It is a country’s economy that plays the most important role in laying the foundation for prosperity in all aspects: political, social, and scientific. Thus, His Highness the Emir Sheikh Hamad bin Khalifa Al Thani has put a great deal of effort into supporting the Qatari economy.
Qatar has witnessed remarkable prosperity, especially in the last few years, with continued high GDP growth in 2011, according to data issued by the International Monetary Fund (IMF). This same body identifies Qatar as having the highest GDP per capita in the world.
Further, the IMF has expressed great optimism about the Qatari economy, both for the current year (2012), and beyond.
The IMF report mentioned that major investments –especially in infrastructure projects and increasing output in the industrial sector– will result in continued growth of the Qatari GDP.
Qatar hopes to enjoy continuing prosperity through the number of long-term export contracts that are now in place.
With regard to inflation, it is expected that this will range between 4% and 5% over the medium term, with more stability due to the slowly decreasing importance of the real estate sector.
Gradually, domestic demand for credit will increase as a result of the continuous growth in the non-oil sector and the implementation of infrastructure projects.
Qatar’s currency, the Riyal, is pegged to the US Dollar. This is conducive to the economic stability of the Qatari economy, with the US Dollar still a globally bankable - and powerful - currency. Having the dollar as a base is important in supporting Qatar’s strong financial position, and thriving banking sector.
Qatar has made great progress in its economic activity, overseas trade, architectural development, and new construction and developments. The Qatari economy – at present – is reliant on the extraction and sale of hydrocarbons (mostly gas). Revenues from the same have funded the comprehensive developments, both social and economic, that we see taking place in the country today.
The Qatari economy is one of the fastest-growing economies in the Middle East and, indeed, the world. High growth rates have been maintained due to the high cost of hydrocarbons on the world’s commodities markets. These prices look set to remain reasonably stable while Qatar’s exports of gas continue to increase.
The growth of Qatar’s GDP has been absolutely astronomical. Total GDP in the year 2000 was $65 billion. By 2011, this figure had increased to $181 billion, and rising. This shows a near-tripling of GDP in just over a decade. The majority of this increase comes from the rise in sales of liquified natural gas (LNG). Last year, the country reached the milestone figure of 77 million tons of gas extracted and sold.
Despite the expansion in infrastructure and services, the government is wary of relying on hydrocarbon extraction and sale as the foundation of the economy – this ‘single supplier’ state of affairs leaves the economy over exposed to market fluctuations in the price of its main export and, as a result, potentially vulnerable.
The emphasis for the country’s Government is on diversifying the economy so that other sectors – such as banking and finance, tourism, executive education and technology make greater contributions to the GDP.