Here's How Qatar Becomes A Rich Country, Whereas It Used To Be The Poorest In The Middle East

What Makes Qatar Kaya (Unsplash)

Qatar gained independence from Britain in 1971. At that time, Qatar was one of the poorest economies in the Middle East. The economy is very dependent on the fishing industry. Then what makes Qatar rich?

But over the past three decades, Qatar has turned itself into one of the richest economies in the world.

Most people believe the cause of their economic success is the discovery of oil and natural gas.

In fact, oil and natural gas do play a major role in turning Qatar into one of the luxurious economies.

But having natural resources doesn't mean you're going to be rich. For example, see Venezuela or North Korea.

Qatar is not only blessed with rich natural resources such as oil and natural gas, but also knows how to use it effectively, making it very rich.

Currently, Qatar is one of the most open economies in the Middle East. So how can this smaller country of California be able to turn itself into a global economic force?

The discovery of Oil and Gas

There is no doubt that Qatar will not be as rich as it is today without natural oil and gas.

Demand for natural oil and gas has increased over the decades. It has benefited Qatar from becoming the richest economy in the Middle East.

The first oil field was discovered in the 1940s. But it didn't turn Qatar into a luxurious country.

In the 1970s, he discovered the country's largest asset, The North Field, which is the largest gas field in the world.

Save rather than spend

Having large reserves of oil and gas does not guarantee the economy to prosper. For example, see Vanezuela.

Most oil-rich economies spend money today instead of saving later on to build their economy.

But Qatar knows that oil revenue is very volatile, so it starts saving the money it receives from oil revenue and investing it around the world.

Global Qatar Influence

As Qatar's economy becomes richer and more growing in size. Qatar's global influence has also increased, and has become the concern of many central eastern countries such as Saudi Arabia and the UAE.

When the new emir reaches power, one of its goals for Qatar is to gain global influence.

In 2003, Saudi Arabia asked the US to take its troops out of their country. Qatar sees an opportunity. It presented itself as a new destination for US troops. They spent more than a billion dollars to build a military base, which made Qatar comfortable with the security of its country.

Qatar is the first central eastern economy to host the FIFA world cup in 2022, which shows Qatar's strength and wealth.

Although, there were several accusations while preparing for the 2022 world trophy. Qatar gave poor living conditions to migrant workers, especially from Nepal, India, Bangladesh and Pakistan.

Individuals are subjected to forced labor, most people cannot change jobs and leave the country. Also, it takes several months to get paid.

The oil and gas sector is still the main driver of its economic growth. But Qatar is taking steps to shift from oil-dependent economies to more stable services and tourism-based economies.

He is trying to develop his financial center, which may be the center of central eastern finance.

Qatar has turned from a backward desert country to the richest economy in the Middle East.

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