Qatar’s economy shows resilience with 1% growth in Q2: official data 

Qatar’s economy shows resilience with 1% growth in Q2: official data 
The year-on-year GDP estimates, calculated at constant prices, reached 170 billion Qatari riyals ($46.7 billion). Shutterstock.
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Updated 28 November 2023

Qatar’s economy shows resilience with 1% growth in Q2: official data 

Qatar’s economy shows resilience with 1% growth in Q2: official data 

RIYADH: Qatar’s gross domestic product experienced a 1 percent growth in the second quarter of 2023 compared to the same period last year, according to official figures released by the Planning and Statistics Authority.   

The year-on-year GDP estimates, calculated at constant prices, reached 170 billion Qatari riyals ($46.7 billion) during the second quarter. This outpaced the revised estimates for the same period in 2022, which stood at 168.4 billion riyals.    

However, the GDP at current prices faced a downturn, declining by 13.7 percent in the second quarter of 2023, totaling 186.3 billion riyals. This contrasts with the estimate for the same quarter in the previous year, which reported a figure of 216 billion riyals.  

The real gross value added of non-mining and quarrying activities, which make up 62 percent of Qatar’s real GDP in the second quarter at 104.72 billion riyals, increased by 0.1 percent during this period.  

Meanwhile, the real GVA of mining and quarrying, making up 38 percent of real GDP at 65.37 billion riyals, increased by 2.33 percent during this period.  

On the other hand, the nominal GVA of non-mining and quarrying activities, representing 60.8 percent of the current price GDP, amounted to 113.3 billion riyals in the second quarter, declining by 3.9 percent compared to the estimates for the same period in 2022.  

The nominal GVA for mining and quarrying also dropped by 25.5 percent in the second quarter, amounting to 73 billion riyals.  

According to the Gulf Economic Update report by the World Bank, the Gulf Cooperation Council economy is estimated to grow by 3.6 percent in 2024 and 3.7 percent in 2025.  

Saudi Arabia’s GDP will show a contraction of 0.5 percent in 2023 before reporting a recovery of 4.1 percent in 2024 to reflect expansions of oil and non-oil sectors.  

The UAE’s economic activity is expected to drop to 3.4 percent in 2023. Oil GDP growth is expected to be 0.7 percent in 2023, but it is expected to rebound rapidly in 2024.  

Furthermore, due to a drop in oil output, Kuwaiti economic growth is expected to fall by 0.8 percent in 2023. Oil GDP growth is estimated to fall by 3.8 percent in 2023 before recovering in 2024.  

The economy of Oman is expected to decline in 2023, but it is forecast to strengthen in the medium term. Overall growth is set to slow to 1.4 percent in 2023 as oil output declines, while non-oil industries are likely to underpin growth, expanding by more than 2 percent.  

This year’s weaker performance is driven primarily by lower oil sector activities, which are expected to contract by 3.9 percent, to reflect the successive production cuts by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, and the global economic slowdown, according to the report.  

However, the reduction in oil sector activities will be compensated for by the non-oil sectors, which are expected to grow by 3.9 percent in 2023 and 3.4 percent in the medium term, supported by sustained private consumption, strategic fixed investments, and accommodative fiscal policy.  

Gender equality is the cornerstone for development, says Saudi economy minister

Gender equality is the cornerstone for development, says Saudi economy minister
Updated 4 sec ago

Gender equality is the cornerstone for development, says Saudi economy minister

Gender equality is the cornerstone for development, says Saudi economy minister

RIYADH: Saudi Arabia eyes increasing female representation across various sectors as the country considers gender equality as a cornerstone for sustainable development, said the minister of economy and planning.

Speaking at the Human Capability Initiative in Riyadh on Thursday, Faisal Alibrahim said the Kingdom has been witnessing a significant rise in female participation in the private sector.

“Gender equality is a cornerstone of our commitment to sustainable development. Increasing female representation is a critical macro goal supported by a multitude of initiatives,” said Alibrahim.

He added: “Women now hold 20 percent of seats in the Saudi Shoura Council and key positions in ministries and government bodies. Twenty-nine percent of middle and senior private sector management positions are held by women, and 45 percent of SMEs in the Kingdom are female-led.”

The minister added that human capital investment is crucial for Saudi Arabia and the Kingdom, with various initiatives, is trying to ensure a better future for its citizens.

“We regard human capital investment as a critical part of the Kingdom’s transformation. The Ministry of Economy and Planning considers human capital at the heart of policymaking,” said Alibrahim.

According to Alibrahim, Saudi Arabia is a young country, and with a majority of the population at the working age, the Kingdom has all the potential to boost its economy.

“Saudi (Arabia) is a young country. (With) the median age of just 29, 73 percent of the people are working age, and only 3 percent are above the age of 64. This means we have a unique window and demographic opportunity, offering a potential economic boost. During this period, countries can experience higher productivity, increased savings, and investment potentials,” added the minister.

Talking about human capability initiatives in the Kingdom, he said the Kingdom’s Healthcare Transformation Program will help 88 percent of the population gain access to inclusive healthcare services by 2030.

The minister further noted that the national housing program has a goal to increase homeownership in the Kingdom to 70 percent.

“Saudi Arabia’s Healthcare Transformation Program uses a host of innovation and digital solutions to provide a more comprehensive, personalized, and integrated healthcare system. 88 percent of the population will have access to inclusive health care services by 2030, and 100 percent will be covered by a unified digital medical record system,” said Alibrahim.

The minister also highlighted the role of the private sector in elevating human capability. According to the minister, governments should encourage reforms that will increase private investments in human capital.

“We must provide the right framework for private and social investments in human capital; tax investments, and public-private partnerships, there are a multitude of ways that the government can encourage reforms and innovation,” added Alibrahim.

He also added that Saudi Arabia’s progress will not end after achieving the goals outlined in Vision 2030.

“I promise you this, progress does not stop in 2030. We are developing a culture of continuous learning and improvement. When the Kingdom reaches one goal, it is always just a step on the ladder to the next. To achieve the best outcomes, it is critical to harness the power and dynamism of the private sector,” said the official.

He added: “Saudi Arabia is open to ideas, open to investments, and open for international collaborations.”

Red Sea Global launches national academy to train and upskill Saudis, CEO reveals

Red Sea Global launches national academy to train and upskill Saudis, CEO reveals
Updated 30 min 43 sec ago

Red Sea Global launches national academy to train and upskill Saudis, CEO reveals

Red Sea Global launches national academy to train and upskill Saudis, CEO reveals

RIYADH: Young Saudis will soon be further qualified in terms of technical specializations as the Red Sea National Academy launches, according to the group CEO. 

In an interview with Arab News on the sidelines of the Human Capability Initiative in Riyadh, John Pagano explained that as the entity advances tourism destinations in the Red Sea and Amaala, there will be a requirement for additional participants within the industry to meet the demands of the labor market. 

This aligns with the Saudi Vision 2030 goal of ensuring that the Kingdom’s citizens have the capabilities to compete globally by instilling values, developing basic and future skills, and enhancing knowledge. 

“The industry needs 1.2 million new participants to help deliver this new industry, this new, exciting and important industry from an economic point of view, from a diversification point of view,” Pagano said. 

“We’ve decided that we need to provide the opportunities to train and upskill these young Saudis in an environment that is relevant to where they’re going to ultimately work,” the CEO added. 

He went on to say that the initiative will work on training a couple of thousand students per year, all of whom will ultimately graduate and get jobs within the Red Sea and Amaala projects.

In terms of location, Pagano disclosed that the newly inaugurated academy will reside in Al-Wajh, which sits between the Red Sea and Amaala. 

“It’ll become a hub for not only our training but also as a community center, where we’re going to continue to provide English language courses for the local population to, again, give them opportunities to find new jobs within this new burgeoning industry,” the CEO said. 

He clarified that the group will often bring in specialist providers to conduct the training. In some cases, the group will be doing the training directly themselves. 

“Our preference and our priority would be to give local community residents, you know, a priority if they’re interested in are willing to take on, you know, that burden of going through the training. But ultimately, it’s open for all nationalities that will ultimately work within the destination,” Pagano noted. 

Speaking during a session titled “Developing Human Capabilities – The Power of Tourism,” the CEO explained how the entity plans to propel the local community further. 

“Our first class of vocational students, 430 of them, graduated last July. Almost 40 percent of them came from our local communities on the West Coast and that’s because we aim to benefit those communities where opportunities for advancement have historically been scarce,” he clarified. 

“Our program in airport services is the first of its kind in the nation. We’re also the first in the country to provide vocational training and tourism security. We already have 400 students enrolled and they’re on track to graduate next year, again in time for opening up our resorts,” he also underlined.

“In total, more than 1,300 talents are either studying in our programs or have already graduated from them. And these numbers will add up quickly. By 2030, we expect to have graduated 10,000 vocational students,” Pagano said in his speech.

With regards to the performance of the group in general, the CEO highlighted during the interview with Arab News that: “Last year and into the beginning of this year has been a pivotal, momentous period for us, a milestone.”

This comes as Red Sea has recently opened its first two resorts, including The Six Senses Southern Dunes and the Saint Regis Red Sea Resort. By the end of this year, the group intends to launch four additional resorts, he disclosed. 

“Meanwhile, we’re busy working on 19 other resorts, 11 at Red Sea and eight at Amaala, all of which are going to open next year,” Pagano revealed. 

In terms of operations, the CEO said: “We’re open for business today. The airport is running. So, we have eight flights a week in and out of the Red Sea direct.” 

That said, the destination is currently receiving guests regularly from the local and regional market, including Europeans as well, he added.

“So, we’re in that capacity-building mode where people are now starting to learn about the destination,” Pagano concluded. 

HCI is the first-ever global cooperative platform designed to unify international efforts and enrich the global dialogue on the challenges and opportunities for developing human capabilities. 

According to the HCI website, the two-day event will explore opportunities in various areas, including skill development, the future of work, education, talent, and technology.   

It will bring together policymakers, thought leaders, investors, and entrepreneurs to catalyze international collaboration. It also caters to participants who want to maximize resilience, explore opportunities, and promote innovative policy design and solutions.

Jordan set to receive investments of up to $100m annually from the EBRD

Jordan set to receive investments of up to $100m annually from the EBRD
Updated 49 min 11 sec ago

Jordan set to receive investments of up to $100m annually from the EBRD

Jordan set to receive investments of up to $100m annually from the EBRD

RIYADH: Jordan’s energy and green economy sectors are set to receive over $100 million in investment annually, according to a top official.

The First Vice President of the European Bank for Reconstruction and Development Jurgen Rigterink revealed to the Jordan News Agency that the bank looks forward to expanding its activities and investments in the country to reach over $100 million annually, covering areas such as energy, water, clean energy, and the green economy.

Regarding the bank’s investments in the country, Rigterink mentioned that over the past 12 years, the bank has invested in 71 projects totaling an estimated €2.1 billion ($2.2 billion), with €268 million in concessional financing. 

He added that last year, the bank invested in five projects worth €62 million.

Rigterink affirmed that Jordan’s economy is performing well in the medium term and is moving at a stable pace despite the crises facing the region. He attributed the performance to successfully implementing the economic modernization vision and attracting foreign direct investment.

In an interview with the agency, also known as Petra, he highlighted the economic modernization vision launched by the government last year.

The vision includes developmental and strategic projects to increase economic growth, reduce unemployment rates, and issue laws and legislation supporting this vision, including investment regulations, public-private partnerships, and combating tax evasion.

The VP is visiting Amman to familiarize himself with the bank’s activities in Jordan and identify economic and investment opportunities in the country to determine potential areas for future bank support.

He reiterated the bank’s support for Jordan during this challenging time for the region and emphasized that discussions were held with Deputy Prime Minister for Economic Affairs Nasser Shraideh and Minister of Planning and International Cooperation Zeina Toukan regarding current and future investments to support the country’s economic growth and stimulate job creation.

Regarding the impact of the Gaza war on the country’s economy, Rigterink expected it to affect the local economy, which has shown resilience against challenges, stable growth, and low inflation rates due to the pegging of the dinar to the dollar.

He explained that the private sector would remain cautious about initiating new investments or expanding existing ones due to the uncertain situation.

Regarding the Green Star Venture programme, Rigterink affirmed its aim to enhance the competitiveness and growth of small, medium, and start-up companies in Jordan, contributing to the country’s green transformation.

He highlighted the role of small and medium-sized enterprises in achieving a greener economy by providing innovative eco-friendly products and services, noting that the bank has provided technical and advisory support to 500 SMEs, considering them as the backbone of economies and job providers.

The VP confirmed the bank’s support for SMEs by providing banking facilities via local financial institutions, mentioning the launch of green economy financing to boost green investments in Jordan’s private sector through partner local financial institutions.

He also emphasized the bank’s commitment to supporting Jordan’s transition to a comprehensive, competitive, and sustainable economy, mentioning several Aqaba Special Economic Zone projects, such as an eco-friendly electric bus initiative and a solid waste management undertaking.

Jordan joined the bank as a member in 2011, was granted recipient country status for aid in 2013, and has a permanent office to manage its operations in Jordan, the West Bank, the Gaza Strip, and Lebanon.

Saudi digital economy accounts for 14% of Kingdom’s GDP, new GASTAT analysis reveals

Saudi digital economy accounts for 14% of Kingdom’s GDP, new GASTAT analysis reveals
Updated 29 February 2024

Saudi digital economy accounts for 14% of Kingdom’s GDP, new GASTAT analysis reveals

Saudi digital economy accounts for 14% of Kingdom’s GDP, new GASTAT analysis reveals

RIYADH: Saudi Arabia’s digital economy contributed 14 percent to the Kingdom’s gross domestic product, according to a first-of-its-kind survey conducted by the General Authority for Statistics. 

The study, which was carried out in 2023 and covers the previous 12-month period, set out the areas that have seen significant growth in this field.  

The survey aligns with recommendations from the Organisation for Economic Co-operation and Development and the UN Conference on Trade and Development. 

According to the Digital Economy Survey, nearly half of all establishments, at 48 percent, invested in cloud computing services, encompassing various offerings like postal services, security software applications, file storage, and database hosting. 

Information and communication activities led the pack, with 68.3 percent of institutions in this sector purchasing cloud services, followed by education at 66.9 percent, and professional, scientific, and technical activities at 59.5 percent. 

Around 20.3 percent of establishments provided services via electronic applications, with education leading at 44.5 percent, followed by accommodation and food services at 39.9 percent, and arts and entertainment at 31.9 percent. 

In terms of electronic purchases, 18.5 percent of institutions placed orders for goods and services online, with information and communication establishments leading at 40.1 percent. They were followed by professional, scientific, and technical activities, as well as financial and insurance activities, both at 35.7 percent. 

Moreover, 60.1 percent of institutions utilized internet-connected devices or systems, encompassing smart alarm systems, meters, lamps, and surveillance cameras. 

Health and social work activities establishments were the highest users at 67.4 percent, followed by financial and insurance activities, and education activities, each at 65.2 percent. 

The survey aims to provide a database for conducting studies and developing indicators about the digital economy sector in Saudi Arabia. It serves as a reliable basis for research and provides decision-makers with valuable data for local, regional, and international comparisons. 

Private investment in emerging sectors to create ‘tremendous opportunities,’ says Saudi minister

Private investment in emerging sectors to create ‘tremendous opportunities,’ says Saudi minister
Updated 19 min 37 sec ago

Private investment in emerging sectors to create ‘tremendous opportunities,’ says Saudi minister

Private investment in emerging sectors to create ‘tremendous opportunities,’ says Saudi minister

RIYADH: Private sector investment in Saudi Arabia is poised to create “tremendous opportunities” across the digital economy, tourism, financial services, and biotech sectors, said a top minister. 

During the second day of the Human Capability Initiative in Riyadh, the Kingdom’s Minister of Investment Khalid Al-Falih highlighted that by the end of this decade, the economy aims to grow two and a half times its pre-Vision 2030 level, with private sector participation increasing from 40 percent to 65 percent. 

He said: “Because of that, the size and scale of the private sector will be four times what it was during this decade alone, adding more than $3 trillion of investments to the domestic economy through the national investment strategy and other initiatives.” 

The minister underscored that a significant portion of those investments will be in new and developing economic sectors including the digital economy, tourism, and financial and professional services.

Healthcare, pharma, and biotech were also highlighted.

“These sectors will create tremendous opportunities for human capital development, as they will require a completely different set of skills and a fresh worldview and outlook,” said Al-Falih, adding: “The world is undergoing significant structural shifts marked by the energy transition, automation, and digitalization, new and shifting supply chains, and emerging disruptive technology.”  

The minister explained that while it may not be possible to predict precisely how much these macro trends will affect human capital and which jobs will be in demand, it is clear they will have a tremendous impact. 

“Since the beginning, we’ve seen firsthand what happens when investments catalyze human potential. The 90 years of development in the energy sector, sparked by the Aramco investment, is perhaps the best example but far from the only one,” Al-Falih said. 

“So when a new sector emerges, such as renewable energy, fintech, or biotech, the skills gap that arises will be filled through training, upskilling, or, in the case of Saudi Arabia, an open country, by inviting skilled people from around the world to meet that demand. Before you know it, you have an entirely new skill pool ready to be deployed,” he added.