Over the last 30 years Qatar economy has undergone exemplary improvements in terms of economic and social developments (Government of Qatar, 2007). This is majorly due to the discovery of gas and oil in the country. Before these discoveries were made the growth of economy only depended on fishing and pearl hunting. Despite the fact that Qatar is a small country, it has been ranked the third country in the world with the largest gas reserves. It has around 13.2 billion barrels of oil reserves (DTM, 2010b). There if the Qatar’s economic policy which mostly focuses on making sure that oil and natural gas reserves contribute optimally to the development of the economy. It is predicted that Qatar may turn out to be the richest country in the world soon in terms of GDP per capita. It was forecasted that its GDP will increase from $8 billion in 1995 to $62 billion by 2011 (DTM, 2010b). In 2006, it was among the highest income countries with GDP per capita of $61,540. There is so much international investment in the energy sector (DTM, 2010b).
Oil and Natural Gas.
Oil become the biggest contributor of the Qatar’s economy in 1990s and still contributes around 62% of the total government revenues (TDS, 2011). In 1973 oil revenues were high such that Qatar was removed from being one of the poorest countries (TDS, 2011). In 2007, the per capita income increased to almost $67, 000 making Qatar the fifth highest in the world (DTM, 2010b). Recently oil and gas provide 79% of Qatar’s GDP, 85% earnings from export and 70% of government revenues (DTM, 2010b).
It is forecasted that Qatar oil reserves will be completely depleted by 2023(DTM, 2010a). This is not a great problem because large natural gas reserves have been discovered in Qatar’s northeast coast. The discovered reserves are the second largest in the world, more than 7 trillion cubic meters (DTM, 2010a). In addition Qatar has the largest single gas field in the world (DTM, 2010a).
As discussed earlier, Qatar’s economy was low before the discovery of oil and gas. It started reviving in 1991 when the first phase of worthy $1.5 billion was completed in North Field gas development (DTM, 2010a). This project started exporting liquidified natural gas (LNG) to Japan in 1996. In 2007, it was ranked the top LNG exporter with more than 31 million metric tons per annum (DTM, 2010a). The industry of natural gas liquefaction is in Ras Laffan and is the world’s largest LNG export (TDS, 2011). Qatar has a large industrial base in Messaieed which comprises of 140, 000 bdp capacity, a fertilizer plant for urea and ammonia, steel plant, petrochemical plant among others all which use gas as their fuel (TDS, 2011).
The North Field gas development does not only end with this one phase. There are other phases likely to cost billions of dollars involves in planning and development (TDS, 2011). Qatar has finalized its agreements with UAE to use pipes to export oil and use ships to export to Spain, Turkey, Italy, U.S, France, South Korea, India, China, Taiwan and U.K (TDS, 2011). A lot of resources have been towards development and extraction of natural gas particularly liquefied natural gas. In 2010, the Qatar National Bank showed that oil and gas contributed more half of Qatar’s 2010 GDP. Oil and gas are the mostly used energy sources.
It was estimated that as at January 1, 2011, Qatar had 25.4 billion barrels of oil reserves and 896 trillion cubic feet of natural gas (Qatar, 2011). It is the leading exporter of LNG and as at 2009; it exported 1,800 Bcf (Qatar, 2011).
Qatar has not been working alone, rather it has formed partners. The partners helped in interaction between national and international companies (QNA, 2011). Due to the efforts of Qatar and its partners, production of LNG has hiked to 77 million tons per year, energy supply of over 5 million barrels per day of oil, natural gas and associated liquids (QNA, 2011). It is estimated that that, by the year 2030 natural gas will provide 25% of the world’s electricity needs (QNA, 2011).
Qatar has set a target for itself for non energy sector to contribute 80% of the economy by 2015 and achieve zero oil dependence by 2020 (Annual Report, 2009). Despite the fact that the economy is declining, the Qatar economy is likely to remain stable with GDP estimated to range between 10-12% in 2009 and 10% in 2010 and 2011 (Annual Report, 2009).
Qatar has a concrete plan to ensure that the economy remains stable. It has a strategic plan through gas is going to be extracted at a monitored rate. With this rate, the extraction of the gas is likely to go for almost more than one hundred years. It has established two main gas companies, namely Qatargas and RasGas. When using the South Hook LNG terminal located in Wales, Qatar has the capacity of supplying 20% of UK’s needs. During the expansion of the economy, Qatar Airways have been established.
Art, Culture and Sports
Art culture and sports is also one of the major economic boosts of Qatar. General resources and heritage of Qatar such as the Qatar National museums and the National Council for Culture, Art and Heritage contributes a great deal in the creation of employment to the citizens of Qatar as well as earning foreign exchange (Joey, 2005). In the National Museums of Qatar, elements such history and the traditional ways of the people of Qatar are displayed. On the other hand, culture and how it is carried out by people of Qatar is conserved by the National Council for Culture, Arts and Heritage of Qatar.
The people of Qatar can be described as innovative because of their critical creative ways of earning income. For instance, the Doha players are a theatre from an idea to entertain lovers of English drama in Qatar and any other person from around the world. This is a simple but a worthy innovative idea that places food to a few thousands of people of Qatar. Other worthy creative ways by which Qatar citizens are meals on their table as well as building their economy is the creation of National Photographic Gallery where portraits and human displays and heritage are displayed (Joey, 2005). The Qatar Photographic Society is where galleries, slide shows and publications are done. The formation of this Photographic Society is basically to ensure employment is available for the citizens as well as support for entrepreneurs from all dimensions. The Qatar Photo Gallery is part of the TrekEarth Photo Gallery where by the country is able to show its beautiful features and exiting places to visit incase you tour Qatar. In the Photo Gallery, present are some of the most beautiful and welcoming attractive places that catches the eye of anybody looking at them. This is a good way by which the country is advertising itself to get more and more tourists to earn foreign exchange.
The music, song Dance and Events organizations besides conserving heritage and culture are also a source of income to the people of Qatar. The Dunestock is an example of such an organization that takes place once every year in Qatar. The event is always open air Music Festival held at the singing dunes of Qatar featuring local expatriate bands and musicians. The funds collected during this event organization are channeled towards the Doha Players theatre for rebuilding (Tarris, 2005). For example, during the Dunestock 2007, the entrance fee for adults was 50QR while that for kids between 2yrs and 12 yrs was 10QR. During the festival, stuff ranging from Electronic Artists, Unbeatable Traditional Bagpipes, Samba, Original acoustic rock, Acousti pop/rock, Rock, Hard Rock, and Jazz etc were celebrated. The festival was from noon up to midnight with bands like reKwiem, Khaliji, Waves, ANDe’REVENGE, The Mix, Husbands, Padlocks among many others being present. The Dunestock has got sponsors such as the BRYNE, Q-FAB, AL Attiyah International Scaffolding Group etc.
Cultural, Scientific, Environmental, Sporting Entities of Qatar are organized under different names such as: South Africa Social Group in Qatar in which various social Events involving South Africans are planned and organized throughout the year. For instance, on 25fth March 2011, Market Day & Potjiekos Competition was organized at Villa in Westbay. The competition involved a talent show, things on sale among many other events that took place. The kind of these organizations is to nature talent and learn from others ways way of life. It is also a creation of good relationship between the two countries where they learn from one another and therefore can do business together. The Qatar Volleyball Association ensures that news concerning all volleyball briefs is available to its citizens. It also provides a direct link to major happening of volleyball (Terris, 2005).The Qatar Wrestling Federation provides entertainment and to the citizens. The aim for creation of this federation is to make it known to the citizens the champion ships to lovers of wrestling, to highlight the history of wrestling, rules, duties, and albums in market. However, besides the above mentioned reasons it is evident that employment and growth of the countries economy is paramount.
Official Carrier (Qatar Airways)
Qatar national carrier also called the Qatar airways was founded in 1993. It has turned out to be one of the first growing airlines in the world. It serves people from all destinations. It serves customers going to and from Asia Europe, North America among other. It is adding to the economy through sponsoring of various activities which contribute to the Qatar economy. Despite this, oil and gas are the leading contributors to the economy.
Qatar airways do much in sponsoring sports since sports contribute to the economy of the country. It does not only build the economy in the sports field only. They try and promote the internal economy. They focus on sponsoring marketing of weather because many people will spend a lot of time and pay as much money as it takes to watch weather. This has turned out to be very cost effective. For instance they can get around twenty six spots each day which people can pay and work. This has lead to generation of a huge amount of money.
Qatar airways won the award of being the best economy class airline in 2009. This was an improvement because in 2008, it was ranked at the second position. This improvement has occurred due to its commitment in ensuring that passengers are comfortable throughout the journey.
Qatar airways were relaunched in 1997 and have undergone an exemplary growth in terms of fleet size and the passengers. In 2003, the fleet size was 28 aircraft and in October 2006, its milestone was 50. Today the Qatar airways have a fleet size of 75 aircraft. It is estimated that by 2013, the fleet size will be at 120 aircraft. On March 2009 it launched the longest non-stop flight in the world to Houston. The airways contribute to economy because it has business centers, fine dining and a cocktail bar. All these contribute to the economy as individual buyer from them and generate revenue for the country.
It introduced its lie flat business class seats in 2008 which led to 180 degree horizontal flat beds on its Boeing 777s which provided perfect entertainment for passengers making it more desirable among passengers. This was an addition to Qatar economy because as passengers used the airways services, revenue was created. It owns the world’s biggest aircraft which has the capacity to carry 555 passengers comfortably and enjoying the best entertainment facilities provided in the aircraft. This is the A380-800 twin-deck Airbus, super jumbo. It has plans of adding five A380s which it will start receiving from 2012. The A380 model is the most advanced aircraft which has ever been designed.
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DTM. (2010b). Economy. Retrieved on April 13, 2011 from http://www.explore-qatar.com/facts-and-figures/economy
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