Qatar’s Spending Plans in Transportation

Qatar’s plans to spend tens of billions of US dollars on ambitious infrastructure developments including a US$25 billion railway and metro system are set to generate a steady flow of financing deals in coming years, a top HSBC Holdings official said. HSBC Qatar chief executive Abdul Hakeem Mostafawi said in an interview that he expected a string of opportunities “for syndicated loans, government bonds and initial public offerings” as the Arab Gulf country undertakes a massive spending programme to spur trend-bucking double-digit economic growth.

“There will be a need for capital financing in the future on the back of infrastructure and oil and gas related projects,” Mostafawi said. Qatar, holder of the world’s third-largest natural gas reserves after Russia and Iran, expects gross domestic product growth of at least 16% this year, on the back of ballooning revenues from gas exports. This compares to just 4% GDP growth in Saudi Arabia and the United Arab Emirates – the two biggest Arab economies.  The world’s largest exporter of liquefied natural gas, Qatar is using its wealth to fund transport, education and real-estate developments in a bid to diversify its economy, which remains heavily reliant on revenues from oil and gas. - Gulf Times