Qatar Economy and Growth Opportunities

On the sidelines of Annual IMF meeting held at Washington, D.C Doha Bank conducted a conference on “Qatar economy and growth opportunities” at New York. His Excellency Nassir Al-Nasser, Ambassador, Permanant Mission of Qatar to the United Nations was the Chief Guest. Diplomats, officials from United Nations senior professionals from leading Corporates; Banks and Financial Institutions also attended this event.

Speaking on the occasion Mr. Seetharaman gave his global economic outlook and the risks prevailing in consideration of the ongoing crisis. He stated that “Private credit demand is rebounding and Bank’s credit continues to be weak. World economy had grown more than 5% in first quarter of 2010. The fiscal deficit in G8 countries contributes to the Sovereign risks. Risk of over-regulation should also need to be assessed carefully.”

Mr. Seetharaman while explaining on State of Qatar's emergence as a role model for transformation on economic and social fronts said “State of Qatar has effectively followed the true principles of globalization that is driving the world economies through progressive liberalization and modernization under the astute leadership of His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Emir of the State of Qatar and His Highness Sheikh Tamim Bin Hamad Al-Thani, Heir Apparent of the State of Qatar. Qatar’s National Vision 2030 builds on a society that promotes justice, benevolence and equality. The increasing energy demand in last of couple of years world over had enabled GCC to generate considerable fiscal surplus thereby substantially improving its balance of payments position which has further enabled this visionary state to invest wisely on various industrial and infrastructural projects.Qatar aims to increase the role of its non-hydrocarbon sector to 80% of the economy by 2015.The combined value of developments projects in GCC countries exceeds USD 1.30 trillion. The major projects in Qatar include New Doha International airport, Pearl Island and Mesaieed Industrial city’s port. “

Mr. Seetharaman while highlighting on the economic developments in Qatar stated that “Qatar Exchange (QE) alliance with NYSE Euronext will enable Qatari investors to access global markets and also provide liquidity. Qatar exchange product diversification initiatives can evoke interest from Global players. Qatar is estimated to have the highest per capita income of $90,149 for 2010.On the hydrocarbon sector Qatar is also set to achieve milestone of 77M tonnes of annual LNG production capacity and take position as the world’s largest LNG producer and transhipper. Qatar ranks 17th globally in Global Competitiveness Report 2010-2011 by World Economic Forum. Qatar will soon also have a full-fledged Boeing facility. The corporate tax for Non- Qatari Companies has been brought down to 10%. Qatar has also made a pitch for FIFA 2022 world cup. The above developments create a favorable climate for foreign participation in Qatar.”

Mr. Seetharaman gave his economic outlook on U.S economy emphasising on High unemployment, low private demand, large debt to GDP and potential risk of double-dip recession in U.S economy. He highlighted on the bilateral trade between U.S and GCC in recent years and said “In 2009 though the bilateral trade with GCC countries had contracted due to the Global Financial Crisis, the trade between Qatar and U.S had been quite consistent in the past 3 years which reflects the resilience of Qatar economy. The bilateral trade with Qatar and GCC will pickup in the coming years. “

Mr. Seetharaman gave his overview on the significant bilateral deals between Qatar and U.S and said” U.S and Qatar have Trade and Investment Framework Agreement since 2004. Major U.S giants namely Exxon Mobil, Occidental petroleum, Conoco Philips and Chevron Corporation have participated in various strategic developments in Qatar’s hydrocarbon industry. In Sept 2010 Golden Pass LNG’s terminal in the US is set for commissioning which will have capacity to deliver the equivalent of 2bn cubic feet per day of natural gas which represents enough natural gas to meet the average daily needs of about 10mn US households. Chevron Corporation is also involved in development of sustainable energy centre in Qatar. In 2009 GE and Qatar foundation signed agreement covering health care and research initiatives.”

Mr. Seetharaman highlighted on the significant bilateral deals between other GCC countries and U.S and said” U.S and Saudi Arabia have Trade Investment Framework since 2003.U.S. is the biggest trading partner with Saudi Arabia in absolute terms. U.S. and Saudi Arabia have signed a bilateral Science and Technology Agreement in December 2008.Saudi infrastructure development has evoked interest by U.S companies such as CDM Inc, HKS Inc. and White plains. US exports to UAE increased by 237 percent in 2009 since 2002. Automobiles, oilfield equipment, IT and industrial machines make up the largest exports to UAE. Health care products, power generation, green-build, water and wastewater treatment and education will be key growth areas in future. US aerospace products and services were the lead export to the UAE last year. In June 2010 Bahrain has signed MOUs in Atlanta, Oklahoma City and Houston to boost commercial and economic ties across various fields. In 2010 Investcorp, Bahrain invested $35 million in a stake in U.S.-based CS Identity. Kuwait is the United States' fifth largest trade partner in the Middle East.. Kuwait Investment Authority (KIA) invested about $750 million in U.S. asset manager Black Rock. U.S and Oman had signed Free trade agreement (FTA) in 2009.

In his concluding remarks, Mr. Seetharaman said “GCC and US have many areas to synergise further which can promote cross- border trade and economic welfare between countries”