Qatar’s industrial production rises by 6% in July, driven by mining sector growth

RIYADH: Qatar’s industrial production index rose by 6 percent in July, reaching 103.2 points, driven by the mining sector, official data showed. 

The National Planning Council reported a month-on-month increase of 5.5 percent in the mining sector in July, primarily due to higher production of crude oil, petroleum, and natural gas. Other mining and quarrying activities also grew by 11 percent. 

In the manufacturing sector, the index increased by 7.6 percent in July compared to the previous month. The growth was led by refined petroleum products, which rose by 13.3 percent, followed by basic metals at 12.4 percent, and chemicals and chemical products at 7.2 percent. 

This comes as Qatar’s non-energy private sector continued to grow at the beginning of the second half of the year, according to the latest Purchasing Managers’ Index survey from the Qatar Financial Center, compiled by S&P Global. The PMI registered 51.3 in July, down from June’s 23-month high of 55.9 but still indicating overall improvement in business conditions. 

Qatar’s monthly IPI is a key indicator of industrial sector performance, measuring output across mining, manufacturing, electricity, and water supply. 

Each sector has different weights in the index, with mining and quarrying at 82.46 percent, manufacturing at 15.85 percent, electricity, gas, steam, and air conditioning supply at 1.16 percent, and water supply at 0.53 percent. 

The July data also revealed a 4 percent decline in the IPI compared to the previous year. The mining sector experienced a 5 percent year-on-year decline due to reduced crude oil and natural gas output, despite a 3.6 percent increase in other mining and quarrying activities. 

The manufacturing sector saw a slight annual decline of 0.3 percent, driven by decreases in basic metals and cement. 

Meanwhile, the electricity and gas sector saw a 7.2 percent rise in electricity production compared to June and an 8.2 percent increase compared to July 2023. The water supply sector grew by 6.5 percent month-on-month and 0.5 percent year-on-year. 

In a report released last month, Standard Chartered forecasted that Qatar is poised to restore government revenues to pre-2014 oil price shock levels and double its economy by 2031. 

The UK-based bank attributed this recovery to Qatar’s strategic position in the global energy market and its ongoing efforts toward economic diversification.