In 2023, Qatar achieved a third consecutive fiscal surplus of QR43.1Bn, over 5% of its GDP, the highest in the GCC
Forecasts for this year predict another surplus, based on a conservative oil price assumption of US$60 per barrel, despite Brent crude’s actual Q1 average of US$83
Substantial economic impact is demonstrated through the potential within the country’s clean energy, logistics, tourism and sports, and artificial intelligence, all of which are underpinned by five critical cross-sectoral enablers
Doha, Qatar; 8 May 2024: PwC Middle East's latest Qatar Economy Watch, released today, reveals a sustained confidence in Qatar’s economic growth, attributed to the nation's diversification strategy and investments aimed at transforming the nation into a knowledge-based economy. The report indicates that this has led to fiscal resilience and innovation amidst global challenges.
As Qatar advances with its third National Development Strategy (NDS-3), the International Monetary Fund (IMF) forecasts a favourable growth outlook for the country in 2024.
PwC Middle East in Qatar has identified four important sectors driving Qatar’s transformation journey: clean energy, logistics, tourism and sports, and artificial intelligence, each of which offers the country a significant competitive edge on a regional and global scale as outlined below:
Clean energy: Ramping up investments in clean energy sources such as renewables is recommended, while also exploring opportunities in new carbon capture technologies, green hydrogen and sustainable aviation fuel.
Logistics: Direct investments in prominent global ports like Rotterdam showcase Qatar's cementing its position in the global logistics landscape. Further investments in advanced technologies are also seen as favourable in order to automate logistics and cargo handling at various touchpoints.
Tourism and sports: Customised marketing campaigns and a global network of tourism offices can further promote Qatar’s attractiveness as a tourist destination. Another area of opportunity is cruise tourism, with Qatar witnessing a 151% rise in cruise visitors during the 2022-2023 season.
Artificial intelligence: Qatar stands out for its strategic emphasis on AI as a key priority sector. To further enhance its digital capabilities, a dedicated AI economic cluster and identification of specific AI use cases can serve as an incentive to promote the adoption of AI across all sectors.
Bassam Hajhamad, Qatar Country Senior Partner and Consulting Lead at PwC Middle East, commented on the report findings: “Qatar has consistently displayed resilience amidst global inflation and macroeconomic challenges. This can be credited to long-term diversification strategies and investments in future-focused sectors. The next wave of growth will be enabled by accelerating the national transformation journey, implementing high-impact sectoral strategies and governance, guided by NDS-3, and building new capabilities and global partnerships. We see immense potential for Qatar to continue benefiting from advancements in areas, such as renewables and green hydrogen, logistics, tourism and sports, and AI, which will allow it to further cement its position as a global hub for sustainability and innovation.”
The report further highlights five critical cross-sectoral enablers that underpin the four critical sectors and are considered to be fundamental to their success: access to capital, a competitive business ecosystem, strong governance policies and regulations, a highly skilled workforce and build on its resilient physical and digital infrastructure.
The newly released Qatar Economy Watch can be read here.
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