Economy of Qatar
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Selected Region: Qatar2.1 International marketing Environment2.1.1 State of Economy (205)Over the last few years, the economy of Qatar has progressed rapidly mainly due to the oil and gas supply and owns the world’s highest GDP per capita. However the economy of Qatar seems to expand further but still everything wouldn’t be very smooth as the energy prices could be a risk and the LPG market’s unpredictability due to Austria and U.S’s supply could be a threat for market of Qatar.In the recent news, the CEO of Doha Bank highlighted the fundamentals of economy of Qatar saying that Qatar is growing significantly and the significance of economy of Qatar has been marked on the global economic map through its development goals and long term vision. According to him the economy of Qatar is capable of being sustained in future and has played part to be appealing than other countries. He further added that the banking and financial sector of Qatar not behind anyone in its technology, quality of service, governance and framework of regulation. (source: Peninsula)In light of the above information, it is observed that Qatar is a good option to open up a company in, as it has low cost, low tax environment, upgraded infrastructure along with wide opportunities for project finance.2.1.2 Geo-political Events (283)The economic performance of Qatar has been affected adversely and faced downfall due to the political split with its neighboring Gulf countries. Since the start of June, economic blockade has been put in place due to dew Arab countries’ allegations that terrorism is being aided by Doha and it has collaborated with Iran. In order to lift the blockade, few non-negotiable conditions were put forward by Saudi Arabia which Qatar claimed were made to be refused. This scenario has put Qatar economy to risk as it has wide exposure to foreign deposits, the sovereign credit rating of Qatar was demoted to AAA- with watch placed on it for more demote.On this scenario, the Minister of        Economy and Commerce of Qatar has stated to Qatar TV that the economy of Qatar is flexible and tough and it can cope with such hardship. Qatar has a diversified economy and private and non-gas and oil sectors make up almost 70% of the country’s GDP. He stated that the economy of Qatar us growing at the usual rate and they have the potential to handle the set back and the organization are being run evenly and are making use of substitute sources. (source: Peninsula)This scenario shows that although there is some risk involved due to current crisis but still there would be low risk to invest in Qatar as the government is very supportive and it makes sure that businesses are not being affected by any negative geo political conditions and is constantly working towards progress. The government makes sure that they facilitate any sort of difficulty faced by the private sector so it would be easy to overcome if any difficulty or issue arises.2.1.3 Legal Developments (158)The judicial system of Qatar comprises of civil law courts and Sharia courts. Limited property rights are granted to non-Qatris. It has been criticized that there the government supports personal relations and procurement is not transparent. The business can be launched and licensed can be obtained through a smooth and well-organized procedure. The rules and regulations of employment are quite adjustable.The German media had published allegations of corruption in the bid of 2022 World cup which was won by Qatar. Newspaper claimed that prior to the vote for 2018 and 2022, three executive members of FIFA flew to Rio to a party in Qatari federation’s private plane. It further claimed that the Aspire Academy manipulated the member of Fifa who had the voting right. (BBC)
It can be concluded that the legal system of Qatar is not very strict and it would be easier to adjust and cope with the rules and regulations and law and order.2.1.4 International Trade (178)The economy of Qatar gives great importance to Trade, 91% of GDP is made up by adding up the exports and imports’ value whereas 3.4% is the average tariff rate. There are restrictions in investment in many economic sectors. (