Latest news with #QatarEconomy
Zawya
12 hours ago
- Business
- Zawya
World Bank projects Qatar's economy to grow at an average of 6.5% in 2026-2027
Riyadh: The World Bank projected that the economic growth in the State of Qatar is to remain stable at 2.4% in 2025, before accelerating to an average of 6.5% in 2026-2027 due to the expansion of LNG capacity. These improved prospects are supported by strong non-hydrocarbon growth, particularly in education, tourism, and services, the World Bank said in its report "Gulf Economic Update." The hydrocarbon sector is expected to growth timidly in 2025 (0.9%), before undergoing a significant boost in 2026 thanks to the North Field LNG expansion coming online, supporting a 40% rise in LNG output. Non-hydrocarbon growth is expected to remain robust thanks to infrastructure upgrades and international investments, the report said. "Economic growth across the Gulf Cooperation Council (GCC) is projected to increase in the medium-term to 3.2% in 2025 and 4.50% in 2026. This growth is likely to be driven by the expected rollback of OPEC+ oil production cuts and robust expansion of non-oil sectors," according to the report. According to the latest edition of the report, regional growth was 1.7% in 2024 - an improvement from 0.3% in 2023. The non-hydrocarbon sector remained resilient, expanding by 3.7% - largely fueled by private consumption, investment, and structural reforms across the GCC. At the same time, global trade uncertainty presents challenges, as a global economic slowdown remains a key downside risk for the region. To mitigate these risks, GCC countries need to accelerate economic diversification reforms and strengthen regional trade. "The resilience of GCC countries in navigating global uncertainties while advancing economic diversification underscores their strong commitment to long-term prosperity," Division Director for the GCC countries at the World Bank Safaa El Tayeb El-Kogali said. "Strategic fiscal policies, targeted investments, and a strong focus on innovation, entrepreneurship, and job creation for youth are essential to sustaining growth and stability," she added. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arabian Business
10-06-2025
- Business
- Arabian Business
Qatar Islamic finance assets hit $188bn
Islamic finance assets in Qatar grew by 4.1 per cent to reach QR683bn ($187.6bn) in 2024, according to a report by Bait Al Mashura Financial Consulting. The report, which monitors the business results of Islamic finance institutions for 2024, showed that Islamic banks accounted for 87.4 per cent of these assets, while Islamic sukuk accounted for 11.2 per cent, Takaful insurance companies accounted for 0.7 per cent, and the remaining shares were distributed among investment funds and other Islamic financial institutions. It also noted that Islamic banks' assets grew by 3.9 per cent in 2024, reaching QR585.5bn ($160.8bn). Islamic finance in Qatar Deposits also rose by 8.2 per cent to QR 339.1bn ($93.2bn), with private sector deposits accounting for 57 per cent. Financing reached QR401.5bn ($110.3bn), a 4.9 per cent increase, primarily directed towards the real estate and government sectors, followed by personal financing. Revenues grew by 12.6 per cent to QR29.5bn ($8.1bn), and profits reached QR8.7bn ($2.4bn), a 6 per cent growth rate. As for Takaful insurance sector, the report stated that Takaful insurance companies' assets grew by 7.1 per cent year-on-year, reaching QR5.1bn ($1.5bn) in 2024. Policyholder assets also grew by 6.3 per cent, reaching QR2.6bn ($714m), while insurance subscriptions increased by 18.6 per cent, exceeding QR1.9bn ($522m). Takaful insurance companies' operating results varied between achieving insurance surpluses and recording insurance deficits. Regarding Islamic finance companies, the report stated that their assets reached QR2.53bn ($695m), a marginal increase of 0.8 per cent year-on-year in 2024. Financing provided by these companies increased by 5.7 per cent to QR1.9bn ($522m), and their revenues reached QR277.2m ($76m), a 14.7 per cent increase. Revenues from financing and investment activities represented 84 per cent of the total revenues. The operating results of Islamic finance companies varied between achieving profits totalling more than QR178.5m ($49m) and incurring losses of approximately QR12m ($3.3m). Regarding Islamic investment companies, the report indicated that the assets of the two Islamic investment companies grew by 5.2 per cent, reaching QR549.5m ($151m), while their revenues reached QR59.7m ($16.4m), a growth of 44.1 per cent. Their operating results varied between achieving profits and incurring losses, with profits amounting to QR17.5m ($4.8m). In the field of Islamic Sukuk, Islamic Sukuk issuances increased by 161 per cent. Islamic banks issued Sukuk worth QR9.5bn ($2.6bn) in 2024, a 300 per cent increase. Qatar Central Bank issued Sukuk worth QR16.9bn ($4.6bn) in 2024, a 118.5 per cent increase compared to 2023. Regarding Islamic investment funds, the report noted that assets of these funds amounted to QR944.6m ($259.5m), a 1 per cent increase, and their performance varied during 2024. On the Qatar Stock Exchange, the Al Rayan Islamic Index closed up 2.23 per cent, while the performance of listed Islamic finance companies varied between increases of 2.3 per cent and decreases of 19.6 per cent. According to the report, the Islamic financial sector in the State of Qatar is divided into four main sectors: Islamic banks Takaful insurance companies Islamic finance companies Islamic investment companies In addition, there are Islamic finance products such as Sukuk, investment funds, and Islamic indices. Dr. Khalid bin Ibrahim Al Sulaiti, Vice Chairman of Bait Al Mashura Financial Consulting, said: 'The Islamic Finance in Qatar Report monitors the performance of Islamic finance institutions in the country, including Islamic banks, Takaful insurance companies, and Islamic finance and investment companies. 'It also reviews the performance of Islamic financial products, such as investment funds and Islamic sukuk, tracks the movement of the Islamic financial market, and provides an analysis of the overall performance of the Qatari economy.' He added that Qatar is consolidating its position as a major centre for the Islamic finance industry globally, and growth prospects appear promising. Meanwhile, the sector itself witnessed significant transformations and qualitative developments in performance, expansion, and supporting technologies over the past year. This reinforces the need to keep pace with these changes through data analysis and trend monitoring, in order to provide a more comprehensive and accurate vision of the present and future prospects, striving to achieve a balance between Sharia dimensions, development goals, and economic and social sustainability.
Zawya
09-06-2025
- Business
- Zawya
Resilient non-oil sectors to keep Qatar's economy afloat in 2025
Doha, Qatar: Qatar's economy is expected to remain on stable footing in 2025, buoyed by steady growth in non-hydrocarbon sectors and a slight recovery in hydrocarbon output, according to a recent analysis by Fitch Solutions. While global economic uncertainty and softening energy prices have led to a downward revision in the country's growth forecast from 2.9 percent to 2.6 percent, Fitch reports that Qatar's diversified growth drivers and long-term energy export contracts will shield it from more severe global shocks. Fitch revised Qatar's real GDP growth forecast for 2025 down to 2.6 percent, citing lower global energy prices and increased investor caution amid elevated international uncertainty. The updated figure is a slight reduction from the previously expected 2.9 percent but still represents a modest improvement over 2024's estimated 2.4 percent growth. Notably, Fitch remains more optimistic than the International Monetary Fund (IMF), which forecasts 2.4 percent growth for a second consecutive year. Analysts emphasises that the direct impact of recent US tariffs on Qatar will be minimal. Exports to the United States comprise just 1.5 percent of Qatar's total exports and less than 1 percent of GDP. Moreover, most of these exports are exempt from tariffs, resulting in an effective rate of just 6.4 percent well below the rates faced by many other MENA economies. 'We believe Qatar is largely insulated from weaker growth in key trading partners such as China, thanks to its reliance on long-term hydrocarbon export contracts,' Fitch analysts noted. This export model has proven resilient, limiting exposure to short-term global demand shocks. Instead, the downward revision stems primarily from anticipated softness in non-hydrocarbon sectors, particularly construction and real estate. Weaker energy revenues are expected to dampen both public and private investment, as lower oil and gas prices prompt a more cautious approach from investors. As a result, Fitch lowered its forecast for non-hydrocarbon growth from 3.8 percent to 3.4 percent. However, not all sectors are slowing. Manufacturing is projected to rebound in 2025 following a 2.2 percent contraction in 2024, and the financial sector is set to benefit from expected interest rate cuts. Fitch also pointed to signs of resilience in household consumption, supported by slowing inflation, rising wages, and population growth. 'Purchasing Managers Index (PMI) data from early 2025 shows stronger non-hydrocarbon activity compared to Q1 2024, especially in manufacturing, services, and retail,' the report stated. 'This reinforces our view that these sectors will continue to support overall economic growth.' On the hydrocarbon side, growth is forecast to rise slightly from 0.6 percent in 2024 to 0.9 percent in 2025, supported by a 1.6 percent rebound in oil and gas output. The sector is expected to gain further momentum in 2026, with output projected to jump 5.2 percent as capacity expansions from the North Field come online. The data also shows that Qatar's external accounts remain strong. Although the current account surplus is expected to narrow from 17.4 percent of GDP in 2024 to 10 percent in 2025 due to lower hydrocarbon revenues, the surplus is still large enough to maintain confidence in the riyal's US dollar peg. In terms of monetary policy, Fitch forecasts that the Qatar Central Bank (QCB) will follow the US Federal Reserve in easing rates, but at a slightly more aggressive pace. The QCB is expected to cut policy rates by 120 basis points starting in July 2025, compared to 100 basis points anticipated by the Fed. Since October 2024, QCB rate cuts have consistently outpaced the Fed's by 5 basis points per move. Despite the challenges, Fitch Solutions underscores Qatar's relative economic resilience in the region. The report added, 'Strong fundamentals, long-term contracts in hydrocarbons, and targeted government spending will continue to provide a floor under growth.' © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arabian Business
04-06-2025
- Business
- Arabian Business
Qatar posts $138m budget deficit in Q1 2025
Qatar recorded a budget deficit of QR500m ($138m) in the first quarter of 2025, according to data released by the Ministry of Finance (MoF). The deficit, which covers the months of January through March, was financed through debt instruments, the ministry confirmed via its official statement on social media platform X. The total revenues for Q1 2025 stood at QR49.4bn ($13.56bn), marking a 7.5 per cent decrease compared to the same period in 2024. Breaking down the revenue: Oil and gas revenues amounted to QR 42.5bn ($11.68bn) Non-oil revenues contributed QR 6.9bn ($1.9bn) On the expenditure side, Qatar spent QR49.9bn ($13.7bn) in Q1 2025, reflecting a 2.8 per cent year-on-year decrease. Spending was distributed across key categories: Salaries and wages: QR16.9bn ($4.64bn) Current expenditures: QR18.5bn ($5.08bn) Major capital expenditures: QR13.1bn ($3.59bn) Minor capital expenditures: QR 1.2bn ($330m) Qatar economy The MoF also reported that government procurement contracts during Q1 2025 totalled QR6.4bn ($1.76bn). Notably, contracts awarded to foreign firms reached QR1.5bn ($412m) — a 50 per cent surge compared to Q1 2024, underscoring Qatar's expanding engagement with international partners. Among sectors leading economic activity based on the Business Activity Index were: Municipality and environment Health Energy
Zawya
04-06-2025
- Business
- Zawya
Qatar records budget deficit of $133mln in first quarter
DUBAI - Qatar recorded a budget deficit of 0.5 billion riyals ($133.31 million) in the first quarter of 2025, which was covered through debt instruments, the finance ministry said on Tuesday. Total revenue in the quarter stood at 49.4 billion riyals, down 7.5% from the same quarter last year. Non-oil revenue accounted for 6.9 billion riyals of total revenue. Government spending fell around 2.8% year-on-year to 49.94 billion riyals. Qatar, which is among the world's biggest exporters of liquefied natural gas (LNG), has stepped up efforts to diversify its economy away from hydrocarbons but remains reliant on gas revenue for the majority of government income. ($1 = 3.7506 riyals) (Reporting by Jana Choukeir; Editing by Andrew Heavens and Rachna Uppal)
