32
bq | INDUSTRIES | QATAR COMMODITIES
QATAR
NO GAIN FROM EURO’S PAIN Why are prices of European goods high in Qatar despite falling euro rates? By Rajeev Acharya and Shereen D’Souza, Doha
In 2013, Qatar imported goods and services worth QR 98.41 bn (USD 27 bn), roughly 80 percent more than the imports in 2012, latest import figures suggest. A third of these imports (and the largest continentwise) were from European countries (worth over QR 32 bn or USD 8.78 bn), with Asia closely trailing with a figure of QR 31.96 bn. In the imports from Europe, the UK had a share of QR 5 bn, while Turkey, QR 1.16 bn. The remaining mostly QR 26 bn worth of goods and services were imported from EuroZone countries, for which Qatar, naturally, pays in euro. The largest imports were from Germany (QR 6.45 bn), Europe's largest economy, followed by Italy (QR 5.6 bn). Both these countries topped the UK in terms of imports landing in Qatar. The UK being out of the Euro-Zone ranked as the third largest exporter to Qatar in 2013, according to Qatar Central Bank (QCB) figures. Switzerland was the fourth largest exporter (QR 3.1 bn worth of goods were imported from here in 2013) with France ranking fifth with a share in total imports from Europe of QR 2.75 bn. Denmark (QR 272 mn) and Romania (QR 216 www.bqdoha.com
mn) were at the bottom of the list of exporters to Qatar. Detailed lists of the items imported from Euro-Zone countries are difficult to have but if market sources are to be believed, automobiles, machinery, pharmaceuticals and foodstuff would likely top the list. In 2009, imports from the EuroZone were worth QR 29 bn (excluding the UK and Turkey). The following year, in 2010, the import figures were QR 24.5 bn, while in 2011, imports totalled QR 23 bn and in 2012, QR 25 bn. The import figures, as we see, have almost been stable, and exclude the UK and Turkey. Considering imports from the EuroZone were 8 percent more in 2014, the figure would be QR 28 bn. More for less? The pegging of the Qatari riyal (QR) to the dollar (at QR 3.6415, to be precise) means whenever the US currency is strong, the QR gains against major world currencies and vice versa. Now, since the dollar, before the middle of 2014, was weak against the euro, Qatar, obviously, paid more for its imports from EuroZone countries. However, luckily for Qatar, the greenback began firming
QATARʼS MAIN IMPORTS 19% of total imports Transport equipment and parts
15% Nuclear reactors, boilers, machinery and mechanical appliances and parts
11% Base metals and articles thereof
10.7% Electrical machinery and equipment and parts Source: tradingeconomics.com Infographic: Rana Selo