Qatar’s foreign reserves surge by 5.26% to $67.58bn in January: QCB data 

RIYADH: Qatar’s international reserves increased by 5.26 percent annually to 246.04 billion riyals ($67.58 billion) in January, driven by higher balances in foreign banks, official data showed. 

According to data released by the Qatar Central Bank, total reserves rose from 233.75 billion riyals in the same month of 2023.  

The increase is mainly due to a significant rise in balances held in foreign banks, comprising 11 percent of the country’s official reserves. 

Specifically, Qatar’s balances with foreign banks experienced a 93 percent surge in January, reaching 21.5 billion riyals, compared to 11.14 billion riyals in the same period last year.

As of January 2024, the country’s total official reserves witnessed a growth of about 11.37 billion riyals compared to the same period the previous year, reaching 187.15 billion riyals. 

IMF forecast

Qatar’s economic growth will continue to normalize in the near term following a boost in 2022 from hosting World Cup, the IMF said.

The IMF has predicted Qatar’s gross domestic product to grow 1.9 percent in 2024. The Washington-based lender said the Gulf state has remained resilient to recent global shocks and its economic outlook is favorable. It said there had been no visible impact on Qatar from the Hamas-Israel conflict.

“Risks are broadly balanced. Maintaining prudent macroeconomic policy and intensifying reform efforts will support Qatar’s resilience to shocks and accelerate its economic transformation,” the IMF said.

Among these, the IMF has recommended adoption of value-added tax, reforms to expand private sector growth and the labour market, the gradual removal of subsidies and reducing the wage bill.

Despite its favorable growth outlook, Qatar’s economy remains largely dependent on hydrocarbons, and efforts to diversify income sources and economic sectors have so far lagged those of regional neighbors.

Its economy is expected to underperform the broader Gulf Cooperation Council region in 2024, where GDP growth is forecast to rebound to 2.7 percent.

In the medium-term, Qatar is expected to register average growth of 5.5 percent, boosted by significant expansion in the production of liquefied natural gas and implementation of fiscal and other reforms.