Business CEOs: The World Cup turns Qatar into a global tourism and investment hub
December 05, 2022, 07:00am
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Doha, Qatar
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World Cup 2022CEOsBusiness sectors
Syed Mohammed
Ernst & Young Global Limited, known as EY, said that according to the latest results published in the Qatar Investment Outlook 2022 report, executives in Qatar remain optimistic about the future prospects of the economy, with about 82% of CEOs expecting the business sector to meet the economic growth of the years The next five projections are or exceed them. The report is based on extensive individual discussions with executive decision makers in the largest companies in Qatar, for the period from the fourth quarter of 2021 to the first quarter of 2022.
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According to the report of the global organization specialized in providing financial analysis and consultancy, the country’s gross domestic product is expected to rise to 764 billion Qatari riyals this year, a significant increase compared to 525.7 billion Qatari riyals in 2020, when the country was at the height of the Covid-19 pandemic. . According to economic data, the growth indicators of the oil and gas and consumer services sectors are the most positive, as 64 percent and 4 percent of the executives interviewed, respectively, expect the two sectors to outperform the rest of the general economy over the next five years.
More opportunities
Ammar Sidqi Hattab, one of the pioneers in the Qatari market, said: “Qatar has shown great resilience in facing many challenges, and has resolutely weathered regional and global events, particularly the Covid-19 pandemic, which was controlled through an effective system including a lean vaccination program. This has instilled great confidence in executives and investors, and despite the ongoing global economic headwinds, optimism remains about creating more investment opportunities across the country.” About 55 percent of the executives interviewed had a sense of stability in the growth of the construction sector, especially since most of the mega projects will be either completed or nearly completed in the coming months. However, new mega projects, such as the deferred Sharq crossing, the planned expansion of the airport, and the development of the Lusail City project, may help alleviate some of the concerns surrounding the sector’s prospects.
Almost 60 percent of the executives interviewed indicated that their investments managed to generate positive returns in the past 12 months (Q3/Q4 2020 to Q3/4 2021), a period when many Restrictions imposed due to the COVID-19 pandemic, suggesting that business and consumer activities in the country have been largely resilient.”
Despite the geopolitical crises outside the region and rising inflation, executives in Qatar remain very optimistic about investment performance over the next 12 months. The report found that 91 percent of them indicated that they expect the performance of their investments to improve compared to the previous year’s performance.
Regulators
The report indicated that about 64 percent of the executives interviewed indicated some difficulties in accessing capital. However, recent initiatives indicate that regulators are taking steps to improve access to capital, such as with the launch of the Qatar Enterprise Market, with the aim of increasing SMEs’ access to capital. Moreover, the Qatar FinTech Center was launched as part of a broader strategy to improve innovation and access to capital in the Qatari economy.
world Cup
The report revealed that 82 percent of the executives interviewed believe that hosting the current prestigious World Cup event would have a “strong” to “very strong” effect in changing the perception of Qatar as a global tourism hub, ultimately improving flows. tourism and spending. While 55% indicated that they have invested in private projects to take advantage of the opportunities offered by the football event. Half of these investments went to tourism, hospitality and real estate. The organization’s report indicates that the FIFA World Cup, the start of the North South Field expansion, the 2030 Asian Games, and the strategic national goal of diversifying the economy away from hydrocarbons are all factors that attracted the attention of foreign investors and resulted in defining Qatar’s position. as a preferred investment destination. The report adds: “There is no doubt that the ongoing football event will have a positive impact on the country’s economy. What we are pleased to see, however, is the optimism of the top executives when the final whistle blows and the legacy the tournament will leave for the country. The strong investment sentiment bodes well for the future.”
