Qatar lifts growth forecast to 6.3 per cent

Qatar’s economy is likely to grow 6.3 per cent this year, much faster than previously expected and well ahead of other oil exporting Gulf states, helped by robust domestic demand, a report showed on Tuesday.

By (Reuters)

Published: Thu 26 Jun 2014, 12:08 AM

Last updated: Sat 4 Apr 2015, 3:15 AM

Gross domestic product growth in the world’s top exporter of liquefied natural gas is forecast to hit 7.8 per cent in 2015, its fastest rate since 2011, said the report of the Ministry of Development Planning and Statistics. It was 6.5 per cent in 2013.

“Although receding hydrocarbon output is seen checking overall growth in 2014, with the commissioning of the Barzan gas project in 2015 a step increase in gas output is expected, taking aggregate growth higher,” the ministry said.

By comparison, Qatar’s fastest-growing neighbour, the UAE, is expected to expand by 4.3 per cent this year. Qatar had previously forecast 2014 growth of 4.6 per cent, citing reduced output from maturing oil fields.

The Opec member’s fiscal surplus is forecast to narrow to 9.3 per cent of GDP in calendar 2014 and to 5.5 per cent in 2015 from an estimated 12.9 per cent in 2013, as the government’s large investment programme gathers pace ahead of hosting the 2022 Fifa World Cup.

In the 2013-14 fiscal year, which ended in March, the government’s overall surplus was estimated at QR94.6 billion ($25.98 billion), equivalent to 12.6 per cent of GDP and up from 11.2 per cent in the previous year, the report said.

France wins tram deal

Meanwhile, French conglomerates Alstom and Vinci signed a €2 billion ($2.72 billion) deal with Qatar to build a tram system in the future Lusail City, while the two countries also discussed a possible defence contract.

The deal, which will see the light rail system starting to operate in 2018-20, was signed in front of journalists during a visit to Paris by the Amir of Qatar, His Highness Shaikh Tamim bin Hamad Al Thani.

One of the Gulf’s largest real estate developments, Lusail City is expected to house up to 200,000 people and contain commercial districts including the $275 million Marina Mall project, 22 hotels, four islands and two golf courses.

The estimated $45 billion development will also feature the 80,000-seat Lusail Stadium, where the championship match of the 2022 Fifa World Cup will be played.