13 Feb 2018 - 20:31
Qatar’s liabilities to non-residents decline by 10%
By Mohammad Shoeb / The Peninsula
DOHA: Qatar’s liabilities to non-residents (inward investment) at the end of Q3, 2017, decreased by 10 percent, or QR78.3bn, to QR665bn from QR740.3bn at the end of previous quarter (Q2, 2017).
The country’s assets with non-residents (outward investment) at the end of Q3, 2017, declined by 6.7 percent, or QR28.2bn, to QR392.2bn from QR420.4bn in Q2, 2017, according to the findings of a latest official survey conducted in compliance with IMF’s Special Data Dissemination System (SDDS).
Other foreign investments at the end of Q3, 2017 accounted for 66 percent, or QR429.5bn, followed by foreign direct investment in Qatar at QR135.1bn, or 20 percent and portfolio investments at QR95.8bn, or 14 percent of the total liabilities.
The stock of inward FDI, at the end of Q3 2017, was reduced by QR700m as a result of net outflow of FDI and other changes during the quarter.
Other foreign investments consisting of long term loans and trade related short term financial instruments, at the end of Q3 2017, accounted for 52 percent, or QR202.1bn of the total assets, followed by foreign direct investment abroad at QR149.7bn, or 38 percent, and portfolio investments (financial securities) at QR39.1bn,or 10 percent.
Net outflows of foreign direct investment abroad and other changes, during Q3, 2017, amounted to QR2.1bn.
As per IMF’s SDDS provisions, countries are required to compile and disseminate quarterly foreign investment statistics. Qatar’s Ministry of Development Planning and Statistics (MDPS) and Qatar Central Bank (QCB), taking necessary steps to become a subscriber of the IMF’s SDDS system, launched the quarterly ‘Foreign Investment’ survey referencing the period Q3, 2017.
The objective of these surveys, conducted in collaboration with QCB, was to cover major enterprises (private and public) operating in the national economy.
However, data could be obtained only from privately owned companies, including banks and public corporations. International financial transactions made by individuals and by the Government were not covered. Users are accordingly cautioned that the survey results are not strictly comparable with the BOP (Balance of Payment) statement of the QCB.
The survey was addressed some of the largest enterprises in the private sector which accounted for 84 percent of value of inward FDI of non-banks enterprises in 2016. QCB surveyed all financial institutions under its supervision. The results were then adjusted to account for the universe of enterprises in which there is foreign investment.