Article:
ISSUE No.2 January-February 2007

Overview of Countries in the Middle East:
Qatar – The Pearl of the Gulf

The modern age has also reached the little desert state. Qatar is still regarded as an insiders’ tip, yet tourists and investors have had their eye on the pearl of the Gulf for some time.

The Qatar Peninsula projects proudly into the Persian Gulf. It borders Saudi Arabia directly and its immediate neighbours are the island state Bahrain to the north and the United Arab Emirates to the south-east. The up and coming nation stretches over an area of 11,437 m², twice as big as the German state of Hesse. The peninsula has a rather barren landscape and is one of the driest countries in the world. The sandy desert in the south alternates with the gravel, boulder deserts in the north. The saltwater lagoon Khor Udaid in the south-east, near the Saudi border, is really worth seeing. Contrary to European belief, it is not hot and dry in the Gulf. Qatar, like the whole region, has a subtropical climate and intense heat in the summer with very high humidity, which can reach 80% in the hotter months, is typical for the area. During this period, temperatures can easily exceed the magic number of 45 degrees.    

Around 400,000 people live in the modern capital Doha. The coastal city has become the most important centre for the oil and fishing industry in Qatar. The majority of the local population originally came from Iran and speaks both Arabic and Persian. However, Qatar is characterised by a large number of foreign workers from Pakistan, Bangladesh, Sudan, India and Nepal.
Anyone who looks at Qatar’s history will soon discover that the inhabitants of this area have always been confronted with the aridity. Admittedly, people did live on the peninsula during the Stone Age but they were forced to leave because of an increasing lack of water. Only a handful of Bedouins defied the temperatures and remained in the region.
Only in the second half of the 18th century did tribes from the Al Thani and Al Chalifa return to the area. Bitter fighting ensued and ended with the conquest of Bahrain by the Al Chalifa in 1783. However, Qatar was not spared further unrest. The Persians, Omani and Arabs of the Pirate Coast all showed an interest in strip of land.
Furthermore, the disputes between the Al Thani and the Al Chalifa in Bahrain did not cease. The two tribes fought again in 1867, this time for supremacy in Qatar. Peace only really came after the British got involved. They forced peace between the warring parties and eventually signed a protection treaty with Qatar in 1868. Peace reigned and the British assumed control of the peninsula, going on to implement their own economic and political interests in the region. They even crushed the advance of the Osmans and thus secured their position of power in the Gulf.

Qatar enjoyed more peaceful times and a blossoming pearl trade until the 1930s. However, the desert state met with the same fate as what is now known as the United Arab Emirates. With the rise of Japanese cultured pearls, the entire pearl trade almost collapsed. The country’s economy was affected so badly that many inhabitants had to leave their homeland. However, in 1939, the first oil was found in Qatar and the economy gradually began to bloom again.   
The whole Gulf region underwent considerable political changes after the departure of the British at the beginning of the 1970s. They consequently granted the Gulf States their independence. Qatar was faced with the decision as to whether to join the federation of the Arab Emirates. However, it decided against the union and declared independence in 1971.
The overthrow of Emir Ahmad ibn Ali by Chalifa ibn Hamad one year after the declaration of independence brought the country into the new age. The new ruler forced the economic development of Qatar. The discovery of oil and natural gas has brought the country indescribable wealth and the average income of its inhabitants ranks amongst the highest in the world. However, the large-scale and heavy industry also represents a significant economic field in Qatar.  

Besides the immense oil fields, Qatar has the world’s largest deposit of natural gas. Gas and oil still constitute the desert state’s main sources of income. According to the Foreign Ministry’s figures, this sector comprised 62% of the gross national product (GNP). In contrast, the proportion of the service sector is a mere 8.75 %. According to current estimations, the crude oil reserves amount to 15.2 billion barrels. With an output of one million barrels per day, these reserves will still last up to 60 years. The world’s largest natural gas field, the “North Field”, was discovered in 1971. In 2005, its reserves amounted to 10,900 billion cubic feet. The world’s largest natural gas liquefaction plant arose north of Doha with “Ras Laffan Industrial City”. The liquid gas produced can be exported to the whole world from the especially constructed port. Qatar is already Asia’s biggest exporter of liquid gas. The leap to Europe was also successful through export agreements with Spain, Italy, Great Britain and France. Slowly but surely, Qatar is developing into the centre of the Gulf States’ gas association network. As a result, the United Arab Emirates and Oman are supplied with natural gas from Qatar. The country is also trying to find its feet in the agricultural field. Furthermore, fishing and Qatar’s big port is also of great economic importance. Qatar’s balance of trade has been positive since 1997. Exports rose to 16.8 billion USD in 2004, three times higher than the import figures. The balance of trade surplus has also risen in recent years through the increasing oil prices on the world market. Consequently, Qatar’s economy, which is primarily orientated towards the export and processing of crude oil and natural gas, is set to grow undeterred in years to come.      
Qatar has been a member of the Gulf Cooperation Council (GCC) since 1981, which was founded in May of the same year by the UAE, Qatar, Kuwait, Saudi Arabia, Bahrain and Oman. The GCC states have declared the development of economic and social relationships amongst themselves as their aim. The members also cooperate on foreign and security issues. 

Spectacular construction projects also fall on fertile ground and Doha seems to want to match its neighbour Dubai in every way. Two scheduled large-scale bridge projects should reduce the dependency on Saudi Arabia. The so-called “friendship bridge” between Qatar and Bahrain is already planned and a second mega project is to link Qatar to the Emirates. However, it does not stop there. Qatar is joining the UAE in the construction of artificial islands in the Gulf. The ambitious project “The Pearl” is only a construction plan of Qatar and the international airport has already been conceived in such a way as to enable an A 380 to land smoothly.
As far as sport is concerned, Qatar is by no means foreign to cyclists. The “Tour of Qatar” forms the opening race of the Doha International. Big names, like Erik Zabel or Alessandro Petacci, are popular guests. Even tennis enthusiasts get their money’s worth. Since 1993, the ATP tennis tournament has been held in the little desert country. Furthermore, Qatar hosted the Asian Games last year. Modern stadiums already enhance Qatar’s sporting status. Of course, the traditional horse and camel races are essential and take place in the cooler winter months. 

The political relationship between Qatar and Germany is excellent and Qatar in particular is pushing for its intensification in the economic field. Consequently, German technology is to be implemented for the development of Qatar’s industry. Furthermore, Germany’s involvement in the development of joint venture companies is also sought.
Germany primarily exports vehicles, appliances and machines to Qatar. The exchange of goods between the two countries is rather unequal. For example, from January to November 2005, Germany exported goods to the value of almost 600 million Euros and stepped up its exports compared to the previous year yet only imported products from Qatar to the value of 21.7 million Euros.
Germany is renowned for its reputation in medicine. Consequently, it is hardly surprising that many citizens of Qatar are sent to Germany for treatment. Meanwhile, even doctors from Qatar go to Germany for their specialist training. In order to intensify this exchange, cooperative agreements have been made between clinics in both countries, which are designed to promote collaboration in research, training and teaching. Founded in 2002, the “German Business Council Qatar” should intensify the bilateral economic relationship between the two countries.
With regard to education, the Gesellschaft für technische Zusammenarbeit (GTZ) operates a vocational training centre in Doha. Furthermore, the GTZ also supervises projects in the environmental and health sector.