Qatar’s Economy To Double By 2031: Can Diversification And Gas Power Achieve This Milestone?

According to a recent analysis by Standard Chartered, the country is on a positive trajectory to restore government revenues to pre-2014 levels, reflecting its resilience and potential for sustained growth.

Qatar’s global profile was elevated following its hosting of the FIFA World Cup 2022 Photo Credit: Shutterstock

Qatar is poised to double its economy by 2031, marking a significant milestone in the nation’s ongoing economic diversification efforts and strategic position in the global energy market. According to a recent analysis by Standard Chartered, the country is on a positive trajectory to restore government revenues to pre-2014 levels, reflecting its resilience and potential for sustained growth.

As the world’s sixth-largest gas producer and holder of the third-largest gas reserves, Qatar stands to benefit from the projected increase in hydrocarbon prices. The report notes that Qatar’s non-oil economy is currently driving steady growth and accounting for two-thirds of the nation’s gross domestic product (GDP). This diversification is a key factor in the country’s economic resilience and sustainability.

Additionally, Qatar’s global profile received a significant boost after hosting the FIFA World Cup in 2022, further positioning the nation as a key player in the international arena. Projections from authoritative sources such as the International Monetary Fund (IMF) and the World Bank indicate continued economic expansion in the coming years.

The IMF and the World Bank foresee a growth rate of 2.1 per cent in 2024, with further acceleration to 3.2 per cent in 2025. This upward trajectory is a testament to Qatar’s strong economic fundamentals and strategic initiatives. Notably, the World Bank highlighted the challenges posed by the sharp decline in oil prices between 2014 and 2016, largely attributed to increased US shale production.

However, the analysis points towards a more optimistic outlook, citing rising oil demand and projections of Brent crude prices reaching $100 (Dh367) per barrel by year-end as potential drivers of increased revenues for Qatar. The country’s thriving liquefied natural gas (LNG) sector is also expected to play a significant role in bolstering the economy. With plans to enhance North Field output by 85 per cent by 2025, Qatar is poised to nearly double its natural gas production by the end of 2030, from the current 77 million tons per annum.

The report emphasizes the importance of Qatar’s Third National Development Strategy in achieving its ambitious economic goals by 2031. This strategic plan is designed to advance economic diversification and establish a conducive environment for investment and business growth, setting the stage for sustained prosperity and development.

Qatar’s economic outlook is characterized by resilience, diversification, and strategic initiatives aimed at driving sustainable growth. With positive projections from global financial institutions and a strong focus on economic diversification and development, Qatar is well-positioned to achieve its ambitious economic goals by 2031.