HSBC expects Qatar to continue strong economic growth

HSBC’s Global Economic Outlook virtual roadshow came to Qatar, with over a 100 of HSBC’s clients attending the online event.

Simon Williams, Chief Economist for Central & Eastern Europe, Middle East and Africa (CEEMEA); Dominic Bunning, Senior FX Strategist; and James Pomeroy, HSBC Global Economist Director, gave their views on factors influencing macro-economics, fiscal policy, oil and FX markets outlook and the rebuild. They also addressed the challenges and opportunities in the MENAT region with a deep dive into Egypt.

The event was held at a critical time as the world looks to normalise from COVID-19 and the witnessed resilience in 2021 throughout the new strains of the virus, vaccination rollouts, and worldwide disruptions.

Simon Williams, HSBC’s Chief Economist for Central & Eastern Europe, Middle East and Africa (CEEMEA), said: “Qatar remains one of the strongest macro stories in the Middle East and our broader CEEMEA region, with data year to date pointing to both strengthening balances and a pickup in growth. We expect the improving outlook to build further over the remainder of our forecast period as the country prepares to host the 2022 FIFA World Cup and accelerates the next phase of its gas[1]fired industrialisation programme.”

Abdul Hakeem Mostafawi, CEO of HSBC Qatar said: “We are very encouraged by the positive outlook for the Qatar growth story. Innovation and resilience have been key factors to drive the sense of optimism that has resulted in multiple opportunities for investment. Qatar’s outlook is also buoyed in 2022 by the World Cup and the landmark LNG expansion.”

The economists’ optimism was based on the efficient response to the pandemic including the strong vaccination drive and the structural reform.  They highlighted Qatar’s prudent approach to base the budget on a fiscal breakeven price of 40 dollars per barrel, which is clearly paying dividend with the levels above 70 for most of the year. The HSBC Global Economist Outlook roadshow is an annual event, which sees HSBC economists presenting in markets around the Middle East, North Africa and Turkey (MENAT), giving an update on their outlook on the global and regional economies.