In his speech at the inauguration of the 43rd session of the Shura Council, the Emir
H H Sheikh Tamim bin Hamad Al Thani spelled out the economic strategy of Qatar in the
coming years.
The strategy set several priorities including diversification of income sources of the state, ensuring private sector participation in implementation of development projects, supporting small and medium-sized projects and the development of non-oil projects on which a large number of people pin their hopes to drive the national economy.
When thoroughly reading the economic part of the speech of the Emir one can easily notice that it presents a future vision that stems from a calculated study of the present situation. The speech also determines the features of the ten-year development plan. The main concern of the government during this decade will be the economy, and the diversification of the state income sources is something that every national must work to achieve by all means. The speech also emphasised that the private sector should be given room to play its role and boost investments for coming generations.
The speech came to sum up the role of the economy in a changing world that suffers from financial crises and market instability. It shows that the economy will only succeed when it depends on comprehensive plans in all sectors and also offers the necessary space for the private sector to effectively contribute to public work and encourage investments to contribute to development.
The Emir emphasised that the economy of Qatar showed a growth of 6.3 percent this year, expansion in non-oil sectors including financial, services and other investments sectors, noting that the private sector is a main partner in the development process and that the government adopted an aspiring incentive programme. The Emir added that these programmes will seek to boost the infrastructure of foreign trade, encouraging competitiveness in businesses, launch of economic zone projects, and inauguration of the new port.
It is worth mentioning that the government had previously increased the share owned by non-Qataris in companies listed in the Qatari stock market.
The Emir talked about international indicators, which are considered a factual reflection of the economy. He also talked about the fall in oil prices, saying that the decrease in oil prices will not affect the Qatari economy, citing the strength of this economy. The Emir said the state’s budget is always drawn up in the light of a conservative estimate of oil prices and this done out in respect the state budget and public money, and to maintain reasonable balance between the expenditures and the income according to well studied plans.
The national economy is the backbone of all development activities in the state, being the effective driver of all sectors, particularly the energy and oil sector.
International indicators showed that Qatar’s infrastructure indicator has risen to the second position, and this is clear from the overview of the situation currently on the ground. Construction activities in all sectors do not relent, whether it is in the services or the roads sector.
Our wise and visionary leadership also managed to utilise the resources of the state in serving the objectives of development. The wheel of development had started moving ten years ago in mega projects that are backed by energy financial surpluses and the government, which brooks no delay in paving the road for these projects.
The huge government spending on these projects reflects the government’s attention on modernisation plans. I can mention but a few examples in this regard.
Qatar spent around $205bn on infrastructure projects in the past few years. In 2014, Qatar specified 18 percent of its budget (around QR210.6bn) for these projects. The railway project cost the government around $45bn, while the new port cost around $7.4bn and the new airport around $15.5bn. Investments were also made in more than 250 infrastructure projects. Investments in this regard amounted to $25bn in preparation for sports events in the future.
One of the pioneering projects is the Sharq crossing tunnel which cost $12bn. It is the route that links Hamad International Airport with Katara and the business zone in West Bay. Another one is electricity and water project with a capacity of 2400 megawatt, and 100 building projects for education, health and entertainment that will be implemented within the coming two years.
Furthermore, the mega projects in natural gas, oil, aluminium, cement, plastic, and tourism will cost more than $ 17bn.
This generous support by the state to these sectors helps them avoid international fluctuations and protects them against the effects of drop in international oil prices.
