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Qatar’s History: People, Traditions and Culture
Qatar is a country of contrasts where rapid modernization coexists with old tradition. Development programs, fuelled by oil wealth, have swept through Qatar in recent years, bringing immense opportunities in their wake. Yet, even with all these changes, the values, customs, and traditions bear the unmistakable mark of Arabian and Islamic culture. A sovereign Arab State on the western shore of the Arabian Gulf, the Qatari Peninsula projects north into the Gulf for about 100 miles and has a maximum width of about 55 miles. Halul, a permanently settled island, is an important storage center and tanker terminal for three offshore oil fields Qatar appears in fifth century A.D. writings as a seafaring community, and Qataris continued to look to the sea for their communications and livelihoods until the advent of oil. Pearling and fishing represented the only sources of wealth. The indigenous Qataris, who total around 150,000, are almost entirely Bedouin in origin. Islam is the official and predominant religion of the population. The official language is Arabic, although most senior Qatari officials are bilingual and government business may be conducted in English.
Government & Political System:
In 1971, Qatar announced its intention to terminate the special treaty arrangements with Britain and to assume all responsibility for internal and external affairs. Qatar officially declared independence on September 3 1971. On 27, June 1995, His Highness Sheikh Hamad Bin Khalifa Al-Thani assumed the rule of the State of Qatar supported by the ruling family and the Qatari people. A draft constitution was approved by over 96 percent of the voters in a 2003 referendum. It specified that rule would be hereditary within the Emir's branch of the Al Thani family. The Constitution provides guarantees of basic rights. It also provides legislative authority to a new Advisory Council, consisting of 30 elected and 15 appointed members. In April 2003 Qatar held its second elections for the Central Municipal Council by direct, universal suffrage. The Constitution also provides for an independent judiciary.
Banking Sector
Qatar's banking sector is monitored by the Central Bank of Qatar that handles redemption of the country's currency, controls monetary policy, and monitors the banking system. The Central Bank is also responsible for regulating interest rates on Qatari riyal funds. Fourteen banks operate in Qatar, six of which are Qatari, two are non-Qatari Arab, and the remaining six are non-Arab foreign banks. Local banking developments in 2004 saw Qatar National Bank (QNB) set a precedent in the region with the successful acquisition of Ansbacher Holdings, a London-based wealth management group. The majority of banking activity involves letters of credit and loans to private sector companies contracting for government projects. Total assets of the banking sector, in 2004, were estimated to be $10.5 billion. The Doha Securities Market (DSM) is looking forward to a continued boost from the government's promised privatization drive and foreign investment gains. In 1998, the government sold 45 percent of Qatar Public Telecommunications Company (Q-Tel) via the DSM. The addition of Q-Tel and the continued expansion of listings from other industries not only increased the bourse's capitalization, but also reduced the weight of the generally dominant financial sector. In 2002, the number of listed companies on the DSM reached 23.
Industry and Manufacturing
The government has actively promoted the development of both heavy and light industry that optimizes in-country resources. The high demand from the energy sector for metal products and machinery has spurred development of a local steel and iron industry, and healthy gas reserves have led to the establishment of chemical, fertilizer, and petrochemical industries. The government has announced plans to invest $110 million over five years toward improvements to the industrial city of Messaieed, which will accommodate several of Qatar's growing industrial projects. Qatar's steel industry has established itself as a regional supplier, and an International Trade Commission (ITC) study on the Middle East steel industry cited Qatar's achievements in the field. The Qatar Steel Company (QASCO) began production in 1978 under Japanese management, passing to the Qatari government in the 1980s. According to the ITC, Qatar is the only regional producer that has successfully exported a major portion of its steel production. The company's concrete reinforcing bars have supplied 30 percent of the GCC market. State-run companies have collaborated with foreign investors in developing petrochemical and fertilizer plants. The Qatar Fertilizer Company (QAFCO) has a planned $500 million expansion upcoming, while the Qatar Petrochemical Company (QAPCO) is the leading petrochemical producer in the state, with strong and healthy profits. Much of the production resulting from these ventures has been exported throughout the Gulf and the Far East. The Qatar Industrial Manufacturing Company (QIMCO) was established to promote private sector investment in small and medium-sized ventures. QIMCO holds direct investment in eight projects around the region.
Oil Sector
From 1949, when the first cargo of crude was exported, the economy of Qatar has depended on one resource—oil. In 1974, when oil revenues rocketed to $1,928 billion—a 500 percent increase over 1973 earnings—the pace of economic development increased dramatically. Qatar's oil income has since fluctuated with changes in production levels and world prices, but it remains the mainstay of the local economy. The oil sector accounts for about 85 percent of Qatar's export earnings and some 75 percent of government revenues. The state has full control over oil production and marketing, and Qatar Petroleum (QP), the state-owned oil corporation, is one of the largest employers in the country. The multi-billion dollar Dolphin gas project, completing a distribution chain linking Qatar with the UAE, Oman, and Pakistan, has also come to fruition and expanded. The UAE Offsets Group, acting as a trading hub, plans to buy between 200 and 700 million cubic feet of Qatari gas per day. The gas is to be taken from Qatar's North Field and be transported by pipeline to Dubai and Abu Dhabi for distribution in Oman and Pakistan. The Qatari economy has evolved rapidly over the past few years from a primarily oil based economy to one that increasingly includes other hydrocarbon products such as liquefied natural gas (LNG), condensate, propane, butane and other natural gas liquids. The government’s current economic diversification policy emphasizes the optimal utilization of Qatar’s large reserves of natural gas for downstream industries and/or as feedstock and also to further attract investment in the non-oil sectors of the economy. The resulting economic premium from the gas sector have already started filtering into the economy and have enabled Qatar to achieve one of the highest per capita incomes in the world. With the economy of Qatar experiencing a very rapid growth, the Ministry of Economy and Commerce has set goals and policies that will lead Qatar into a prosperous future.
Gas Sector
Qatar holds the world’s largest single natural gas field, with proven natural gas reserves of 500 trillion cubic feet. Development projects involving billions of dollars have attracted investment from numerous international companies, particularly from Japan, France, and the U.S. In addition to gas production, much of the investment centers on construction of facilities from liquefaction of the gas and shipping the liquefied natural gas (LNG) to overseas markets. Qatar Liquefied Gas Company (Qatargas), a joint-venture with ExxonMobil and other international majors, has lined up a wide range of customers in Asia and Europe for its current 7.7 million tons per year production. Qatargas expects LNG exports to rise from 9.3 million tons per annum in 2004 to 17.3 million tons per annum by 2009, and there are supply agreements in place for 25.2 million tons by 2012. LNG is widely seen as the clean, safe fuel of the future, and Qatar will become the world's largest LNG producer by 2012. Ras Laffan LNG Company (RasGas), a joint venture with ExxonMobil, QGPC, Itochu Corporation and Nissho Iwai (Japan), has had equal success with long-term sales to South Korea and most recently India. RasGas is beginning work to quadruple capacity to 20 million t/y of natural gas. The increase is driven by high demand in Europe and Asia, and planned to culminate in a production capacity of 20 million t/y by 2005. The first phase of the North Field development, funded mostly by foreign investment and orchestrated by Qatargas, was completed in 1997. A subsequent project, RasGas, began LNG production in 1999 and represents a new era of cooperation with foreign investors, namely ExxonMobil. The natural gas liquefaction plant and shipping facility at Ras Laffan, about one hour north of Doha, is an engineering marvel. Although these projects have put Qatar into substantial debt, they promise to sustain its economy for years after oil production tapers off.
Tourism Sector
While Qatar is not traditionally known for its tourism industry, the government has committed itself to steadily improving the country's tourist attractions as part of a strategy to diversify the economy across and within sectors. Doha is undergoing several major expansion projects that include a renovation of Doha International Airport as well as the construction of five major hotels to be built over the next several years, and the hosting of the ‘Best Ever Asian Games Doha 2006.’
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