Doha – Companies listed on the Qatar Stock Exchange (QSE) are forecast to see a strong recovery in earnings in 2024-2025, according to a new report by QNB Financial Services.
The recovery will be driven by the ramping up of Qatar’s North Field Expansion (NFE) project to expand liquefied natural gas (LNG) production, as well as ongoing efforts to grow and diversify the non-oil and gas economy under the Qatar National Vision 2030.
Aggregate QSE earnings declined 7.7% year-on-year in the first three quarters of 2023. However, the decline has been shrinking, falling 11.2% in the first half before recovering to just 0.2% in Q3.
Analysts believe the worst is over for Qatari companies, barring any escalation in regional conflicts or a global recession. Qatar’s economy is forecast to grow 3.2% annually over the next three years, up from 2.4% in 2023.
Demand for Qatar’s LNG exports is expected to remain strong, especially in Europe, for decades thanks to long-term supply contracts. Meanwhile, high energy prices will boost government revenues, enabling continued public spending.
Qatari businesses also stand to benefit from upcoming major events like Expo 2023 Doha, the 2023 MotoGP and the 2024 Aquatics Championships building on the successful 2022 FIFA World Cup.
With these tailwinds, Qatar’s stock market looks well-placed to see a strong rebound in corporate earnings starting in 2024. Investors will be watching closely the initial public offerings of several state-owned firms planned over the next two years.
