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Qatar Qatar

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Qatar – Quick View
ECR score75.53 (Mar 2011)
ECR rank21 (Mar 2011)
Economic
GDP (Q3 2010)USD 57.07 billion
GNI per capita PPPNA
FDI inflow (2009)USD 8.7 million
Inflation (2009)-4.9%
Central bank assets (2009)USD 116,924.77 million
Unemployment rate (2009)0.3%
Government Fiscal balance (2009)USD 7,267.77million
Tax revenue4.9% of GDP
Political
Government typeConstitutional Monarchy
Recent political crisisNA
Economic freedom score27th
Freedom of information score121st
Corruption perception index19th
Structural
Birth rate12 per ‘000
Population balanceUnder 14 years – 16%
Population balanceOver 65 years – 1%
Life expectancy yearsMales – 74.9 years
Life expectancy yearsFemales – 76.9 years
Mortality rate2 per ‘000
Literacy rate89%
Internet access51.8%

[Top] Economic Overview

Owing to economic diversification, the non-oil and gas sector was the major contributor to the economy in 2009. Also, the gas sector was the single largest contributor to the economy, accounting for almost a quarter of the country’s GDP.

Gross domestic product (GDP) at PPP was USD 116.98 billion in 2008, which rose to USD 128.26 billion in 2009 reflecting a 9.64% increase.

Qatar GDP at current prices

(Source: qix.gov.qa)

The total GDP at current price has declined from QR 402.99 billion in 2008 to QR 357.86 billion in 2009 and reached to QR 208.3 billion by third quarter of 2010.

Qatar GDP Growth Rate

(Source: qix.gov.qa)

The annual GDP growth rate has witnessed a steep decline from 37.1% in 2008 to -11.2% in 2009.

GDP per capita at PPP

Qatar GDP per capita at PPP

(Source: econstats)

Gross domestic product (GDP) per capita at PPP was USD 80760.27 in 2008 which declined to USD 78260.41 in 2009 reflecting a reduction of 3.09% over a year.

Income tax rate

There are no income tax deductions from salaries and wages paid in Qatar.

Corporate tax rate

Taxes are not levied on Qataris and other Gulf Nationals on the businesses they own. However, taxes are levied on foreign nationals and companies for the profit they generate. Moreover, Qatari partners are not charged taxes on their share in business.

The government reduced the corporate tax to 10% with effect from January 2010. Earlier, Qatar had a progressive corporate tax rate ranging from 10% to 35%.

(Source: heritage.org)

Inflation rate

Qatar Inflation Rate

(Source: World Bank)

The inflation in Qatar was on a constant rise till 2008 registering inflation rate of 15.1% on annual consumer prices which remarkably declined to -4.9% in 2009 indicating a notable control over the inflation over a year.

Foreign direct investment

In 2009, FDI inflow in the country was recorded at USD 8.72 million, an increase of about 112% over previous year. In 2008, foreign direct investment in the country was USD 4.1 million.

Qatar FDI

(Source: UNCTAD)

Banking sector assets (QR Million)

Item

2009

2008

2007

Balances with Foreign Banks

10,474.2

10,267.3

7,878.9

Foreign Securities

54,568.6

24,019.3

26,136.8

IMF Reserve Position

87.4

85.9

98.3

SDR Holding

1,534.5

168.6

165.6

Gold

1,587.1

1,267.0

1,220.3

Balances with Local Banks

2,528.0

8,215.4

8,547.2

Unclassified Assets

499.7

435.0

431.7

(Source: qcb.gov.qa)

Reserve requirements

Reserves equivalent to a certain percentage of average total deposits (including both local and foreign currency) are held by the Qatar Central Bank (QCB) in Qatari Riyals. At present the required reserve ratio is 4.75% which has remained unchanged since April 15, 2008.

(Source: qcb.gov.qa)

Non Performing Loan Ratios

 

Year

Non-Performing Loans/Capital (%)

2009

1.2

2008

1.0

2007

0.6

2006

0.6

(Source: qcb.gov)

[Top] Financial Indicators & Government Financial

Consumer price index



Consumer Price Index

 

2010

2009

Indicators

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Household consumption

106.7

107.1

106.7

107.1

111.7

110.5

108.8

107.2

Food, beverages and tobacco

122.5

123.3

123.8

126.6

121.9

120.6

121.8

121.5

Garments and footwear

103.0

104.1

106.1

108.2

111.1

107.2

104.0

104.7

Rent, fuel and energy

94.6

92.5

90.2

89.9

110.7

108.7

104.6

97.3

Furniture, textiles and home appliances

109.4

109.9

110.2

110.3

104.4

103.3

105.5

109.1

Medical care and medical services

109.2

109.5

109.9

110.4

105.6

105.3

105.2

108.0

Transport and communications

105.4

108.0

108.0

107.6

106.2

104.3

103.6

104.2

Entertainment, recreation and culture

109.9

111.7

112.9

112.2

107.9

109.9

107.3

109.2

Miscellaneous goods and services

123.9

125.7

126.5

129.1

118.0

120.4

120.4

123.5

Base year 2007 = 100

(Source: qix.gov.qa)

Interest rate on Savings deposits



FROM AMOUNT

TO AMOUNT

CURRENCY

RATE

0

4,999

QATARI RIYAL

2.25 %

5000

9,999,999,999

QATARI RIYAL

2.25 %

(Source: qnb.com.qa)

Interest rate on time deposits



FROM AMOUNT

TO AMOUNT

CURRENCY NAME

RATE

DURATION

0

9,999,999,999

QATARI RIYAL

2.25 %

Less than 1 month

1 month to 6 months (QATARI RIYAL)



FROM AMOUNT

TO AMOUNT

RATE

0

50,000

2.00 %

50,001

500,000

2.25 %

500,001

1,000,000

2.50 %

1,000,001

9,999,999,999

2.75 %

1 Year to 3 years (QATARI RIYAL)

 

FROM AMOUNT

TO AMOUNT

RATE

0

50000

1.75 %

50001

500000

2.00 %

500001

1000000

2.25 %

1000001

9999999999

2.50 %

(Source: qnb.com.qa)

Money supply (currency in circulation)

The currency in circulation in 2009 increased by 5.3% compared with the much higher growth of 19.6% in 2008. The currency in circulation at end of 2009 was QR 5,653 million. The currency in circulation has increased in 2009 has increased by QR 284.8 million compared to 2008.



Money supply and quasi money composition

December 2009 (QR million)

Money Supply (M1)

53,116.3

Currency in Circulation

5,653.0

Demand Deposits

47,463.3

Quasi Money

161,965.5

QR Time Deposits

133,192.6

Foreign Currency Deposits

28,772.9

(Source: qcb.gov.qa)

Growth of money supply (%)



Components

2009/2008

2008/2007

1.Currency in Circulation

5.3

19.6

2.Demand Deposits

4.3

25.5

3. M1 (1+2)

4.4

24.9

4.Quasi Money

21.7

17.8

a. Time Deposits

55.5

33.1

b. Deposits in Foreign Currencies

-39.4

-2.4

5. M2 (3+4)

16.9

19.7

During 2009 money supply increased by 4.4%, compared to much higher growth of 24.9% in 2008. This decline in growth was due to deceleration in demand deposits and currency in circulation.

(Source: qcb.gov.qa)

Government expenditure



Items

2009/2010

2008/2009

2007/2008

2006/2007

2005/2006

Current expenditures(A)

72,176

65,817

52,316

49,751

32,755

-Wages and Salaries

20,533

18,661

16,003

12,993

6,657

-Interest

3,656

2,100

1,855

2,006

1,898

-Supplies and Services

6,586

9,153

6,387

1,113

1,013

-Other

41,401

35,903

28,071

33,639

23,187

Capital Expenditure(B)

35,909

33,478

33,934

17,396

18,013

Total Expenditures(A+B)

108,085

99,295

86,250

67,147

50,768

Preliminary figures for 2009/2010

(Source: qcb.gov.qa)

 

Official exchange rate

 

(Source: World Bank)

Government financial well-being

Fiscal balance

 

 

(Source: qnb.com.qa)

The fiscal balance reflects a continuous decrease due to increase in total annual expenditure. The estimated surplus for the year 2010 is QA 26,500 million. The total expenditure increased by QR 12,522 million in 2008-09 and estimated to increase by QR 4,578 million in 2009-10.

Government budget

QR Million

2009/10 (Estimated)

2008/09

2007/08

Total Revenues

128,500

136,278

117,850

Total Current Expenditure

63,500

64,560

50,969

Total Capital Expenditures

38,500

32,862

33,931

Total Expenditures

102,000

97,422

84,900

Surplus

26,500

38,856

32,950

Surplus as % of GDP

7.4

9.6

11.2

(Source: qnb.com.qa)

Tax revenue

Total tax revenue of the country was registered at 4.9% of total GDP.

 (Source: Heritage.org)

Current surplus/deficit

The current account balance registered in 2009 was QR 20,647 million, reflecting a decline of 64.3% as compared to the previous year. The ratio of current account to GDP has also declined from 14.3% in 2008 to 5.8% in 2009. The change in export and import of goods has highly influenced the current account balance.

(Source: qcb.gov.qa)

Current account balance (QR million)

Items

2009

2008

2007

2006

2005

Goods

78,274

114,505

76,119

70,034

60781

Services

- 14,255

- 13,819

- 14,074

- 10,059

-3,362

Income

- 22,125

- 24,614

- 15,430

- 11,941

-20,805

Current Transfers

- 21,247

- 18,270

- 13,779

-13,604

-9,380

Current Account Balance

20,647

57,802

32,836

34,430

27,234

Current Account / GDP (%)

5.8

14.3

11.2

15.6

17.4

(Source: qcb.gov.qa)

Balance of payment (QR million)

ITEMS

2009

2008

2007

2006

2005

Current Account

20,647

57,802

32,836

34,430

27,234

Capital and Financial Account

2,197

- 48,365

- 24,779

- 37,315

-18,800

Overall Balance/Surplus(Deficit)

30,258

1,623

14,145

2,824

4,582

Overall Balance / GDP (%)

8.5

0.4

4.8

1.3

2.

 

In 2009, the overall balance witnessed a surplus of QR 30,258 million. This was significantly higher than surplus of QR 1,623 million in 2008. The country's balance of payment has consistently registered a surplus for the past five years. The capital and financial account has recorded a surplus of QR 2,197 million in 2009 compared to the deficit of QR 48,365 million in the previous year.

(Source: qcb.gov.qa)

[Top] Labour Force and Employment Overview

Labour Force

In 2009, the state of Qatar had a labour force of 1,442,649 persons. Of the total labour force, 1,265,432 were economically active. Non-Qataris form about 90.0% of the labour force in the country.

 

Labour Force (2009)

 

Male

Female

Total

Qataris

73,182

73,122

146,304

Non Qataris

1,113,438

182,907

1,296,345

Total

1,186,620

256,029

1,442,649

(Source:qix.gov.qa)

Labour Force Participation


 

Male

Female

Total

Active

1,139,634

125798

1,265,432

Inactive

46,986

130,231

177,217

Total

1,186,620

256029

1,442,64

About 1% of the economically active population are involved in agriculture and related occupations. 44% of the active labour force is involved in construction.

(Source: qix.gov.qa)

Unemployment Rate

The unemployed population in 2009 was 0.3% of economically active population. The unemployment rate was higher for Qatari nationals at 2.3%.

(Source: qcb.gov.qa)

Minimum Wage

There is no specific minimum wage regulation in the state of Qatar. The expatriate workers are provided with accommodation facility, travelling allowance and various benefits at the end of their service.

(Source: investinqatar.com.qa)

[Top] Political Stability

Government Stability

Qatar is a sovereign and independent Arab state with Democracy as basis for the system of government. It uses all its resources to defend from any act of aggression. As an initial step towards democracy, women were allowed both to vote and run as candidates for participation in decision making in the country.

(Source: qatarembassy)

Regulatory Environment

The state of Qatar is ruled by the Emir. The power of ruling is hereditary within the Al-Thani family. The power is transferred from father to son in the family. In the absence of a son, the power is transferred to the person whom the Emir chooses.

The country’s economic freedom score is 70.5, making it the 27th freest economy in the 2011 Index. The country is positioned higher than in 2010, when it was ranked 39th with a score of 69. Qatar is ranked 2nd out of 17 countries in the Middle East/North Africa region.

 

 

(Source: heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) table shows a country's ranking and score by various number of surveys which is used to determine the score and confidence range of the scoring. Qatar is ranked 19th in the CPI, indicating moderate corruption levels. The corruption level is low compared to its neighbouring country Saudi Arabia which ranks 50th in the CPI.

The country’s ranking improved from 2008, when it was positioned 22nd with a score of 7.0, indicating a decline in corruption levels.

(Source: transparency.org)

Freedom of information

The local press was regulated under censorship until 1995.  Later, the censorship was removed as per instructions of the Emir of the State of Qatar.

World Press Freedom Index 2010 ranks Qatar at 121st rank with a score of 38.00 which indicates that media in Qatar is restricted.

(Source: rsf.org)

The major newspapers in Qatar include:

  • Al-Raya
  • Al-Sharq
  • Al-Watan
  • Al-Arab
  • Gulf Times
  • The Peninsula
  • Qatar Tribune

 (Source: mofa.gov.qa)

Judicial System

Qatar earlier had a two court system including;

  • The civil, commercial and criminal system
  • The Sharia courts

The Sharia courts functioned as per Islamic laws.

In 2004, the two court system was unified into a single court system.

The Courts of law are divided into the following categories:

  • Court of Cassation has chambers responsible for deciding on cases of objection for cassation on rulings and proceedings of the law.
  • Court of Appeal decides on appeals filed against the sentences issued on criminal, punishments, doctrinal provisions, civil and commercial cases, personal affairs, administrative disputes, inheritance and other cases.
  • Preliminary Court has chambers which decide on doctrinal provisions, criminal, personal affairs, punishments, inheritance, civil and commercial, administrative disputes and other cases.

The courts decide on the cases referred to it as per the provisions in law.

The Judiciary Supreme Council: The Judiciary Supreme Council ensures the independence of the judiciary. It is responsible for various functions including:

  • Giving opinion on issues related to the judiciary, studying and proposing legislations to develop the judicial system
  • Giving its opinion on the appointment, transference, promotion, secondment and retirement of judges
  • Deciding on grievances related to judge’s affairs

The Judges are independent and are not subject to removal from office other than specified by the law. Independence of the judiciary is inviolable and interference from other authorities is protected by law.

(Source: mofa.gov.qa)

 

[Top] Demographic Overview

Total population

The total population of Qatar in 2010 was 1,699,435, of which 1,284,739 were males comprising 75.6% of the total population and 414,696 females comprising 24.4% of the total population.

Year

Male

Female

Total

2010

1,284,739

414,696

1,699,435

2004

496,382

247,647

744,029

1997

342,459

179,564

522,023

 (Source: qix.gov.qa)                                                 

 

The total population of Qatar in 2010 reflects an increase of 128.40% compared to 2009. The rate of increase in male population was 158.82% and that of female population was 40.28% in 2010.

 

 (Source: qix.gov.qa)

Gender balance

The overall gender ratio (number of males per 100 females) for the country is 310.

Age

Total population

Gender ratio

0-4

89,507

105

5-9

78,086

105

10-14

64,991

105

15-19

60,544

127

20-24

191,953

405

25-29

279,187

368

30-34

270,243

401

35-39

234,573

483

40-44

178,328

506

45-49

116,940

450

50-54

68,920

386

55-59

37,377

364

60-64

14,969

261

65-69

6,454

171

Above 70

7,363

124

 (Source: qix.gov.qa)

 

The overall gender ratio in the country is highly unstable with 309.8 males per 100 females. The gender balance is almost balanced in the age group 0-14 years with 105 males per 100 females. It is highly unstable in the age group 40-44 years with a ratio of 506 males per 100 females.

 

 

      

 

 

Mortality rate

The infant mortality rate (per 1,000 live births) was recorded at 8.3 in the period 2005 – 2010. The life expectancy at birth for females is 76.9 years and for males is 74.9 years, as recorded in the period 2005-2010. The median age of the Qatari population in 2009 was 29.4 years.

(Source: UNqix.gov.qa)

Life expectancy

The life expectancy at birth for an individual in the country was recorded at 76 years in 2010.

(Source: UNDP)

 

Marital status

The marital status of Qatari for age group above 15 is 55.3% Married, 39% Unmarried, 3.4% Widowed and 2.3% Divorced.

(Source: qix.gov.qa)

Ethnic environment

Ethnic groups in Qatar include:

  • Qatari Arabs
  • Other Arabs
  • Indians
  • Fillipino
  • Nepali
  • Pakistani
  • Sri Lankan

(Source: state.gov)

 

Migration

 

 

Indicator (Mid-year estimates)

2010

2005

Mid-year population

1,508,000

885,000

international migrants

1,305,428

712,861

female migrants

336,716

183,872

male migrants

968,712

528,989

(Source: un.org)

 

At mid-year 2010, 86.6% of the total population were migrants. Female migrants comprised 25.8% of the total migrant population and 74.2% were male migrants. Majority of the country’s population lives in urban areas.

(Source: un.orgUN)

 

Poverty and inequality

The World Bank ranks Qatar among the high income economies globally. The country had a per capita expenditure of more than USD 33 per day in 2007.

(Source: qsa.gov.qa,World Bank)

Human development index

Qatar is ranked 38th out of 182 countries in Human Development Index with a value of 0.803 with a life expectancy at birth of 76 years in 2010. Gross national income per capita at PPP was USD 79426 in 2010.

(Source: UNDP)

 

[Top] Soft Infrastructure

Education/literacy rate

Educational development in the country has led to the involvement of both males and females at all educational levels. Qatar has a high literacy rate. The adult literacy rate in the country is 89%. As per the 2010 census, 4.4% of the Qatari population above 10 years of age were illiterate. The corresponding figure for non-Qataris was 3.5%.

Educational Attainment (%) 2010

Level

Qatari

Non-Qatari

Illiterate

4.4

3.5

Read & Write

13.4

25.3

Primary

16.4

23.6

Preparatory and Vocational

17.7

12.9

Secondary and Post secondary

27.9

21.3

University and above

20.3

13.4

(Source: imf.org, qix.gov.qa)

The country supports the establishment of private educational institutions and provides various kind of support in legal and supervision aspects.

The government is focusing on developing an advanced educational system, as part of the economic diversification plan. The state expenditure on education in the 2010-11 fiscal is estimated at USD 4.8 billion. Of the estimated total spend, a major share is expected to be spent on buildings and educational facilities.

(Source: projectsmiddleeast.com)

Healthcare resources

The country’s healthcare sector is well developed, with most advanced medical equipments, healthcare centres and hospitals with highly qualified staffs. According to the general secretariat of the GCC ministers of health’s reports, the State of Qatar has the region’s lowest maternal mortality rate.

The Hamad Medical Corporation (HMC) is the non-profit public health care provider located in Doha. The government is encouraging the private sector to provide healthcare to the public. The private medical service providers represent 67% of the country’s health service providers.

(Source: qatarembassy)

[Top] Hard Infrastructure

Ports

The major seaports in the country include Doha Commercial Seaport, Ras Laffan Industrial Seaport and Mesaieed Commercial and Industrial Seaport. The Ports and Sea Customs Department is a member of International Maritime Organization, International Association of Ports and Harbours and the Arab Academy for Maritime Transport.

(Source: mofa.gov.qa)

Airports

Doha International Airport is the largest airport in the country. There is also an airport in the town of Al Gariyeh.

(Source:aircraft charter world)

Telecommunications networks

Internet Users:

Year

Users

% population

2010

436,000

51.80

2009

436,000

52.30

2005

165,000

20.70

2002

126,000

16.40

2000

30,000

3.8

 

(Source: internetworldstats.com)


Computer/internet users (2010 census)

Qatar Computer/Internet Users


(Source: qix.gov.qa)

Qatar had 2,472,100 mobile subscriptions in 2009 compared to 490,300 subscriptions in 2004. The number of mobile subscriptions grew at a Compounded Annual Growth Rate (CAGR) of 38.2%. There were 175.4 mobile subscriptions per 100 inhabitants.

(Source: ITU)

In 2009, the country had 285,300 fixed telephone lines, reflecting a notable increase of 49.44%, compared to 190,900 in 2004. The number of fixed telephone lines grew at a compounded annual growth rate of 8.4%. However, in 2009, there were 20.24 fixed telephone lines per 100 inhabitants, indicating a decline compared to 23.95 lines per 100 inhabitants in 2004.

(Source:ITU)

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