EconomyTop Stories

FIFA World Cup 2022: Latest growth driver for Qatar economy

In December, the Qatari economy begins to feel the effects of the FIFA World Cup 2022

According to the latest Purchasing Managers Index report from Qatar Financial Centre, the FIFA World Cup 2022 has caused a sharp increase in the Gulf country’s economic activities in November and December.

Qatar’s wholesale, retail, and service industries saw rapid expansion, which led to a record-breaking rise in the prices of products and services.

The Purchasing Managers Index for Qatar is a composite single-figure indicator that considers new orders, production, employment, supplier delivery delays, and stock of purchases to measure performance in the non-energy private sector.

The Purchasing Managers Index increased from 48.8 in November to 49.6 in December, indicating a near-stabilization of the general business conditions in the non-energy private sector by the 2022 end.

In December, private sector non-oil output increased for the thirty-first straight month since 2020.

Since November, the growth pace has mostly stayed the same and is significantly higher than the average throughout the survey period.

The improvement in supply chains and a delay in new work caused by construction offset the November output index of 62.8.

In contrast to a long-term trend of 54.8, the index trended at 69.0 during 2022, the highest value in the survey’s history.

“In December, the Qatari economy begins to feel the effects of the FIFA World Cup Qatar 2022, thanks to another sharp uptick in economic activity supported by the retail and services sectors. With the Output Index and headline Purchasing Managers Index trending at 69.0 and 57.7, respectively—the best annual averages since the survey’s inception in 2017,” Yousuf Al-Jaida, CEO of QFC Authority, said in a statement.

The financial services industry also saw a sharp rise in activities in the final month of 2022, marking the sector’s most significant gain in nearly six years.

While fees for services grew for the first time in six months, input prices paid by financial services companies climbed very slightly in December.

“With several comments from businesses of post-competition commercial potential and an anticipated long-term boost to tourism, the tournament’s legacy also appears assured. In December, the Future Activity Index—which measures the 12-month outlook—rose to a 29-month high,” according to Al-Jaida.

Qatar Financial Services (QFS) is a commercial hub in Doha that offers companies a platform to conduct business in Qatar by giving a legal, regulatory, tax, and business environment.

Related posts

Work from office or work from home? Find out what UAE professionals prefer

GBO Correspondent

MIDA sanctions 725 projects worth RM64.8 bn in Q1

GBO Correspondent

South African economy projected to grow less than 5% in 2021

GBO Correspondent