(MENAFN- The Peninsula) The Emir H H Sheikh Tamim bin Hamad Al Thani yesterday announced that the government has taken effective steps to restrict government institutions from competing with private entities to help private sector emerge as key player in the country's economic activities.
Opening the 43rd ordinary session of the Advisory Council in the presence of the Father Emir
H H Sheikh Hamad bin Khalifa Al Thani, the Emir made a series of announcements in favour of the private sector.
The government has already issued a circular restricting the state-funded institutions not to establish companies or engage in economic activities in the sectors where the private players are active, without prior permission from the Office of the Prime Minister.
The government has taken a series of other steps to help private sector play a pro-active role in Qatari economy, the Emir said.
Noting that the government sees private sector a main partner in further strengthening the country's economy, the Emir said the government has initiated a large number of programmes and 19 specific projects to improve the competitiveness of private companies. "The government is also in the process of giving final touches to new legislation that will improve the business environment and offer a widest possible space that would help private companies achieve sustainable growth."
In another major announcement, Emir said the government is in the process to merge Enterprise Qatar (EQ) and Qatar Development Bank (QDB) to further strengthen private sector.
Directives have been issued to the government to make sure all the major projects of the country are completed in a time-bound manner. The Office of the Prime Minister has been asked to prepare plans with a practicable timetable to solve issues related to the establishments of warehouses, development of logistic zones, economic zones, , industrialisation plans and issuing licences to new factories. Directives have also been issued to the government to make sure the economic zones and the New Port Project are completed within specific time frame.
The country's financial sector and capital markets are undergoing a series of reforms. Steps are also afoot to launch the country's first Food and Agriculture Project. The country's innovative tourist projects will be completed within the next two years.
On the sliding oil prices, the Emir re-assured Qatar's economy is strong and the drop in oil prices will not hit Qatar. The country's budget is based on very conservative estimates of fuel prices. The Emir stressed the need for adopting a rational approach while handling the government funds.
The Emir noted the country's economy has achieved a commendable growth of 6.3 percent this year. Considering the lesser contribution of hydrocarbon sector to the GDP, this growth rate is a great achievement. The fact that the country's trade surplus represents 52 percent of GDP further underscores the strength of our economy.
The country's economic growth is accompanied by a rise in inflation rate. "We are in the efforts to contain inflation. Competition will not help reduce prices. We need to improve our storage capacities, better plan and execute projects and try to ease real estate prices to contain inflation," the Emir said.
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