrocarbons, and increasing the economy's flexibility in the face of global fluctuations.
The report pointed out that Qatar's non-oil economy comprises two-thirds of Qatar's GDP and has seen significant contributions from sectors such as real estate and construction, financial services, trade, manufacturing, logistics, and tourism. Such sectors have not only created new revenue streams but also provided employment opportunities, supported by substantial infrastructure investments.
