The role of the services sector, which includes transportation, financial transactions, logistic services and trade, has increased significantly in powering Qatar’s economy. By providing a greater contribution to GDP (gross domestic product) growth in 2019, the services sector has become one of the key drivers of Qatar’s economic expansion. In simple terms, GDP provides an economic snapshot of a country and is used to estimate the size of an economy and growth rate.
“During the period 2016- 2019, its (services sector) activities constituted an average of 46.8 percent of the overall nominal GDP and an average of 70 percent of the nominal non-hydrocarbon GDP,” noted a report by the Planning and Statistics Authority. “The services sector witnessed an average annual growth of 2.4 percent during this same period, and contributed to the total growth rate of real GDP by 0.82 percentage points; crucially, in addition, it contributes by providing employment for about 44 percent of the labor force,” the report said.
The rise of the services sector assumes importance. With the completion of most of the construction projects in the country in the past two years, the contribution of the construction sector has decreased comparatively. Preliminary national accounts data suggest that the nominal value of the GDP at current prices in 2019 amounted to around QR668bn, equivalent to $183bn. The services sector, with its various administrative, commercial, economic, financial, and social components, is one of the most important sectors of Qatar’s economy
Along with powering the economy, this sector also provides jobs to thousands of skilled and non-skilled workers. The government and the authorities concerned have taken several proactive steps over the past few years, making the services sector resilient and firm. “The growth of the services sector will stabilise at around 0.3 percent in 2020, and it will recover by about 2.8 percent in 2021, and then further by about 4.3 percent in 2022, assuming that the national economy will reap economic benefits from the return of economic activities to complete preparations to host the FIFA 2022 World Cup,” said the report.
