Qatar Economic Outlook Issue Number 13

Figure 2-37: Share of GDP components by 
expenditure approach
 
25 
25 
22 
23 
26 
20 
18 
16 
18 
22 
49 
43 
42 
44 
44 
48 
53 
56 
52 
49 
42 
39 
36 
38 
41 
552 
586 
667 
642 
526 
0
100
200
300
400
500
600
700
800
0
25
50
75
100
125
150
175
200
2016
2017
2018
2019
2020
QR
b
illi
on
As
%
o
f GD
P
Imports
Exports
Investment
Government
Household
GDP (QR bln- R-axis)
Source: Planning and Statistics Authority
Figure 2-38: Contribution of expenditure items 
to GDP growth 
-2.4
2.4
1.1
7.8
-3.0
2.8
0.6
-4.4
-0.6
2.2
-3.9
1.9
-2.3
-1.9
2.4
5.3
4.8
3.1
-1.5
1.2
0.7
-3.6
-8
-6
-4
-2
0
2
4
6
8
10
2014 2015 2016 2017 2018 2019 2020
Po
int
s 
& 
%
Household
Government
Investment
Resource balance
GDP (% change)
Source: Planning and Statistics Authority

---

Part 2 - Economic Performance 2017 - 2020
91 
The Diversification of Sectoral 
Activities 
The Qatari economy faced several major 
challenges during the period (2014-2020), 
which contributed to bringing about relative 
changes in the structure of the economy, the 
foremost of which were (1) fluctuations in 
international prices and demand for oil and 
gas products and their derivatives, (2) the 
availability of the necessary financing to 
establish the infrastructure related to 
diversifying the economy and for hosting the 
2022 World Cup, (3) the blockade imposed 
on the State of Qatar, i.e., the closure of air 
and sea routes together with the closure of 
the only land border with Saudi Arabia, which 
led to economic and social shocks, and (4) 
the repercussions of Covid-19 containment 
measures on all aspects of economic and 
social life. 
Using the data of the annual economic 
surveys for the period (2014-2019), and the 
estimated data for 2020, it was found that the 
share of the hydrocarbon sector decreased 
by about 3.86 percentage points at current 
(nominal) prices, and by 1.6 percentage 
points at constant (real) prices, in favor of an 
increase in the percentage of non-oil 
activities, as indicated in Figure (2-39). This 
may be attributed to the impact of economic 
policies and administrative measures 
implemented by the government to achieve 
economic diversification through (1) limiting 
the negative effects of the blockade, (2) 
seeking to acquire greater flexibility in the 
face of fluctuations in oil and gas markets 
while reducing dependence on these markets 
as the sole source of financing the state's 
imports and revenues, and (3) raising the 
efficiency of resource use to increase 
productivity, simultaneously maximizing 
benefits from public and private investments. 
Using real data corresponding to economic 
activities during the same period, it is evident 
from Figure (2-40) that the Qatari economy 
went through successive economic cycles, 
oscillating between contraction and growth.
The sectors of services and building and 
construction played the most prominent role 
in shaping economic cycles before 2017, as 
a result of public and private investments in 
the fields of infrastructure and urban activity 
and the accompanying activation of 
governmental 
and 
non-governmental 
services. In addition, the activities of the 
manufacturing sector witnessed a growth in 
the fields of refineries and petrochemicals.