Between booms: Qatar takes a breath between gas and the World Cup

Posted on October 16, 2012


Qatar is pausing to take a breath as it steadies its economy between two boom periods.

Qatar pauses for breath between boomsAn extraordinary 10-year boom in Qatar’s gas-exporting infrastructure is petering out, according to an investigation by the Financial Times, leaving business confidence at its lowest ebb in years.

Growth in gross domestic product in the small, gas-rich Gulf state, classified as the richest in the world on a per capita basis, has shrunk to 6%, from 14% last year. Business activity is expected to have fallen by around 40% in 2012.

The gas infrastructure building boom may be over, but the world is now holding its breath for Qatar’s FIFA World Cup-related building boom to begin in earnest.

Clearly, with more than USD 100 billion to be spent in the next 10 years on roads and railways alone, the Qatar story is far from over.

— Yazad Darasha

More intelligence on Qatar’s economic prospects: