Qatar: The gross domestic product (GDP) is projected to slow down this year and the next, partly reflecting conscious choices. The main reason for the expected economic slowdown reflects the undeclared moratorium of gas output.

Nevertheless, Qatari authorities have been sparing no time exploring all sorts of regional and international options aimed at achieving diversification and development of the country’s economy. The more recent examples entail Qatar Airways exploring the viability of entering Saudi Arabia’s domestic market.

According to the General Secretariat for Development Planning (GSDP), inflation-adjusted gross domestic product (GDP) growth should ease from 14 per cent in 2011 to 6.2 per cent in 2012 and still 4.5 per cent in 2013. GSDP’s qualification includes that of being a state entity with access to all information.

To be sure, the development is not a reflection of a possible drop in public sector spending. To the contrary, the budget for fiscal year 2012-13, which started in April, puts total spending at US$49 billion, showing growth of 27 per cent. Concurrently, GSDP expects investment of $130 billion in the non-hydrocarbon sector in the period 2012-18. The extraordinary investment on infrastructure fits efforts of preparing the country for hosting the football World Cup in 2022.

In reality, the expected drop in GDP growth rates can be traced to local and international reasons. On the local level, officials have opted for all but capping of growth of output of liquefied natural gas (LNG). The country gas sector celebrated a new milestone in 2011 by boosting LNG production in the neighbourhood of 77 million tonnes per annum.

Suffice to say that the June 2012 version of BP Statistical Review of World Energy puts growth of natural gas output of Qatar by nearly 26 per cent in 2011. In turn, the rise of Qatari output helped offsetting drop of output from Libya and the UK. The same source credits Qatar for the utmost majority of 10 per cent growth of LNG shipments in 2011.

Understandably, Qatari officials opted for avoiding a further increase in output in order to consolidate existing output levels. Still, Qatari authorities cannot overlook some fundamental constraints including weak economic growth in EU countries in recognition of problems facing the Eurozone region notably fallout of Greek’s debt problem. Still, other constraints encountering gas consumption relate to high gas prices, warm weather and growth of renewable energy sources.

Happily, Qatari authorities are not running out of options when it comes to ensuring sustained growth and development of their economy. Newly-founded efforts include all but innovative approaches for reaching out to regional and international markets.

Visiting Doha last week, I learned that state-owned Qatar Airways is considering entering the Saudi Arabia’s domestic aviation market. Good news is that Saudi authorities have extended invitations for interested carriers to offer services in the country’s domestic market.

In another regional venture, Qatar Telecom (Qtel) has offered to buy 47.5 per cent of shares of Wataniya Telecom of Kuwait for a market value of $1.9 billion. To be sure, already Qtel has a stake of 52.5 per cent of Wataniay. Qtel enjoys a strategic backing of Qatari government.

On the international level, Qatar Holding, in turn investment arm of the country’s state wealth fund, plans to open hotels named after the luxuary British department store of Harrods. Qatar Holding became the new owner of Harrods back in 2010. The company has selected the Malaysian capital city of Kuala Lumpur as the first choice for a new brand hotel.

Undoubtedly, slower economic growth rates at home only open up new opportunities for Qatar elsewhere.