The year 2016 has not started well for global markets, with all major indices recording declines since the end of 2015 including the S&P 500 (-6.0%), FTSE 100 (-5.3%), DAX (-8.3%), CAC 40 (-6.5%), NIKKEI 225 (-7.0%) and Shanghai Composite (-10.0%) at the time of writing. 
The Chinese central bank’s decision to devalue the yuan was one of the triggers that further deteriorated an already weak global atmosphere that has carried forward from 2015, and investor confidence has been very jittery after Chinese markets were forced to suspend trading twice in just four days in January due to steep falls.
Opec’s decision in its mid-December meeting to maintain current production levels of around 31.5mn bpd saw oil prices slide below the $40 level and prices touched a 12-year low in 2016 as demand remains weak. Plunging oil prices has put the finances of energy exporters around the world under pressure. 
Notably Saudi Arabia in December announced a budget deficit amounting to SAR 367bn ($98bn), the highest in the history of the Kingdom as low oil prices have cut into the government’s main source of revenue.
Despite trillions of dollars being wiped off global capital markets and cheap oil, Qatar’s economic outlook remains positive. While Qatar is a significant oil producer, it is predominantly a gas exporter and the price of natural gas exports are only weakly correlated with oil. Qatar has historically sold most of its LNG through long-term sales and purchase agreements, allowing Qatar mitigate short-term fluctuations and secure advantageous prices as their trading partners are often ready to pay higher prices for long-term supplies and the energy security these agreements provide.
Qatar’s economy is also more vibrant and stable compared to most GCC countries and despite international gloom, the Qatari economy is poised to deliver positive growth. 
Inflation adjusted GDP growth for 2015 is expected to be 3.7%, with the non-oil and gas sector set to record double digit expansion (mostly attributable to construction and services), although a fall in hydrocarbon output will result in growth that is slightly lower compared to 2014. 
The government has wisely invested in infrastructure-related projects in an effort to diversify its economy and another success of Qatar’s private sector is the banking industry, which is among the most profitable in the GCC and has experienced reasonable growth in recent years despite the slowing economy.
Qatar has a large portfolio of foreign assets, with the Qatar Central Bank’s net foreign asset figure standing at QR139.1bn at the end of November 2015. 
While these assets have been reducing in the recent months, the current magnitude is reflective of the central bank’s sound base to deal with temporary disruptions in the short term. The government has also accumulated large surpluses from hydrocarbon revenues in the form of the Qatar Investment Authority, which according to SWF Institute has an estimated $256bn in assets under management.
To conclude, we believe that due to multiple factors including stable hydrocarbon revenues, a more diversified economy, a strong financial sector and a large cushion of foreign assets, Qatar’s economy is looking resilient and the outlook remains positive, especially when compared to most of its regional peers.

Dr Abdulaziz A al-Ghorairi is senior vice president and group chief economist, Commercial Bank.