Image used for representation only.
Commenting on the World Bank’s growth forecast of Qatar’s economy to be among the best in the Middle east and North Africa (MENA) region this year Estithmar Holding Group Chief Executive Officer, Henrik Halager Christiansen said the growth of Qatar’s economy in 2023 will boost investor confidence due to the country’s diversification efforts, political stability, investor-friendly policies, strong financial sector and hosting of the 2022 FIFA World Cup.
Speaking further in an interview with The Peninsula yesterday he said these factors are likely to attract more foreign investment to the country, contributing to its economic growth and development.
“Qatar has made significant strides in diversifying its economy away from oil and gas, which has traditionally been the mainstay of its economy. Qatar has invested heavily in infrastructure development, particularly in the tourism and transportation sectors. As a result, the country has seen a surge in foreign direct investment (FDI), which is expected to continue in the coming years,” Christiansen said.
Qatar was ranked the first among the world’s top destinations for foreign direct investments this year by fDi Intelligence. The state achieved a 70 percent growth in FDI projects between 2019 and 2022.
The tourism industry expects around five million visitors to the state this year following the extension of the validity time of the Hayya card and the expansion of the Hamad International Airport.
The World Bank in a recent forecast stated Qatar’s economy will grow by 3.3 percent this year which will be among the best growth rates in the (MENA) region and the growth of the Gross Domestic Production (GDP) per capita by 2.2 percent.
It forecasted that the surplus of the fiscal balance would be about 6.5 percent of GDP, and the surplus of the current account balance would be about 15.9 percent of the GDP.
The report noted that economies in the MENA are expected to grow at a slower pace in 2023, as more than 10 percent food inflation adds pressure on poorer households and the impact of food insecurity can span generations.
The report also indicated that inflation in the region rose dramatically in 2022, especially in countries that experienced currency depreciations. The report focused specifically on the impact of food price inflation on food insecurity, finding that eight out of 16 countries suffered from 10 percent food price inflation or higher, affecting poorer households the most as they spend more of their budgets on food than those that are better off.
