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Father of Qatar Emir Sheikh Hamad Bin Khalifa Al Thani he is dead at the age of 74.
On time Rule 18 yearsSheikh Hamad also changed the country’s status as a world power.
When he took power in 1995, Qatar’s economy was small in size and heavily dependent on oil, while the vast natural gas resources of the North Field were still in the early stages of development.
In less than two decades, Qatar has become the world’s largest exporter of natural gas (LNG), the world’s largest independent economy and the world’s highest per capita income.
This change was not the rise of oil or gas only due to the increase in electricity prices, but the restructuring of the country’s economic policy that was encouraged by the policy of investing in natural resources by building productive assets, financial institutions, infrastructure and people.
Economic reforms did not begin when Sheikh Hamad took power. This was followed by his appointment in 1989 to the chairmanship of the Supreme Council for Planning, the body responsible for developing Qatar’s economic and social policies, which put him in charge of planning development programs before coming to power.
Here, we take a look at Sheikh Hamad’s financial history that helped transform Qatar from a small Gulf economy to a major and prominent player in the global energy market.
How gas changed Qatar’s economy
The development of the North Field, the largest natural gas field in the world, was the catalyst for Qatar’s economic transformation.
The decision to accelerate investment and expand emissions reduction projects in the second half of the 1990s changed the country’s position in the energy market and promoted global leadership.
Qatar went from exporting its first LNG cargo in 1996 to becoming the world’s largest exporter in less than 15 years.
By 2010, production capacity had risen to 77 million tons per year, according to data from QatarEnergy and the International Energy Agency.
The effect of this boom was not only increased income; it also strengthened Qatar’s role as a strategic partner in global security, particularly in the Asian and European economies.
Data from the Qatari Amiri Diwan show the magnitude of the changes seen in the energy sector, where the added value of the hydrocarbons sector increased from 11 billion Qatari riyals (about $3bn) to 403 billion riyals (about $110.4bn) during Sheikh Hamad’s tenure.
Unprecedented economic growth
The abundance of gas is directly reflected in the performance of Qatar’s economy, which became one of the fastest growing in the world in the first decade of the millennium.
World Bank data compiled by Bloomberg showed Qatar’s economy doubled under Sheikh Hamad’s rule, with gross domestic product (GDP) rising from $8bn in 1995 to $199bn in 2013.
According to the International Monetary Fund (IMF), the economy recorded one of the world’s fastest growing economies during that period, with real growth reaching 18 percent in 2006 before rising to 26.2 percent in 2011, when LNG projects came on stream.
From natural gas expansion to other countries
Economic reform did not stop at the increase in productivity or income, but also extended to the way the economy was run.
As part of building an investment management system, Qatar in 2001 established the Supreme Council for Economic Affairs and Investment under the leadership of Sheikh Hamad.
The council was tasked with exchanging domestic and foreign currency “with the aim of establishing the Qatari currency and revenue streams”, according to the Qatari Amiri Diwan.
Four years later, the Qatar Investment Authority (QIA) was established to oversee the vast sums generated from oil and gas.
Sheikh Hamad has established a plan to establish and distribute a portion of energy production in the long term, with the aim of building a sustainable source of income.
QIA quickly became one of the world’s largest investors, with investments in companies such as Barclays and Volkswagen, as well as the United Kingdom department store Harrods in 2010.
Qatar’s financial policies expanded to reach almost every continent – from investing in football clubs, to international financial institutions, to London’s Shard skyscraper, among others.
The sovereign wealth fund is now estimated at more than $500bn, according to the Sovereign Wealth Fund Institute, making it one of the largest public sector enterprises in the world.
Quality of life for Qatari citizens
Economic growth was reflected in quality indicators.
According to the World Bank and the IMF, Qatar under the rule of Sheikh Hamad became one of the countries with the highest GDP in the world.
It exceeded $90,000 in terms of purchasing power, as it increased spending on housing, education and health and recorded a sharp drop in unemployment to record lows.
Experts believe that the increase in income was not only due to the increase in the cost of electricity, but also came from additional government funding and the creation of jobs related to electrical and construction projects.
Investment in people
Along with energy businesses, Qatar has also moved towards developing a knowledge-based economy.
One of the development decisions after Sheikh Hamad took power was the establishment of the Qatar Foundation for Education, Science and Community Development in August 1995 to act as a major investment arm in education, scientific research and innovation.
The country has since attracted international universities including Georgetown, Texas A&M and Carnegie Mellon, in a move seen as part of a plan to prepare for the post-oil and gas sector.
The health sector also saw a significant increase through the development of the Hamad Medical Corporation and the establishment of new hospitals and special centers as part of efforts to improve public services and complement the growth of the population.
At the same time, the economic openness of the country, together with the plan to strengthen its position as a financial and commercial center in the region, turned the capital of Doha into a very important place for international and economic meetings.
The World Cup is an asset for the future
Gas revenues during Sheikh Hamad’s rule were not only a source of support for the Qatari economy, but were also used to finance large investments.
At that time, projects such as Hamad International Airport, Hamad Port, Lusail City and modern roads were established, along with projects that later formed the basis of the Doha Metro.
These projects helped transform Doha from a small Gulf city into a global city, and provided the foundation that helped Qatar become the first Arab and Middle Eastern country to host the FIFA World Cup in 2022.
After the country won the right to host a major soccer tournament, its infrastructure and construction sector took a hit as the government approved a $200bn investment plan for infrastructure, including roads, stadiums, railways and the construction of a new airport and port.
A continuing financial legacy
In 2008, the government launched the Qatar National Vision 2030, a strategic plan aimed at building a knowledge-based economy with the aim of ensuring future generations progress.
This vision, which continues to be the guiding principle for economic policy, reflects the leadership that began under Sheikh Hamad through the use of transforming the natural economy into a foundation for sustainable development.
And if the development of the gas industry was the starting point for Qatar’s economic transformation, Sheikh Hamad’s most notable legacy lies in turning private energy investments into long-term development tools.
Through the establishment of institutions such as the Supreme Council for Economic Affairs and Investment and QIA, the establishment of the Qatar National Vision 2030 and investment in education and infrastructure, Qatar has moved from an economy dependent on imported oil to a model that combines energy with the influence of international funds.
This plan still forms the basis of the government’s economic policies that are followed to this day by Sheikh Hamad’s son and successor, Emir Sheikh Tamim bin Hamad Al Thani.
