(MENAFN- Gulf Times) Qatar has been able to diversify its economy away from oil and gas, which has helped the country safeguard its economy from the "repercussions" of the declining oil prices, said HE the Minister of Economy and Commerce, Sheikh Ahmed bin Jassim bin Mohamed al-Thani.
Addressing the 'Global investment forum" in New York yesterday, the minister said Qatar's real GDP growth in excess of 4.1% was "much above" the average global growth of 2.5%. Qatar's gross national savings, equivalent to 56% of the country's GDP, is the highest in the world, he said.
Sheikh Ahmed pointed out that Qatar had a well-diversified portfolio of global investments. It is also developing non-oil sectors such as services, advanced technology and manufacturing in line with the Qatar National Vision 2030.
The minister, however, stressed that the decline in global commodity prices has had an impact on the global economy.
"On the one hand, consumers feel relaxed about low energy bills, but on the other, the situation will weaken the purchasing power of energy producing nations, thereby impacting their investment plans," Sheikh Ahmed said.
The minister also said the low commodity prices might dissuade investments, especially in high-cost oil and gas extraction facilities. This will adversely affect global growth in the coming years, unless steps are taken to address issues arising out of lower revenues and lower capital spending.
Sheikh Ahmed referred to the slowing real GDP global growth and said it might slip to 2.5% this year from 2.8% in 2014. Compared to last year, FDI inflows have fallen by 16% so far this year.
Indications are that global growth will be weaker in 2016 and most emerging economies will witness tepid trade growth next year. Many analysts say the FDI growth forecasts will have to be reviewed in the period ahead.
Driven by a strong economy and a solid financial base, the minister said Qatar will continue its "sustainable" global investment programme and strengthen its cooperation with various countries.
Sheikh Ahmed said Qatar would join hands with all "brotherly and friendly" countries to promote economic stability and sustainable growth. Global investors can make use of the opportunities to partner with entrepreneurs, investors and companies in Qatar to develop projects that will create numerous jobs, support innovation and economic growth and prosperity.
The forum was organised by the International Economic Alliance at the Council on Foreign Relations, New York. The event was held on the sidelines of the 70th Session of the UN General Assembly in New York with the theme "The path to prosperity."
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