“Qatar to see more than $81,000 GDP per capita growth in 2015”
Qatar’s Gross Domestic Product per capita this year is expected to be above $81,000, the highest among the GCC countries, while the country’s economy is set to grow by more than seven per cent, according to Doha Bank CEO Dr R Seetharaman.
“Projects worth more than $31 billion are expected to be bid [for] in 2015. The major sectors, which are expected to witness activity, include the construction and transport sectors. Qatar’s recent interim budget has earmarked $18bn for major projects in health, education, infrastructure and transportation, as well as projects related to FIFA 2022,” says Dr Seetharaman.
The construction sector is expected to witness a double-digit growth this year, thereby supporting the diversification of the non-hydrocarbon sector.
On GCC economies, he says, “According to IMF’s April 2015 outlook, Saudi’s growth for 2015 is at three per cent in 2015. The UAE’s growth for 2015 is estimated at 3.2 per cent in 2015, Oman 4.6 per cent, Kuwait 1.7 per cent and Bahrain 2.7 per cent. The fall in oil prices will have an impact on growth. GCC GDP at current prices will exceed $1.4 trillion in 2015. ”
On the other hand, for the global economy, growth has been forecast at 3.5 per cent in 2015 and 3.8 per cent in 2016. Global growth in 2015 will be driven by a rebound in advanced economies. After a weak 2014, growth in the euro area is showing signs of picking up this year. However, concerns about Greece remain. Growth for emerging and developing economies is projected at 4.3 per cent in 2015.
Dr Seetharaman also announced his bank’s plans to increase its exposure in India to more than double from $2.4bn to about $5bn to $6bn in the next two to three years.
“There is growing confidence about economic stability in India. Also, with political stability and the right policy framework in place, we can achieve much better growth than the estimated seven to 7.6 per cent,” he says.
The bank will focus on multiple sectors, including real estate, contract finance, working capital funding to big corporates, infrastructure finance, trade and services.
Doha Bank has a strong presence in the GCC countries and is the first Qatari bank to enter India.