Hydrocarbon Sector Outlook Optimistic for Qatar's Q3: Survey

Doha, July 27 (QNA) - The hydrocarbon sector remains robust for the third quarter of 2011 while business outlook weakens in Qatar as global cues weigh on sentiment, according to a Business Optimism Index (BOI) for Qatar released here Wednesday.
Announcing details of the BOI, done by Dun & Bradstreet South Asia Middle East (D&B) in association with Qatar Financial Centre (QFC) Authority, officials said the Composite Index for oil and gas sector increased to 22, adding 21 points.
However, all the six parameters for the non-hydrocarbon sector post a decline in their BOI scores, the survey covering respondents from a sample of 500 businesses in Qatar, reveals.
Speaking at a media conference QFCA Banking & Asset Management - Strategic Development Director Yousuf Al Jaida, said, "The survey reflects the expected quarterly retrenchment for the non-hydrocarbon sector growth in Qatar primarily due to the current global economic uncertainties."
The outlook for the hydrocarbon sector is optimistic. "The continued strength of the oil and gas sector, is forecasted by the IMF to grow 29.5% in 2011 on the back of a 22.7% real growth in 2010," he added.
The survey for BOI for Q3 2011 was conducted in last month, at a time when most economic forecasts were predicting that the global economy is moving to a lower growth, characterized by slightly higher inflation. Emerging market economies continue to grow at a robust pace, and recovery in developed countries, although weak, also continues, officials said.
D&B South Asia Middle East General Manager Manjeet Chhabra, said, "Even though Qatar's economy is mostly insulated from the regional unrest and weakness in global macroeconomic indicators, business sentiments have been dented by weak global cues.
"The global economy is facing huge downside risks in terms of the European debt crisis, overheating in emerging economies, rising cost of commodities and disappointing employment numbers. The non-hydrocarbon sector has registered a 15 points drop to 27 in the composite score and is at a five quarter low."
Despite the decline, sentiments are still positive and indicate a growing economy. Since the soft patch in the global economy is expected to be temporary, business sentiments in Qatar should also go up again. The 21 point gain in the hydrocarbon sector shows that businesses are optimistic that oil demand will remain robust and hence prices will remain steady or increase in the short to medium term, he said.
"Such BOI surveys are in fact useful and not harming the interests of Qatar and its people because the findings reflect what the business community is thinking on the short term," said Al Jaida when told that announcing a drop in the index would harm Qatar's prospects.
Reiterating this Chhabra said, " Transparency is good. This is a short term BOI and not long term. Anybody keenly following Qatar's economy is not going to base his or company decisions on the findings of business optimism index for one quarter."
There were positive responses to some questions in the survey, officials said.
"It is encouraging to note that 44% of companies in the financial sector plan further investments despite the still present global economic challenges whilst 51% of non-hydrocarbon sector firms are anticipating an increase in sales in the third quarter of this year," concluded Al Jaida.