The Analysis of Key Sectors and Investment Opportunities in Qatar is expected to register a CAGR of more than 4% during the forecast period (2022 - 2027). Qatar's economy faced difficulties in 2020 and the first half of 2021 as a result of the simultaneous shocks of falling oil prices and the impact of the pandemic, which resulted in a -3.7 percent loss in economic output. However, due to a variety of circumstances, including the recovery of energy prices, the recovery is picking up speed. Qatar has shown resilience and emerged stronger from the pandemic as a consequence of the government's considerable efforts. However, more needs to be done to redefine economic growth models and ensure the country's competitiveness in the post-pandemic world.
In the immediate term, the World Cup, as well as the launch of Qatar's new LNG trains in 2025, will be major drivers of recovery and diversification. In addition, the Qatari government will continue to accelerate the implementation and impact of its economic diversification strategy, which is divided into six key transformational themes: diversification and private sector development, fiscal management and innovation, digitization, glocalization and talent attraction, value creation, and energy transition and sustainability. Each of these topics will be critical in propelling the post-pandemic economy and ensuring the country's long-term viability.
The tourism sector plays a significant role in Qatar's strategy to diversify its national economy as the country strives to achieve Qatar National Vision 2030. Qatar's wise leadership recognized the urgent need to reduce reliance on oil and gas revenues while also building a sustainable national economy in order to achieve Qatar National Vision 2030. In the long run, tourism will safeguard the economy from swings in oil prices, which might stymie growth. According to the Planning and Statistics Authority's Voluntary National Review of the State of Qatar for 2021, the number of tourist hotel rooms reached around 32,000 by the end of 2020, and about 13,000 rooms are expected to be added by 2022, providing enough hotel space to accommodate the World Cup audience.
In January 2021, Saudi Arabia's crown prince signed a deal to bring Qatar back into a coalition of Gulf Arab allies. Saudi Arabia opened its airspace and land border to Qatar in the first step toward ending a years-long diplomatic crisis that deeply divided US defense partners, frayed societal ties, and tore apart a traditionally clubby alliance of Gulf states.
Key Market Trends
Growth of Construction Industry
Due to continued government spending on projects, construction activity in the country has remained stable. The government's goal of diversifying the economy, with an emphasis on non-oil sectors, will stimulate investment into construction projects over the predicted period. Construction activity rebounded by 115 percent in the first three quarters of 2021, with the annual rate of change increasing from negative 3.9 percent in 2020 to positive 0.6 percent at the end of September 2021, according to GDP data. Qatar's construction sector is predicted to increase at a rate of 4.2 percent per year between 2022 and 2025, thanks to Qatar National Vision 2030, which calls for QAR 60 billion in infrastructure and real estate projects by 2025.
Over the last few years, Qatar's building industry has grown to become a major economic engine. New train and metro lines, a rising airport and port, and a quickly expanding road network have all contributed to the Gulf state's double-digit growth rates, making it a development hotspot. In 2020, QAR 22.6 billion were allocated to the healthcare sector, accounting for about 11% of total expenditure. The expansion of Hamad Medical Corporation facilities and the development of multiple additional healthcare centers are two major projects aimed at improving healthcare services.
In the 2020 budget, the educational sector got QAR 22.1 billion, accounting for 10.5 percent of overall spending. Expansions of schools and other educational institutions are among the major projects now ongoing in the education sector, which is leveraging the newest technologies in project management, recycling, and BIM (building information modeling). Technology, digital, and BIM all have key roles to play in improving productivity and disrupting the present delivery paradigm through innovation to offer superior results.
Increase Of Government Investments On Various Infrastructure Projects:
In addition to infrastructure projects in key sectors such as health and education, developing citizens' lands, supporting food security, and developing infrastructure in free, economic, industrial, and logistical zones, the 2021 budget focused on providing the necessary allocations to complete various major projects and projects related to hosting the 2022 World Cup within the approved timetable. The Ministry of Finance has also adopted the principle of medium-term planning and making estimates for the general budget for the years 2021 to 2023, after reviewing projects and programs for all sectors during the next phase, in order to support the process of economic diversification and promote growth, and all ministries and government agencies are committed to the financial ceilings set for the medium term 2021-2023.
On behalf of Qatar Energy, Qatargas is implementing the North Field expansion project, which is divided into two phases: the first is the North East Field project, which aims to increase liquefied natural gas production capacity from 77 million tonnes per year to 110 million tonnes per year by 2025, and the second aims to increase production to 126 million tonnes per year by 2027, while the expansion will also result in the production of about 4,000 tonnes per year.
According to the Qatar Tourism Authority's tourism performance report, the hotel sector in Qatar is experiencing rapid growth despite the effects of the Corona pandemic in the run-up to the 2022 World Cup, which resulted in a 7 percent increase in the supply of hotel room keys in the first half of 2021. Due to the government's development policy and the solutions it presents, the real estate sector in Qatar is one of the fastest expanding economic activities and a haven for many investors, increasing the number of real estate businesses operating. The entire anticipated spending in the real estate sector is USD 53.4 billion, with USD 19.7 billion going towards big projects.
Analysis of Key Sectors and Investment Opportunities in Qatar Market is highly competitive due to the presence of many small and large players in the market. Some of the strong players include Qatar Petroleum, Qatargas Operating Company Limited, Exxon Mobil Corporation, Qatar Petrochemical Company (QAPCO), QD-SBG Construction WLL. Investment Opportunities in Qatar Market presents opportunities for growth during the forecast period, which is expected to further drive market competition.
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Table of Contents
1.2 Scope of the Study
2.2 Research Phases
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Technological Trends in Key sectors in Qatar
4.6 Government Regulations and Initiatives
4.7 PESTLE Analysis
4.8 Impact of Covid-19 on the market (short-term and long-term effect on economy and key sectors in Qatar)
5.1.1 Agriculture, Dairy, and Meat
5.1.3 Oil & Gas
5.1.5 Real Estate
5.1.6 Distributive Trade (Wholesale and Retail Trade)
5.1.7 Travel and Tourism
5.1.8 Financial Services
5.1.10 Information and Communication Technology
5.1.11 Transportation and Storage
6.2 Company Profiles
6.2.1 Qatar Petroleum
6.2.2 Qatargas Operating Company Limited
6.2.3 Exxon Mobil Corporation
6.2.4 Qatar Petrochemical Company (QAPCO)
6.2.5 QD-SBG Construction WLL
6.2.6 Gulf Contracting Co. WLL
6.2.7 Qatari Diar Real Estate Company
6.2.8 Barwa Real Estate Group
6.2.9 Industries Qatar Q.S.C.
6.2.10 Aamal Company QPSC
6.2.11 Qatari Investors Group (QIG)
6.2.12 Ooredoo QSC
6.2.13 Ezdan Holding Group
6.2.14 Salam International Investment Limited Q.P.S.C.
6.2.15 Qatar National Cement Company*
6.3 Other Companies
A selection of companies mentioned in this report includes:
- Qatar Petroleum
- Qatargas Operating Company Limited
- Exxon Mobil Corporation
- Qatar Petrochemical Company (QAPCO)
- QD-SBG Construction WLL
- Gulf Contracting Co. WLL
- Qatari Diar Real Estate Company
- Barwa Real Estate Group
- Industries Qatar Q.S.C.
- Aamal Company QPSC
- Qatari Investors Group (QIG)
- Ooredoo QSC
- Ezdan Holding Group
- Salam International Investment Limited Q.P.S.C.
- Qatar National Cement Company*