(MENAFN) Qatar's non-energy sector is poised for substantial growth, driven by the country's strategic focus on economic diversification. This shift is opening up numerous lucrative opportunities for investors. In a recent interview with The Peninsula, Scott Livermore, ICAEW Economic Advisor and Chief Economist and Managing Director at Oxford Economics, provided insights into the economic outlook for Qatar and the wider Gulf Cooperation Council (GCC) region.

Livermore highlighted that the energy sector, affected by oil output cuts, is expected to hinder economic growth in the GCC this year, projecting a decline of 2.6 percent. However, the non-energy sectors in the region are anticipated to remain strong. The Purchasing Managers' Index (PMI) readings indicate that these sectors are firmly in expansionary territory, driven by robust domestic activity and high business sentiment, despite some upward pressure on costs. Livermore forecasted an aggregate non-energy sector growth of 4.2 percent for the GCC this year, maintaining a similar rate to the previous year.

Regarding GDP growth, Livermore forecasted a gradual recovery for the GCC, expecting growth to reach 2.2 percent this year and improve to 4.4 percent as oil output cuts are gradually reversed. For Qatar specifically, he projected a 2024 GDP growth rate of 2.2 percent, with an increase to 2.8 percent in 2025. The non-energy sector in Qatar is gaining momentum as the year progresses, benefiting from increased activity and strong business sentiment. Livermore estimated a 2.5 percent expansion for the non-energy economy this year, although the industrial sector faces some challenges, reflected in a slight decrease in goods exports.

Looking further ahead, Qatar aims to boost its economic growth to an average of 4 percent per year through 2030. This ambitious target is supported by expanded gas production and a comprehensive economic diversification agenda outlined in the National Development Strategy 3 (NDS3). Qatar's strategy includes transforming the country into a top-10 global destination for investors and businesses, developing specialized economic clusters, and nurturing a dynamic, business-driven innovation ecosystem.

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