DOHA: Business optimism in Qatar has soared to its highest in nearly three years according to the Dun & Bradstreet Business Optimism Index for Qatar in the fourth quarter of 2013. The index reveals that optimism is at a level unsurpassed for 11 quarters.
Sponsored by the Qatar Financial Centre Authority (QFC Authority), the survey also reveals that optimism in the Finance, Real Estate and Business Services sector has reached its highest level in the last three years. At a year on year growth of 15.4 percent, the sector has been the fastest growing business sector in Qatar.
The index for the consolidated non-hydrocarbon sector was 53, up 14 points from Q3 2013 and around 15 points from Q4 2012 levels. The index value in Q4 2013 is the highest recorded reading since Q1 2011, when it touched 61 points, showing that economic diversification in Qatar is gathering momentum.
Other indicators also provide evidence for the strength of Qatar’s economy. The profitability expectations of the Finance, Real Estate and Business Services sector have risen sharply over the last year (58 points in Q4 2013 from 21 points in Q4 2012). At the same time, nearly 50 percent of small - and medium-sized companies surveyed in the sector plan to hire in Q4 of this year.
Optimism for the hydrocarbons sector is at the highest level (29, up from 17 in Q4 2012 and 13 in Q3 2013) it has been in the last two years, supported by a positive outlook for sales volumes, profits and hiring.
The business optimism for the manufacturing sector is at the peak level (53, up from 33 in Q4 2012 and 35 in Q3 2013) for three years, driven by a very optimistic outlook for sales and demand, which is the highest among the non-hydrocarbon sectors.
Construction is at the most optimistic (53, up from 29 in Q4 2012 and 36 in Q3 2013) level it has been in the last three years, partly because of sharp rises in expectations for selling prices and profits and strongly supported by the sector’s expectations for hiring, which are the highest among the non-hydrocarbon sectors.
Trade and Hospitality industry optimism (52, up from 34 in Q4 2012 and 34 in Q3 2013) is close to the all-time high of 56 reached in Q1 2011, driven by strong expectations on sales, demand for new orders and in particular profitability, which is the highest amongst all sectors.
Yousef M Al Jaida, Chief Strategic Development Officer, QFC Authority, said: “The sharp increase in optimism shows how strong and resilient the Qatar economy is. In particular, the Finance, Real Estate and Business Services sector is maturing rapidly and is a major force behind economic diversification, playing a leading role in supporting the country’s development.”
Commenting on the findings of the latest survey Prashant Kumar, Associate Director, Dun and Bradstreet South Asia Middle East Ltd, said: “The Q4 2013 BOI indicates rising optimism levels across all sectors in Qatar. Both the hydrocarbon and non-hydrocarbon sector scores have recovered after a period of decline during the last two to three quarters.”
The Peninsula
