Sheikh Mohamad bin Faisal bin Qassim Al Thani (second left) of QBA addressing the media during the launch of Business Optimism Index for Q4 2012 at the QBA office in Doha yesterday. Also seen from left are, Akshay Randeva, Director of Strategic Development, QFC Authority; Sarah Abdallah, Deputy General Manager, QBA; Prashant Kumar, Associate Director, Research and Advisory Services, Middle East, Dun and Bradstreet South Asia Middle East Ltd; and Rohan Nagpal, Senior Consultant, DBSAME. Salim Matramkot
DOHA: Qatar’s hydrocarbon sector optimism has improved for Q4 of 2012 with a strong profitability outlook. The outlook for the non-hydrocarbon sector has also improved for the period.
The Business Optimism Index (BOI), released by Dun & Bradstreet South Asia Middle East Ltd (D&B) in association with Qatar Financial Centre (QFC) for 2012 last quarter, revealed that the composite score for the hydrocarbon sector stands at 17 versus 4 in Q3 mainly on account of a 56 point spike in the profitability parameter.
The BOI for the net profits parameter for Q4 2012 stands at 48 compared to Q3’s -8. The hiring outlook too has improved by 10 points to 40 in Q4 2012. The sector holds an uncertain selling price outlook given the weakness in global economic recovery and uncertain demand. The BOI for Level of Selling Prices is recorded at -10 versus -3 in Q3 2012.
Sheikh Mohamad bin Faisal bin Qassim Al Thani, Qatari Businessmen Association representative, said: “Qatar’s business community is dedicated to the economic advancement of our country under the wise guidance of His Highness the Emir, Sheikh Hamad bin Khalifa Al Thani. The rise in optimism across sectors and parameters recorded by the Business Optimism Index shows that businesses are investing in, and looking to, the future with confidence.”
The BOI survey shows that the composite index for the non-hydrocarbon sector stands at 38, which is 11 points higher compared to the value in Q3 2012. The outlook has improved reaffirming the faith of the business community in the nation’s economy even as the global economic scenario remains fragile. The BOI scores for five out of the six parameters have improved while one of the parameter has tracked sideways. The BOI for the Volume of Sales parameter has increased by 23 points to 56 in Q4 2012, while the BOI for New Orders is at 50 compared to 40 in Q3 2012.
The Level of Selling Prices parameter has increased by a single point whereas the Net Profits parameter has soared by 23 points to 40 in Q4 2012. The CPI for the month of August was recorded at 111.4, showing an increase of 0.3 percent from July 2012 but a 2.3 percent annual increase.
The BOI score for Net Profits has jumped 23 points to 40 in Q4 2012 in line with improved sales, demand and an optimistic pricing outlook. At 38 points, the BOI for Number of Employees is just a shade lower than the Q3 score of 39 points, indicating no major change in the segment’s hiring outlook. The BOI for Level of Stocks has increased by 5 points from the Q3 2012 score of 21.
Commenting on the findings of the survey, Prashant Kumar, Associate Director – Middle East, Dun and Bradstreet South Asia Middle East Ltd, said: “Rising sales volumes and profitability are conspicuous in the increase in the Qatari business community’s optimism for Q4 2012 even as the global economic scenario remains fragile. The recovery of the global economy has weakened over the past two quarters.
“Although Qatar’s economy is to some extent vulnerable to fluctuating hydrocarbon prices, this risk is lessened by most of its LNG exports being sold under long-term contacts. The hydrocarbon sector optimism registered a 13 point increase in Q4 2012. The non-hydrocarbon sector optimism too has improved in Q4 2012. The transport & communications sector is the most optimistic, while Manufacturing and Construction reflect robustness in their business outlook for Q4 2012.”
The Peninsula
