The Economic Development
The economic policy of Qatar is based on diversification of national income resources through expansion of industrial and agricultural production, in combination with development of human resources. It also aims to provide a larger role to the private sector. A key objective is to achieve a surplus in the balance of payments through increasing exports and tightening budgetary control through implementation of essential reforms in financial policy.
To this end, several joint stock companies have been established such as the Qatar Manufacturing Company with a capital of QR 400 million and the Qatari Water and Electricity Company at QR 1 billion. Incentives have also been offered to the private sector in order to encourage investment in industrial projects. Several laws have been passed in connection with this programme, including Law 25 of 1990 which deals with organisation of foreign capital investment in economic activity, and Law 11 of 1992 regarding income tax.
So far as the hydrocarbon industries are concerned, Qatar has been able to maintain its oil production capacity, and oil production and exports have continued at levels which meet the country's financial requirements and development needs.
On a worldwide basis Qatar now ranks as the third largest holder of natural gas reserves with estimates of more than 500 trillion cubic feet, and proven reserves of 350 trillion cubic feet. The first phase of development of al-Shamal gas field was opened in 1991 with a production capacity of 6 million tonnes of liquified gas per year. The Ras Laffan liquefied gas per year. The Ras Laffan liquified gas project, established in 1993, aims to produce 10 million tonnes of liquefied gas from Al Shamal gas field.
Qatar has also paid special attention to development of the industrial sector and supported it through investment in manufacturing and quarrying industries. Several incentives were offered to the private sector to encourage investment in industry. A number of industries were established depending on local raw materials such as petrochemicals, chemical fertilisers, gas liquefaction, oil refining, cement, steel and iron.
The private sector has also established several factories for manufacture of foodstuffs, textiles, garments, leather, wood, furniture, paper, chemicals, rubber, plastic, aluminum, machines and equipment.
Particular attention is also paid to agricultural projects which aim at securing self sufficiency. The Qatar government has provided strong support to farmers and has encouraged local capital investment in this sector. The number of registered farms has recently risen to 1131, with 891 active farms, while the overall agricultural area has reached 285,018 donum. Significant agricultural developments include the Mushabiyah Date Palm Project, the Qatari Arab Company for Vegetable Production, the Qatari Arab Company for Poultry Production and the diary and sheep project in Abu Samrah area.
Qatar has modern well-equipped communication and telecommunications networks, connecting it with the world through three earth-stations. Water and electricity are provided free to all citizens and the Qatar government remains committed to providing its citizens with a wide range of services and amenities.
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