PwC has long been established in Qatar, providing a full range of our Advisory, Assurance and Tax services to a Local and International client base. Our Qatar team is supported by over 3,500 staff in our Middle East practice and, as an established global leader in professional services, we have a network that can give you access to more than 195,000 people across 157 countries who share their thinking, experience and solutions to develop fresh perspectives and practical advice.
Qatar has enjoyed significant economic growth with real GDP increasing by 10.7% per annum since 2008, and it is now one of the richest nations in the world with GDP per capita exceeding $100,000 at PPP (Purchasing Power Parity) exchange rates. The nation has weathered global economic instability by taking advantage of its vast natural gas reserves, producing the highest levels in the GCC at 159 bn cubic metres in 2013, and becoming the biggest LNG exporter in the world. Indeed, no visit to Qatar is complete without a tour of the Ras Laffan complex in the north of the country. Here you can really appreciate the scale of vision, complex engineering, financing and manpower that went into the transformation.
Furthermore, Qatar has managed to contain domestic price pressures by setting over $300bn of export revenues aside in its growing sovereign wealth funds and managing a proactive interest rate policy.
Over the past half-decade Qatar has put itself on the map in many other ways. In politics, we have seen high profile in diplomacy across the Arab world. Qatar Investment Authority (QIA) has steadily built its reputation as a global scale investor with its support to the global banking industry at the height of the financial crisis, investments in blue chip organisations and, via its subsidiary Qatari Diar, developing landmark real estate in many of the world’s premier cities. Al Jazeera has given Qatar a global media brand. Qatar’s global prominence then culminated in the winning of the right to host the FIFA World Cup in 2022.
Qatar’s reliance on gas exports, and the decoupling of gas and oil prices in the aftermath of the Japanese earthquake of 2011, suggests that it is likely to be one of the best placed GCC nations to weather the current fall in oil prices. That said, Qatar is not immune, and the medium term prognosis for global gas supply will likely place downward pressure on prices with increases in supply from both Australia and the US in particular.
Even though we project inflation to remain at manageable levels going forward, inflation volatility remains a threat due to the unprecedented investment programme related to the 2022 FIFA World Cup. Also, securing governmental revenue beyond hydrocarbons has proved difficult for Qatar and going forward, diversification of the revenue base continues to be a key focus area. With Qatar in the international spotlight, continued attention is being paid to the sponsorship arrangements in the country and the welfare of the migrant workforce that have contributed so much to the development of the country.
We see the outlook for the coming years as moving to a more sustainable level of growth, tighter fiscal discipline and continued diversification of the economy. We expect real GDP to grow by 6.0% in 2014, by 6.5% in 2015, and to average around 6.2% per annum between 2016 and 2019.
|Office Address||Mail Address|
Doha, State of Qatar
Tel: +974 4419 2777
PO Box 6689
State of Qatar
Fax: +974 4467 7528