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The business confidence index declined in Q1 2016 compared to Q4 2015. It accounted for (20.4) and (20.8) points respectively due to the slump in optimism levels of enterprises operating in the sector of oil, and the rise of prices of fuel and diesel locally by 30% in mid-January 2016.
However, the Index generally shows continuous optimistic view over Qatar’s economy as it surpasses the neutral level (0) when positive and negative opinions are equal.
Such optimism mirrors continued good performance of Qatar’s economy despite the decline in oil prices. This situation confirms that Qatar’s colossal financial reserves provide the necessary protection against any slump in oil prices.

Sub-Indices :

The sub-indices refer to the present situation index and future expectations index. The survey results indicate a slump of (-0.7) points in optimism of economic enterprises operating in Qatar over the expectations index which recorded (33.1) points vis-à-vis (33.8) in Q4 2015. Similarly, the present situation index registered a tiny decline (-0.3) points as it amounted to (8.4) points compared (8.7) in Q4 2015. Such results reflect a greater sense that the economy of the State of Qatar may be affected by the global economic conjuncture, chiefly amid ongoing decline in oil prices. However, the optimism levels about the current situation reflect the enterprises’ understanding of the continuous good performance of Qatar’s economy. 
The sample of respondents from the business community show their optimism over the inventory size of finished goods, and prices of their final goods and services, whereas their optimism levels decreased about labor force volume, profitability ratios for their enterprises and production volume in Q1 2016 compared to Q4 2015.

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