No FIFA-related projects to be cancelled: al-Emadi

25/11/2014 05:57 AST

Qatar yesterday said it will not cancel any (infrastructure) projects related to 2022 FIFA World Cup although current weakness in the world energy market will have effects on oil and gas exporters.

“We are not going to cancel any of the projects related to World Cup,” Finance Minister HE Ali Sharif al-Emadi categorically told Euromoney conference, which will conclude today.

He said the country is working towards building infrastructure necessary for hosting the 2022 FIFA World Cup and execute projects and programmes, as enshrined in the Qatar National Vision (QNV) 2030.

The finance minister said various projects will be prioritised and will be undertaken as per a timetable to avoid pressures on services, utilities and logistic operations in order to stem inflationary pressures being built up.

“Financial stability is a top priority and at the heart of the Qatar National Vision 2030. We are investing in major projects in education, health and transport infrastructure and managing the development process so that they are rolled-out in harmony, limiting logistical issues and delivering for the benefit of the people of Qatar,” according to him, a former CEO of QNB.The QNV 2030 has four pillars of human, social, economic and environment development.

The government had established a department dedicated to managing the costs and timeline of the announced multi-billion dollar worth of infrastructure projects across various sectors.

The finance minister said the government is currently working on strengthening its laws and legislations, which will have a positive effect on the performance of the economy. However, he did not elaborate on it. Qatar’s economy is being rebalanced, so that the non-energy industries — and the private sector in particular — is set to play a growing role in the coming years, he said.

Highlighting that the oil prices have fallen 30% this year and is more likely to continue with its trough in the short to medium term; al-Emadi said this will have effect on the oil and gas exporting countries but Qatar has well managed it.

The economy of the Middle East and North Africa region may be compromised by the fall in the price of key asset prices.

However, Standard Chartered Bank senior economist (Market Research, Middle East and North Africa), Shady Shaher viewed that oil price, which recently hit 28-month low, is expected to rebound to more than $100 a barrel on increasing expected demand, especially from the emerging market.

The Gulf region has ample buffers to withstand the softening, he said, adding the breakeven oil prices differed across the Middle East and North African with it at $60 for Qatar and $88 for Saudi Arabia.

Gulf Times