There will be 2 primary drivers causing economic slowdown in Qatar. Both caused by the Global financial crisis.
First, there will be a fairly significant decrease in inward investment from abroad. This will be the primary risk for employment in Qatar, particularly at a time when the country's starting to open up competition. An example is Vodafone - there will be less such entrants as there would have been, which will impact job creation.
Second, domestically local firms in Construction, property development, tourism and energy are still well funded. However the cost of equity for investment has risen due to a perceived increase in risk aswell as the opportunity returns from other geographical investments. In the GCC the cost of Debt has also risen (contrary to the western world). More significantly availability of debt has greatly reduced. Where projects could be funded up to 70% or 80% debt, leverage ratios are now down to 50% / 60%. The diminished availability of capital, coupled with the increased cost of capital will mean there will be a decline in the volume of domestic projects and as margins will be tighter, projects will have to deliver using less resources than before. This is currently having an impact on the existing employment base and will not improve until the availability of debt improves (which could take over a year).
To be positive however, Qatar is a very resource wealthy nation, which will further improve the mining and distribution of it's energy resources into the future. The Economist has recently forecast 12% GDP growth for 2009 in Qatar. In other words Qatar will be the worlds fastest growing economy in 2009. If you can't find a good job in Qatar, perhaps your skills don't suit the relatively narrow diversification in the economy. But if you are in Real Estate, commercial banking, energy etc, then you have a better chance of gaining unemployment here that anywhere else.
This is a global problem and no Country can escape from it. its much deeper thsn we initially had thought and unfortunately this is just the beginning, worst is yet to come.No body had anticipated such large scale economic downfall so nobody actually had any plan to tackle it or can still predict where it will take us.
As far as GCC and particularly Qatar is concerned it is expected to fare better than others but as I said No body can escape from it.The companies are not going for expansion so no new hiring, sales figures are falling that means people in the retail sector will have to be prepared for any eventuality, same for construction & real estate and all people connecetd with this sector.
In places like Dubai hundreds of people are being laid off each day and worst getting affected are people from these two sectors.
Frankly speaking, for private sectors especialy for construction firm including consultant firm, yes it starting affecting Qatar due to the global crisis. Its started from December last year and this month alone, many construction company has cut down their overhead by terminating the services of their employees from general labours, engineers to manager level. Projects are turning to slowing down as the progress payments are delay or not getting payment for more than 6 months, new projects are on hold as the clients dont want to take any risk and if this crisis continue, we will see the huge impact in Qatar especialy for construction field another 4 to 6 months. This is only my personal observation. As Dubai right now, construction firm are realy in bad shape as many ongoing projects and new projects are on hold. Nobody knows what may happend tomorrow. Cheers
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There will be 2 primary drivers causing economic slowdown in Qatar. Both caused by the Global financial crisis.
First, there will be a fairly significant decrease in inward investment from abroad. This will be the primary risk for employment in Qatar, particularly at a time when the country's starting to open up competition. An example is Vodafone - there will be less such entrants as there would have been, which will impact job creation.
Second, domestically local firms in Construction, property development, tourism and energy are still well funded. However the cost of equity for investment has risen due to a perceived increase in risk aswell as the opportunity returns from other geographical investments. In the GCC the cost of Debt has also risen (contrary to the western world). More significantly availability of debt has greatly reduced. Where projects could be funded up to 70% or 80% debt, leverage ratios are now down to 50% / 60%. The diminished availability of capital, coupled with the increased cost of capital will mean there will be a decline in the volume of domestic projects and as margins will be tighter, projects will have to deliver using less resources than before. This is currently having an impact on the existing employment base and will not improve until the availability of debt improves (which could take over a year).
To be positive however, Qatar is a very resource wealthy nation, which will further improve the mining and distribution of it's energy resources into the future. The Economist has recently forecast 12% GDP growth for 2009 in Qatar. In other words Qatar will be the worlds fastest growing economy in 2009. If you can't find a good job in Qatar, perhaps your skills don't suit the relatively narrow diversification in the economy. But if you are in Real Estate, commercial banking, energy etc, then you have a better chance of gaining unemployment here that anywhere else.
Except Some GCC,every sector affected by crisis.
This is a global problem and no Country can escape from it. its much deeper thsn we initially had thought and unfortunately this is just the beginning, worst is yet to come.No body had anticipated such large scale economic downfall so nobody actually had any plan to tackle it or can still predict where it will take us.
As far as GCC and particularly Qatar is concerned it is expected to fare better than others but as I said No body can escape from it.The companies are not going for expansion so no new hiring, sales figures are falling that means people in the retail sector will have to be prepared for any eventuality, same for construction & real estate and all people connecetd with this sector.
In places like Dubai hundreds of people are being laid off each day and worst getting affected are people from these two sectors.
Frankly speaking, for private sectors especialy for construction firm including consultant firm, yes it starting affecting Qatar due to the global crisis. Its started from December last year and this month alone, many construction company has cut down their overhead by terminating the services of their employees from general labours, engineers to manager level. Projects are turning to slowing down as the progress payments are delay or not getting payment for more than 6 months, new projects are on hold as the clients dont want to take any risk and if this crisis continue, we will see the huge impact in Qatar especialy for construction field another 4 to 6 months. This is only my personal observation. As Dubai right now, construction firm are realy in bad shape as many ongoing projects and new projects are on hold. Nobody knows what may happend tomorrow. Cheers
no body will be free from sideeffects , just we to take care of jobs
depend in which company you are...