Standard Chartered’s recent global research highlights Qatar’s impressive economic recovery, noting its ability to restore government revenues to pre-2014 oil price shock levels and its trajectory to double the size of its economy by 2031.
This remarkable turnaround is a testament to Doha’s strategic positioning within the global energy market and its unwavering commitment to economic diversification.
Strategic positioning in the energy market
Muhannad Mukahall, chief executive officer and head of CCIB at Standard Chartered, emphasized the significance of Qatar’s return to pre-2014 government revenue levels. He attributed this achievement to Qatar’s strategic approach, which was driven by a combination of higher hydrocarbon prices, increased global demand for LNG, and substantial economic diversification efforts within sectors such as manufacturing, tourism, and finance.
The power of LNG
The report underscores Qatar’s pivotal role in the liquefied natural gas (LNG) market, highlighting the impact of increased oil and gas prices, rising hydrocarbon prices, and growing global energy demand on this robust economic recovery.
Diversification drives growth
Additionally, Qatar’s ambitious strategy to solidify its position as a major player in the global LNG market is evident in the massive expansion project of the North Field, which is expected to increase gas production by 85 percent by 2025, QNA reprted.
Standard Chartered’s Global Focus Economic Outlook Q2-2024 forecasts a “calm before the upsized gas boom,” anticipating that Qatar’s gas production will continue at current rates for a period of 140 years.
Read more: Qatar reports $711.58 million budget surplus on $16.39 billion total revenues for Q2 2024
A sustainable future
Furthermore, the Third National Development Strategy (2024-2030) launched this year aims to diversify the economy. The strategy has already achieved success, boosting state revenues. It has also lessened reliance on hydrocarbons. Moreover, the strategy has improved economic resilience to global changes.
Beyond hydrocarbons
The report further emphasizes the significant contributions of Qatar’s non-oil economy, which comprises two-thirds of the country’s GDP. Sectors such as real estate and construction, financial services, trade, manufacturing, logistics, and tourism have not only generated new revenue streams but also created employment opportunities, supported by substantial infrastructure investments.
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