The National Bank of Kuwait have just released a country study of Qatar and they are predicting that at the close of 2010 Qatar will have increased its current account surplus significantly on the previous year and this will be largely attributed to higher oil and gas prices that are predicted fro the coming twelve months.
Qatar’s goods surpluses fell significantly in 2009 and this was mostly due to a 30% decrease in hydrocarbon revenues which impacted heavily on their bank surplus for the year. For 2010 it is predicted that Qatar’s current account surplus should be approximately 23% of their Gross Domestic product provided that gas and oil prices continue at their current levels.
While Qatar’s gas sector will continue to expand and the government is set to continue spending within the region there could still be difficulties ahead because of the global economic climate. Qatar’s real estate sector shows a large amount of surplus commercial properties and its gas sector is highly exposed to any sudden changes in this sector in terms of pricing or supply trends. Analysts however predict that the strong growth expected in the economy and a determination to diversify away from traditional core industries will bode well for Qatar for the foreseeable future.
Paul Holdsworth, Staff Writer, Gulf Jobs Market News