Doha: Qatar has said that lower world oil price would not in any way hinder its plans to host the coveted 2022 FIFA World Cup.
Surplus revenue in recent years, when global crude rates averaged at $100 a barrel, has generated enough reserves for the country.
This will allow the nation to keep spending on development projects, including infrastructure to host the 2022 World Cup, according to the Economy Minister.
H E Sheikh Ahmed bin Jassim Al Thani (Pictured), the Minister of Economy and Commerce, told the World Economic Forum in Davos, Switzerland on Friday: “Our plans for infrastructure development and investments are going as planned”. “It (the plans) will not be affected by the oil price going down, thanks to the conservative numbers that we have”, the minister said.
Qatar’s revenue is less affected than other Opec nations by the price drop because it is also the world’s largest exporter of liquefied natural gas (LNG), Sheikh Ahmed said. Qatar is an Opec member.
Al Sharq reported yesterday that according to Sheikh Ahmed, Qatar Petroleum’s (QP) recent decision with Royal Dutch Shell Plc to cancel a $6.5bn petrochemical project is due to lower than expected demand and not because of lower global crude price. QP is Qatar’s state energy arm.
Talking about the world oil prices, Sheikh Ahmed said that they should rise to an average $60 per barrel by 2015-end due to increasing demand from Europe fuelled by economic stimulus provided by the European Central Bank (ECB).
The minister, however, noted that for the world crude rates to touch $100 a barrel it should take at least two years.
He added that Qatar’s current budget (April 2014-March 2015) is based on an oil price of $65 a barrel. The next budget beginning in April will be based on a lower crude price,
he said. The Peninsula
