Qatar: The Overpowered Country

Overview of Small Countries

• 62 countries with populations under 3 million
• Generally limited in power and influence
• Exceptions; Qatar stands out despite its size

Qatar's Demographics

• Overall population: ~2.8 million
• Citizens: ~320,000 (similar to Vanuatu)
• Majority (2.5 million) are foreign laborers

Economic Power

• Described as the wealthiest country by GDP per capita
• While smaller population, commands global prestige
• Sovereign wealth fund: 9th largest globally, $450 billion in assets
  • Includes: 10.5% stake in Volkswagen, ownership of PSG
• Largest property owner in London
  • Includes The Shard, Harrods, Canary Wharf, Heathrow Airport

Airline & Media Influence

• Qatar Airways: 9th largest globally, comparable to Air France KLM
• Al Jazeera: 2nd largest media conglomerate worldwide
• First Arab country to host the FIFA World Cup

Historical Context

Pre-Oil Era

• Qatar: harsh terrain, minimal arable land, low rainfall
• Economic activity: fishing and pearl diving

Discovery of Oil and Gas

• Oil discovered in 1939, developed in 1949
• Qatar: 14th largest oil reserves worldwide
• Major find: North Field (offshore natural gas field) in 1971
  • Contains 1/5 of the world’s natural gas reserves
  • Positioned Qatar as 3rd in global natural gas reserves

Transition to LNG

• Initial disappointment over natural gas discovery
• Development of LNG (liquefied natural gas) technology needed
  • Expensive to transport; needed specialized infrastructure
• Market demand rose in East Asia (Japan, South Korea, Taiwan)
• Qatar's LNG operations began in 1996
  • By 2006, became the largest LNG exporter globally

Economic Growth and Dependence

• Rapid GDP growth post-1996 due to LNG exports
• Over-dependence on LNG: 70% of government revenue
• Investment in diversifying income streams
  • Qatar Airways founded in 1993
  • Sovereign wealth fund established in 2005
  • Al Jazeera founded in 1996

Geopolitical Challenges

• Vulnerable due to geographical location and low population
• Aligns closely with the U.S. for security
  • Al Udeid Air Base: largest U.S. base in the Middle East
• Saudi Arabia's rivalry: support for opposing sides during Arab Spring

2017 Blockade by Saudi Arabia and Allies

• Blockade led to economic isolation
• Ended in January 2021 due to diplomatic rebranding efforts

Recent Developments

• Impact of Russia's invasion of Ukraine
  • Increased demand for Qatar’s LNG in Europe
  • Potential economic growth projected to exceed 4%
• Qatar’s LNG expansion plans announced in 2019
  • Aims to regain status as top LNG exporter

Conclusion

• Qatar’s unique position as a small, wealthy nation with significant global influence
• Challenges remain in human rights and geopolitical tensions
• Qatar's future is closely tied to its energy resources and international relationships.