BMI View: Despite the political tensions with the neighbouring countries, Qatar economic outlook remainsstrong in the long-term. We thus maintain our view that the country's energy sector will remain the target ofsignificant government investment as the country works towards developing national infrastructure, both tokeep up with rising domestic demand and in the run up to the 2022 FIFA World Cup. Natural-gas firedthermal power will remain the main component of the domestic energy mix with capacity receiving a boostin 2017 and 2018 as new power plants come online. The renewables sector is in the early stages ofdevelopment but Qatar has potential in terms of solar power and has set strong targets for renewableenergy which should see the project pipeline expand in future quarters.
Latest Updates And Structural Trends
The Gulf diplomatic crisis will weigh on consumer and investor confidence in Qatar over comingmonths, while also directly disrupting activity in certain non-hydrocarbon sectors. However, economicgrowth rates will remain robust, as hydrocarbon production and exports are unaffected, and work onFIFA 2022 World Cup-related infrastructure projects progresses without major delays.