Qatar: 2023 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, February 7, 2024
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- Qatar: 2023 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: February 7, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400266911.002
Overview and Key Findings
- Qatar’s decade-long efforts to diversify the economy culminated into the successful hosting of the 2022 FIFA World Cup.
- Banks are well capitalized, liquid, and profitable:
- Capital adequacy ratio: 19 (second quarter of 2023).
- Return on equity: 14.6 percent (second quarter of 2023).
- Banks’ nonresident deposits fell by more than one-third from the recent peak, partially replaced by higher public sector domestic deposits, reducing vulnerabilities amid tight global financial conditions.
- Structural reforms continue to progress, including measures to:
- Enhance protection and mobility of expatriate labor.
- Improve the business environment.
- Promote public–private partnerships.
- Further attract private investment through the residency program and broadened foreign ownership provisions.
- The pension scheme has been expanded to more Qataris in the private sector to promote private sector employment.
- If downside risks materialize, Qatar has strong policy buffers to mitigate the negative impact.
- On the upside, accelerated reform efforts guided by the Third National Development Strategy could further promote diversification and boost potential growth.
Financial Sector Assessment
- Capital adequacy ratio and return on equity reported as:
- 19 (capital adequacy ratio, second quarter of 2023).
- 14.6 percent (return on equity, second quarter of 2023).
- Deposit composition shift:
- Nonresident deposits declined by more than one-third from the recent peak.
- Public sector domestic deposits increased and partially replaced nonresident deposits.
- Implication: Reduced vulnerabilities amid tight global financial conditions.
Structural Reforms and Labor Policy
- Ongoing reforms target:
- Protection and mobility of expatriate labor.
- Expansion of the pension scheme to more Qataris in the private sector aimed at promoting private sector employment.
- Enhancements to the business environment to attract private investment.
- Promotion of public–private partnerships.
- Residency program expansions and broadened foreign ownership provisions to further attract private investment.
Risks, Buffers, and Policy Options
- Downside risks: If realized, can be mitigated by Qatar’s strong policy buffers.
- Upside scenario: Accelerated reform efforts, guided by the Third National Development Strategy, could further accelerate diversification and boost potential growth.
Publication Metadata and Scope
- Subject areas include: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Economic sectors, Expenditure, Fiscal policy, Fiscal stance, International organization, Monetary policy, Public debt, Public sector.
- Keywords listed: Anti-money laundering and combating the financing of terrorism (AML/CFT), East Africa, financial asset, Fiscal stance, Global, IMF staff calculation, labor market dynamics, LNG production expansion, Middle East, money market rate, North Africa, policy buffer, Public sector.
- Publication details:
- Pages: 87
- Volume: 2024
- Issue: 043
- Series: Country Report No. 2024/043
- DOI: https://doi.org/10.5089/9798400266911.002
- ISBN: 9798400266911
- ISSN: 1934-7685
- Publication date on landing page: February 7, 2024
Source: Qatar: 2023 Article IV Consultation-Press Release; and Staff Report (IMF), February 7, 2024.
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