The Economy
Natural gas reserves have made Qatars economy one of the worlds fastest-growing. Qatar enjoyed real GDP growth of 6.2 per cent last year and it is expected to grow at a projected rate of 4.5 per cent this year. Qatar became the worlds top liquefied natural gas (LNG) exporter in 2007, bolstering the national budget, trade surpluses and foreign reserves. Oil and gas output is predicted to remain at current levels for at least the next 20 years, although worries about over-extraction of gas have crept in. Qatars budgetary break-even point is estimated at $24 a barrel, according to the IMF, which is much lower than other Gulf states. The country also holds a substantial offshore portfolio, estimated to be worth around $40 billion, and debt levels are low. Qatar will continue to try to diversify its economy, particularly after its successful bid to host the 2022 FIFA World Cup, but the bulk of private and foreign investment will be focused on the energy sector. Risk ratings suggest that Qatar is creditworthy and at low risk of external default.
Politics
The US has an extensive military presence in Qatar, putting it at significant risk of terrorist attacks. While this makes it difficult for the country to disentangle itself from American policy in the region, the Amir is expected to continue giving priority to mediation efforts, boosting Qatars standing in diplomatic circles. It has provided support to the Syrian opposition and also rubber-stamped the Talibans efforts to set up representative office in Doha. Qatar tried unsuccessfully to resolve a political stand-off in Lebanon, and has also begun to engage Iran, as the two countries explore common ownership of the North Field/South Pars gas reserve and their mutual interest as gas exporters. Domestically, scant attention will be paid to political reform in the coming years. However, World Bank indicators, especially those regarding the rule of law, suggest that Qatars governance framework is reasonably well developed by global and regional standards.
| Sovereign ratings | ||
| Standard & Poors | AA/AA+ | Stable |
| Moodys | Aa2 | Stable |
| Fitch Ratings | na | na |
