Qatar's economy up by 19% Qatar's economy surged by nearly 19 per cent in 2007 and growth is projected to pick up this year because of a sharp rise in oil prices and the Gulf country's gas exports, according to semi official data. The country's gross domestic product, which has more than doubled between 2002 and 2007, is expected to race by 19.5 per cent in 2008 before it moderates to around 16 per cent in 2009, the Qatari National Bank (QNB) said. "For 2008, QNB estimates nominal GDP growth to remain strong at 19.5 per cent, underpinned by several factors," the government-controlled bank said in its quarterly review of Qatar's economic and social developments. It said the factors included a surge in crude prices, an increase in Qatar's oil production to nearly 840,000 barrels per day from 815,000 bpd in 2007, and a sharp rise in liquefied natural gas exports from around 27.4 million tonnes in 2007 to a record 40 million tonnes in 20078. The report showed the country's non-oil and gas GDP soar by nearly 24.9 per cent to QR138.3 billion (Dh139.5 billion) this year. It expected the oil and gas sector to swell by around 12.4 per cent to QR175bn. Qatar, which controls the world's third largest gas resources after Russia and Iran, has recorded the highest growth rates in the Arab world over the past seven years mainly because of its surging LNG exports. Massive LNG projects have already turned the tiny Opec member into the world's largest LNG exporter after overtaking Indonesia last year. It will maintain that position in the years to come as its LNG supplies are expected to peak at 77 million tonnes when those projects are completed in 2011. Qatar launched such projects in early 1990s to tap its mammoth offshore North Field, which straddles nearly 6,000sqkm of Qatari and Iranian water in the Gulf and is believed to be the world's largest single reservoir of non-associated gas, with estimated reserves of over 900 trillion cubic feet. The rapid rise in its GDP has turned Qatar into one of the 10 wealthiest nations, with its per capita income exceeding $70,000 last year. According to QNB, the state-owned Qatar PetroleumQatar Petroleum has allocated QR63bn in its five-year plan, starting 2008, to fund gas projects. Besides high growth, the surge in oil prices and LNG exports have turned Qatar's budget deficits into large surpluses, allowing it to sharply boost its foreign assets and consolidate its sovereign wealth fund, the Qatar Investment Authority (QIA). According to the Saudi British Bank, the QIA's assets are expected to surge from $65bn at the end of March to $105bn in 2010 because of massive financial surpluses spawned by higher oil and gas sales and a recent wave of major acquisitions by QIA worldwide. QNB figures showed Qatar's 2007-2008 budget recorded another large actual surplus for the sixth successive fiscal year. It estimated the surplus at a record QR23 billion following a surge of 20 per cent in actual revenues to QR102 billion. Spending also jumped by around 19 per cent to QR79bn. By Nadim Kawach © Emirates Business 24/7 2008

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