Qatar Economic Review 2006(September) - QNB

The Non-Oil and Gas SectorThe Non-Oil and Gas sector contributed 40.4% of total GDP in 2005, recording a growth of 18.8% over2004. The main components of this sector are the following:a. Manufacturing IndustryIn 2005, the Manufacturing sector made the largest contribution to GDP among non-oil andgas sectors. This sector grew by 8.7% at current prices, contributing QR 13,042 million, whichrepresented 8.4% of total GDP. This sector is strongly supported by the Government as a partof a general policy to diversify income sources and to maximise the utilisation of Qatar’s naturalresources.The major sub-sectors of the Manufacturing sector are petroleum refining, industrial, chemicals,fertilisers and steel, which utilise natural gas as feed-stock and/or fuel. Other important activitiesinclude the production of flour, cement, concrete, plastics, textiles and footwear, household articlesand paint.b. Other ServicesThe Other Services sector, which includes government services, social services, householdservices, imputed bank service charges and import tariffs, made the second largest contribution toGDP of the non-oil and gas sectors, and in 2005 contributed QR 11,514 million (representing 7.4%of total GDP).c. Building and ConstructionThe rapid pace of developments in the Building and Construction sector is quite evident aroundDoha over the past few years, and as such this sector continues to be a major contributor tothe GDP and employment of labour force. This sector witnessed a growth of 36.1% in 2005,contributing QR 8,744 million to overall GDP. Credit facilities extended by commercial banksto the land, housing and construction sector increased by 67.0% during the year 2005 toreach QR 9,541 million, compared to QR 5,712 million in 2004. During the first half of 2006,credit facilities to this sector grew by a further 25.8% to reach QR 12,000 million. Anothermajor indicator showing the level of activity in the building and construction sector is the numberof building permits issued. In 2005, the number of building permits issued increased by 23.4% toreach 5,950 (Table 2.3).Table 2.3Building permitsissued byMunicipality(2001-2005)Municipality 2001 2002 2003 2004 2005Doha 1,545 1,579 1,581 1,930 2,082Al-Rayyan 1,305 1,418 1,372 1,741 2,373Wakrah 184 217 262 302 407Umm Slal 369 468 409 586 700Al-Khor 153 192 287 262 388Total 3,556 3,874 3,911 4,821 5,950Source: The Planning Council.Public expenditure is a very important factor affecting the prospects for the building andconstruction sector, and the realisation of budgetary surpluses in the last six fiscal yearshas increased the level of public spending. Allocation for major public projects in the2006/07 Budget increased by 70.5% to reach QR 20.0 billion, which covers the areasof public services, infrastructure, social and health services, and education and youthwelfare.THE ECONOMY OF QATAR 12