In recent years oil prices and increased competition in the global liquefied gas market have curbed economic growth. Oil and gas account for 90% of total exports and over 75% of fiscal revenues. Crude oil production has declined due to cuts in response to the global glut and lower production from maturing fields. As Euler Hermes expects crude prices of around USD54/bbl (Brent) in 2017, the oil sector is not set to be a growth driver in the near future. The gas sector also disappointed because of delays in the Barzan pro-ject, touted to add 6% to existing output.
Nonetheless, growth should pick up from +2.5% in 2016 to +3.0% in 2017 and +3.2% in 2018. The main driver is a strong expansion in the non-hydrocarbon economy. Qatar’s role as the host of the 2022 FIFA World Cup has had positive knock-on effects on the construction and services sectors. The former benefits from a large public investment related to the tournament. The government’s fiscal consolidation efforts will not affect key projects such as the Doha metro. Large-scale works have also attracted considera¬ble inflows of expatriate labor, resulting in consump-tion growth and higher services demand. Financial and business services continue to thrive.