DOHA: Qatar’s economic diversification efforts are fast yielding strong positive results. The share of non-mining sectors in the country’s real GDP has jumped to 62 percent in 2014, from 55 percent recorded four years ago. The ‘non-mining and quarrying’ sector has been growing consistently between 10 to 11 percent per annum since 2011.
The non-mining and quarrying sector has recorded a double-digit growth pattern in real terms in the recent years. This is primarily because of large investments in construction, financial services and real estate.
The rapid development of Qatar’s ‘non-mining and quarrying’ sector has helped offset the recent slowdown in oil and gas revenues. The sector is likely to continue to be the key growth drivers, as over QR600bn of planned government investments in the infrastructure sector in the run up to the 2022 World Cup.
The Ministry of Development Planning and Statistics (MDPS) in its ‘National Accounts Bulletin (NAB) 2015’ noted Qatar’s ‘over-dependence’ on energy sector is fast fading.
On the ‘Mining and Quarrying’ sector the MDPS document noted the Gross Value Added (GVA) from the sector for the year 2014 has been estimated at QR390.7bn, a decrease of three percent over the GVA of previous year.
The decrease is mainly attributed to falling international oil prices. The percentage increase in 2011 was 49.8 percent, which started plummeting in the following year. In 2012, the increase was only 9.8 percent and it came down to 2 percent in 2013. During 2007-2014,this sector has been contributing more than 50 per cent of total nominal GDP and 2014 witnessed the lowest contribution.
The economic activities which have grown significantly during 2007-2014 in Qatar are Construction (compound annual growth-CAGR-19.8 percent); Finance, Insurance, Real Estate and Business Services (CAGR: 12.8 percent); Government Services (CAGR: 12.7 percent);Manufacturing (CAGR: 11.4 percent); Trade, Hotel and Restaurants (CAGR: 10 percent); and Transport, Storage and Communication (CAGR: 15.3 percent) .
The ‘National Accounts Bulletin-2015’, presents data of a series of key national accounts aggregates including Gross Domestic Product (GDP), Government Final Consumption Expenditure, Household Final consumption Expenditure, and Capital formation etc. For the period 2007 to 2014 both at current and constant prices. However, the estimates of 2014 are preliminary and would be revised once the data from the Annual Economic Survey, 2014 is available, said H E Dr Saleh bin Mohammed Al Nabit, Minister of Development Planning and Statistics.
The estimates of Household Final Consumption Expenditure (HFCE) at current prices is showing an estimated year-on-year rise of 11.3 percent in 2014. At constant prices, the HFCE shows a rise of 6.9 percent.
It could also be noted that there has been comparative structural stability of HFCE (in terms of share of HFCE in GDP) when measured in real terms though Qatar’s economy has been hanging very fast in the past couple of years. Higher expansion of non-hydrocarbon sector combined with varying price levels perhaps reflects volatility in the nominal ratios.
Qatar’s gross capital formation at current prices has increased significantly from the year 2013 to 2014. The share of gross capital formation at current prices is 32.4 percent in 2014 as against 28.7 percent in 2013 . It could be noticed that the rates of gross capital formation were comparatively high in the years 2007 to 2009 ,as huge investments were made in the development of oil &gas sector besides the roads and highways.
