A STUNNING ECONOMIC GROWTH
Economic growth
The size of the Qatari economy, which has been growing at a rapid rate over the past several years, is projected to touch the $100bn-mark by 2013, according to Qatar Financial Centre (QFC).
In its recent economic review of the country for 2007, the QFC quoted the International Monetary Fund (IMF) as putting the current gross domestic product (GDP) at $66bn and the economic growth rate at an impressive 25 percent. IMF also calculated that Qatar’s GDP leaped 25 percent (in nominal terms) to almost $66bn, while government projections estimate that by the year 2013, Qatar’s GDP would have touched $100bn.
On the economic front, Qatar’s success is enviable by any standards. In a few years this small Gulf Cooperation Council (GCC) country of approximately 743,000 people (only about a third of who are Qataris) may well become the richest country in the world in terms of GDP per capita. From the GDP of $8 billion in 1995, it is forecasted to reach $62 billion by 2011. Qatar>s GDP per capita is estimated at $61,540 in 2006, placing the country among the world’s highest income nations.
Oil formed the cornerstone of Qatar’s economy well into the 1990s and still accounts for about 62% of total government revenue. Oil production is currently around 835,000 barrels a day (bpd), and is expected to reach 1.1 million bpd by 2009.
Moreover, Qatar sits on the third largest gas reserves in the world, and holds proven oil reserves of 13.2 billion barrels. When in 1996 the country’s natural resources were harnessed by astute fiscal policies adopted by HH Sheikh Hamad bin Khalifa Al-Thani, opportunities for the generation of wealth became almost boundless, with massive international investment in its energy sector. More than $30 billion in new contracts were signed in 2003 alone. The country has almost no unemployment and is experiencing rapidly rising prosperity.
Oil and gas account for more than 55% of GDP, roughly 85% of export earnings, and 70% of government revenues. Oil and gas have given Qatar a per capita GDP about 80% of that of the leading West European industrial countries.
Qatar has launched an impressive domestic investment programme aimed at developing its non-hydrocarbon sectors, such as manufacturing, trade, transport, financial services and tourism. An estimated $142bn worth of projects are planned over the next six years to continue this diversification strategy.
To sum up Qatar’s economy, it stands currently (GDP 2007est.) at $68.87 billion; per capita $75,900 with real growth rate at 7.8%. Qatar’s industries include crude oil production and refining, ammonia, fertilizers, petrochemicals, steel reinforcing bars, cement and commercial ship-repair. Natural resources are petroleum, natural gas and fish.
Qatar’s exports include $33.28 billion f.o.b (2007est); liquefied natural gas (LNG), petroleum products, fertilizers and steel. The State’s imports include $15.32 billion f.o.b. (2007est.): machinery and transport equipment, food, chemicals. Qatar’s major trading partners are Japan, France, the United States, Saudi Arabia, Germany and the UK.
The country’s economic growth has been stunning. Qatar’s nominal GDP, currently around$52.7 billion, has grown an average of 15% over the past five years. Qatar’s per capita GDP is more than $60,000 and projected to soon be the highest in the world. The Qatari Government’s strategy is to utilize its wealth to generate more wealth by diversifying the economic base of the country beyond hydrocarbons.
Banking sector
The Qatar Financial Centre (QFC) which opened on May 1, 2005, is the backbone of the banking sector in Qatar. It has attracted many large international financial institutions and multi-national companies to set up businesses in Qatar’s growing economy.
The QFC lies at the heart of Qatar’s dynamic economic growth and investment strategy. One of its tasks is to license firms and create new and genuine revenue streams, real businesses based on real opportunities with a vision for the QFC to be the financial centre of choice in the Middle East. There are 14 commercial banks operating in the State of Qatar.
