SMEs to flourish as non-hydrocarbon sector continues to drive growth in Qatar
The non-hydrocarbon sector will continue to drive the economy in Qatar, and expected to grow to 50% of nominal GDP by 2015, from 42% in 2012.
This is due to large-scale infrastructure projects that are being implemented, like the Lusail real estate development, the new Doha Port, the new Hamad International Airport and the Doha Metro Rail project, according to the latest Qatar Economic Insight released by QNB.
“Overall, QNB Group expects real GDP growth to accelerate further to 6.8% in 2014.”
Figures released by the Ministry of Development Planning and Statistics, the country’s economic growth accelerated at a ‘buoyant 6.2% pace in Q3 2013 compared with Q3 2012.’
The growth was mainly due to double-digit growth in trade, hospitality, infrastructure development and real estate.
“The hydrocarbon sector, which consists of crude oil and raw gas production, perked up and expanded to a better-than-expected 1.8% year-on-year in Q3 2013 owing to higher production of natural gas due to LNG facilities coming back to full operational capacity after some downtime for maintenance over the last year,” the report says.
The non-hydrocarbon sector grew 9.5% year-on-year in Q3 2013. Within that:
- The transport and communication was the fastest growing sector at 13.9% year-on-year;
- The financial, real estate, and business services sector grew rapidly (10.5% year-on-year);
- And construction sector by 13.0% year-on-year.
With tremendous growth in population (11.4% year-on-year) at the end of December 2013, small and medium-sized enterprises, such as hotels, education, medical services, retail and restaurants are expected to flourish in order to cater to the growing population.