Qatari economy resilient says survey
Doha, January 15, 2009
The Qatari economy is expected to do fairly well in these testing times with ample government support to minimise the impact of global economic slowdown, according to a business study conducted by Dun & Bradstreet South Asia Middle East (D&B).
D&B Business Optimism Index for Qatar for Q1 2009 was released in association with Qatar Financial Centre (QFC) Authority and Al Khalij Commercial Bank (al khaliji).
The D&B Business Optimism Index (BOI) for Q1 2009 was conducted in November 2008 amid virulent crisis in the global financial markets, growing concerns over the declining crude oil prices and deceleration in global economic growth, said an official spokesman.
The sentiments in the region have been hurt by the spill over effects of global financial crisis. However, The BOI results further point towards the resilience of the economy in face of the global financial crisis.
“The next quarter expectations are subdued compared to earlier quarters, but remain fairly optimistic. According to the BOI survey, 53 per cent of the business units in the non-hydrocarbon sector are expecting increase in Volume of Sales and Net Profits, indicating that that the demand levels in the economy are likely to stay firm,” said CEO of Dun & Bradstreet Rajesh Mirchandan,
“The hydrocarbon sector is showing signs of cautiousness in light of deep fall in global oil prices which will affect their margins. Overall, the economy is expected to withstand the crisis.”
As identified in earlier quarter indices released by D&B, QFC, and al khaliji, the BOI survey shows that there are continued signs of easing inflationary pressures.
The survey shows that 56 per cent of the business units expect no change in their Selling Prices over the next quarter and another 18 per cent expect their Selling Prices to decrease.
Real estate prices are likely to ease off with 56 per cent of the units in building, construction and real estate sector expecting no change in their Selling Prices.
On the issue of likely impact of the global financial crisis on businesses, the responses show that the business units are divided over the impact of the financial crisis on their operations.
Only 37 per cent of the respondents in the non-hydrocarbon sector have shown concern of the impact as against 63 per cent of companies who feel that the crisis is not going to Affect their business.
The trade, transport & hotel sector seem to be most resilient with 71 per cent stating that it would not impact their business, followed by the agriculture, manufacturing, water and electricity sector at 68 per cent, and finance, insurance and business services at 61 per cent.
The building, construction and real estate sector were the least optimistic with 51 per cent stating that it would not impact their business.
Business optimism indices are commonly used to better identify and understand the growth expectations of the business community and its response to current developments within an economy.
Issued quarterly, the Business Optimism Index for Qatar is based on an extensive survey conducted amongst the Qatari business community and is one of the most effective ways to keep track of where businesses think the Qatari economy is moving.
The next Business Optimism Index on Qatar will be released in April 2009. – TradeArabia News Service