Oil and Gas Sector in Qatar - Research Proposal Example

In addition, the acceleration of growth seen in the Qatari economy is not solely due to the attractive remuneration and tax environment, but a number of other factors exist, such as the presence of large organizations, flexible trade policies, government-supported initiatives and influences as well as cross border collaboration with other nations and companies that has intensified the growth of Qatar’s economy.The production, distribution, and sale of oil and gas are some of the fundamental factors that have seen Qatar and its economy develop from a frontier market status to emerging market status.

Petroleum is the cornerstone of Qatar’s economy and accounts for more than 70% of total government revenue. Paramount to this is the volume of gas which places Qatar as the third-largest provider of Gas in the world today, and the richest Muslim country globally.1It is commonly becoming a place to build and implement businesses and successful partnerships and furthermore, the wealth Qatar has is in abundance which has enabled the economy of Qatar to flourish under the stewardship and vision of the Qatar emir and its government.

Its economic freedom in the 2012 index was rated at 71.3 which places Qatar at 25 in terms of the freest economy of the world2, and this shows the strides made by the country as a whole, however, this can largely be attributed to the wealth generated from oil and gas productions, which is the largest contributor to the Qatari economy.While Qatar has made significant progress in laying the institutional groundwork for sustained and diversified economic growth, the volatility of commodity prices, particularly during recent economic woes seen across the world which continues to undermine macroeconomic stability.

Restrictions on foreign investment still exist and considerable state involvement in the economy is serious drags on generating more vibrant economic drive.There is a lot of literature on the impacts of oil and gas on the economy of Qatar. However, most of this literature has not taken an all-round examination of the role and impact of oil and gas on the economy of Qatar. An examination of this literature shows a high inclination to the attractive economic effects of oil and gas revenue but they have paid little attention to the negative impacts of over-reliance on oil and gas and its role in the current economic climate in the country.