Diversification of economy is the key to growth. When the economy is diversified, there would always be a balance of growth. If something happens to one particular sector, there is a possibility that some other sector would compensate for the deceleration in the other.
No country can be dependent on one particular sector for a longer period of time. In this context, one can look at Qatar’s growth trajectory to understand how diversification can make a positive difference to one country’s growth.
Qatar is a natural gas rich nation and its main revenue should come from this sector. The recent data shows that Qatar has really made a giant leap in the diversification of its economy and has achieved a significant progress in its efforts of diversification. It started not just after the unjust siege imposed on this great nation by a few countries without any reason, but the diversification processes are continuing for the past five years.
The contribution of non-oil sector in the country’s economy has increased sharply by 23 percent between 2013 and 2017.
According to the Qatar Central Bank data, the share of non-oil sector in the country’s nominal Gross Domestic Product has risen from 44.3 percent in 2013 to 67.3 percent in 2017.
Despite the ongoing siege, the successes achieved by Qatar’s economy are through the far-sighted approach by its wise leadership and various diversification programmes conducted during this period. This resulted in the rise of the nominal GDP during 2017 to reach about QR610bn, in which the share of non-oil sector was QR410.38bn. Five years back, in 2013, the share of non-oil sector was QR320.34bn.
The diversification pragrammes are following the main aims of the Qatar National Vision 2030 which says, “Economic development is an essential part of the Qatar National Vision 2030, as the engine that drives progress by providing better opportunities and a better way of life for the country’s citizens.
“Achieving that objective hinges on Qatar’s ability to create a balance between an oil-based and a knowledge-based economy, helping diversify the country’s economy and guaranteeing a stable and sustainable business environment”.
The non-oil sector has registered consistent growth over the last five years. The growth in non-hydrocarbon GDP increased to 6.1 percent in 2017 compared with 5.1 percent in 2016.
The surge in non-oil exports is emanated from the prudent policies and the wise leadership’s support to the private sector which plays a key role in the economic process and becomes a major mainstay of Qatar trade exchange with world countries. This shows that Qatar has successfully overcome repercussions of the unjust blockade.
