Qatar PR Network, Online Press Release from qatar and Doha city
Business, Banking and Investments(Banking & Investments)
Filter PR by
Qatar Viewpoint: Back to (Gas) Basics

June 10, 2021:  

Macro: Back to (gas) basics
Qatar's renewed Liquefied Natural Gas (LNG) expansion plans could have important economic and market implications over the medium-term. Qatar Petroleum (QP) is planning to increase LNG production capacity in 2027 by 63% to 126mtpa. We estimate the economy could now double in size, with nominal GDP reaching cUS$300bn by 2027. This is likely to boost sovereign creditworthiness, economic activity and twin surpluses. Still, the growth model post-2027 is unclear without reforms.

Qatar - GCC macro ties not yet warming up
The resolution of the Qatar-Gulf Cooperation Council (GCC) rift is unlikely to lead to major macro gains, in our view. Underlying policy orientations and differences between Qatar and the Quartet are likely to remain in place. Economic links are likely to be only resumed partially and gradually at this stage. Qatar's sovereign wealth and robust policy response have also sheltered it from the worst effects of the Covid crisis.

Qatar could become the swing LNG producer
Qatar's LNG strategy appears to be focused on defending and, in due course, growing its market share. We estimate its existing LNG contract rollovers start from 2022 onwards. Qatar's structural cost advantage makes it well positioned to retain its pre-eminent supplier position, while allowing for greater flexibility in contract pricing.

LNG expansion plans to boost sovereign creditworthiness
We expect the LNG expansion plans to boost real GDP growth and fiscal surpluses to high-single digits and mid-single digits on average over 2021-27. We estimate the LNG investment pipeline could boost non-hydrocarbon real GDP growth by 1.5ppt per annum, bringing it to average c5.0% over the period 2022-27.

Equity Strategy: bullish QNB and IQCD
The improving Qatar National Bank (QNB) operating metrics support our bullish view on QNB, with valuation failing to reflect the more favourable economic outlook. LNG expansion could allow greater availability of domestic feedstock. We remain bullish on Industries Qatar (IQCD) due to our expectations for a robust fertiliser pricing outlook. 

EXD Strategy: reduced external issuance a key positive
Reduced issuance could allow Qatar spreads to gradually tighten versus other high-rated Emerging Markets (EM) peers, especially post-QP issuance. We see medium-term risk of outflows of US$10bn, should Qatar lose Emerging Markets Bond Index (EMBI) eligibility due to surpassing EM income and cost of living thresholds. Still, given Qatar's weight, investors could instead treat most of their exposure as off-benchmark positions.


Posted by : Qatar and Doha City PR Network Editorial Team
Viewed 2050 times
PR Category : Banking & Investments
Posted on : Thursday, June 10, 2021  11:48:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of
Previous Story : MEEZA Attains for its First time 4 Microsoft Gold Certificat...
Next Story : Bassel Gamal, QIB's Group CEO, Reveals What He Believes Is I...
Email this article Print this article

Share this article with your friends and followers
Back to Section Home

Related Stories

Most Viewed Press Release posted in the last 7 days
CMU-Q Summer Program Teaches Coding to Youth Around the World [9641-Views]
Style Your Story in New Ways With Pandora [6630-Views]
Time with Michael Phelps [6592-Views]
Samsung's 2021 The Wall is Now Available Worldwide [6390-Views]
British-Born MG Motor Gains in Popularity during the first half of 2021 in the Middle East [5102-Views]
Maya Doha Re-launches Its Long-awaited Legendary Friday Brunch [5043-Views]
Police Backpacks [4830-Views]
Max Factor Welcomes Priyanka Chopra-Jonas As Global Ambassador And Creative Collaborator [4754-Views]
Pandora's Global Muses Celebrate the Return of Special Occasions [4060-Views]
Presenting TARONGA - the new addition to the Rebel collection [3710-Views]
Once again QIC Group is the Official Insurance Sponsor of S'hail [3658-Views]
Standard Chartered Global Focus Q3 2021: Navigating a Vulnerable Recovery [3327-Views]
Max Factor X Priyanka Chopra Jonas: Matte Confidence Look [2468-Views]
MEEZA Achieves Gold Partner Status in HPE Partner Ready for Service Providers Program [2431-Views]
Riyasat Doha Launches its first ever Friday Brunch [2169-Views]
Cutting-Edge Deep Learning Solutions That Work With Radiologists to Improve Breast Cancer Detection ... [1947-Views]
Hyatt Regency Oryx Doha Worked Together with Wa'hab to Distribute Essential Food Items to Local Comm... [1923-Views]
Curly Hair Girls Rejoice! Cult Haircare Brand SASHAPURE Launches in the Middle East [1857-Views]
Snoonu Launches its Most Recent Venture ‘Snooflower' [1840-Views]
Find Your Zen at the Spa at Mandarin Oriental, Doha [1795-Views]
RSS Facebook Twitter LinkedDin on Instagram
Top Sections
Top Stories