The state primary source of income is revenues from oil and gas. Qatars financial growth has been telescoped into an astoundingly short period. The hydrocarbon business has been the main thing that has brought…
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The main challenge of managing more flourishing and a stable economy in Qatar is that most of the citizens living in this region are foreigners who usually come because of employment related businesses. It is important to note that Qatar has an overall population of about 1.8 million people, whereby 1.5 million of them are expatriates (QFINANCE, 2013). Therefore, the government has been forced to rely mainly on oil and gas in meeting its budget needs. In order for the Qatar government to maintain a healthy and a stable economy in the future, it ought to expand revenue sources, utilize its assets to hedge against instability and create a legacy for the future in by measures mentioned below.
Firstly, the government needs to apply a tax on water and electricity as part of expanding its revenue sources. In this case all the households should pay a given fraction of tax to the state so that it can continue sustaining provision of the water and electricity to the people of Qatar. The revenue raised from the water and electricity will be useful in maintaining and expanding the country’s national power grid in the future to cater for the growing demand for electricity from investors in the recent years (QFINANCE, 2013). Additionally, given Qatar is a desert country the taxes on water will be critical in digging more boreholes. This idea will in turn improve the national water supply with an end goal of handling the increasing demand for water used for domestic and commercial purposes.
Secondly, the government needs to lease its land for 99 years whereby those who rent the land will be expected to pay a certain percentage of annual rates to the government. It is important to note that the government will be leasing land to expatriates who plans to use the land for various economic activities. Given that currently most of the land in Qatar is not leased to any expatriate, renting the
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