DOHA: Qatar’s non-hydrocarbon sector GDP will continue to be robust and is expected to grow by 11.9 percent in 2015. Construction activities and infrastructure development will be key drivers, Kuwait Financial Centre (Markaz) said in its latest “GCC Market Outlook” report released yesterday.
Qatar’s asset prices are on the rise, though the overall inflation is expected to be moderate at 3.5 percent in 2015 amidst lack of global inflationary pressures. The coutnry’s earnings in the first nine months of 2014 grew by 4 percent (YoY). Prolonged shutdown of Qatar Industries due to plant maintenance had led to contraction of earnings in commodities segment by 26 percent.
“In sharp contrast to other regional markets, Qatar index remained resilient with most sectors ending the year on a positive note. For 2015, we remain positive on banks and real estate; neutral on financial services, construction and telecom and negative on industrials,” the report said.
The report noted the single most defining event in 2014 for the GCC market is undoubtedly a sharp plunge in oil price, completely unanticipated. Oil price plunged by 48 percent on back of rising supplies from non-Opec producers (especially shale oil), and subdued demand growth expectations.
Arabtec management debacle and geopolitical developments, especially in Iraq, spooked investors in June and this was followed by a surprising positive announcement as Saudi Arabia said it would be opening up their markets for direct ownership by foreign investors. IPO market in the region is on a strong revival with Saudi Arabia leading the show.
The Peninsula
