Qatar’s Steady Growth Market
The strong oil and gas market trends in 2022 has stepped-up Qatar’s projects market into the next phase of development.
Qatar’s resilient economy and strong investment momentum into 2023 will witness a significant increase in FDI with more projects attracting international investments.
The country achieved 70% annual growth in FDI projects between 2019 and 2022. Oil & gas, and financial services were among the top sectors for FDI projects in 2022.
Most notable contract awarded during Q4 of 2022 includes $4.5 billion contract from Qatargas for the engineering, procurement, fabrication, and installation of two natural gas compression complex for the North Field Production Sustainability Offshore Compression Complex Project.
Qatar’s future projects pipeline comprises $120.5 billion worth of contracts to be awarded. Currently, the country has about $10.2 billion contracts in tendering or evaluation stage, including major gas and utilities projects.
Qatar’s economy is set to grow at an average annual rate of 3.1% over 2023-25, forecasts GlobalData. The country recorded substantial surpluses in both the fiscal and current account balances in 2021 and 2022, which are projected to rise further in 2023.
Qatar leads the Middle East’s operational LNG liquefaction capacity by contributing 76.5% of the total capacity. Ras Laffan III, Ras Laffan II and Qatargas I are the major liquefaction terminals in the country.
Numerous LNG projects in the region have boosted the production capacity. Qatar is also expanding its North gas field with six LNG trains that are expected to increase its LNG capacity from 77 million tonnes per annum to 126 million tonnes per annum by 2027.
The Russia-Ukraine war has opened commercial and diplomatic opportunities for Qatar to increase energy sales to Western countries amid sanctions on Russia and tensions with other Gulf Arab states. This has also enabled Qatar to consolidate its position as the world’s leading supplier of LNG.
Qatar is taking initiatives to diversify the economy with ambitious green energy projects, which would more than double the country’s current renewable energy output within two years. The favorable policies have provided support for various sectors and enhances investor confidence in the country. This certainly provides a substantial push to the nation’s economy.