DOHA: H H Sheikh Hamad bin Khalifa Al Thani steered Qatar to fame and prosperity during his 18-year tenure as Emir and one of his greatest achievements has been the country’s incredible economic success.
He first led the country to become the richest Arab nation and soon it emerged as the world’s wealthiest country with a per capita income exceeding $100,000.
Qatar’s economy expanded 25-fold with people’s income rising six times on average during the 18-year tenure of the Sheikh Hamad as the Emir.
The Qatari economy was just QR30bn ($8.24bn) in 1995 when Sheikh Hamad took over reins in June 1995, and it grew to an incredible QR734bn ($201.6bn) presently.
Thanks to massive revenues flowing in from natural gas exports, the country’s per capita income (or GDP per capita), which is a measure of the standard of living of the population, rose from a meagre QR60,000 ($16,483.5) in 1995 to QR382,000 ($104, 945) — a 6.36 times growth in 18 years.
The annual increase in the per capita income in all these years (from 1995 to 2013) has been in double digits at 11.5 percent.
Likewise, household consumption expenditure (at current prices) rose 10-fold with an annual increase of 15 percent, from QR8,513 in 1995 to QR88,454 in 2012.
At constant 2004 prices, the rise has been from QR11,035 (in 1995) to QR52,819 (in 2012).
The GDP growth has been 19.5 percent, while at constant prices of 2004 (that is, in real or inflation-adjusted terms), the GDP has grown seven-fold in the past 18 years at a compound annual growth of 11.5 percent.
According to figures released by the national statistics agency, gross capital formation in nominal terms rose from a mere QR9bn ($2.47bn) to QR199bn ($54.67bn) between 1995 and 2012.
The rise has been 22-fold representing an annual increase of 20 percent. In real terms the growth was 17.6 percent.
Gross capital formation is an indicator of investment in fixed assets and durable goods.
Government consumption, which mainly comprises wages and salaries of public servants and goods and services, increased from QR10bn in 1995 to QR90bn in 2012.
Despite huge wealth generation and hectic development activity, Sheikh Hamad was able to control inflation with the right policies.
Inflation averaged four percent during his tenure despite inflationary pressures mounting immensely during 2006 and 2008 (they were in double digits in line with the regional trend).
The mining sector (hydrocarbons) remained the main engine of growth, with its share in the GDP at current prices increasing from 37 percent in 1995 to 58 percent in 2012.
Gross value added by mining rose from QR11.8bn in 1995 to a massive QR404bn in 2012.
It is to be noted that from 2010 Qatar became the world’s largest exporter of liquefied natural gas (LNG), with a capacity of 77 million tonnes a year.
The Peninsula
