The bank attributed the surpluses to the “elevated diversification of the Qatari economy,” stating that it met predetermined targets.
The Central Bank of Qatar announced on Sunday a balance of payments surplus totalling 7.9 billion riyals (£2.17 billion) for the second quarter of 2023, showcasing robust financial health and resilience despite global economic headwinds.
According to the bank’s statement, the country’s goods and services accounts also reported surpluses, standing at 59.6 billion riyals and 31.3 billion riyals respectively. The bank ascribed these surpluses to the “elevated diversification of the Qatari economy” and confirmed it has met predetermined targets.
Recent projections from Boston Consulting Group (BCG) showed Qatar’s financial wealth is on an impressive upward trajectory and is expected to grow at an annual rate of 5.1% to reach £388 billion by 2027.
“Qatar’s trajectory signifies strong economic growth and resilience in the face of global challenges, accounting for 4.1% of the region’s financial wealth in 2022,” remarked Markus Massi, Managing Director and Senior Partner at BCG.
The report spotlighted Ultra-High Net Worth (UHNW) individuals, those with assets over £100 million, as the principal catalysts behind this phenomenal growth. UHNW individuals accounted for 38% of the nation’s total wealth in 2022, a figure expected to rise to 40% by 2027.
The BCG report further noted Qatar’s burgeoning entrepreneurial spirit and calculated risk-taking as pivotal elements contributing to its financial ascendancy.
As for the distribution of assets, equities and investment funds constitute the largest asset class, representing 48% of total personal wealth in 2022. Life insurance and pensions are poised for the fastest growth, forecasted to rise at a compound annual growth rate of 7.1% from 2022 to 2027.
However, it hasn’t been a smooth ride for all asset classes. Real assets have seen a 0.8% annual dip from 2017 to 2022, totalling £266 billion. These assets are projected to recover, with a growth rate of 5.1% per annum expected, amassing to £341 billion by 2027.
Meanwhile, the nation’s liabilities have expanded at a rate of 1.3% annually over the past five years and are projected to grow by 2.6% per year, amounting to £38 billion by 2027.