Anti–crisis Mechanisms of Qatar: Economic Diversification, Digitalization, Transformation

Abstract

The Qatar National Vision 2030 program is based on two principles — modernization and preservation of traditions. Blockade of the country in 2017–2020 and the coronavirus pandemic became a serious test for the economy of Qatar, but the government and residents of the country do not consider themselves defeated by these circumstances, but on the contrary, these circumstances helped the country’s economy to survive the above crises. In 2019, the International Monetary Fund said that Qatar’s economy was resilient in the face of the blockade and shocks caused, including by the fall in hydrocarbon prices in 2014–2016. The events of the global economic crisis caused by the pandemic have posed another challenge to the financial and banking system of Qatar. Thanks to the measures of the country’s government aimed at ensuring business continuity, maintaining liquidity and providing support to the sectors of the economy affected by the pandemic, it was possible to mitigate the impact of this shock, support cash flows, and achieve financial and banking stability in the country. However, according to fund analysts, COVID–19 and a sharp drop in hydrocarbon revenues will lead to a reduction in real GDP growth by 2% in 2020. At the same time, future profits from hosting the FIFA World Cup in 2022, continued expansion of capacities in production of liquefied gas and competent fiscal and monetary policy will contribute to economic growth in the country in the medium term.