DOHA: The construction and transport-related projects have led the revival in Qatar’s project awards in 2013. The first quarter of 2013 (1Q13) witnessed the maximum number of project awards in the construction sector, amounting to an estimated $13bn. The transportation sector awarding recorded the maximum in 2Q13 reaching $9bn.
NBK’s latest ‘Qatar Chart Book’ noted as a sign of rising demand for properties, Qatar’s real estate price index increased by 20 percent year-on-year in September this year.
Qatar’s population growth rate, at 10.3 percent year-on-year, is among the fastest in the world, it said.
Since LNG output peaked in 2012, the non-hydrocarbon sector has become the main driver of the country’s growth.
A segmented global gas market and rising energy demand in Asia especially from post-Fukushima Japan has benefited Qatar.
The NBK chart suggests Qatar’s inflation has slowed to 2.63 percent year-on-year in September; rising rental inflation has featured in all but two months of this year.
According to the NBK chart, Qatar posted a fiscal surplus of 11.8 percent of GDP in 2012 on the back of burgeoning revenues and restrained government spending.
The development spending has fallen short of government targets due to delays and difficulties in rolling out complex capital projects. Government debt (gross) reached 36 percent of GDP last year on the back of the government’s programme of domestic debt issuances.
Elevated hydrocarbon prices and rising exports of manufacturing products are contributing to the large account surplus. Burgeoning exports have allowed Qatar to build sizeable foreign currency reserves, equivalent to 17 months of import cover. The NBK chart noted overall credit growth has slowed this year largely as a result of a slowdown in lending to the government and the real estate sector. Deposit growth, driven by largely by government deposits in foreign currency, has also slowed - but is now outpacing credit growth.
The growth in commercial banks’ assets has moderated; credit outside Qatar, however, has expanded significantly.
While banks have issued more debt to fund their activities, they have also lessened their exposure to short-term inter-bank funds.
The Qatar Exchange (QE) rallied to 14.9 percent in September, and has been given a boost by its inclusion in the MSCI emerging markets index.
The Peninsula
