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Economic Sectors
The rapidly expanding Natural Gas sector continues to lead the economic diversification efforts and provides the momentum for reshaping the economy. The Qatari economy’s vulnerability to oil price movements, as well as the finite nature of oil reserves has led the Government to exploit Qatar’s significant reserves of natural gas and to promote investment in the non-oil sector of the economy.
With the recent development of projects to produce and export Natural gas in the form of LNG, piped gas, GTL and investments in petrochemical and fertilizer industries, Qatar has been successful in diversifying its revenue base by reducing its historic dependence on oil export revenues. Although economic performance is still largely dependent on oil revenues, the contribution of LNG has increased in 2002, 59% in 2003, while preliminary estimates from the Planning Council show an increase to 62% in 2004, mainly due to the rise in oil and gas prices and production.
The world, through the measure of per capita incomes. In 2003, Qatar’s GDP per capita reached a high of $31,897 with the 2004 figure showing a record level of $36,476. Qatar’s GDP per capita will remain at enviable levels in the coming years.
The economic sectors of Qatar are as follows
The Oil & Natural Gas Sectors
 Qatar’s main oil operations are carried out by state-owned Qatar Petroleum (QP). QP produces oil on its own account from one onshore and two offshore fields and from other fields through Major international partners. Qatar’s total oil exploration area is divided into 18 blocks covering a total Surface area of 46,840 square kilometers. According to QP, Qatar’s oil reserves currently stand at 14.6 billion barrels.
Qatar currently has the second largest natural gas reserves in the world, after Russia, estimated at over 900 tcf. These reserves are located in the North Field which lies towards the North-East Of the main land, extending over an area of approximately 6,000 square kilometers, predominantly underlying the territorial waters of the State of Qatar.
QP has initiated and developed two major LNG projects with foreign shareholders for the purpose of utilizing the North Field gas for exports in the form of LNG.
These projects are Qatargas and RasGas. QP has more recently entered into joint Venture agreements for further utilizing the natural gas resources, by using advanced technology to convert gas into globally marketable liquid products.
Other Industrial Sectors
In addition to its roles as the basis for the LNG industry, and as a fuel input for power generation, natural gas is used in a wide range of industries as feedstock to produce various value-added products for both domestic consumption and exports. These projects among others include QAFCO, QAPCO, QVC, QAFAC and Q-Chem
Commercial Sector
The Non-Oil and Gas sector contributed 38.1% of total GDP in 2006, recording a growth of 17.1% over 2005.
Other Services
The Other Services sector, which includes government services, social services, household Services, imputed bank service charges and import tariffs, make the largest contribution to GDP of the non-oil and gas sectors, This sector grew by 49.1% in 2006, contributing QR 17,168 million, (representing 8.9% of total GDP),
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Manufacturing industry
 the Manufacturing sector made the second largest contribution to GDP among non-oil and gas sectors. This sector grew by 8.1%at current prices, contributing QR 14,098 million in 2006, which represented 7.3% of total GDP. This sector supported by the Government as a part of a general policy to diversify income sources and to maximise the utilization of Qatar’s natural resources.
The major sub-sectors of the Manufacturing sector are petroleum refining, industrial, chemicals, fertilizers and steel, which utilize natural gas as feed-stock and/or fuel. Other important activities include the production of flour, cement, concrete, plastics, textiles and footwear, household articles and paint.
The Government promotes small and medium-scale industrial projects through two vehicles, the Qatar Industrial Manufacturing Company (QIMCO) www.qimco.com And the Qatar Industrial Development Bank (QIDB).
The Government owns 15% of the shares in QIMCO, with the remaining 85% of QIMCO’s shares held by private investors. QIMCO’s shares are traded on the Doha Securities Market. QIDB is government owned and gives loans to small and medium scale companies in Qatar at competitive rates of interest.
Finance, Insurance and Real Estate
 The Finance, Insurance and Real Estate sector is comprised of five sub-sectors: banking, insurance, money exchange, and real estate and business services. In terms of relative contribution to GDP, this sector contributed QR 15,760 million, the third highest among the non-oil and gas sectors and grew by 6.6% at current prices in 2006 .
Building and Construction
 the Building and Construction sector is quite evident around Doha over the past few years, this sector continues to be a major contributor to the GDP and employment of labor force. This sector witnessed a growth of 17.7% in 2006, contributing QR 10,291 million to overall GDP.
Credit facilities extended by commercial banks to the land, housing and construction sector increased in 2006 by 65.0% during the first three quarters to reach QR 15,745 million,compared to QR 9,541 million in 2005.
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Trade, Restaurants and Hotels
 The Trade, Restaurants and Hotels sector contributed QR 7,616 million at grew by 10.9% in 2006. This sector will be one of the most promising in the coming years, as business, cultural, sports, education and tourism events aimed at promoting Qatar, gathers even more momentum.
The Qatar Tourism Authority which was established in the year 2000 is actively promoting Qatar as a tourist destination, by organizing various festivities and taking part in various international tourism marts. For more information please visit www.experienceqatar.com
Transport and Communications
 This sector contributed QR 5,612 million to the overall GDP in 2006 , and witnessed a growth of 9.7% . Qatar Airways www.qatarairways.com is the principal airline operating from Qatar, designated as the “National Carrier”, and is a joint public and private sector enterprise (being 50% owned by the Government). It currently flies to over 80 destinations in the Middle East, North Africa, Europe, the Indian subcontinent and the Far East.
the Gulf Air is www.gulfairco.com is another major airline operating from Qatar and is owned by Oman, Bahrain and the Emirate of Abu Dhabi.
The Supreme Council for Information and Communications Technology (ictQatar) is the telecommunications regulating authority in Qatar as per Law No. (34) of 2006.www.ict.gov.qa
The Qatar Telecom (Q-Tel) www.qtel.com.qa under license, is currently the sole Provider in Qatar. Qatar Telecom (Q-Tel) under licence was the sole owner and operator of all national and international services. With the opening up of the telecom sector in early 2007, a new mobile operating license is currently under bidding with a new operator to be announced by the last quarter of 2007.
Electricity and Water
 The Electricity and Water sector witnessed a growth of 9.7% in 2006 , contributing QR 2,424 million to Qatar’s overall GDP. Most of Qatar’s electricity generation capacity comprises of gas turbines, which are fuelled by natural gas. Water desalination is achieved in tandem with electricity Generation. Ras Abu Fontas-B Plant, Qatar’s largest power and water desalination plant, entered Operation in 1996 and provided installed capacity of 610 megawatts.
The Independent Power Project - 2, located at Mesaieed is currently under construction and will add another 2,000 MW of power to Qatar’s grid,when completed in the second half of 2008.
Agriculture and Fisheries
 The Agriculture and Fishing sector has traditionally played only a minor role in the modern Qatari economy because of unsuitable weather and environmental conditions. Cultivable land accounts for only approximately 0.7% of Qatar’s total surface area. This sector grew by a 7.9% in 2006, contributing QR 233 million to Qatar’s GDP.
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