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Economy of Qatar

Oil formed the cornerstone of Qatar's economy well into the 1990s and still accounts for about 62% of total government revenue. In 1973, oil production and revenues increased sizably, moving Qatar out of the rank of the world's poorest countries and providing it with one of the highest per capita incomes. In 2007, Qatar's per capita income of nearly $67,000 was the fifth-highest in the world. Qatar's economy suffered a downturn from in the mid-1990s. Lower Organization of Petroleum Exporting Countries (OPEC) oil production quotas, a fall in oil prices, and the generally unpromising outlook on international markets reduced oil earnings. In turn, the Qatari Government cut spending plans to match lower income. The resulting recessionary local business climate caused many firms to lay off expatriate staff. With the economy recovering in the late 1990s, expatriate populations have grown again. As of 2007, oil production was around 835,000 barrels a day (bpd), and was expected to reach 1.1 million bpd by 2009. At the current production pace, oil reserves are expected to last more than 40 years. Moreover, Qatar's proven reserves of gas are the third-largest in the world, exceeding 900 trillion cubic feet (14% of the world's total proven gas reserves). Qatar shares with Iran the largest single non-associated gas field in the world, the North Field. Qatar is the world's largest producer of liquefied natural gas (LNG), with a capacity of more than 31 million metric tons per annum (mmta) as of 2007. By 2010, it expected to reach 77.5 mmta of LNG exports and to account for one-third of the world's LNG supply. The 1991 completion of the $1.5-billion Phase I of the North Field gas development project strongly boosted the economy. In 1996, Qatar began exporting liquefied natural gas to Japan. Further phases of North Field gas development costing billions of dollars are in various stages of planning and development, and Qatar has concluded agreements with the U.A.E. to export gas via pipelines and to Spain, Turkey, Italy, the U.S., France, South Korea, India, China, Taiwan, and the U.K. via ship. However, the government halted any further expansion of gas production until 2010, as it assessed its plans for future exploitation of the field. Qatar's natural gas liquefaction facilities and related industries are located in Ras Laffan Industrial City, site of the world's largest LNG exports of more than 31 million metric tons per year. Qatar's heavy industrial base, located in Messaieed, includes a refinery with a 140,000 bpd capacity, a fertilizer plant for urea and ammonia, a steel plant, and a petrochemical plant, and several new petrochemical plants will be built in the coming years. All these industries use gas for fuel. Most are joint ventures between U.S., European, and Japanese firms and the state-owned Qatar Petroleum (QP). The U.S. is the major equipment supplier for Qatar's oil and gas industry, and U.S. companies are playing a major role in the development of the oil and gas sector and petrochemicals. The country's economic growth has been stunning. Qatar's nominal GDP, estimated to be $128 billion for 2010, has recently been growing at an average of 15%, and the 2010 growth rate is estimated to be 19%. Qatar's 2007 per capita GDP was $67,000, 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. Qatar pursues a vigorous program of "Qatarization," under which all joint venture industries and government departments strive to move Qatari nationals into positions of greater authority. Growing numbers of foreign-educated Qataris, including many educated in the U.S., are returning home to assume key positions formerly occupied by expatriates. In order to control the influx of expatriate workers, Qatar has tightened the administration of its foreign manpower programs over the past several years. Security is the principal basis for Qatar's strict entry and immigration rules and regulations.

GDP (2010 est.): $128 billion.
Real growth rate (2010 est.): 19%.
Per capita income (2007): $67,000.
Natural resources: Petroleum, natural gas, fish.
Agriculture: Accounts for less than 2% of GDP. Products--fruits and vegetables (most food is imported).
Industry: Types--oil production and refining and natural gas development (56% of GDP), mining, manufacturing, construction, and power.
Trade (2006 est.): Exports--$34 billion, principally oil 47% and gas 36%. Partners (2005)--Japan 36.3%, South Korea 19.1%, Singapore 8.1%, India 5.1%, U.A.E. 2.9%, U.S. 1.2%. Imports--$6.7 billion, principally consumer goods, machinery, food. Partners (2005)--France 11.8%, Japan 10.7% U.S. 10.6%, Germany 8.5%, Saudi Arabia 7.4%, U.K. 7.1%, Italy 6.6%, South Korea 5.6%, U.A.E. 4.9%.

Geography of Qatar

Location: Middle East, peninsula bordering the Persian Gulf and Saudi Arabia Map references: Middle East Area: total area: 11,437 sq km (4,427 sq.mi.) comparative area: slightly smaller than Connecticut Land boundaries: total 60 km, Saudi Arabia 60 km Coastline: 563 km Maritime claims: contiguous zone: 24 nm exclusive economic zone: 200 nm territorial sea: 12 nm Cities: Capital--Doha 313,600 (1992). Other Cities--Umm Said, Al-Khor, Dukhan, Ruwais. International disputes: territorial dispute with Bahrain over the Hawar Islands; maritime boundary with Bahrain
Climate:
desert; hot, dry; sultry in summer Terrain: mostly flat and barren desert covered with loose sand and gravel Natural resources: petroleum, natural gas, fish Land use: arable land: 0% permanent crops: 0% meadows and pastures: 5% forest and woodland: 0% other: 95%
Environment:
current issues: limited natural fresh water resources are increasing dependence on large-scale desalination facilities natural hazards: haze, dust storms, sandstorms common international agreements: signed, but not ratified - Biodiversity, Law of the Sea Note: strategic location in central Persian Gulf near major petroleum deposits

Government of Qatar

GOVERNMENT AND POLITICAL CONDITIONS The ruling Al Thani family continued to hold power following the declaration of independence in 1971. The head of state is the Amir, and the right to rule Qatar is passed on within the Al Thani family. Politically, Qatar is evolving from a traditional society to one based on more formal and democratic institutions to meet the requirements of social and economic progress. The country's constitution formalizes the hereditary rule of the Al Thani family, but it also establishes an elected legislative body and makes government ministers accountable to the legislature. In current practice, the Amir's role is influenced by continuing traditions of consultation, rule by consensus, and the citizen's right to appeal personally to the Amir. The Amir, while directly accountable to no one, cannot violate the Shari'a (Islamic law) and, in practice, must consider the opinions of leading families and the religious establishment. The opinions of the people are institutionalized in the Advisory Council, an appointed body that assists the Amir in formulating policy. Elections in 1999, in which both men and women participated, resulted in the formation of a municipal council. One woman candidate was elected to the municipal council in 2003. Municipal elections were held for the third time in April 2007. There has been no serious challenge to Al Thani rule. As the most visible sign of the move toward openness, the Al Jazeera satellite television station based in Qatar is considered the most free and unfettered broadcast source in the Arab world. In practice, however, Al Jazeera rarely criticizes the ruling Al Thani family.

Principal Government Officials
Amir, Commander in Chief of the Armed Forces, and Minister of Defense--Sheikh Hamad bin Khalifa Al Thani
Heir Apparent, Deputy Chief of the Armed Forces--Sheikh Tamim bin Hamad bin Khalifa Al Thani
Prime Minister and Minister of Foreign Affairs--Sheikh Hamad bin Jassim bin Jabir Al Thani
Minister of Energy and Industry and Deputy Prime Minister--Abdullah al-Attiyah
Ambassador to the U.S.--Ali Fahad al-Hajri

Qatar maintains an embassy in the United States at 2555 M Street, NW, Washington, DC 20037 (tel. 202-274-1600) and a consulate in Houston at 4265 San Felipe Street, Suite 1100, Houston, Texas 77207 (tel. 713-968-9840). Qatar's Permanent Mission to the United Nations is at 747 Third Ave., 22nd floor, New York, NY 10017 (tel. 212-486-9335).

Type: Constitutional monarchy.
Independence: September 3, 1971.
Constitution: Approved by popular vote 2003; came into force June 2005.
Branches: Executive--Council of Ministers. Legislative--Advisory Council (currently appointed pending elections; has assumed only limited responsibility to date). Judicial--independent.
Subdivisions: Fully centralized government; seven municipalities.
Political parties: None.
Suffrage: Universal over age 18, since 1999.

 

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History of Qatar

Qatar has been inhabited for millennia. In the 19th century, the Bahraini Al Khalifa family dominated until 1868 when, at the request of Qatari nobles, the British negotiated the termination of the Bahraini claim, except for the payment of tribute. The tribute ended with the occupation of Qatar by the Ottoman Turks in 1872. When the Ottomans left at the beginning of World War I, the British recognized Sheikh Abdullah bin Jassim Al Thani as ruler. The Al Thani family had lived in Qatar for 200 years. The 1916 treaty between the United Kingdom and Sheikh Abdullah was similar to those entered into by the British with other Gulf principalities. Under it, the ruler agreed not to dispose of any of his territory except to the U.K. and not to enter into relationships with any other foreign government without British consent. In return, the British promised to protect Qatar from all aggression by sea and to lend their good offices in case of a land attack. A 1934 treaty granted more extensive British protection. In 1935, a 75-year oil concession was granted to Qatar Petroleum Company, a subsidiary of the Iraq Petroleum Company, which was owned by Anglo-Dutch, French, and U.S. interests. High-quality oil was discovered in 1940 at Dukhan, on the western side of the Qatari Peninsula. Exploitation was delayed by World War II, and oil exports did not begin until 1949. During the 1950s and 1960s gradually increasing oil reserves brought prosperity, rapid immigration, substantial social progress, and the beginnings of Qatar's modern history. When the U.K. announced a policy in 1968 (reaffirmed in March 1971) of ending the treaty relationships with the Gulf sheikdoms, Qatar joined the other eight states then under British protection (the seven trucial sheikdoms--the present United Arab Emirates--and Bahrain) in a plan to form a union of Arab emirates. By mid-1971, however, the nine still had not agreed on terms of union, and the termination date (end of 1971) of the British treaty relationship was approaching. Accordingly, Qatar sought independence as a separate entity and became the fully independent State of Qatar on September 3, 1971. In February 1972, the Deputy Ruler and Prime Minister, Sheikh Khalifa bin Hamad, deposed his cousin, Emir Ahmad, and assumed power. This move was supported by the key members of Al Thani and took place without violence or signs of political unrest. On June 27, 1995, the Deputy Amir, Sheikh Hamad bin Khalifa, deposed his father Amir Khalifa in a bloodless coup. An unsuccessful counter-coup was staged in 1996. The Amir and his father are now reconciled, though some supporters of the counter-coup remain in prison. The Amir announced his intention for Qatar to move toward democracy and has permitted a freer and more open press and municipal elections as a precursor to expected parliamentary elections. Qatari citizens approved a new constitution via public referendum in April 2003, which came into force in June 2005.

People of Qatar

Natives of the Arabian Peninsula, many Qataris are descended from a number of migratory tribes that came to Qatar in the 18th century from the neighboring areas of Nejd and Al-Hasa. Some came from neighboring Gulf emirates and others are descended from Persian merchants. Most of Qatar's 907,229 inhabitants live in Doha, the capital. Foreigners with temporary residence status make up about three-fourths of the population. Foreign workers comprise 52% of the total population and make up about 89% of the total labor force. Most are South and Southeast Asians, Egyptians, Palestinians, Jordanians, and Iranians. About 8,000 U.S. citizens reside in Qatar. For centuries, the main sources of wealth were pearling, fishing, and trade. At one time, Qataris owned nearly one-third of the Persian Gulf fishing fleet. With the Great Depression and the introduction of Japan's cultured-pearl industry, pearling in Qatar declined drastically. The Qataris are mainly Sunni "Wahhabi" Muslims. Islam is the official religion, and Islamic jurisprudence is the basis of Qatar's legal system. Arabic is the official language, and English is the lingua franca. Education is compulsory and free for all Arab residents 6-16 years old. Qatar has an increasingly high literacy rate. Nationality: Noun and adjective--Qatari(s). Population (May 2008 est.): 1,448,446; males 1,096,815 (75.7%); females 351,630 (24.3%). Population growth (May 2008 est.): 59.6%. Ethnic groups: Qatari (Arab) 20%; other Arab 20%; Indian 20%; Filipino 10%; Nepali 13%; Pakistani 7%; Sri Lankan 5%; other 5%. Religion: Islam (state religion, claimed by virtually all of the indigenous population). Languages: Arabic (official); English (widely spoken). Education: Compulsory--ages 6-16. Attendance--98%. Literacy (2004 est.)--89% total population, 89.1% male, 88.6% female. Health (2007 est.): Infant mortality rate--17.46/1,000 live births. Life expectancy--74.14 years. Work force (2006): 508,000. Private sector--61.2%; mixed sector--28.5%; government--5.6%.
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