State of Qatar

Qatar, officially the State of Qatar, is a sovereign country located in Western Asia, occupying the small Qatar Peninsula on the northeastern coast of the Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its territory surrounded by the Persian Gulf. A strait in the Persian Gulf separates Qatar from the nearby island country of Bahrain, as well as sharing maritime borders with the United Arab Emirates and Iran.

Following Ottoman rule, Qatar became a British protectorate in the early 20th century until gaining independence in 1971. Qatar has been ruled by the House of Thani since the early 19th century. Sheikh Jassim bin Mohammed Al Thani was the founder of the State of Qatar. Qatar is a hereditary monarchy and its head of state is Emir Sheikh Tamim bin Hamad Al Thani. Whether it should be regarded as a constitutional or an absolute monarchy is a matter of opinion. In 2003, the constitution was overwhelmingly approved in a referendum, with almost 98% in favour. In early 2017, Qatar’s total population was 2.6 million: 313,000 Qatari citizens and 2.6 million expatriates.

Qatar is a high income economy and is a developed country, backed by the world’s third largest natural gas reserves and oil reserves. The country has the highest per capita income in the world. Qatar is classified by the UN as a country of very high human development and is the most advanced Arab state for human development. Qatar is a significant power in the Arab world, supporting several rebel groups during the Arab Spring both financially and through its globally expanding media group, Al Jazeera Media Network. For its size, Qatar wields disproportionate influence in the world, and has been identified as a middle power. Qatar will host the 2022 FIFA World Cup, becoming the first Arab country to do so.

Qatar is either a constitutional or an absolute monarchy ruled by the Al Thani family. The Al Thani dynasty has been ruling Qatar since the family house was established in 1825. In 2003, Qatar adopted a constitution that provided for the direct election of 30 of the 45 members of the Legislative Council. The constitution was overwhelmingly approved in a referendum, with almost 98% in favour.

Before the discovery of oil, the economy of the Qatari region focused on fishing and pearl hunting. Report prepared by local governors of Ottoman Empire in 1892 states that total income from pearl hunting in 1892 is 2,450,000 kran. After the introduction of the Japanese cultured pearl onto the world market in the 1920s and 1930s, Qatar’s pearling industry crashed. Oil was discovered in Qatar in 1940, in Dukhan Field. The discovery transformed the state’s economy. Now, the country has a high standard of living for its legal citizens. With no income tax, Qatar (along with Bahrain) is one of the countries with the lowest tax rates in the world. The unemployment rate in June 2013 was 0.1%. Corporate law mandates that Qatari nationals must hold 51% of any venture in the Emirate.

As of 2016, Qatar has the fourth highest GDP per capita in the world, according to the International Monetary Fund It relies heavily on foreign labour to grow its economy, to the extent that migrant workers compose 86% of the population and 94% of the workforce. The economic growth of Qatar has been almost exclusively based on its petroleum and natural gas industries, which began in 1940. Qatar is the leading exporter of liquefied natural gas. In 2012, it was estimated that Qatar would invest over $120 billion in the energy sector in the next ten years. The country is a member state of Organization of Petroleum Exporting Countries (OPEC), having joined the organisation in 1961.

In 2012, Qatar retained its title of richest country in the world (according to per capita income) for the third time in a row, having first overtaken Luxembourg in 2010. According to the study published by the Washington based Institute of International Finance, Qatar’s per capita GDP at purchasing power parity (PPP) was $106,000 (QR387,000) in 2012, helping the country retain its ranking as the world’s wealthiest nation. Luxembourg came a distant second with nearly $80,000 and Singapore third with per capita income of about $61,000. The research put Qatar’s GDP at $182bn in 2012 and said it had climbed to an all-time high due to soaring gas exports and high oil prices. Its population stood at 1.8 million in 2012. The same study published that Qatar Investment Authority (QIA), with assets of $115bn, was ranked 12th among the richest sovereign wealth funds in the world.

Established in 2005, Qatar Investment Authority is the country’s sovereign wealth fund, specialising in foreign investment. Due to billions of dollars in surpluses from the oil and gas industry, the Qatari government has directed investments into United States, Europe, and Asia Pacific. As of 2013, the holdings were valued at $100 billion in assets. Qatar Holding is the international investment arm of QIA. Since 2009, Qatar Holding has received $30–40bn a year from the state. As of 2014, it has investments around the world in Valentino, Siemens, Printemps, Harrods, The Shard, Barclays Bank, Heathrow Airport, Paris Saint-Germain F.C., Volkswagen Group, Royal Dutch Shell, Bank of America, Tiffany, Agricultural Bank of China, Sainsbury’s, BlackBerry, and Santander Brasil.

The number of people in Qatar fluctuates considerably depending on the season, since the country relies heavily on migrant labour. In early 2017, Qatar’s total population was 2.6 million, of which 313,000 were Qatari citizens (12 percent) and 2.3 million were expatriates. Non-Arab foreigners make up the vast majority of Qatar’s population; Indians are the largest community, numbering 650,000 in 2017, followed by 350,000 Nepalis, 280,000 Bangladeshis, 260,000 Filipinos, 200,000 Egyptians, 145,000 Sri Lankans and 125,000 Pakistanis among many other nationalities.

Arabic is the official language of Qatar, with Qatari Arabic the local dialect. Qatari Sign Language is the language of the deaf community. English is commonly used as a second language, and a rising lingua franca, especially in commerce, to the extent that steps are being taken to try to preserve Arabic from English’s encroachment. English is particularly useful for communication with Qatar’s large expatriate community. Reflecting the multicultural make-up of the country, many other languages are also spoken, including Baluchi, Hindi, Malayalam, Urdu, Pashto, Tamil, Telugu, Nepali, Sinhalese, Bengali, and Tagalog, Bahasa Indonesia.