Qatar’s Sustainability One Year After the Blockade Showcased at EU Business School

Press Release

Qatar’s Sustainability One Year After the Blockade Showcased at EU Business School

Dr. R. Seetharaman, Doha Bank CEO participated in the Commencement ceremonies of EU Business School at Geneva, Switzerland on 13th June 2018 and Munich, Germany on 16th June 2018. He also did a Workshop on 14th June 2018 at Geneva, Switzerland for EU Business School Students. In the Workshop, Dr. R. Seetharaman gave insight on Qatar economy and Banking System. He said “According to recent IMF Outlook, Qatar’s gross domestic product (GDP) is set to grow 2.6 percent this year. Qatar will raise LNG production by 30% to 100mtpa within five to seven years after lifting a moratorium on gas development earlier in 2017. Qatar is ranked 25th in ‘the Global Competitiveness Report 2017-18’. According to IMF, Qatar’s banking system needs no further support from the central bank and sovereign wealth fund as the decline in non-resident liabilities of lenders have subsided. A robust regulatory framework and effective supervision have helped ensure the resilience of the financial system, the IMF said the QCB is further strengthening its financial sector surveillance to detect in a timely fashion emerging pressures, including those related to liquidity, real estate sector, the impact of US monetary policy normalisation and the on-going Gulf crisis. Qatar lending growth is close to 3 percent in 1st Quarter 2018. The country’s foreign exchange reserves with the Qatar Central Bank remained broadly stable at around $39.8bn in April 2018, which is more than six months of its import cover.”

Qatar’s Sustainability

Dr. R. Seetharaman highlighted on various reforms brought by Qatar after the blockade. “Qatar’s reserves are more than twice of its GDP and in terms of financial stability Qatar is strong, stable and functional. In response to the economic blockade Qatar has emerged strong and has brought various reforms to transform itself into a self-reliant economy. A new law for Public Private Partnership (PPP) businesses in Qatar will provide comfort to the private sector and foreign investors. In Feb 2017, Qatar issued a new law on arbitration (the “Arbitration Law”), inspired by the UNCITRAL Model Law (the “Model Law”), an international template for law on arbitration. In terms of food security, Qatar now have many local companies that are supporting the country and it can develop these businesses further and boost its food production to provide both locally and internationally. In 2017 Qatar has waived entry visa requirements for citizens of 80 countries. In Sept 2017 Qatar inaugurated Hamad port which will provides “a golden opportunity” for the private sector and Qatari businessmen to activate their business and promote the import and export of various commodities. Qatari market is expected to become self-sufficient in dairy products, as Bandana will fulfil demands of the local market. Qatar has witnessed initiatives such as Single Window System and “Own your Factory in Qatar”. Qatar’s landmark residency plan is a welcoming social and economic reform. Qatar 2018 Budget allocations for health, education and transportation reached QR83.5 billion or 41% of total expenditure. The transportation and other infrastructure projects were assigned the largest share in the 2018 budget with allocations of QR42.0 billion, 21% of total expenditure. Sports sector and 2022 FIFA World Cup projects amounted to a total allocation of QR11.2 billion. Qatar raised $12 billion in a bond issue in April 2018, the largest placement by an emerging market sovereign this year. It is one year since the economic blockade of Qatar. However Qatar has demonstrated it’s sustainability through various reforms. Recently Rating agencies Fitch recognized Qatari sovereign’s Outlook to Stable from Negative and affirmation of the country’s Long-Term IDR at ‘AA-‘ and reflects Fitch’s view that Qatar has successfully managed the fallout from the blockade.”