Qatar is one of the fastest growing economies in the world due to oil exports and its successful investment in the Liquefied Natural Gas (LNG) industry. It is the world's largest exporter of LNG and will increase its output over the next two years. Even though oil and gas have contributed immensely in establishing the country among the top per-capita income nations, its economic policy has been aimed at developing the country's non-associated natural gas reserves.

In addition, it has aimed in increasing private and foreign investment in non-energy sectors. Qatar is one of the world’s most dynamic and fastest growing economies, almost tripling in size from 2005 to achieve a nominal GDP of approximately US$121bn in 2010 (source: Qatar Statistics Authority or ‘QSA’).

The IMF has reported that the Qatari economy grew by 16.3% in real terms in 2010 and reached a nominal GDP figure of US$129.5bn for the year, while the IMF forecasts that the economy is to grow a further 20.0% in real terms in 2011 to reach a nominal GDP figure of US$194.3bn (source: IMF Regional Economic Outlook April 2011).  Qatar was also the world’s wealthiest nation by per capita GDP in 2010 (source: IMF World Economic Outlook Database April 2011).

This growth is being delivered through the implementation of Qatar’s National Vision for 2030.  The government is committed to creating a dynamic and broad-based economy by increasing economic diversification through the re-investment of Qatar’s significant energy wealth.

The QFCA’s own analysis of recent statistical data suggests that Qatar has over US$16 trillion in proven hydrocarbon reserves to be monetised over the next 100 years, enabling Qatar to offer a uniquely sustainable platform for long term growth and development (source: QFCA analysis of BP Statistical Review of World Energy June 2010). Furthermore, Qatar's economic freedom score is 69.0, ranking its economy the 39th freest in the 2010 index.

The country is ranked 2nd out of the 17 countries in the Middle East/North African region. Currently, agriculture makes up 0.1% of GDP, industry makes up 68.4% and services 31.5%. The GDP real growth rate as estimated in 2009 has been 9.50%.

While the work force is mainly composed of expatriates, the government promotes a system of "Qatarisation" which requires companies to employ set numbers of Qatari nationals. Qatar is actively promoting diversification and liberalisation in education, financial services, transport, health and tourism thus stimulating the private sector and developing a knowledge economy. Large scale investment in all social and economic sectors is bound to lead to the development of a strong financial market.

One of the main trading partners for Qatar has been the European Union along with the United States, Japan and South Korea and Singapore. What is more, Qatar was a founding member of the Gulf Cooperation Council (GCC) and is a member of OPEC and the Arab League. Qatar joined the United Nations in 1971, and has been an active participant in its various bodies and agencies. Qatar joined the World Trade Organization (WTO) in 1996.

Qatar main industry sectors

Oil and petrochemicals

Qatar's industrial sector is dominated by the oil and gas sector and the heavy industries associated with it, such as petrochemicals, fertilizers as well as steel and cement. Qatar is undertaking a range of 'mega projects' – principally in the oil and gas sector. These are described on the website of the Investment Promotion Department of the Ministry of Business and Trade.


Light industries

Some development has taken place in the manufacture of footwear, food and beverages, textiles, furniture and paper products. The emphasis, however, is on the petrochemical and metallurgical sectors, where Qatar's super-abundant resources of hydrocarbon feedstock give it an extraordinary competitive advantage.


Infrastructure

Infrastructure developments have provided an incentive to the economy. The building and construction sector remains highly active, with many new projects planned, including roads and highways, ports and industrial complexes.


Education

Qatar has established Education City, in association with a number of US and Canadian institutions, including Carnegie Mellon, Georgetown University, Texas A&M and the Rand Corporation. The facility now has about 1,200 enrolments, half of these students coming from outside Qatar.


Healthcare

Increasing expenditure on healthcare has provided good opportunities in this sector. Expansions to the Hamid Medical City will provide on-going opportunities for healthcare products and services.


Automotive

Australian passenger car exports to Qatar were A million in 2007. The auto aftermarket will provide good opportunities as vehicles move out of their warranty periods. In Qatar 4WD desert driving is particularly popular, but the market is considerably smaller than in the UAE. It does, however, represent a niche market that may be worth pursuing for companies with 'desert proven' 4WD accessories.


Tourism

Qatar is strongly committed to building a world class tourism industry, and is planning major investments. Qatar is actively seeking to sponsor world-class sporting events—and already hosts the Qatar Open as part of the Association of Tennis Professionals (ATP) Tour, and the Qatar Masters in golf on the European PGA Tour.

It has developed other excellent sporting and recreational facilities as a result of hosting the 2006 Asian Games. Qatar is a member of FIFA and is scheduled to host some major soccer fixtures. To boost the sector, the government has formed a new body, the Qatar Tourism Authority, which has identified a range of major tourist attractions to be developed.

Sector of Opportunity

Recent economic boom in Qatar augurs well for the nation. Export of oil and natural gas continues to be a dominant source of revenue for Qatar government. High oil prices have helped Qatar fund its national budget. Economic future of Qatar is likely to be dependent on how it utilises its high natural gas and oil reserves. As per Qatar export, import and trade data, Qatar export revenue has increased in recent fiscals.

In 2008 Qatar export revenue was in region of .6 billion in 2004 fiscal, but in 2008 fiscal this amount went up to .1 billion. As per the Qatar National Bank, the non-Oil and Gas sector overtook the Oil and Gas Sector for the first time in 2009 and also with the Gas sector overtaking oil as the single largest contributor to the economy.

The non-Oil and Gas sector accounted for 53.8% of overall Gross Domestic Product (GDP) in 2009, with the Gas sector accounting for 24.5%, and the oil sector accounting for 21.7% of overall GDP, according to data released by the Qatar Statistics Authority.

Liquefied natural gas and crude oil are extremely important in context of Qatar export, import and trade. This is because a significant part of Qatar export revenue is made up of income generated from these two areas as a result of liquefied natural gas and crude oil. In addition Qatar signed a deal with the United Kingdom regarding export of liquefied natural gas.

As per this deal Qatargas is to export 16 million tons of liquefied gas every year via Suez Canal. This plan has been backed by Suez Canal Authorities who are providing necessary discounts to make the deal a financially viable one for Qatargas. Furthermore, the educational sector has seen greatly improved throughout recent years. The country established the Qatar University in 1973 in addition to opening branch campuses of major American universities, such as Georgetown University School of Foreign Services and Carnegie Mellon University.

The educational sector has been expanding in order to meet the large increase in population seen recently as well as to support growing knowledge sector. Qatar's economic diversification and investment in human capital generates additional opportunities in a range of sectors such as construction, energy & environment, transport infrastructure, tourism as well as financial and professional services.

Economic Forecast

Qatar's economy achieved a major diversification success with the Gas sector overtaking oil as the largest contributor to the economy. Qatar's successful economic diversification program continues to expand further with the development of projects to produce and export of additional natural gas in the form of LNG (Qatargas and RasGas), piped gas (Dolphin), GTL (Oryx and Pearl) and investments in petrochemicals, fertiliser, aluminium and various other industries.

Qatar's nominal GDP growth continues at an astonishing pace, averaging 33.7% over the past five years (2004-2008). For 2010, Qatar National Bank forecasts a nominal GDP growth of 31.0% as oil prices and production picks up and a major addition of LN G production. The 2009/10 State Budget continues to show the government's commitment in keeping major infrastructure and other projects on track to meet the growing needs in the years ahead.