Doha, Qatar: Earnings for Qatar’s industrial market are expected to grow 8.2 percent year-on-year, according to a report curated by experts from Simply Wall Street.
The figures show that the market rose by 2.7 percent during the last week, which was driven by gains of 8.4 percent.
However, the earnings for Qatari-listed companies have surged by 12 percent y-o-y over the last three years.
The report also stated that the revenues for these organisations have significantly increased by 7.8 percent annually.
“This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too,” it said.
The data highlights that the investors favor the tech industry the most for future growth. “It looks like investors are confident that earnings will grow faster in the future than they have historically, the report outlined.
Albeit the industry is booming, the utility sector is one of the least preferred by investors for future growth, the report noted.
The analysts, however, are most optimistic about the Consumer Staples sector, expecting annual earnings to increase by 16 percent over the next 5 years.
“This is better than its past earnings growth rate of 1.3 percent per year,” the report added.
In contrast, the Materials sector is expected to see its earnings decline by 9.7 percent on an annual basis in the years ahead. During the first two quarters of 2023, the sector stood stable with industrial investments as numerous firms partnered for promising projects.
In the second quarter of the year, the industrial production index stood at 99.7, indicating a rise of 1 percent year on year, according to data revealed by ValuStrat.
However, compared with the first quarter, the median asking rent in Q2 2023 for dry storage projects in Zones 91 and 92 like Aba Salil, Birkat Al Awamer, Logistics Village, and Mesaieed areas, and Zone 57 Industrial Area plunged by 2.9 percent and 6.7 percent, respectively.
Some of the key projects implemented by the country include the signing of a QR20bn deal with Chevron Phillips Chemical to build a plant, which is expected to be operational by 2026, including the biggest ethane cracker in the Middle East, converting natural gas into polyethylene and other plastic.
The sector witnessed a significant rise during the recent years, as more factories are introduced each year.
By 2022-end, the building materials and chemical products industry had 281 factories producing 392 products, the metal and steel sector had 179 factories producing 291 products, and the recycling industry had 135 factories producing 215 goods.