Despite being one of the smallest countries within the Gulf Cooperation Council (GCC) in terms of population and geographical area, Qatar today ranks as one of the richest counties in the world, in terms of GDP per capita.
The Qatari economy has come a long way from its reliance on pearl diving, and today national income is primarily derived from oil and gas exports with Qatar cementing its status as the undisputed exporting giant of LNG with a 77 million tons annual production capacity of LNG in its track record and proven oil reserves amounting to 25.7 billion barrels.
Additionally, Qatar has scored the most prestigious title in sports' history gearing up towards hosting the FIFA World Cup in 2022. This is set to launch a USD 70 billion construction boom in the Gulf state according to MEED – the Middle East Economic Digest. A US$ 4 billion stadium building programme will see the construction of nine new eco-friendly, cutting-edge football stadiums and the expansion of three existing stadiums. Furthermore, Qatar will build over 80,000 new hotel rooms by 2022, 10,000 to 15,000 of which will be ready by end of 2010. A USD 20 billion road improvements and expansion programme will include the USD 687 million Lusail Expressway, Doha Expressway, Dukhan Freeway, and the Doha Bay Crossing. Another USD 25 billion rail network will cover the construction of a metropolitan railway in Doha, a high-speed rail link between New Doha International airport, Doha city centre and across the proposed Qatar-Bahrain causeway into Bahrain, in addition to a freight line that will link up with the wider GCC rail network. The USD 4 billion Qatar-Bahrain Causeway with its 45km long fixed link between Qatar and Bahrain was put on hold in June. As an important component of the World Cup Bid in FIFA’s evaluation report, the scheme will now be given renewed impetus.
Non-oil and gas GDP has also been consistently growing as a proportion of national GDP in recent years, as the government continues with its efforts to diversify the economy.
Guided by visionary leadership of the Emir H.H. Sheikh Hamad Bin Khalifa Al-Thani, Qatar has been making confident strides towards a knowledge-based economy.
Increasing industrialisation and a continuing focus on education and healthcare has created a range of opportunities for new business and industrial sectors, including real estate, technology, tourism, manufacturing, telecoms and retail. For foreign investors, Qatar currently offers tax exemptions for 12 years, and foreign companies are allowed to be 100% foreign owned. Qatar is a member of OPEC, GATT and is seeking membership in World Trade Organisation.
Education reform has become a major priority in recent times. As the country reaps the benefits of major projects like Education City, it is developing high-level research institutions and restructuring primary and secondary school systems. A number of large medical projects are also in the works to boost healthcare offerings.
The country has an extremely robust banking environment, with leading banks, including ibq, offering a range of products and services, incorporating the latest innovation in technology and product structure.
Qatar has set itself a target for the non-energy sector to account for 80 per cent of the economy by 2015 and to achieve zero oil dependence by 2020. Despite the ripple effect of the global financial crisis in 2008-09, real economic growth of Qatar is set to remain impressive, with nominal GDP estimated to grow in the range of 10-12 per cent in 2009, and close to 10 per cent in 2010 and 2011. Even as the public sector accounts for much of the GDP, the state continues to encourage the private sector to take on more responsibility and expand its role within the economy of Qatar.