Market Trends of qatar freight and logistics Industry
Qatar's logistics areas project invested around USD 8 billion, accelerating growth in trade sector and transportation infrastructure
- Qatar's transportation market achieved a valuation of approximately USD 12 billion in 2022. The nation holds the second position in the region for its effective logistics services and ranks fifth among the GCC countries regarding port capacity. The contribution of about USD 10 billion to Qatar's GDP in 2022 from transportation and storage opens doors to various opportunities, including investment prospects.
- The Logistics Areas Project in the southern region of Qatar is expected to draw QAR 30 billion (USD 8.17 billion) in direct investments for development projects. The area is expected to be developed as a regional hub for investments and logistics services, boosting trade sector competition and actively encouraging the private sector to participate in the Qatar National Vision 2030. The project will also offer logistics services, such as assembly, processing, open storage spaces, storage facilities, exhibitions, shops, and commercial offices.
- Law No. (13), enacted in 2000, focuses on enhancing foreign direct investment (FDI) by allowing an increase in the share of FDI in project capital from 49% to 100% in several sectors. These sectors include agriculture, education, tourism, development, industry, health, and the exploitation of natural resources. In 2021, the Investment Promotion Agency Qatar (IPA Qatar) projected QAR 4 billion in FDI and the establishment of 1,100 new foreign commercial entities. In 2022, Qatar witnessed substantial investments in various industries, with approximately USD 200 billion. Additionally, significant funds were allocated to state-of-the-art metro systems (USD 35 billion), transportation and infrastructure (USD 11.4 billion), healthcare (USD 6.2 billion), and education (USD 5.2 billion).
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Despite the decrease in production, diesel and petrol prices in Qatar have remained stable since June 2022
- Qatar's estimated proven natural gas reserves were 843 trillion cubic feet as of December 2022. Qatar holds 11% of the world's proven natural gas reserves and almost 30% of the Middle East's reserves. With reserves of crude oil estimated at 25.2 billion barrels in January 2023, Qatar held the 6th largest reserves in the Middle East and the 14th largest in the world. The Barzan Natural Gas Project, which can process up to 511 billion cubic feet per year of natural gas, began operating in late 2022. Since 2022, high natural gas demand in Asia, global natural gas supply uncertainty because of Russia's full-scale invasion of Ukraine, and curtailed natural gas supply to Europe have created significant demand for LNG exports from new projects such as those in Qatar.
- Qatar’s total petroleum and other liquids production declined slightly from its peak of more than 2 million barrels per day in 2019 to less than 1.9 million b/d in 2022. Qatar’s crude oil production declined from its highest level of 852,000 b/d in 2008 to 616,000 b/d in 2022. In addition to crude oil, which makes up 33% of its total liquid production, Qatar produces a significant number of condensates from natural gas fields (38%) and HGLs that are removed from a raw natural gas supply (20%).
- From June 2022 to May 2023, diesel and super-grade petrol prices have remained stable, while premium petrol prices have fluctuated between QR 2.05 (USD 0.55) and QR 1.90 (USD 0.517) per liter. In 2021, Qatar Energy announced the construction of an LNG project in the country that would be the world's largest LNG project and increase the country's production capacity. Production is expected to begin in the fourth quarter of 2025, with a total capacity of 1.4 million barrels of oil equivalent per day.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Qatar leading up to the World Cup, witnessed a significant increase in its population, ranking 139th globally
- Qatar is focusing more on the construction of LNG projects with a production capacity of 110 MMTPA supported by developed transport infrastructure
- E-commerce is expected to grow at a CAGR of 7.65% during 2023-27, supported by Qatar's National Vision 2030
- Qatar anticipates leading Middle East and North Africa LNG exports by 2030 amid disruption led by the Russia-Ukraine War
- Initiatives launched by the government, such as the Transportation Master Plan for Qatar 2050, are helping the country reduce trucking costs
- Qatar rank 34th in Logistic Performance Index fueled by rise in infrastructure and industrial growth
- Load-carrying capacity of all cargo carriers increased due to increased oil exports and natural gas imports
- As per CPPI, Qatar's Hamad Port ranked as the third most efficient gateway among 370 container ports
- Hamad, Doha, and Al Ruwais ports in Qatar together handled 79,401 vehicles in 2022
- Qatar anticipates its LNG production capacity to reach 126 million tons by 2027, with the completion of the North Field Expansion Project
- An increase in domestic demand and supply shortage led to an increase in producer and consumer prices in 2022
- Employment in the manufacturing industry is expected to grow from 85,000 to 101,000 by 2025
- Qatar is working toward reducing food imports under the National Food Security Strategy 2018-2023
- The preference for electric vehicles (EVs) is rising, prompting the Qatari government to install 600 charging stations during the FIFA World Cup
- Qatar's 2050 Transport Plan with a cost of USD 2.7 billion is expected to boost freight transport in the coming years
- Qatar is enhancing port connectivity through infrastructure construction plans and aims to achieve 6 million TEU capacity by 2030
- Qatar is focusing on improving its infrastructure through Qatar National Vision 2030, which is expected to reduce freight rates
- Qatar's strategic investment of around USD 200 billion in infrastructure development fuels Vision 2030 goals
