Doha: The successful World Cup tournament helped to boost Qatar’s GDP, which grew by more than 4 percent in 2022, up from 1.5 percent in 2021, a report by Cushman and Wakefield stated.
Qatar Q4 2022 Real Estate Market review noted hosting of the World Cup by Qatar resulted in the launch of numerous tourism and leisure projects throughout the country which would support the tourism and hotel sector of the state in the long term.
New tourism projects launched in the Q4 2022 include Al Maha Island (Winter Wonderland), B12, Doha Sands, 974, and Qetaifan Beach Clubs, and the Corinthia Yacht Club
The Doha Port redevelopment reached completion of the initial phases. It now includes the new Cruise Terminal, Box Park and Marina, and the MINA district, which features a fish market, retail outlets and restaurants, the report stated.
Qatar’s hosting of the 2022 FIFA World Cup tournament provided an insight into Qatar’s potential, and it is hoped to spur economic and tourism activity into the future. Post-event business opportunities should spur investor interest from overseas, extending Qatar’s recovery in the coming year, albeit at a slower pace.
Global gas demand will support another modest expansion in the energy sector next year. Non-oil sector growth is expected to slow to 3.3 percent in 2023, versus this year’s 7.6 percent pace, the strongest since 2015. Overall real GDP growth was estimated to have surpassed 4 percent for 2022, with a fall to 2.7 percent growth expected in 2023.
While headline PMI rose for the first time in six months in November, it remained below the 50-mark, at 48.8. This reflects the end of World Cup-related construction activity. Retail trade and services activity expanded strongly as the event kicked off, and businesses remain upbeat about 2023.
Tourism and travel trends will add to the expected slowdown given the end of the World Cup. But several events, including the Asian Football Cup, Formula 1 Qatar Grand Prix, and Expo 2023, should contain the drop in visitor numbers. In the medium term, inbound travel will benefit from a recovery in regional and long-haul trips, with authorities targeting 6 million arrivals by 2030. Energy prices will continue to support public finances in 2023.
The Ministry of Finance’s latest budget figures point to a larger oil and gas windfall than expected. Given the spending restraint, Oxford economics forecasts a fiscal surplus of 9.6 percent for 2022 and expects it to narrow to 8.7 percent in 2023.
Inflation slowed to 5 percent in October, from 6 percent in September, amid a 0.2 percent m/m rise. But price pressures have likely intensified during the World Cup. As a result, Oxford Economics has raised its 2022 CPI forecast by 0.2ppts, to 4.7 percent, while maintaining its 2023 projection at 2.5 percent.
