ipr    Info-Prod Research (Middle East) Ltd.
Home      Country Guide      Reports      Services      Business Development-    Clients      About IPR         Publications      Contact Us

	Qatar		Info-Prod Country Guide
CHARACTERISTICS   INDICATORS   THE ECONOMY   INVESTMENT ISSUES   PROJECTS   PROSPECTS

The Economy Government Role in the Economy The government's top priority is to meet the rising economic expectations of the national population. Qatar is asset rich, but cash poor at present. New gas revenues are about to begin flowing, but Doha is entering a four-year period that will test its financial discipline and management skills to the fullest. From now and until the year 2000, the government will have to walk a fiscal tightrope, meeting rising debt service obligations before the earnings from of its investments in Qatargas and Rasgas start to make a major impact. The government's plan for the immediate future is to maximize revenues, to minimize the growth in expenditure and to encourage the private sector to play a greater role in the economy. A key policy objective is to rejuvenate the oil sector, which appeared to be in terminal decline until a change of policy brought in foreign companies, new technology and new investment. In the spring of 1996, oil production surged to a ten year high of 470,000 barrels a day (b/d). Further output gains are on the way. Qatar's aim is to have 700,000 b/d of capacity by the end of the decade. The government is raising new revenues elsewhere. A departure tax is now payable at Doha international airport and draft legislation is being prepared for new health cards and fees. The IMF has reported that the government is considering raising utility charges by 17 percent. Qatar has said it plans to balance its budget by the year 2000. Higher oil output coupled with firmer prices this year are also helping to raise revenue. Qatar receives about 70 percent of its state revenue from oil sales and the rest from hydrocarbon-based industries. Its oil reserves are exceeded by natural gas deposits, which are the world's third largest after Russia and Iran. The budget for the fiscal year 1996-97 forecasts a 17 percent increase in revenues to QR 10.8 billion (US$ 2.97 billion). Total expenditure, of which 82 percent is allocated to current spending, is budgeted to increase by 8 percent to QR 13.75 billion (US$ 3.78 billion), leaving a deficit of QR 2.95 billion (US$ 810 million). Previous Chapter Contents Menu Next Chapter

Home      Country Guide      Reports      Services      Business Development-    Clients      About IPR         Publications ;   Contact Us