China Emerges As Qatar's Key Trading Partner
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BUSINESS Thursday 8 November 2018 PAGE | 22 PAGE | 23 Over 7kg of gold up Algeria keen on for grabs as Doha Bank bolstering trade ties launches spend campaign with Qatar China emerges as Qatar’s key trading partner THE PENINSULA by Xu Lumi, Deputy Director reflect both countries’ keenness and stimulate growth. General of the Department of on strengthening cooperation Elaborating on the resilience DOHA: China is Qatar’s third West Asian and African Affairs at across numerous fields, espe- of Qatar’s economy, he said: largest trading partner with the China’s Ministry of Commerce. cially on the economic, trade and “Wise economic policies that the combined value of trade Since the 1980’s, Qatar and investment levels. country’s leadership has pursued exchange hitting at QR38.6bn China have enjoyed friendly rela- Commenting on Chinese to achieve the Qatar National ($10.6bn) in 2017, accounting for tions, marked by the opening of investments in Qatar, he said at Vision 2030, and build a diver- 10.92 percent Qatar’s total embassies, the exchange of high- least 14 fully owned Chinese sified and competitive foreign trade, noted a senior ranking official visits and the companies and over 181 joint knowledge-based economy, have government official at the signing of several cooperation Qatari-Chinese firms are cur- positioned Qatar as one of the opening of the Qatar-China agreements aimed at strength- rently operating in the Qatari most dynamic, stable and diver- Economic Forum in Shanghai, ening economic and trade rela- market covering areas such as sified investment destinations in yesterday. tions, Al Khater said in his engineering, consulting, con- the region.” Sultan bin Rashid Al Khater, opening speech. tracting, IT, commerce and He also referred to the inter- Undersecretary at the Ministry of These are mainly related to services sectors. national agencies reports Qatar’s Commerce and Industry chaired the promotion and protection of Al Khater emphasised that wise economic policies and the the Forum, which took place on mutual investments, the devel- the conference marks another country’s success in weathering the sidelines of the First China opment of joint investments, and milestone in the successful the regional crisis, he explained, International Import Expo in the several other memoranda of journey of Qatari-Chinese noting that Fitch Ratings has clas- commercial capital of the world’s understanding in the areas of partnerships, adding that Qatar sified Qatar’s outlook as stable, second largest economy. He research, health, cultural and looks forward to building on cementing the country’s (-AA) highlighted the importance of the education fields, as well as mar- bilateral ties and strengthening credit rating, one of the highest Sultan bin Rashid Al Khater, Undersecretary at the Ministry of bilateral economic cooperation itime, air and land shipping, he cooperation between the worldwide. Commerce and Industry, delivering his speech at the opening of for mutual benefits. added. The Undersecretary Qatari and Chinese private and the Qatar-China Economic Forum in Shanghai, yesterday. The event was also attended explained that these agreements public sectors to bolster trade → CONTINUED ON PAGE 22 Oil production cuts Norway wealth fund will not yet Katara Hospitality acquires cannot be ruled blacklist greenhouse gas emitters out: Opec sources REUTERS Grosvenor House London REUTERS THE PENINSULA OSLO: Norway’s $1 trillion LONDON: A return to oil wealth fund, the world’s largest, production cuts by Opec and will not yet blacklist firms for DOHA: Katara Hospitality, its allies next year cannot be producing too much greenhouse Qatar Investment Authority’s ruled out, two Opec sources gases, as mandated by hotel unit, a leading global hotel said yesterday, to avert a parliament, because further clar- owner, developer and operator, possible supply glut that could ification is needed, the board of announced the expansion of its weigh on prices. the Norwegian central bank said global portfolio with the acqui- The sources were yesterday. The fund is forbidden sition of JW Marriott Grosvenor responding to a report by Rus- by parliament from investing in House, a historic hotel on the sia’s TASS news agency that firms that produce nuclear famed Park Lane in London’s Russia and Saudi Arabia had weapons or landmines, or are decision has been delayed Mayfair district, reflecting trust started bilateral discussions involved in the production of several times. Yesterday, the in the United Kingdom’s market over possible curbs to output tobacco, among other criteria. board said it had discussed the as part of State of Qatar £5bn in 2019. Carbon emissions became a recommendations from the investment plan. Opec and its allies criteria for exclusion from the ethics watchdog at a meeting on The acquisition brings including Russia decided in fund in 2016 and last year the October 24. “The Board did not Katara Hospitality’s portfolio of June to relax output curbs in Council on Ethics, the fund’s decide on any exclusions of indi- properties in operation or under place since 2017, after pressure ethics watchdog, recommended vidual companies at this development to 40 and marks A view of Grosvenor House London. from US President Donald “a small handful” of firms be meeting,” Governor Oeystein the company’s third acquisition Trump to reduce oil prices and excluded for producing too much Olsen (pictured) and Deputy in London after The Savoy, A term. Opened in 1929 and fre- When the hotel first opened, make up for supply losses from greenhouse gas emissions in Governor Egil Matsen said in a Fairmont Managed Hotel and quented by royalty and celeb- it was also the headquarters of the Iran. either the oil, cement and steel letter to the finance ministry the Adria Boutique Hotel. rities, Grosvenor House was the International Sportsmen’s Club. Asked whether discus- sectors. dated and published yesterday. The announcement further first hotel in London at that time Its facilities included Turkish sions pointed to a return to Since then recommenda- Among the reasons it cited builds on Katara Hospitality’s to have a separate bathroom and baths, a swimming pool, squash supply cuts in 2019, one of the tions have been under review by was that more work was needed vision for iconic properties in entrance lobby for each bedroom courts and a gymnasium. two sources, who are delegates the board of the central bank, to assess the ground for strategic markets to commit sig- and running chilled water in from the Organization of the which oversees the fund, but a exclusion. nificant investment over the long every bathroom. → CONTINUED ON PAGE 23 Petroleum Exporting Coun- tries, said: “Certainly not the other way around.” Oil prices have come under downward pressure GCC sovereigns’ funding needs see a slowdown to $300bn from rising supplies, even SATISH KANADY though Iranian exports are central government deficit has a much larger proportion of with an expected $300bn over decline to $55/bbl by 2021. It expected to fall because of new THE PENINSULA much improved, and S&P esti- fiscal revenue. 2018-2021 (5 percent of GDP), expects oil prices to decline US sanctions. Forecasts of a mates it will be around $75bn Barring any significant fiscal and that total funding require- over the forecast period, cur- 2019 supply surplus and DOHA: The GCC region’s in 2019 (5.5 percent of combined consolidation or sharp rise in oil ments over 2015-2021 will come tailing government deficit slowing demand have also funding needs are projected at GDP), way below the 2016 nadir prices, S&P does not expect this to around $750bn”, the ratings reduction. dented the market. about $300bn between 2018 of $190bn (16 percent of com- situation to reverse. It forecasts agency said. Two factors have Second, many GCC govern- Brent crude had dropped and 2021, a slower pace due to bined GDP). GCC central government bal- supported the improved fiscal ments have enacted major from a four-year high in higher oil prices and Nevertheless, GCC govern- ances to remain in deficit until picture. First, the oil price has fiscal consolidation measures, October above $86 a barrel to government policy responses, ments’ net debt positions have at least 2021. “We estimate pre- almost trebled from the $29 per including first-time value- $71 on Tuesday. Prices rallied S&P Global Ratings said significantly deteriorated since vious funding needs in 2015- barrel (/bbl) trough and is cur- added tax introduction. back above $73 yesterday, sup- yesterday. oil prices fell in 2015 and debt- 2017 were $450bn (or 12 percent rently $80/bbl; that said, S&P ported by the TASS report. GCC sovereigns’ combined servicing costs now account for of combined GDP), compared assumes the oil price will → CONTINUED ON PAGE 22 22 BUSINESS THURSDAY 8 NOVEMBER 2018 Rentals for residential properties stabilise MarketWatch MOHAMMAD SHOEBTHE Values have continued their PENINSULA downward trend, which has QSE FTSE100 DOW BRENT been evident since 2016. New 10,252.50 7,117.28 26,164.23 $61.71 DOHA: Despite increase in apartments in The Pearl Qatar supply of new units, rentals for are currently available for -124.44 PTS +76.60 PTS +529.22 PTS -0.51 residential properties in Qatar between QR12,000 and 1.20% 1.09% 2.06% Dow & Brent before going to press relatively stabilised during the QR16,000 per square metre third quarter of the current year (sqm), depending on size and (Q3, 2018) after witnessing two apartment type, while in the years of decline, noted a latest ‘second hand market’ recent report released yesterday by a transactions have typically QNB brings SMEs leading real estate consulting reflected prices of between firm. QR9,000 and QR11,000 per According to the DTZ report sqm.