The economic recovery in Qatar continues to gain momentum despite challenging situation created by COVID-19 pandemic. Various sectors of the economy, including industrial production, hospitality, automobile, real estate and maritime, are showing signs of strong rebound in activity.
Qatar’s Industrial Production Index (IPI) for May 2021 stood at 105.8 points, showing an increase of 6 percent compared to the previous month (April 2021). When compared on year-on-year basis, the IPI index has increased by 1.7 percent compared to the corresponding month in 2020, according to the data released by the Planning and Statistics Authority.
The Industrial Production Index consists of three main components: ‘Mining’ with a relative importance of 83.6 percent, ‘Manufacturing’ with a relative importance of 15.2 percent, ‘Electricity’ with a relative importance of 0.7 percent, and finally ‘Water’ with a relative importance of 0.5 percent.
The index of mining sector showed an increase by 5.9 percent compared to the previous month (April 2021), because of the increase in the quantities of ‘crude oil petroleum and natural gas’ by 5.9 percent,
For automobile sector, the total number of registered new vehicles during May this year has reached 4695 new vehicles showing an annual increase of 150 percent compared to same month last year, according to the 89th issue of Qatar; Monthly Statistics bulletin released by the Planning and Statistics Authority.
In the hospitality sector, hotel occupancy and Average Daily Rates (ADRs) have improved in Qatar during the second quarter compared to same quarter in 2020 due to the boost from growing domestic tourism, according to the second quarter 2021 review issued by leading regional consulting firm ValuStrat. The real estate report noted a surge in transactions volume and value compared to 2020 and 2019 (pre-COVID). Rents of warehouses also expanded during the quarter.
Mwani Qatar reported a surge of 22 percent YoY in Twenty-Foot Equivalent Units (TEUs) during H1 2021 in three ports: Hamad, Ruwais and Doha. Overall, average asking rents for dry/ambient warehouses was QR 43 per sqm, increased 5 percent compared to Q1 2021 and 1 percent over one year.
Country’s tourism sector is also witnessing recovery. According to the report, domestic tourism has primarily led occupancy of hospitality properties with average occupancy during the first two months of 2021 was estimated at 56 percent, up 10 percent YoY. There was also a recovery in the Average Daily Rate as hotels witnessed an increase of 26 percent compared to the same period last year.
The total deposits and credit facilities of commercial banks increased at an annual rate of 11.3 percent and 13.6 percent, respectively compared to May 2020.
