One of the world’s highest levels of GDP per capita, afl exible public finance structure, and large sovereign net foreign assets are key factors supporting Qatar’s high-grade credit rating, ratings agency Fitch stated in a June 2021 review of the Gulf country. Fitch affirmed Qatar’s high-grade status with stable outlook, despite the impact of the Covid-19 pandemic and lowering of energy prices. The State balanced its budget in 2020, a feat achieved by few developed economies worldwide, and will return to surplus this year. External debt to GDP is set to fall thanks to the governments’ proactive policy of paying down maturities, and the expected economic boon of the North Field gas project, anticipated to come onstream in 2025.
In this excellent macro-economic environment, and given the country’s wealth, it is perhaps little surprise that Qatar has the world’s fastest-growing luxury market, according to a recent report by Mordor Intelligence. The market intelligence and advisory company stated that the luxury industry has “huge potential to grow in the country”, with expenditure on luxury goods resilient to temporary fluctuations in GDP per capita. The State’s rapidly growing population and stronger consumer purchasing power are the two main drivers behind the sector’s buoyant outlook. Not only is the domestic market booming; Qatari companies are increasingly participating in the development of the global luxury industry.