DOHA: Qatar’s private sector will be the key driver of the country’s future growth. Qatar will continue to see growth and the country will rely more on the private sector, H E Ali Sherif Al Emadi, Minister of Finance, said yesterday.
Delivering Carnegie Mellon University in Qatar’s Dean’s Lecture Series, the Minister noted that the country will continue to move towards a knowledge-based economy despite its reliance on oil.
Elaborating on Qatar’s past 20 years’ success story, the minister said numbers show that Qatar has succeeded in establishing strong growth over the past 20 years.
Back in 1995, Qatar’s GDP was around sheer $8bn. It has grown to $162bn in 2005. By 2014 the economy has grown 26 times compared to 1995.
One of the main challenges facing the Qatari economy is that it maintains its LNG global market share.
Currently, Qatar supplies the world with 30 percent of its energy needs. Used at the current pace, Qatar’s LNG resources would run out in 140 years.
On the history of Qatar’s budget allocations over the past years, the Minister recalled that it was just $4bn back in 1995. It has grown to $300bn last year.
Al Emadi noted that the international events, particularly World Cup 2022, requires investments worth $200bn from 2014-2022.
That means the country needs to spend $500m every week until 2022. The minister said Qatar has never had a budget deficit over the past 15 years, although the decline in oil prices will change that.
Despite this, the deficit will not represent a problem to Qatar’s ability to finish its infra-structure projects, which will end on 2024.
In terms of foreign reserves, Qatar’s reserves in 1995 were less than $500m. It has grown to $157bn in Qatar Central Bank (QCB). There are also reserves available to Qatar Investment Authorities (QIA).
Additionally, Qatar has an AA rating from Fitch, which reflects a very strong credit position.
The Minister re-asserted the country’s commitment to its education sector. “We are pushing government agencies to become more efficient, and we are encouraging the private sector to take the lead to diversify the economy,” he remarked.
“Our vision is very clear that our priorities are infrastructure, health and education. We will continue to invest in these areas.”
Over 200 guests, including students, faculty, business leaders and international dignitaries attended the event.
The Minister’s presentation was the first in the 2015/16 Dean’s Lecture Series, a forum that hosts prominent industry leaders and government officials to share their expertise on topical issues.
The Peninsula
