The foreign direct investment inflow into Qatar’s industrial sector touched an estimated QR129bn, according to May 2014 update. The figure makes up 52 percent of the total capital investment in the vital sector during the period, Al Sharq reported.
The flow of foreign investments to Qatar’s industrial sector picked up largely because of the country’s economic diversification strategy. In line with the Qatar National Vision 2030, the country is increasingly focusing on high-value services in the non-hydrocarbon sector.
The sector is attracting a large number of foreign investment in the private segment, the daily quoted analysts as saying.
Industry leaders expect huge foreign investments in the country’s manufacturing sector in the mid-term to long-term. The small and medium enterprises (SMEs) sector is also set for a major take-off, they said.
The just-released Qatar Economic Outlook 2014-15, however, noted the country’s manufacturing sector is projected to grow, but not as quickly as either services or construction, nor as fast as in the recent past.
In 2014, its growth is seen moderating with declines in fertilizer and refined products. With global fertilizer prices falling, the opportunity cost of supplying feedstock to the industry is rising. Other segments of manufacturing will grow but more slowly than in recent years as production capacity tightens.
In 2015, however, growth is set to come back higher on the back of a revival in output of refined products and petrochemicals, and as feedstock comes from Barzan. Growing demand by construction for cement and metals linked to the large capital projects should encourage some investment in new capacity, prompting manufacturing growth to recover some of its earlier impetus.
The major driver of growth in the non-oil and gas economy in 2013 was service activity, which expanded by 14.5 percent.
Alone it contributed 5 percentage points of overall growth. All service sub-sectors saw solid growth during the period.
Finance and real estate grew by 14.3 percent, primarily on greater lending to large infrastructure projects.
Transport and telecommunications expanded by 9.7 percent, driven by Qatar Airways’ expansion, additions to LNG transport capacity and robust growth in ICT.
In trade and hospitality, the Qatar Tourism Authority reported that average hotel occupancy rates were up from 58 percent in 2012 Q3 to 64 percent a year later.
Construction output gathered momentum in 2013, to reach 13.6 percent and contributing 1.5 percentage points of overall growth. Activity was largely propelled by Qatar’s huge investments in infrastructure and real estate.