Info about Qatar
Some details on the Economy of Qatar
Qatar is one of the smallest nations in the Middle Eastern Arab region with an area of just about 12,000 sq kms. It is also one of the least populated nations in the region. However economically it is a powerhouse and has primarily been driven by its rich natural resources and favourable government policies.
• Qatar Economic Highlights
According to the 2010 Index of Economic Freedom, Qatar was ranked 39th int eh world with a score of 69.0 and this was an improvement from 2009 which shows the pro-economic freedom government policies. It is in fact the second freest country in the Middle East behind Bahrain. The country’s GDP per Capita income was calculated to be the highest in the world in 2008.
• Prime Economic Drivers for Qatar
Being an Arab country, it is not surprising that oil remains Qatar’s most important asset and export. However, over reliance on the oil money affected Qatar’s economy during tough times when oils prices dipped drastically. Off late there were discoveries of loads of natural gas off the coast of Qatar and this helped the country move away from purely oil money. The government is actively pursuing foreign investments and involvement in developing infrastructure to exploit the rich reserves. The natural gas reserves in Qatar are estimated to be the third largest in the world.
Today 85% of Qatar’s exports come from oil and gas and over 60% of GDP is again from this sector. The biggest risk with such a economic model is that fluctuating oil and gas prices have direct impact on the economy of the country. Qatar realises the risks of such an economy and is try to move away from just oil and gas to other industries like petrochemicals and steel.
• Inflation in Qatar
Qatar has been recording some of the top GDP growth rates over the last half a decade and hence it is not surprising that the inflation during this time has also been quite high averaging around 14.4% from 2006 to 2008. In 2009 it shot up to 15.1%. The government does regulate the prices and implements policies to distort the prices and keep the consumer prices under control.
• Taxation in Qatar
The best part about the Qatar economy is that the government earns profits from the sale of oil and gas and hence there are no tax on the individuals and industries. The profits from the sales are used by the government to usher in all the development work required for the economic and social prosperity of the country.
In conclusion it can be said that Qatar is truly an economic hub in the Middle East. Its rich oil and gas reserves, a stable government with increased focus on economic freedom and strategic geographic location make Qatar an ideal investment destination for many foreign companies.