Qatar continues to attract global investors which are pouring in capital to participate in the country’s all round growth story. At the end of Q4, 2018, Qatar’s inward foreign investments amounted to QR711.8bn, according to the Planning and Statistics Authority (PSA) in its foreign investment survey.
Other foreign investments accounted for 69 percent or QR491bn, followed by foreign direct investment in Qatar at QR117.9bn or 17 percent and portfolio investments at QR99.8bn or 14 percent of the total liabilities.
On a quarterly basis, total outward foreign investments gained one percent as portfolio investments expanded about six percent.
Qatar’s assets with non-residents increased by QR3.9bn from QR385.2bn at the end of the previous quarter to QR389.1bn. Other foreign investments consisting of long-term loans and trade related short term financial instruments accounted for 53 percent or QR205bn of the total assets, followed by foreign direct investment abroad at QR146.2bn or 38 percent and portfolio investments (financial securities) at QR37.5bn or 10 percent.
Qatar’s growth story is confirmed by the Purchasing Managers’ Index (PMI) readings. At 50.5 in January, up from 50.1 in December, the latest Qatar Financial Centre PMI indicated a solid improvement in overall business conditions across the non-oil & gas private sector. Driving the latest improvement was a series-record increase in employment, while both short-term output and new business measures ebbed slightly. Businesses remained strongly confident regarding expected activity at the start of 2019.
The QFC’s new strategic plans will promote Qatar as a natural hub for innovative digital, media, sports, and financial services, providing a solid basis for foreign direct investments in those growing fields. The QFC’s strategy includes an emphasis on new emerging markets that are collectively worth over $2.1 trillion, with Qatar and the QFC well positioned to serve as a gateway to these lucrative and fast-growing economies. One of the QFC’s partnership goals is to establish a new financial city in Msheireb Downtown Doha, one of the world’s smartest and most sustainable cities.
QFC’s focus on the digital, media sports and financial service industries is aligned with Qatar’s existing positioning in those fields.
In the sports industry alone, Qatar has already established world-class infrastructure thanks to robust investments, and has leveraged this by hosting international sporting events, which are set to bring even more economic impetus, with the sports industry estimated to be valued at $20bn by 2023. All these initiatives will make Qatar more attractive for global investors.
