Home Motivation How One Man’s Passion Made Qatar World Wealthiest Nation

How One Man’s Passion Made Qatar World Wealthiest Nation

This man above (Sheikh Hamad bin Khalifa Al-Thani) is the brain behind the success story of Qatar’s new-look. To achieve that aim, he had to overthrow his own father and started redeveloping the country. Qatar has made its money from natural gas, he spent $18 billion to build the world’s largest natural gas plant and that plant makes the most money for his people. There is no democracy there but the Qataris don’t give a damn about democracy. Over 85% of the people in Qatar are actually foreigners, out of 2 million, just about 280,000 are Qataris.
You probably have heard how Qatar suddenly rose to become world’s numero uno in terms of oil and wealth on the globe. History records that the royal family has ruled the tiny nation for over 150 years. In today’s Qatar, there are no taxes, electricity is free, education is free, healthcare is free, everything is free for Qataris, even the funeral is free, from cradle to grave, everything is free for the Qataris. Although Qatar is a very tiny country, it is feared by all its bigger neighbours like Saudi Arabia and Iran and that is probably because of the growing influence of its TV station, Al Jazeera. 

Just how did Qatar get to this stage? Let us delve a little bit into history.

The Qatar Financial Centre was built in 2005 to develop Qatar's financial services industry. The country believes that it can become a financial services leader for Gulf states thanks to its relative stability and large base of capital.

Qatar has been ruled by the Al-Thani family since the early 1900s when it became a British protectorate. On July 17, 1913, Sheikh Abdullah Bin Qassim Al-Thani became the ruler of Qatar.
At the time, Qatar’s primary industry was pearling and fishing. The country was marked by widespread poverty, malnutrition, and disease from the collapse of the pearl trade in the 1920s.
Lots of countries have fossil fuels, but few have done as well as Qatar to take advantage of them.
While Venezuela, Iraq, Libya, Nigeria, and others have fallen victim to the resource curse, when an abundance of resources leads to economic distortions and limited growth, Qatar has done much to reinvest energy money and diversify its economy. Support from the U.S. as well as decades of proven reserves have also fostered stability.
The tiny peninsula has  the highest per-capita GDP in the world at $98,800 — and even that number may vastly understate the actual wealth of Qatar’s 280,000 citizens. Qatar has enough money to build a huge metropolis in the desert and to win the right to host the 2022 World Cup, allegedly through millions of dollars in bribes.
In 1939, oil was discovered at Dukhan. Development on the field was slow until 1949, because of World War II. While the oil discovery was significant, it was nothing compared to the natural gas reserves found 30 years later.
In 1951, Qatar produced 46,500 barrels of oil per day, amounting to $4.2 million in revenue. The discovery of off-shore oil fields and their development by Shell led to an increase in Qatar’s production to 233,000 barrels per day.
New revenue from oil exports flooded the pockets of the ruling family and Qatar began a slow modernization process. The country’s first school, hospital, power plant, desalination plant, and telephone exchange all opened in the 1950s.
Oil revenues steadily increased through the 1960s as the Al-Thani family strengthened its grip on power by installing relatives in high government positions. All Al-Thani family members were granted extravagant allowances.
Qatar gained its independence in 1971 after Great Britain announced that it was removing all of its military obligations east of the Suez Canal.
On Feb. 22, 1972, Khalifa ibn Hamad deposed his father Emir Ahmad ibn Ali, who was hunting with his falcons in Iran. Khalifa ibn Hamad cut the expenditures of the royal family and increased spending on social programs, housing, health, education, and pensions.
Thanks to the North Field, Qatar has the largest natural gas reserves in the world after Russia and Iran. Qatar’s reserves are estimated to be 896 trillion cubic feet.
The crash of oil prices in the 1980s, along with the emir siphoning off oil revenues, stalled the Qatari economy. The crisis led Qatar finally to develop the North Field in 1989, though even then production was slow.
By 1995, the situation in Qatar had not improved. This sad development led Sheikh Hamad bin Khalifa Al-Thani to dethrone Emir Khalifa bin Hamad in a bloodless coup  while the emir was in Switzerland. 
Sheikh Hamad then set a whole new direction for the country.
One of Sheikh Hamad’s first moves was to fast-track the development of the North Dome field. Production was ramped up and Qatar began exporting liquid natural gas for the first time.
To accommodate increased production and demand, Qatar began building new liquid natural gas plants. Over the last 15 years, 14 liquid natural gas plants have been built in partnership with international oil companies.
In the late 1990s, Qatar entered into production sharing agreements with numerous international oil companies. The new companies began using horizontal drilling methods to reverse declines in oil production. Qatar’s partnership with Maersk Oil resulted in the world’s longest horizontal well.
In 1996, Qatar built the gigantic, billion-dollar al-Udeid air base, which has served as a logistics and command facility for the U.S. Military. The partnership with the U.S. military has given Qatar an unprecedented level of security.
In 1997, Qatar began long-term agreements to provide massive amounts of natural gas to Spain and Japan. Over time, Qatar further diversified its clients. Thanks to steady oil production and high natural gas production, Qatar’s GDP has skyrocketed over the last 15 years.
Hoping to avoid the dreaded resource curse, Qatar has taken measures to diversify its economy. In 1998, the government built Education City, a massive campus that supports six American and two European universities, as well as research centers and think tanks.
Qatar has amassed a sovereign wealth fund of $170 billion dollars thanks to revenues from oil and natural gas. It has begun to invest it like a hedge fund.
In 2003, Qatar established the Qatar Investment Authority to recycle oil and gas income into other income streams. QIA has made big investments in Barclays Bank, Credit Suisse, Harrods, Porsche, Volkswagen, and a majority stake in the Paris Saint-Germain football team.
Qatar has become one of the largest holders of real estate in London through the QIA. Qatar owns The Shard, western Europe’s largest skyscraper, as well as large parts of Canary Wharf and other parts of the city.
Can Qatar become the Hong Kong of the Middle East or will it fail to escape the resource curse or get dragged down by regional instability? It's one of the hottest questions in the world right now.
In 2006, Qatar passed Indonesia to become the largest exporter of liquid natural gas in the world with revenues from oil and natural gas amounting to 60% of Qatar’s GDP. But more competition was coming, with liquid natural gas production booming in places like the U.S. and Australia.
In December 2010, Qatar was selected as host for the 2022 FIFA World Cup. Qatar promised to build 12 state-of-the-art stadiums that would employ cooling technology so players could escape the heat. Qatar has positioned itself as a sporting hub for the region, hosting or planning to host numerous global sporting events.
Since 2000, 58 skyscrapers have been built, planned, or are under construction in Doha, along with museums, stadiums, giant infrastructure projects, and more.
Can Qatar become the Hong Kong of the Middle East or will it fail to escape the resource curse or get dragged down by regional instability? It’s one of the hottest questions in the world right now.
But not to take anything away from Qatar’s story, that was a brilliant turn around (courtesy of Sheikh Hamad bin Khalifa Al-Thani). It goes to show that development doesn’t just happen when everybody folds their hands or stands looking arms akimbo. You just have to take the bull by the horn and kick-start the revolution by force!!!

Story compiled by Adebayo Folorunsho-Francis with additional information from Business Insider
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Adebayo Folorunsho-Francis is a communicator, Journalist, blogger, business coach and, of course, a prolific writer. He has Dip (Journalism) and B.A. (History & International Relations) from the Lagos State University (LASU). The self-effacing young man has worked for national, regional and local newspapers. He had worked with THISDAY covered community news for ISLAND NEWS and corresponded with P.M. NEWS (evening tabloid). Presently, he is the editor of CITYPULSE MEDIA and senior correspondent of PHARMANEWS, West Africa foremost health and pharmaceutical journal.


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