The Qatari economy underwent many adjustments to bring it in harmony with the changing world economy. These adjustments were also meant to consolidate and diversify the economic base to obviate the risk of depending on a single source, viz, oil and gas.

Thus the Qatari economy is now one of the strongest in the region and has recorded genuine growth over the last 5 years.

The government has recently created a favorable environment for investment that was bolstered by the high degree of stability enjoyed by the country. In the natural gas sector alone, it has managed to attract foreign investment to the tune of $26 billion so far.

Qatar's economic growth potential is stunning. Qatar's GDP, currently around $30 billion, has grown at an average of 19% over the past five years (2000-2004). In 2004 real GDP grew by 20.5%. Qatar's per capita GDP is nearly $33,000, soon to be the highest in the world. Qatar is the world's number one exporter of natural gas with the argest non-

associated gas field and 3rd largest natural gas reserves in the world. Even more important is the Qatari Government's strategy to utilize its wealth to generate more wealth by diversifying the economic base of the country beyond hydrocarbons. Qatar has a thriving banking sector and is an important regional meeting and conference center.

Oil and natural gas account for more than 55% of GDP, roughly 85% of export earnings, and 70% of government revenues. Estimated oil reserves of 4.5 billion barrels should ensure continued output at current levels for about 40 years. Qatar's proven reserves of natural gas, which exceed 900 trillion cubic feet (25.9 trillion cubic meters) are about 14% of the world's total proven gas reserves and the third largest reserves in the world after Russia and Iran. Expectations from liquid natural gas (LNG) exports are 77 million metric tons per year by 2010.

Despite the rapid improvement in the economy, the government pursues to a conservative approach to budget management, basing the budget on an oil price of $17-18 per barrel, channelling any surplus into a stabilization fund that will enable it to hold to planned expenditure levels even if the market price of oil declines. The undesirable oil-price linkage is expected to diminish greatly as Qatar continues the transition from being a second-tier oil-producing state to a market-making producer of liquefied natural gas.

The widening program of economic diversification moves beyond oil- and gas-based activities into industry, tourism, and education - a major focus for non-industrial diversification. The major industries in Qatar are crude oil production and refining, ammonia, fertilizers, petrochemicals, steel reinforcing bars, cement, and commercial ship repair.

The US$ 300 million Education City project aims to establish Qatar as the premier education center of the Gulf, and the entire Middle East. It was designed to provide Qatar with the trained manpower it needs to carry out its own development plans and generate revenues for the state by attracting students from all over the region.

The Foreign Investment Law of 2000 allows non-Qataris to invest in all sectors of the economy, provided they have one or more Qatari partners who hold not less than 51% of the capital. In practice, the Ministry of Economy and Commerce can give foreign investors permission to invest in up to 100% of a project in a number of sectors, including agriculture, industry, health, education, tourism, natural resources, energy and mining; while banking, insurance, commercial agencies, and real estate remain exclusively Qatari.

Qatar is a member of the World Trade Organization. In 2001 it hosted the Organization's Fourth Ministerial Conference in Doha, commonly referred to as the Doha Round.