Qatari economy has witnessed an impressive growth in the last eight years, based on the report of the recent World Economic Forum. Today Qatar is one of the world’s fastest growing economies as well as one of the most competitive Qatar was ranked 14th and the highest in the MENA region in the World Economic Forum competitiveness index (source: World Economic Forum Global Competitiveness Report 2011-2012), and was also placed 38th overall in the Global Financial Centres Index (GFCI) in 2012.
The Qatari economy soared in 2011 having grown solidly over the past decade based on the solid foundation of Qatar's production of liquefied natural gas reaching 77 million tons per year - the first country in the world in this industry to achieve such volumes Thanks to the wisdom and vision of His Highness Sheikh Hamad bin Khalifa Al Thani, the Emir of Qatar, Qatar saw the launch of at least 10 strategic installations in the areas of oil and gas and petrochemical industries, as well as aluminum and power generation projects at a total cost of more than 65 billion riyals (17.8 billion dollars) during the same year..
The National Vision 2030 guides the country’s growth. The government is committed to creating a dynamic, competitive and broad-based economy by increasing economic diversification through the re-investment of Qatar’s significant energy wealth. Qatar has over US$25.4tln in proven hydrocarbon reserves to be monetised over the next 100 years and sustain for long-term growth and development (source: British Petroleum, Statistical Review of World Energy 2011).
With a long term sovereign rating of AA and a stable outlook, Qatar is the highest rated GCC state (along with Kuwait) by Standard & Poor’s (source: S&P Sovereign Risk Indicators 28 December 2011).
The International Monetary Fund (IMF) has reported that the Qatari economy grew by 18.8% in real terms in 2011 and reached a nominal GDP figure of US$173.8bn for the year. The IMF also forecasts that the economy is to grow a further 6% in real terms in 2012 to reach a nominal GDP figure of US$195.6bn (source: IMF Regional Economic Outlook April 2012 update). Qatar was also the second’s wealthiest nation by per capita GDP in 2011 after Luxembourg (source: IMF World Economic Outlook Database April 2012. The report showed that inflation has been kept within reasonable limits and at the same time recognized that the unemployment rate remained at its lowest level in the world.
The State achieved a financial surplus at 12.1% of GDP in 2011 and external debt increased by 62.3% of the gross domestic product. As shown by the national strategy Qatar plans to invest more than QR 218 billion ($60 billion) through its quasi-governmental organizations in the next five years in addition to the $ 65 billion on infrastructure projects. The investment plans of the Qatari companies except for Qatar Petroleum and its units will exceed QR 130 billion over the period from 2011 to 2016 inclusive of about QR100 billion investments by Barwa and Qatari Diar on residential and commercial building projects.
2010 was a pivotal year for Qatar Petroleum and its subsidiaries with the start of several projects for natural gas (LNG). However, investments will remain relatively strong in the medium term and will be about QR 88 billion in the period from 2011 to 2016.
In terms of the strategic directions of the national development of Qatar, the services sector is the main engine of the economy after 2011. Qatar has seen strong growth in the sectors of transport, communications, business and financial services during this period, while the activities associated with the World Cup 2022 will provide new opportunities in the tourism sector and in other areas as well. In addition , Doha’s new airport will provide an active center for air transportation, and the amendments to the law of foreign direct investment made in early 2010 - which allow foreign ownership of projects and companies by 100% in the sectors related services - may also contribute to the growth of the service sector. This will then have the effect of increasing its contribution to GDP by the year 2016 to 40%, compared to 36% in 2009.
