Economical overview
Qatar has the world's highest per capita
income. Oil and natural gas form the basis of the strong
Qatari economy and together account for half of the
gross domestic product (GDP), half of the state's
revenues and about 85 percent of export income.
However, an increasing emphasis is placed on finding new
sources of income for the future.
Conditions in the economy have changed a lot in
recent years. Qatar has not least increased its spending
on infrastructure, in part due to major construction
projects ahead of the 2022 Soccer World Cup. That kind
of expenses for the World Cup finals remain high.
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Countryaah.com:
Major imports by Qatar, covering a full list of top products imported by the country and trade value for each product category.
Qatar's economy has long depended entirely on oil
recovery, which began as early as the 1940s. Most of the
oil has been exported and the country's income has
therefore varied with world market prices. But during
the 1990s, extraction of natural gas began to play a
greater role. Although the sharp fall in oil prices from
mid-2014 did affect the economy, it did not contribute
to the same economic downturn as during the low oil
price of the 1990s. Gas exports together with the future
fund that Qatar has built up with oil and gas revenues
meant that Qatarians so far hardly had to worry about
the economy.
In the fall of 2019, the state reported the first
negative quarter in the economy in several years. Both
the construction industry and the manufacturing industry
had then gone worse than expected. By 2020, the state
was expecting a surplus, but the expenditure had
increased especially for personnel in professions where
qualified knowledge is required. And since then, the
corona crisis, with a race in global oil demand, has
made the economic future uncertain in most places.
Qatar has the largest gas resources in the world
after Russia and Iran, and is the world's largest
exporter of natural gas. Qatar has the world's largest
natural gas field. The gas is estimated to last for
about 300 years and the oil for almost 60 years.
The largest customers are in Japan, South Korea, EU
countries, India and Singapore. Imports, which come
mainly from the EU, the US, the United Arab Emirates,
Saudi Arabia and China, consist of machinery and
transport equipment, food and chemical products.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including QAT which represents the country of Qatar.
Stable growth
The increasing extraction of gas contributed to the
country having the fastest growing economy in the Middle
East in the early 2000s. Average growth, which was
around 8 percent at the beginning of the century, was
19 percent in 2010. Over the following decade, growth
has slowed, to land fairly stable at levels around 2
percent (before the corona crisis).
A blockade initiated by neighboring countries against
Qatar in the summer of 2017 has had a negative impact,
with falling values in the country's stock market and
a reduced foreign currency reserve. Qatar has tried to
meet this, among other things, with more attractive
conditions for capital from abroad.
The long-term economic policy, within the framework
of the Qatar National Vision 2030 development program,
is aimed at reducing oil and gas dependence and instead
creating new sources of income, primarily through
investments in other industries, infrastructure, tourism
and more. The country also wants to create a more
knowledge-based society and therefore invests heavily in
education, research, telecom and so on.
Foreign ownership
In 2002, it became possible for foreign companies to
enter Qatar and own companies together with the state.
Privatizations are now allowed in areas such as energy
and water distribution, healthcare, education, ports,
telecommunications and tourism. Privatization of the
manufacturing industry is also ongoing. Previously,
foreign ownership was not allowed to exceed 49 percent
in listed companies, but at the end of 2018, the
government announced that foreign wholly owned ownership
would be allowed in most industries. In order to attract
investors from abroad, it has become easier to obtain a
residence permit, while the right for foreign citizens
to own real estate is about to be expanded.
The harshly criticized conditions for migrant workers
have improved.
Qatar has taken out large foreign loans in order to
develop natural gas extraction and other industries.
However, the country's energy reserves guarantee that
there will be no problems paying off the loans, which
have been obtained on favorable terms.
The comprehensive infrastructure plans for the Soccer
World Cup 2022 include new road networks, the expansion
of the railway (including high-speed trains), the port
for passenger traffic and greater capacity for air
traffic.
Shipping is important for Qatar's relations with the
outside world. The largest port, on the east coast, is
also the oil terminal. The deep harbor of the capital
Doha plays a major role in foreign trade. In addition,
Ras Laffan in the northeast has the world's largest port
facility for the shipment of liquefied gas.
Qatar is not yet a major tourist country, but the
state is investing in tourism as an alternative source
of income for oil and natural gas in the future. A
government agency for tourism has been formed and visa
rules have been simplified.
FACTS - FINANCE
GDP per person
US $ 69,026 (2018)
Total GDP
US $ 192,009 million (2018)
GDP growth
1.4 percent (2018)
Agriculture's share of GDP
0.2 percent (2018)
Manufacturing industry's share of GDP
9.2 percent (2018)
The service sector's share of GDP
42.6 percent (2018)
Inflation
-0.4 percent (2019)
Government debt's share of GDP
48.6 percent (2018)
Currency
Qatari rial
Merchandise exports
US $ 84,288 million (2018)
Imports
US $ 33,307 million (2018)
Current account
US $ 16,652 million (2018)
Commodity trade's share of GDP
63 percent (2018)
Main export goods
natural gas, oil and petroleum products, manure,
steel
Largest trading partner
Japan, China, EU, USA, Singapore
2004
October
Ex-emir returns
The former emir returns to Qatar for the first time since he was deposed, to
attend his mother's funeral.
May
Labor law reforms
A law is passed that allows the formation of trade unions, prohibits child
labor, gives employees the right to strike and before the eight-hour working
day.
February
Impaired relationship with Russia
Chechnya's former leader is killed in an explosion in Doha. Qatar's relations
with Russia deteriorate after two Russian agents are detained as a result of the
explosion. They will be deported to Russia later in the year.
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