Economic growth in Qatar will be driven by expansion in non-oil sector, said Ernst & Young in a statement yesterday. It its latest Rapid-Growth Markets Forecast (RGMF) it said Global rapid-growth markets (RGMs) will grow by over 4.5 percent in 2015.
“With global oil production already high and supply prospects strong, growth in the UAE and Qatar hydrocarbon economies will soften in the coming years. Instead, GDP growth will be driven primarily by the non-oil sector. Rising capital spending on infrastructure as well as the fast paced growth of the private sector will help to steer the Gulf countries away from their reliance on oil,” said Bassam Hage, Mena Markets Leader, EY.
Qatar’s GDP is forecasted to grow by 6.5 percent through 2017. The oil sector in Qatar has benefited from a number of key projects, including the Bul-Hanine offshore oil field and the Idd El Shargi North Dome megaproject upstream oil expansion. However, GDP activity will be largely driven by continued double-digit expansion in the non-oil sector, helped by high government capital spending and surging population growth. The government is also investing in a number of key infrastructure projects over the next five years to fuel growth, including a metro system in Doha and the Hamad International Airport. The RGMF is a quarterly forecast for 25 markets that are becoming more important globally.
“Economic development in RGM cities globally will continue to be associated with significant non-oil growth in financial, business and consumer services. Over the medium term, fast-growing populations and increasing productivity will lift growth in RGMs to 5.5 percent. This trend will be reflected in Gulf region as cities continue to develop these significant non-oil sectors,” concluded Bassam.