Qatar Economic Review 2006(September) - QNB

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The Services sector recorded a growth of 23.6% during the first half of 2006, receiving QR 3,635million out of total domestic credit facilities. In 2005, the domestic credit facilities to the Services sectorincreased by 23.5% to reach QR 2,942 million, from QR 2,383 million in 2004.The domestic credit facilities to the Industry sector declined by 14.1% during the first half of 2006 toreach QR 2,078 million, from QR 2,419 million as at year-end 2005.Credit facilities outside Qatar recorded an increase of 149.5% during the first half of 2006 to reachQR 5,909 million, from QR 2,368 million as at year-end 2005. Credit facilties outside Qatar haswitnessed huge growth in recent years, rising from QR 247 million in 2002 to QR 5,909 million asat June 2006.Figure 8.1Distribution of CreditFacilities (June 2006)Source: Qatar Central Bank.DOMESTIC CREDIT FACILITIES 44
9. Public FinanceThe Government’s primary source of budget revenues are oil and gas related, which are generatedby QP’s activities. In addition to such export receipts, the Government obtains revenues primarilyfrom dividend income of other industrial enterprises, including Industries Qatar, QNCC, QEWC andcommercial enterprises and banks such as Q-TEL and QNB. Other sources of Government revenuesinclude customs duties, taxes and charges.The principal items of Government expenditure are wages and salaries of the public sector, interestpayments on government indebtedness, other current expenditures, and capital expenditures.Available data from the Ministry of Finance and estimates indicate a budget surplus in each of thepast six fiscal years amounting to a total of QR 51.4 billion ($14.1 billion). These surpluses highlightthe turnaround that has been achieved by the government, after almost a decade of deficits. Qatar’simproved fiscal position along with reduced debt servicing requirements has resulted in a better outlookand higher sovereign ratings from Standard & Poor’s, Moody’s and Capital Intelligence.2003/04 BudgetThe actual figures of governement revenues and expenditures from the Ministry of Finance for the fiscalyear 2003/2004, reveals that total revenues were QR 30,716 million, with total expenditures at QR 27,016million, resulting in a surplus of QR 3,700 million (Table 9.1). Total revenues witnessed a slight increaseby 4.3% from the preceding budget, mainly as a result of oil prices remaining high, increased oil andnatural gas production, and invesment income. Total expenditures increased by 15.2%, with currentexpenditures rising by 15.9% and capital expenditures increasing by 12.5% respectively.Table 9.1The State Budget(QR Million)2002/03Actual2003/04Actual2004/05Actual2005/06*Prelim.2006/07BudgetTotal Revenues 29,453 30,716 55,232 61,531 56,900Expenditure* Preliminary DataNote:(1) Surplus as a % of GDP iscalculated using GDP on a calendaryear basis and budget figures on afiscal year basis ending.Total Current Expenditure 18,791 21,771 27,810 30,676 34,600Total Capital Expenditures 4,661 5,245 7,798 16,141 20,000Total Expenditures 23,453 27,016 35,608 46,817 54,600Surplus 6,000 3,700 19,624 14,714 2,300Surplus as % of GDP (1) 8.4 4.3 17.1 9.6 --Source: Ministry of Finance.2004/05 BudgetThe actual figures of government revenues and expenditures released by the Ministry of Finance for thefiscal year 2004/05, shows that total revenues increased by a substantial 79.8% to reach QR 55,232million, while total expenditures increased by 31.8% to reach QR 35,608 million, resulting in a hugesurplus of QR 19,624 million. Oil prices averaged $38.5 p/b for the fiscal year 2004/05, compared to$28.1 p/b during the fiscal year 2003/04, while oil production averaged 776,000 bpd during the fiscalyear 2004/05.PUBLIC FINANCE 45
Page 1: HEAD OFFICEQatar National Bank SAQ,
Page 5 and 6: Sovereign Ratings: State of QatarQa
Page 8 and 9: Economically Active Population by G
Page 10 and 11: 2. The Economy of QatarQatar’s ec
Page 12 and 13: The Non-Oil and Gas SectorThe Non-O
Page 14 and 15: 3.Key Economic Sectors3.1 The Oil S
Page 16 and 17: Blocks 1, 3, 4, 7 and 14 (Offshore)
Page 18 and 19: 3.2 The Natural Gas SectorQatar’s
Page 20 and 21: 2. Qatar Liquefied Natural Gas Comp
Page 22 and 23: QatargasTable 3.10LNG Summary (Mtpa
Page 24 and 25: Al Khaleej Gas ProjectA Development
Page 26 and 27: Qatar Steel Company (QASCO)QASCO is
Page 28 and 29: Ras Laffan Ethylene Cracker (RLEC)T
Page 30 and 31: The other leading educational insti
Page 32 and 33: Table 4.2Weightage on the ConsumerP
Page 34 and 35: Qatar’s principal export items in
Page 36 and 37: In 2005, Qatar’s main import trad
Page 38 and 39: 6. Monetary PolicyThe monetary mana
Page 40 and 41: 7. Banking SectorThe Qatari banking
Page 42 and 43: TABLE 7.2Balance Sheets of Qatari B
Page 46: 2005/06 BudgetPreliminary data on g
Page 49 and 50: The DSM market capitalisation decli
Page 51 and 52: 11. Investment IncentivesQatar welc
Page 53 and 54: 12. Qatar National BankQatar Nation
Page 55 and 56: 1APPENDIXQatar Statistical SummaryT
Page 58: QNB Branches and OfficesHead Office

Qatar Economic Review 2006(September) - QNB

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