Qatar Science & Technology Park (QSTP)

Economic Growth and Gross Domestic Product (GDP)

One of the main aims of Qatar National Vision 2030 is to diversify the economy and reduce dependence on the hydrocarbon industries. The economy has weathered the impact of both the COVID-19 pandemic and the blockade that was imposed on 5 June 2017, with positivity after borders reopened between Saudi Arabia and Qatar following the AlUla Declaration in January 2021. Hydrocarbon exports were not affected. Qatar's Economic Outlook Report 2021–2023, released by the Planning and Statistics Authority (PSA) in January 2022, estimates that the economy will recover in 2021 by 1.5% to 2.3%. It is expected to recover further in 2022, between 1.6% and 2.9%, mostly from the recovery of non-oil activities, with a growth rate of 2.8% to 4.7%. The Arab Monetary Fund (AMF) stated in August 2022 that Qatar's economy is expected to grow by 4.4% this year and 3.6% in 2023, thanks to activities related to the FIFA World Cup Qatar 2022TM, and the growth of both non-hydrocarbon activities and contributions from the global gas market. According to PSA, Qatar’s quarterly Gross Domestic Product (GDP) at current prices was QAR174.266 bn in Q4 2021. According to the Investment Promotion Agency Qatar in its policy paper on Circular Economy, 'Qatar is set to generate an additional USD17 bn by 2030, corresponding to 10% of its GDP, as well as create an estimated 9,000 – 19,000 jobs by 2030, increase disposable income, and attract more greenfield foreign direct investment (FDI).' Export, Import and Trade Surplus

In July 2022, the total exports of goods (including exports of goods of domestic origin and re-exports) amounted to around QAR44.4 bn, an increase of 12.4% month-on-month (m-o-m) and an increase of 61.9% y-o-y. The y-o-y increase was mainly due to higher exports of petroleum gases/other gaseous hydrocarbons. India was the main country of destination, followed by Japan and South Korea. Imports of goods in July 2022 was around QAR9.6 bn, an increase of 2.9% m-o-m and an increase of 21.8% y-o-y. China was the main country of origin, followed by the US and India. The foreign merchandise trade balance – the difference between total exports and imports – showed a surplus of QAR34.8 bn, an increase of nearly QAR4.6 bn or 15.3% m-o-m and an increase of QAR15.2 bn or 78.0% y-o-y. The Budget

The State Budget for 2022 was announced in December 2021, been based on a conservative average oil price of USD55 a barrel, up from USD40 in the 2021 budget. HE Ali bin Ahmed Al Kuwari, the Minister of Finance, stated this was thanks to a recovery in global energy prices. The oil revenue for 2022 has been estimated at QAR154 bn, up 26.6% on the previous year. Despite the implications of the COVID-19 pandemic on the global economy during the last two years, the State budget sees a significant increase compared to the previous year. There is an increase in revenues by 22.4% to QAR196.1 bn and an increase in expenditure by 4.9% to QAR204.3 bn, largely due to a temporary increase in current expenditure related to the hosting of the FIFA World Cup Qatar 2022TM . This gives a budget deficit of an estimated QAR8.3 bn, to be covered by the Ministry of Finance (MOF) from available resources or via debt instruments in domestic and international financial markets, as required. The 2022 Budget shows that QAR74.0 bn has been allocated for major projects. The State will continue work on development projects related to infrastructure, citizens’ land development and public services. As seen in previous budgets, investment continues to focus on the education and healthcare sectors. Allocation for the education sector is QAR17.8 bn (8.7% of total expenditure), some of which will be directed towards the expansion of schools and educational facilities. There is QAR20 bn (9.8% of total expenditure) for the healthcare sector, for a number of projects and initiatives to improve the quality of healthcare services.

Inflation and Cost of Living

For July 2022, the Consumer Price Index (CPI), used to calculate inflation rates in Qatar, reached 103.65 points, an increase of 0.49% m-o-m and an increase of 4.98% y-o-y. The Arab Monetary Fund (AMF) stated in August 2022 inflation in Qatar is expected to be around 4.3% in 2022, declining to 3.5% in 2023.

Population and the Labour Force

Total population in August 2022 was 2,937,800: males 2,136,084; females 801,716. The Labour Force report for Q2 2021 showed the number of salaried workers decreased by 1.7% and the unemployment rate was 0.1%. m

Sources of information: International Monetary Fund (IMF); Ministry of Finance (MOF); Planning and Statistics Authority (PSA); Qatar Central Bank (QCB)