An irrepressible enterprising spirit
Overview
The Qatari economy has exhibited considerable growth in the last eight years and according to a
World Economic Forum 2008-2009 report, the country is now the most competitive Arab economy, ranking 26th worldwide.
GDP grew from QR70.5bn in2002 to QR258.591bn (estimated) in 2007, with GDP per capita reaching $57.936 according to the Qatar Statistical Authority.
GDP for Q1 2008 stood at QR84.3bn, with the growing finance insurance and real estate business accounting for 9.1% or QR7.6bn. Value-added manufacturing accounted for a further 5.8%. Qatar National Bank (QNB) predicted the economy would grow by 26.6% to QR327.5bn in 2008 with nominal GDP expected to reach QR387.2bn in 2009
Despite economic diversification, the oil and gas sector was expected to account for 76.8% of GDP in 2008 (up from 57.2% in 2006) – based mainly on high global energy prices – with the non-energy sector expected to grow by an estimated 23.2%, reaching QR138.5bn by the end of the year. By 2010, revenue from gas exports is expected to exceed that from oil for the first time.
The 2007/08
State Budget was the largest in Qatar’s history, with forecasts of a QR6.7 billion surplus likely to be exceeded thanks to the high price of oil on international markets
In early 2007,
Qatar’s Finance Minister predicted that “by 2012 the GDP of Qatar will be about US$100 billion.” He said the country would invest US$130 billion in infrastructure by 2015, including health and education.
The value of imports for H1 2008 was QR49.465bn (27.3% up on H1 2007). Just over one third of imports were from the European Union and another third from Asia. Qatar’s exports grew by 210% between 2002 and 2006 – from QR40.0 billion to QR123.9 billion (US$34.1 billion). Oil, gas, petrochemicals and steel make up the bulk of exports, with Japan being the biggest customer, importing QR51.4 billion of Qatari products in 2006, followed by South Korea (QR17.2 billion) and Singapore (QR11.7 billion).
Oil, Gas and petrochemicals
Qatar holds the world’s third largest gas reserves (910 trillion standard cubic feet) in the world’s largest single un-associated reservoir, the North Field. That is approximately 14% of the world’s known reserves. To ensure its energy resources are exploited in a sustainable manner, on a long-term basis, Qatar is undertaking a
reservoir management study.
Oil exploration and enhanced production techniques have raised proven oil reserves from 3.7 billion barrels in 1999 to 26.2 billion barrels by the end of 2006, while production capacity has also been increased.
Together with other GCC states, Qatar is considering the development of nuclear energy for peaceful means and also solar power.
In 2006, Qatar overtook Malaysia as the world’s largest exporter of LNG. By 2012 exports should reach, or exceed, 77 million tonnes per year. Gas-to-Liquids (GTL) exports began in 2007; Liquid Petroleum Gas (LPG) exports are increasing and Qatar aims to become one of the top five petrochemicals producers in the world by 2012.
The country is also investing in energy developments overseas.
Diversification of the economy
In the two years to October 2007, Qatar’s US$60 billion
sovereign wealth fund cut its exposure to the US Dollar by more than half, to around 40% of its portfolio; another 40% was in euros, and another 20% in other currencies, including Sterling.
The State-owned
Qatari Diar Real Estate Investment Company has invested in real estate and tourism developments at home and in Europe, but also in such countries as Oman, Sudan, Egypt, Morocco, Ethiopia, Tunisia, Yemen and Libya. Qatar purchased the 13 acre Chelsea Barracks in the heart of London, and in January 2008 signed a deal to acquire an 80% share in the ‘Shard of Glass’ London Bridge development.
Qatar is establishing joint development funds with countries such as Dubai, Indonesia and Malaysia and looking at investment opportunities in Vietnam.
Further information
