Qatar, with a land area comparable to the Indian state of Tripura, is a wealthy and influential nation. Despite its relatively small size of 11,571 square kilometers, home to a population of 2.8 million, Qatar boasts a high per capita income, estimated between $60,000 and $70,000. The country’s total GDP is approximately $200 billion. Several factors contribute to Qatar’s wealth and power.
Firstly, Qatar’s strategic location in the Persian Gulf is crucial. Situated near the Strait of Hormuz, a vital route for global oil and gas supply, Qatar benefits from its proximity to major energy trade routes. The country’s position also facilitates the connection of LNG (Liquefied Natural Gas) terminals to global markets due to its coastal access.
Secondly, Qatar possesses the world’s third-largest natural gas reserves, estimated at 891 trillion cubic feet, representing 13% of the world’s total. Only Russia and Iran have larger reserves.
Thirdly, Qatar is a leading exporter of LNG, exporting 75% of its total gas production, generating billions of dollars. Qatar’s LNG reaches over 40 countries. The North Field gas project, covering 6,000 square kilometers off the northeast coast, is the backbone of its economy. Based on current consumption rates, Qatar’s gas supply is estimated to last for 609 years, further solidifying its position.
Fourthly, Qatar’s economy is heavily reliant on its gas and oil reserves. Besides gas, it holds 25.2 billion barrels of oil reserves, though this accounts for only 1.5% of the global total. Oil and gas revenues contribute 85% of Qatar’s government income.
Fifthly, Qatar experienced a significant economic boom in the 1970s due to rising crude oil prices. Its per capita GDP increased by 1,156% in that decade, a world record, transforming Qatar from a relatively poor nation to one of the wealthiest.
Sixthly, Qatar has invested its oil and gas earnings in infrastructure and tourism. It has expanded its cultural and diplomatic influence, aiming to be a prominent soft power player. Hosting the 2022 FIFA World Cup was a major step. It has also hosted major sports championships, including the Pro Cycling Race, Qatar Open Women’s Tennis Tournament, and Formula One Grand Prix. Qatar is also preparing a bid to host the 2036 Olympic Games.
Finally, Qatar has cultivated a role as a mediator in international conflicts. Its financial power and diplomatic ties, along with its neutral stance, have earned it the nickname ‘Switzerland of the Middle East.’ It has played a mediating role in the Israeli-Hamas conflict and facilitated the return of children during the Russia-Ukraine war. Qatar hosts the largest US military base in the Middle East.