Qatar's economy is mainly based on the export of Oil. Qatar also has the world's third largest gas reserves and as a result export of Liquified Natural Gas (LNG) has come to play a prominent role in Qatar's export earning, as means of supplementing the country's income, and also a method to diversify the economy away from oil. Currently oil and gas account for more than 55% of GDP, roughly 85% of export earnings, and 70% of government revenues. Revenues from oil and natural gas have enabled Qatar to have a per capita income not far below the leading European industrial countries. The economy of Qatar is also made up of other industries such as Agriculture. However its size is very small due to the country's harsh environment and lack of water resources. There are also other indigenous industries such as steel, concrete, cement, plastics, fertilizer, paint and flour. The most profitable has been the steel industry which has been expanding thanks to the national and regional expansion of the construction industry.

Qatar's GDP grew 5% in 2003, after growth of 3.8% in 2002. Such growth is expected to continue after the surge in the export of gas and the recent rise in oil prices. According to IMF estimates, the Qatari economy will grow by 9.3% for the year 2004 whilst 5% growth has been forecasted for 2005. The growth in the economy is supplemented with a low inflation rate. The country's main export destinations are the Far Eastern countries with Japan being the biggest destination for Qatari exports, followed by South Korea and Singapore. Main export products are Petroleum products, fertilizers and steel. Qatar's main import partners are: France, UK, Germany, Japan, and the US. Main imports commodities are machinery and transport equipment, food and chemicals.

By: Meir Javedanfar- www.meepas.com

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