Businesses and investors upbeat on Budget 2020

Local businesses, investors and experts from the banking and financial sector are upbeat about the Qatar’s national budget 2020, and the business opportunities that are expected to be arising as a result of massive public expenditure during the next financial year.

Most people The Peninsula spoke to commented positive and shared their confidence in the budgetary provisions, especially for the big allocation of funds to the major infrastructure projects and social sector, such as education and health.

Saad Al Dabbagh (pictured), a prominent Qatari businessman, said: “The public expenditure of QR90bn in the development of major projects, which is an increase of 0.6 percent compared to QR89.5bn in 2019, is going to create a lot of business opportunities for the local companies throughout the year 2020. The government’s decision for the launch of the multi-billion dollar Sharq Crossing Project, linking Ras Abu Aboud and West Bay, is a very welcome move.”

Al Dabbagh added: “The ambitious Sharq Crossing Project, which is expected to be completed within 4 years, will work as catalyst in boosting the activities in the construction sector for the coming few years. One way the project will create job opportunities for companies, and also ease the traffic in the Corniche road.”

Al Dabbagh also noted that the government’s decision to allocate QR44.7bn in health and education sector for 2020 will not only give a major boost to the Qatar’s social sector but also have percolating effects in other related sectors as more hospital, health centres, schools and colleges will be developed.

According to market experts, the budget 2020 provisions will further help consolidate financial stability in Qatar. They also echoed same optimism about the macro-economic fundamentals and their impact on GDP growth.

“The fiscal and current account surplus aligned with the monetary policy should create more economic momentum. The infrastructure expenditures should further stimulate the non-hydrocarbons sector, while committed investment for the hydrocarbons production enhancement should gradually contribute for investible surplus,” Dr. R Seetharaman, Group CEO of Doha Bank, told this newspaper, yesterday.

“The inflation rate of between 2 and 2.2 percent should match with the cost of living of individual’s per capita income. The budget indicates that per capita income will be stable and consumer spending will be moderate,” he said.

Source from: The Peninsula