(MENAFN- The Peninsula) By Sachin Kumar I The Peninsula
DOHA: Qatar has achieved a significant progress in its efforts to diversify economy in the past five years. The contribution of non-oil sectors in the country's economy has increased sharply by 23 percent in during 2013-2017 period, showing that the economy is now less dependent on hydrocarbon sector.
The share of non-oil sectors in the country's nominal GDP (Gross Domestic Product) has risen from 44.3 percent in 2013 to 67.3 percent in 2017, according to Qatar Central Bank data.
Qatar's nominal GDP reached QR610bn in 2017 in which the share of non-oil sectors was QR410.38bn. Five years back, in 2013, the share of non-oil sector was QR320.34bn.
Qatar's march towards a more diversified economy shows that the country is moving in the right direction. One of the main aims of the Qatar National Vision 2030 is to diversify Qatar's economy and reduce the dependence of the economy on hydrocarbon industries.
'Economic development is an essential part of the Qatar National Vision 2030, as the engine that drives progress by providing better opportunities and a better way of life for the country's citizens, says the vision document. 'Achieving that objective hinges on Qatar's ability to create a balance between an oil-based and a knowledge-based economy, helping diversify the country's economy and guaranteeing a stable and sustainable business environment, it adds.
The non-oil sector has registered consistent growth over the last five years. The growth in non-hydrocarbon GDP increased to 6.1 percent in 2017 compared with 5.1 percent in 2016.
The share of oil and gas in the nominal GDP has reduced from 55.7 percent in 2013 to 32.7 percent in 2017. Overall, the economy grew last year as the nominal GDP reached QR610bn in 2017 as compared with QR554bn in the previous year.
The the Qatar National Vision 2030 document stresses on 'a diversified economy that gradually reduces its dependence on hydrocarbon industries, enhances the role of the private sector and maintains its competitiveness.
The higher growth in 2017 compared to previous year assumes importance as it shows that this sector has successfully shrugged of the challenges posed by the blockade imposed siege countries on Qatar on June last year. One of the main contributors for the continued growth for non-oil sector is the crucial role played by the private sector.
Government's continued support has made Qatar's private sector strong and has encouraged entrepreneurial spirit in the country. A buoyant private sector is an essential component for a strong and healthy economy. Authorities in Qatar have always recognised the role of private sector.
The Technical Committee for the Encouragement and Participation of the Private Sector in Economic Development Projects, had announced in May this year that the combined value of private investments in Qatar had reached QR26bn.
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