Skip to content Skip to Search
Skip navigation

Qatar World Cup fuels spike in private sector optimism

By Andy Sambidge
Qatar business Reuters/Matthew Childs
Qatar sees post-World Cup business opportunities and an expected permanent boost to tourism

Optimism among non-oil private sector companies in Qatar has risen to a 29-month high following the impact of the Fifa World Cup on the country’s economy.

Post-tournament business opportunities and an expected permanent boost to tourism were cited by companies polled in the latest purchasing managers’ index (PMI) survey data from Qatar Financial Centre.

The survey highlighted further growth of business activity in December, with wholesale, retail and service providers benefiting the most.

These sectors also drove a record overall increase in prices charged for goods and services last month while the 12-month outlook for business activity strengthened further to the highest since July 2020.

Yousuf Mohamed Al-Jaida, CEO, QFC Authority, said: “The Fifa World Cup Qatar 2022 made its mark on the Qatari economy in December, with another rapid increase in business activity fuelled by the retail and services sectors. 

“The December data rounds off a stellar 2022 with the output index and headline PMI trending at 69 and 57.7 respectively, the highest annual averages since the survey began in 2017.”

He added: “The tournament’s legacy is also looking secure, with widespread reports from companies of post-competition business opportunities and an expected permanent boost to tourism.”

The Qatar PMI indices are compiled from survey responses from a panel of around 450 private sector companies. 

The PMI rose for the second month running from 48.8 in November to 49.6 in December, pointing to a near-stabilisation in overall non-energy private sector business conditions at the end of 2022. 

The output index posted 62.8 on the back of surging retail trade and services but this was countered by a construction-driven pause in new work, as well as improving supply chains. 

December data also indicated a further slight fall in average input prices but a record rate of charge inflation, pointing to improving profitability. Charges rose especially sharply in the wholesale and retail and services sectors, linked to tourism demand from the World Cup tournament. 

Efforts to control costs were also in evidence as workforces and purchasing were trimmed further. 

Latest articles

UAE Ukraine cepa Yulia Svyrydenko, Ukraine’s minister of economic development and trade, and Dr Thani bin Ahmed Al Zeyoudi, the UAE’s minister of state for foreign trade, sign the deal between the two countries

UAE prepares for ‘new era’ in Ukraine with trade deal

The UAE has finalised the terms of a trade deal with Ukraine, as the Gulf state looks to become a key player in rebuilding the country once its war with Russia is over. The comprehensive economic partnership agreement (Cepa) aims to build on the $386 million bilateral non-oil trade between the two countries last year. […]

TotalEnergies Iraq

TotalEnergies targets 2025 for first phase of Iraq projects

France’s TotalEnergies aims to complete the first phase of a solar power project and the initial phase of the associated gas project in Iraq in 2025, its chief executive Patrick Pouyanné has said. Pouyanné met with the Iraqi prime minister, Mohammed Shia Al-Sudani, on the sidelines of the World Economic Forum in Riyadh, the Iraqi […]

Construction work at Egypt's new administrative capital. Real estate 'is a very strong inflation hedge', says Aldar's Faisal Falaknaz

Aldar’s Egyptian sales unhindered by war and economic risk

Real estate developer Aldar says geopolitical and economic volatility is not affecting its expansion in Egypt. The Abu Dhabi-listed company acquired its Egyptian subsidiary Sodic in December 2021. Since then, sales have risen by more than 50 percent on a dollar-basis, Faisal Falaknaz, Aldar’s chief finance and sustainability officer, told reporters on Monday.  “What has […]

Neom credit

Neom secures $2.7bn as minister admits ‘adjustments’

Saudi Arabia’s $500 billion giga-project Neom has secured new funding as the kingdom’s officials admit some of its Vision 2030 projects may have to be scaled back. The SAR10 billion ($2.7 billion) revolving credit facility, obtained from nine Saudi-listed banks, will support short-term financing requirements for projects such as Trojena, The Line, and Oxagon, Neom said […]