Economy

Before the discovery of oil, the economy of the Qatari region focused on fishing and pearling. After the introduction of the Japanese cultured pearl onto the world market in the 1920s and 1930s, Qatar's pearling industry faltered. However, the discovery of oil, beginning in the 1940s, completely transformed the state's economy. Now the country has a high standard of living, with many social services offered to its citizens and all the amenities of any modern state.

Qatar’s national income primarily derives from oil and natural gas exports. The country has oil estimated at 15 billion barrels (2.4 km³), while gas reserves in the giant north field (South Pars for Iran) which straddles the border with Iran and are almost as large as the peninsula itself are estimated to be between 800 trillion cubic feet (23,000 km³) to 80 trillion cubic feet (2,300 km³) (1 trillion cubic foot is equivalent to about 80 million barrels (13,000,000 m³) of oil). Qatar is sometimes referred to as the Saudi Arabia of natural gas. Qataris’ wealth and standard of living compare well with those of Western European states; Qatar has the highest GDP per capita in the Arab World according to the International Monetary Fund (2006) ^[8] and the highest GDP per capita in the world according to the CIA World Factbook,^[9] though it was previously the United Arab Emirates that was the wealthiest Arab country according to the University of Pennsylvania (2003).^[10] With no income tax, Qatar is also one of the two least-taxed sovereign states in the world (the other is Bahrain).

While oil and gas will probably remain the backbone of Qatar’s economy for some time to come, the country seeks to stimulate the private sector and develop a “knowledge economy”. In 2004, it established the Qatar Science & Technology Park to attract and serve technology-based companies and entrepreneurs, from overseas and within Qatar. Qatar also established Education City, which consists of international colleges. For the 15^th Asian Games in Doha, it established Sports City, consisting of Khalifa stadium, the Aspire Sports Academy, aquatic centres, exhibition centres and many other sports related buildings and centres. Following the success of the Asian Games, Doha kicked off its official bid to host the 2016 Summer Olympics in October 2007.^[11] Qatar also plans to build an "entertainment city" in the future.

Qatar is aiming to become a role model for economic and social transformation in the region. Large scale investment in all social and economic sectors will also lead to the development of a strong financial market.

The Qatar Financial Centre (QFC) provides financial institutions with a world class financial services platform situated in an economy founded on the development of its hydrocarbons resources. It has been created with a long term perspective to support the development of Qatar and the wider region, develop local and regional markets, and strengthen the links between the energy based economies and global financial markets.

Apart from Qatar itself, which needs to raise the capacity of its financial services to support more than $130 billion worth of projects, the QFC also provides a conduit for financial services providers to access nearly $1 trillion of investment across the GCC as a whole over the next decade.

The largest project ever in Qatar, the new town of Lusail, is under construction.