Qatar GDP Expected to Grow between 6 and 17 Percent by 2017

Doha, May 26 (QNA) - The State of Qatar is one of the fastest growing economies in the world, as its gross domestic product (GDP) grew at a rate of 19 percent annually between 2005 and 2014, said Yousuf Mohammed Al-Jaida, Deputy Chief Executive Officer of the Qatar Financial Centre Authority (QFCA). Al-Jaida added the GDP growth is expected to range between $224 billion and $248 billion by 2017, representing a growth between 6 and 17 percent when compared with 2014. Speaking during the opening session of Qatar-UAE economic forum today, the QFCA Deputy Chief Executive Officer said that the State of Qatar, which holds the third largest natural gas reserves in the world after Russia and Iran, has an estimated wealth of 872 trillion cubic feet, which is about 188 billion barrels of oil equivalent, adding that these reserves can last for 156 years taking into account the current production rates. Qatar continued to occupy its position among the countries with the highest GDP per capita in the world over the past five years, Al-Jaida said, adding that its per capita value of oil and gas reserves also remained the highest in the world, as hydrocarbon sector generated an income of about $400000 per Qatari citizen in 2013, the highest among its counterparts in the GCC. Qatar reserves of oil and gas represented 687,000 barrels of oil equivalent per Qatari citizen, Al-Jaida said, adding that this economic policy brought about large surpluses for the state. Exports increased from about $48 billion in 2009 to $136 billion in 2014, the QFCA Deputy Chief Executive Officer said, pointing out that trade surplus grew significantly from $23 billion in 2009 to $110 billion in 2013, a surplus of 54 percent of GDP in 2013. Qatar used these surpluses to support economic development, promote foreign investment, develop business environment and create a stable investment climate, he said.    The QFCA Deputy Chief Executive Officer said that the significant decline in oil prices recently, which coincided with an increase in state investment, caused a decline in financial surpluses in Qatar from 16 percent to 8 percent in 2014, adding that this could lead to a slight deficit as of 2015 to 2017, but he noted that despite the allocation of huge sums for investment and the decrease of oil revenues, Qatar continues its strategy to reduce debt. Al-Jaida expected the balance of trade to drop between 2015 and 2018 with current account surpluses in Qatar amounting to 31 percent in 2014 but noted that they might fall to 5 percent this year. He said the projections are based on an oil price of $55 but if it surges to $70, he said, the ratio would be 8 or 9 percent. He said the Qatari economy started a new phase that relies on economic diversification based on the huge investment spending of the non-oil sector, with large-scale projects creating up to 120,000 job opportunities in 2013. In addition, Al-Jaida said that with liquefied natural gas production reaching its peak, gross domestic product is expected to grow in 2017 with the prosperity of the non-hydrocarbon sectors, which enables the country to tackle the drop in oil prices thanks to its economic basics as it plans projects of $150-$180 billion in the next decade. He added that the banking sector is growing rapidly with assets, loans and deposits growing noticeably at a compound annual growth rate of 16.5 percent between 2004 and 2009. Total assets in the banking sector are projected to stand at $380 billion in 2017, a 37 percent increase compared to 2014. The banking sector is stable, Al-Jaida said, adding that despite falling oil prices, cash remained stable in this sector. He noted that insurance installments grew from $800 million in 2007 to $1.5 billion in 2014 with life insurance representing only 6 percent of installments, while non-life insurance installments rose by 10 percent between 2007 and 2013, amounting to $1.6 billion in 2014. (END)