Qatar, with its strong revenue generation based on oil and gas seems to have emerged comparatively less scathed. It has the third largest natural gas reserves in the world and is in a good position to capitalise from the surge in demand for liquefied natural gas (LNG). Prospects for 2010 indicate a very sharp rebound with real GDP growth of 36 percent and nominal GDP growth of 49 percent, as a number of extra large new gas facilities come on stream. Imports rose 53 percent last year to over $30 billion from 2007. Import growth was driven by a combination of strong demand from the expansion of hydrocarbons production capacity, residential and infrastructure construction and upgrades, and a rise in personal incomes that was partly directed towards consumer durables, IIF report said.
Sheikh Faisal bin Qassim Al Thani, Chairman, Al Faisal Holding and Aamal Company, stated, "Qatar's economic growth has been substantial in recent years as a result of the reserves obtained from high oil prices and the fruits of previous investments in gas infrastructure. However the current volatility in energy prices has only magnified the importance of reducing dependence on oil. One of the most important aspects of Qatar's diversification strategies is in the gas sector and the development of a number of related industries both upstream and down stream, encouraging more investment and development in non-energy. Industrial diversification will further enable a sustainable economy and broaden the country's source of income." He further added that development strategy will focus mainly on industries related to oil and gas, petro-chemicals, aluminium projects (Construction of Qatar's Aluminium Plant- Qatalum, which will be one of the largest aluminium plants in the world) and industrial projects which have long term return and good potential for future export and growth. While Qatar's economy remains focussed in the export of hydrocarbons and petrochemicals, expansion is taking place into other areas in alignment with the national diversification strategy. According to a report by research firm Business Monitor, Qatar's construction industry is set to achieve one of the highest growth rates in the Middle East this year at 6.23 percent with a value of QR20.7 billion (US$5.7 billion). Ongoing mega projects in Qatar continue to dominate the infrastructure sector in the second quarter of this year, the report said. Qatar's construction sector is among the top in the Middle East with large projects being undertaken in the transport sector. The largest project continues to be the Qatar-Bahrain Causeway where work is expected to start at the end of 2009. Other dominating activities include projects, such as the New Doha International Airport and the New Doha Port, which is one of the largest green-field port developments in the world. Its first phase is due to be completed in 2014. Business Monitor said it believes the number of ongoing mega projects in Qatar's relatively small construction industry will continue to fuel growth in the sector, especially in the transport and utilities sub-sectors. The residential and commercial construction sectors however are unlikely to experience the same growth. One key indicator was the house prices that have fallen by 30 percent in the last six months leading to over supply and thus delays on new projects. Construction costs and land prices have fallen throughout the GCC to the benefit of the developers. According to OBG report, construction sector is showing few signs of slowing down, despite the global economic turmoil. This may be attributed to continued expansion of economy, the government's infrastructure and housing projects that will sustain the sector. Population growth is also expected to drive demand.
"2010 would witness the rebound for the global economy, we think tha
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