Qatar Business and Economic Growth
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While Qatar imports a major share of its food grains from outside, it maintains a healthy stock of fruits, vegetables, livestock & fisheries. Oil & Natural Gas form the mainstay of the Qatar economy accounting for over 70% of the country's revenue earnings through export. Even though total oil reserves are somewhat modest in comparison to other Persian Gulf countries, Qatar is one of the leading natural-gas producers in the world.
The vast North Field gas reserve, an underwater field, northeast of the Qatar peninsula, began production in the 1990s. Qatar produces Natural gas, crude oil, refined petroleum, and petrochemicals, while steel, cement, and fertilizers are a few of Qatar's budding diversified industries. The country has also become a regional banking center. Further, Qataris have one of the highest per capita incomes in the world.
Qatar is almost entirely dependent on oil, but natural gas is an upcoming resource for the country, as the North Dome Field is the third largest reserve for liquefied natural gas in the world. Qatar's oil reserve is 3,3 billion barrels, and is estimated to last less than 25 more years. Presently Qatar’s oil production is at a level of 140 million barrels per year, while natural gas is produced at a level of 8,2 billion m³ per year.
Oil production accounts for over 85% of the country's total income. The center of the Qatari oil production is around Dukhan in the west, and there are one onshore and three offshore fields. Jointly with the United Arab Emirates, Qatar owns the Bundaq field.
An effort to industrialize and expand the economy has had only partial success. Most of the industrial activity is sited around Umm Said. Industries comprise cement, fertilizers, steel and petroleum. The steel production has been a success, and has run profitably for over 10 years now. Qatar is offering tax holidays of up to 12 yrs. for its foreign investors while the foreign companies are allowed 100% foreign ownership. There are, nevertheless, stringent rules on foreign ownership in property.
Doha Securities Market and the Stock Exchange handle stocks and securities, but the Security Market confines itself to Qatari values only. The stock exchange is operating at levels of US$2 million per year.
Although agriculture contributes to a meager 2% of the GNP, governmental schemes are underway to improve this through irrigation. Qatar produces about 50% of its vegetable requirements. Life stock includes 100,000 goats, 1,1 million sheep, 30,000 camels and 10,000 cattle. Fishing is at the level of 7,000 tons per year, principally shrimp, equaling 15 kg/inhabitant.
Qatar is member of OPEC, GATT and is seeking membership in WTO.