Qatar’s business community shows a further retreat in optimism for Q3 2011

Dun & Bradstreet South Asia Middle East (D&B) in association with Qatar Financial Centre (QFC) Authority has released the D&B Business Optimism Index for Qatar for Q3 2011.

The survey for the Business Optimism Index for Q3 2011 was conducted in June 2011, a time when most economic forecasts are predicting that the global economy is moving to a lower growth trajectory, characterized by slightly higher inflation. Emerging market economies continue to grow at a robust pace, and recovery in developed countries, although weak, also continues.

- The Composite Index for the non-hydrocarbon sector has dropped to 27 in Q3 2011, impacted by weak global cues 

- All six parameters and all five economic sub-sectors post a decline 

- The Composite Index for the hydrocarbon sector has increased to 22 

Commenting on the survey Yousuf Al Jaida, Director - Banking & Asset Management - Strategic Development emphasised: “These findings reflect the expected quarterly retrenchment for the non-hydrocarbon sector growth in Qatar primarily due to the current global economic uncertainties. At the same time they also show the well documented continued strength of the oil and gas sector, forecasted by the IMF to grow 29.5% in 2011 on the back of a 22.7% real growth in 2010. 

Al Jaida continued: “It is especially encouraging to note that 44% of companies in the financial sector plan further investments despite the still present global economic challenges, whilst 51% of non-hydrocarbon sector firms are anticipating an increase in sales in Q3 2011.” 

Manjeet Chhabra, General Manager – Middle East, Dun and Bradstreet South Asia Middle East added: “Even though Qatar’s economy is mostly insulated from the regional unrest and weakness in global macroeconomic indicators, business sentiments have been dented by weak global cues. The global economy is facing huge downside risks in terms of the European debt crisis, overheating in emerging economies, rising cost of commodities and disappointing employment numbers. The non-hydrocarbon sector has registered a 15 points drop to 27 in the composite score and is at a five quarter low. Despite the decline, sentiments are still positive and indicate a growing economy. Since the soft patch in the global economy is expected to be temporary, business sentiments in Qatar should also go up again. The 21 point gain in the hydrocarbon sector shows that businesses are optimistic that oil demand will remain robust and hence prices will remain steady or increase in the short to medium term.”