Qatar’s Non-Hydrocarbon Sector Set for Significant Growth

Qatar, 2 August, 2024 : Qatar's commitment to economic diversification presents significant opportunities for investors, according to Peter Kaznacheev, Principal at Arthur D. Little. Speaking to The Peninsula, Kaznacheev highlighted the strong potential of Qatar's non-hydrocarbon sector to drive growth.

The outlook for both energy and non-energy sectors in the Gulf Cooperation Council (GCC) region is positive, especially compared to mature markets. In Qatar, the North Field Expansion project aims to boost LNG production from 77 million metric tons per annum to 126 million by 2027, an 85% increase in less than five years, potentially spurring growth in non-hydrocarbon sectors.

Kaznacheev pointed to QatarEnergy’s Ammonia-7 Project, set to launch in 2026 as the first blue ammonia facility, which will position Qatar as a key supplier of low-carbon ammonia for global fertilizer production. This initiative will drive economic growth through carbon capture and storage (CCS) infrastructure and open opportunities in the green fuel space, particularly for hydrogen production.

The proposed high-speed rail link between Doha and Riyadh is expected to boost the economy further, creating synergies in cross-border business and tourism.

Kaznacheev also emphasized Qatar's economic stability, citing low energy costs, high demand for export commodities, positive GDP growth outlook, low consumer price inflation, and minimal currency risks due to the Qatari riyal's peg to the US dollar. These factors are likely to ensure robust local market performance for the remainder of the year.

Qatar’s Third National Development Strategy (NDS3), launched earlier this year, targets 4% growth in non-hydrocarbon GDP. Under the National Vision 2030, Qatar has introduced several strategic initiatives to diversify its economy and attract foreign direct investment, including the Qatar Financial Centre (QFC), Qatar Science and Technology Park (QSTP), and the Ras Bufontas and Umm Alhoul free zones, which offer a zero-tax environment and other incentives.

Source : www.zawya.com