Find out why Qatar is one of the richest countries in the world

Having the third largest natural gas reserves in the world is just the beginning

The holding of the World Cup in Qatar has piqued the world’s curiosity about the country’s wealth, after all it is the size of the state of Sergipe, but the country’s per capita gross domestic product exceeds $85,000, the sixth highest in the world .world. In terms of comparison, that of Brazil is US$ 7.5 thousand.

With its coffers full, Qatar has allowed itself the luxury of spending a staggering $200 billion to host the 2022 World Cup. But, after all, where does so much money come from in such a small country, with only 2.5 million people? The answer is simple: oil.

Qatar has only 13% of all natural gas reserves on the planet, making it the third largest oil reserve in the world. However, oil production itself isn’t that great: just 600,000 barrels per day.

However, the amount of oil found reaches 25 million barrels, which allows the country to maintain this current production for at least another 56 years.

It’s time to diversify your investments

Half a century ago, when it gained independence from the United Kingdom, Qatar was one of the poorest countries in the Persian Gulf, with an economy centered on pearl mining.

The discovery of oil at the Dukhan field in the 1940s changed the course of Qatar’s economic history. Despite being very wealthy today, the country has almost 90% of its population made up of foreigners ― mostly from South Asia and Africa ―, which is why it has already embarked on an intense effort to diversify its sources of income. And the World Cup is its calling card.

Qatar Airways and Al Jazeera, respectively a major airline and a major international news network, are two names that have already emerged as the country’s new economic exponents.

Furthermore, industry, construction and financial services have also grown intensively in the country. However, dependence on the gas sector is still high and Qatar is already looking for ways to diversify its economy.

The major effort at the moment is to diversify services (catering, trade) and tourist areas, which explains the importance of the World Cup in the country. The idea is to more or less follow the lines of Dubai and Bahrain, which have a strong tourist structure.

In commerce, investments are already well advanced and in the capital Doha alone there are already more than 30 shopping centres. In terms of comparison, the city of São Paulo has 54 shopping malls for a population 10 times larger.

Islamic banks do not charge interest in Qatar

Qatari residents have some perks, such as not paying income tax, free healthcare and higher education, and electricity bill subsidies.

The banking system is strongly linked to the country’s Islamic traditions. Financial relations in Qatar must not be aimed at profit as an end in itself, but at understanding and well-being between the subjects involved.

In practice, the country’s Islamic banks do not charge interest. What exists is a profit-sharing agreement between the lender and the borrower. International banks based in Qatar, on the other hand, charge interest, but do not raise rates at the same rate as inflation. The base interest rate in the country, for example, has not exceeded 5% in the last 10 years. Today it is at 4.5% per annum.

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Source: Terra

Ben

Ben Stock is a lifestyle journalist and author at Gossipify. He writes about topics such as health, wellness, travel, food and home decor. He provides practical advice and inspiration to improve well-being, keeps readers up to date with latest lifestyle news and trends, known for his engaging writing style, in-depth analysis and unique perspectives.