Business optimism in Qatar soars to high

A multi sector index for the fourth quarter of 2013 pegs Qatar’s business optimism to its highest level in nearly three years. The latest Dun and Bradstreet Business Optimism Index for Qatar reveals that optimism is at a level unsurpassed for 11 quarters, Grayling agency said Monday on behalf of Qatar Financial Centre Authority (QFC Authority), the sponsors of the survey. Optimism in finance, real estate and business services sectors has reached its highest level in the last three years, revealing a year-on-year growth of 15.4%. These sectors are growing the fastest in Qatar. The index for the consolidated non-hydrocarbon sector was 53, up 14 points from Q3 2013 and around 15 points from Q4 2012 levels. The index value in Q4 2013 is the highest recorded reading since Q1 2011, when it touched 61 points, showing that economic diversification in Qatar is gathering momentum. The profitability expectations of finance, real estate and business services sectors have risen sharply over the last year (58 points in Q4 2013 from 21 points in Q4 2012). Nearly 50% of small – and medium-sized companies surveyed in the sector plan to hire in Q4 of this year. QFC Authority Chief Strategic Development Officer Yousef M. Al Jaida said, “The sharp increase in optimism shows how strong and resilient the Qatar economy is. Finance, real estate and business services sectors are maturing rapidly and are a major force behind economic diversification, playing a leading role in supporting the country’s development.” Hydrocarbon sector optimism is at the highest level (29, up from 17 in Q4 2012 and 13 in Q3 2013) it has been in the last two years, supported by a positive outlook for sales volumes, profits and hiring. Manufacturing optimism is at its highest (53, up from 33 in Q4 2012 and 35 in Q3 2013) for three years, driven by a very optimistic outlook for sales and demand, which is the highest among the non-hydrocarbon sectors. Construction sector is at the most optimistic (53, up from 29 in Q4 2012 and 36 in Q3 2013) level it has been in the last three years. This is due to sharp rises in expectations for selling prices and profits and strongly supported by the sector’s expectations for hiring, which are the highest among the non-hydrocarbon sectors. Trade and hospitality sector optimism (52, up from 34 in Q4 2012 and 34 in Q3 2013) is close to the all-time high of 56 reached in Q1 2011. Transport and communications optimism is recovering (50, up from 45 in Q4 2012 and 43 in Q3 2013) on the basis of a strong outlook for profitability.