DEAD SEA, Jordan, 22 May 2005 — Qatar foresees up to $120 billion of investments in the next five to eight years as it continues to diversify its fast growing energy-based economy, its economy minister said yesterday.
“The government is earmarking $100-120 billion in projects in Qatar within the next five to eight years,” Minister of Economy and Trade Mohamad ibn Ahmed Al-Thani told Reuters on the sidelines of a World Economic Forum conference.
He said $70 billion would go into the hydrocarbons industry and the rest in infrastructure projects.
Qatar has the world’s third largest gas reserves and is the fastest growing economy in the Arab world. Its fewer than 800,000 citizens are also the region’s wealthiest, with per capita income of $40,000.
Thani said the Arab Gulf state sought sustainable high growth without overheating after high oil and gas prices fuelled an boom which led to 20.5 percent economic growth in 2004.
“In 2003 the GDP was $19.5 billion and in 2004 it became $28.5 billion so it grew 20.5 percent so it’s the highest growth in the world,” he added
“Growth in the first quarter of 2005 was eight percent and we want and foresee sustainable growth in the coming years with prudent macroeconomic management of the economy.”
Thani said diversifying the economy would help absorb excess liquidity which has pushed property and stock prices up by over 70 percent since the start of 2005.
“With every fast growth there is always excess liquidity and a chance of a bubble or over heating. We can see some overheating in the economy,” Thani warned.
Thani predicted Qatar this year would attract more than the $2 billion of foreign capital that entered the country in 2004 mainly into energy-related industrial projects. Major foreign ventures were also being set up in banking, industry and services, he said.
