Qatar's economy is experiencing an overwhelming growth in the recent years, thanks to the giant investments the country has been pumping up in the fields of oil and gas and petrochemicals. These projects have added higher value to the sector, increasingly improving Qatar's revenues, and thus expanding its possibilities and resources.
Several activities have seen light for the first time in the country, capitals were boosted in the major companies and banks, and income per capita was significantly improved. Qatar's gross domestic product (GDP) has known such an extraordinary leap from just QR 38 billion at the end of the nineties to reach QR 105 billion by the end of the year 2004.
The country witnessed another significant jump in its GDP by the end of the year 2005, reaching QR 135 billion, following unprecedented revenues in oil, gas to liquids (GTL) and petrochemical exports. Qatar is expected to produce this year 25 million metric tons per annum (mtpa), to reach within five years 77 million MTPA, making Qatar the world's leader in the production of GTL's.
His Highness Hamad bin Khalifa Al Thani, the Emir of Qatar, emphasised in a speech addressed to the First International Petroleum Technologies Conference, held on 21 to 23 November 2005 in Doha, Qatar, his country's determination to develop its infrastructure and economic sector in order to diversify its sources of income and expand its production base. The Emir also noted that Qatar has achieved considerable stages in the development of its industries and that its economy has become the fastest in the region in terms of growth.
In November 2005, His Highness the Emir of Qatar inaugurated the fourth production line in the industrial city Ras Laffan. The project reflects Qatar's resolve to keep its leading position in the world in the production and export of GTL's, and will allow the country to produce 4.7 million mtpa of GTL, raising RasGas' and Qatar Gas's annual production to 16 million tons. It is expected that the project of Qatar Gas 3, which will cost USD 5.8 million, will start the production of GTL within three years with a capacity of 15.6 million tons per year.
Qatar is experiencing the fastest growth rate in the Arab World in terms of economic, political and social development. GTL exports reached 30 million mtpa by the end of the year 2005, following efficient plans to exploit Qatar's resources of natural gas in the best conditions. Thus, Qatar has become the World's first exporter of liquefied gas and owns the largest production lines and GTL carriers.
This strategy allowed Qatar to increase its production of oil during the last years, encouraged by the soaring prices. His Excellency Abdullah Al-Attiyah, minister of energy and industry, stated that the country is planning to increase oil production from 850,000 barrels per day (bpd) to 1.1 million bpd by the end of the current decade.
During his visit to Lebanon last December, His Excellency Sheikh Mohammad Bin Ahmad Bin Jassem Al Thani, minister of economy and commerce, declared that Qatar's economy achieved a growth rate of 9 percent per year since 2000. He also noted that oil & gas development projects were carried out in parallel with other giant projects to install a strong national industrial infrastructure and develop other vital sectors, such as services, health and education. Also, the private sector has gained bigger liberty, economy has become more open to the world and radical political reformations were implemented.
The Minister of Economy and Commerce stated that the country's economy is expected to grow even more than in 2004-2005, reaching a rate of 25 percent. He also highlighted the excellent level Qatar's GDP has recorded in 2004, rising by 20.5 percent, marking the highest growth rate in the world, while inflation remained under six percent.
Qatar is offering numerous opportunities for investment, with prospects to reach USD 112 billion of investments in the oil & gas sector by 2010. Qatari experts expect the total investments in all economic sectors to attain USD 120 billion.
According to His Excellency Yussuf Hussein Kamal, Minister of Finance, Qatar's GDP is USD 34 billion and is expected to reach USD 60 billion by 2010, indicating that oil and gas are the primary resources of income to Qatar. Petrochemical industries, which rely on oil & gas as well, are witnessing significant developments and expansion projects. There are twelve current and under construction projects in the sector, beside future ones, and investments in the petrochemical, refineries and metallurgic projects have totalled USD 20 billion, of which USD 7.04 billion were spent on current and under construction projects, whereas USD 13 billion are to be spent in the future projects from which production is expected by 2010.
Qatar has gained the trust of the international markets in terms of quality and distribution. Qatar Petrochemical Company Ltd. (QAPCO), for instance, is considered to be one of the largest in this industry, with plans to expand its production of ethylene to reach 730 tons per year by 2007. Qatar Fertiliser Company S.A.Q (QAFCO), which is part of Qatar Industries (QI), is another example of local giant companies which excel in their field of expertise. QAFCO has expanded its production, with the QAFCO 4 plant, to reach two million tons per year of ammonia and 2.8 million tons of urea. The company has more ambitious projects to expand its activities further and plans to build QAFCO 5, which will start production by 2009. Other giant projects include Oryx, which will be the World's largest plant for the production of GTL, with prospects of Qatar supplying a third of the World's needs from liquefied natural gas (LNG).
In the petrochemical industries, a project for constructing a refinery of condensates was implemented in the industrial city of Ras Laffan, costing USD 2.2 billion, becoming the World's largest and first of its kind in the Middle East, producing at present 140,000 bpd. It is expected to reach 800,000 bpd of condensates by the end of this decade. Another pioneering project concerns the production of lubricants, environment-friendly diesel and naphtha. Production is expected by 2008 with a capacity of 1.9 million bpd of high quality lubricants.
Qatar Petroleum (QP) has signed many partnerships with several American companies, including ExxonMobil, and French giant Total to expand the production of different petrochemicals, i.e. ethylene, low and high-condensed polyethylene, urea and ammonia, reaching a capacity of nine million tons per year. Production is expected to start in 2009. Other expansion and new projects are expected in the production of liquefied gas and petrochemicals, with investments totalling USD 70 billion by the year 2011.
At the end of 2005, a new contract was signed for the construction of a new compound that will produce propylene, polypropylene, aromatics, styrene and polystyrene, among others. The annual production reaches 1.7 million tons per year, with a total cost of USD 2.5 billion, and production is expected to start by 2009.
Al-Attiyah declared during the signing ceremony that his ministry has implemented significant plans during 2005, with agreements in the oil & gas industry sector valued at USD 40 billion, five billion of which was allocated to develop Al-Shaheen oil field.
The State of Qatar has achieved significant improvements in developing its industrial infrastructure, mobilising significant financial and human resources to become one of the world's biggest gas and energy producers. Its economy has become the fastest in growth in the region, income per capita has improved and become one of the highest in the world. The State is implementing diverse training programmes for national personnel with the aim to master the use of the latest technologies in the oil & gas sector. Such strategic steps, coupled with the significant investments poured in vital economic sectors, have enabled Qatar to ensure its position as a world leader in the energy industries.