National Trade Data Bank ITEM ID : ST BNOTES QATAR DATE : Oct 28, 1994 AGENCY : U.S. DEPARTMENT OF STATE PROGRAM : BACKGROUND NOTES TITLE : Background Notes - QATAR Source key : ST Program key : ST BNOTES Update sched. : Occasionally Data type : TEXT End year : 1992 Date of record : 19941018 Keywords 3 : Keywords 3 : | QATAR US DEPARTMENT OF STATE PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS BACKGROUND NOTE: Qatar, April 1992 Official Name: State of Qatar PROFILE Geography Area: 11,437 sq. km. (4,427 sq. mi.); about the size of Connecticut and Rhode Island combined. Cities: Capital--Doha (pop. 300,000). Other cities--Umm Said, Al-Khor, Dukhan, Ruwais. Terrain: Mostly desert, flat, and barren. Climate: Hot and dry. People Nationality: Noun and adjective--Qatari(s). Population: 400,000. Ethnic groups: Arab 55%, South Asian 33%, Iranian 6%. Religion: Islam 95%. Languages: Arabic (official), English. Education: Years compulsory--ages 6-16. Attendance--98%. Literacy--65%. Life expectancy--58 yrs. Work force (primarily foreign): Industry, services, and commerce--70%, Government--20%, Agriculture--10%. Government Type: Traditional emirate. Independence: September 3, 1971. Constitution: None; the 1970 Basic Law serves as a constitution. Branches: Executive--Council of Ministers (cabinet). Legislative--Advisory Council (has assumed only limited responsibility to date). Judicial--independent. Subdivisions: Fully centralized government. Political parties: None. Suffrage: None. Flag: Maroon with white serrated border. Economy GDP (1992 est.): $5.2 billion. Annual growth rate (1992 est.): 4%. Per capita income (1992 est.): $13,000. Natural resources: Petroleum, natural gas, fish. Agriculture (about 1% of GNP): Products--fruits, vegetables, (most food is imported). Industry: Types--oil production and refining (32% of GNP), natural gas development, fishing, cement, power/desalinization plants, petrochemicals, steel, and fertilizer. Trade: Exports (1992 est.)--$2.2 billion: principally oil (75%-80%). Major markets--UK, Japan, US, Western Europe. Imports (1992 est.)--$1.4 billion: industrial and consumer goods. Major suppliers in 1989 were Japan (16%), UK (12%), and US (9%). Germany and Italy are also major suppliers. Official exchange rate (March 1992): US$1=1.4 Qatari riyals. Economic aid sent (1980-86 est.): $360 million, mainly to other Arab states, Palestinians, and developing countries. PEOPLE Natives of the Arabian Peninsula, most of the Qatari people are descended from a number of migratory tribes which came to Qatar in the 18th century to escape the harsh conditions of the neighboring areas of the Nejd and Al-Hasa. Some Qataris are descended from Omani tribes. The population is about 400,000, the great majority of which live in Doha, the capital. Foreign workers with temporary residence status make up 75%-80% of the population. Most are South Asians (from India, Pakistan, Bangladesh, and Sri Lanka), Egyptians, Palestinians, Jordanians, and Iranians. The resident British community numbers about 5,000 in 1989, and about 500 US citizens reside there. For centuries, pearling, fishing, and trade were the main sources of wealth. At one time, Qataris owned nearly one-third of the Persian Gulf fishing fleet. With the world recession in 1928 and the introduction of Japan's cultured pearl industry, pearling in Qatar declined drastically. The Qataris are mainly Sunni ("Wahhabi") Muslims. Islam is the official religion, and Islamic jurisprudence is the basis of Qatar's legal system. Arabic is the official language, and English is the lingua franca. Education is compulsory and free for all Arab residents 6-16 years old. The Qatari literacy rate, estimated at 65%, is increasing. HISTORY Qatar has been inhabited for millennia. In the 19th century, the Bahraini Al Khalifa family dominated until 1868, when, at the request of Qatari nobles, the British negotiated the termination of the Bahraini claim, except for the payment of tribute. The tribute ended with the occupation of Qatar by the Ottoman Turks in 1872. When the Turks left, at the beginning of World War I, the British recognized as ruler Shaikh Abdullah bin Jassim Al Thani. The Al Thani family had lived in Qatar for 200 years. The 1916 treaty between the United Kingdom and Shaikh Abdullah was similar to those entered into by the British with other Gulf principalities. Under it, the ruler agreed not to dispose of any of his territory except to the United Kingdom and not to enter into relationships with any other foreign government without British consent. In return, the British promised to protect Qatar from all aggression by sea and to lend their good offices in case of a land attack. A 1934 treaty granted more extensive British protection. In 1935, a 75-year oil concession was granted to the Qatar Petroleum Company, a subsidiary of the Iraq Petroleum Company, which was owned by Anglo-Dutch, French, and US interests. High-quality oil was discovered in 1940 at Dukhan, on the western side of the peninsula. Exploitation was delayed by World War II, and oil exports did not begin until 1949. During the 1950s and 1960s, gradually increasing oil revenues brought prosperity, rapid immigration, substantial social progress, and the beginnings of Qatar's modern history. When the British Government announced a policy in 1968 (reaffirmed in March 1971) of ending the treaty relationships with the Gulf shaikhdoms, Qatar joined the other eight states then under British protection (the seven trucial shaikhdoms--the present United Arab Emirates--and Bahrain) in a plan to form a union of Arab emirates. By mid-1971, however, the nine sheikhdoms still had not agreed on terms of union, and the termination date (end of 1971) of the British treaty relationship was approaching. Accordingly, Qatar sought independence as a separate entity and became the fully independent State of Qatar on September 3, 1971. GOVERNMENT AND POLITICAL CONDITIONS The head of state is the emir, and the right to rule Qatar is passed on within the Al Thani, the ruling family. Politically, Qatar is evolving from a traditional society into a modern welfare state. Government departments have been established to meet the requirements of social and economic progress. The basic law of 1970 institutionalized local customs rooted in Qatar's conservative "Wahhabi" heritage, granting the emir preeminent power. The emir's role is influenced by continuing traditions of consultation, rule by consensus, and the citizen's right to appeal personally to the emir. The emir, while directly accountable to no one, cannot violate the Shari'a (Islamic Law) and, in practice, must consider the opinions of leading notables and the religious establishment. Their position was institutionalized in the Advisory Council, an appointed body that assists the emir in formulating policy. An electoral system has not been set up. Political parties are banned. The influx of expatriate Arabs has introduced ideas that call into question the tenets of Qatar's traditional society, but there has been no serious challenge to Al Thani rule. In February 1972, the deputy ruler and Prime Minister of Qatar, Sheikh Khalifa, deposed his cousin, Emir Ahmad, and assumed power. This move was supported by the key members of the Al Thani and took place without violence or signs of political unrest. Principal Government Officials Emir, Acting Prime Minister--HH Sheikh Khalifa bin Hamad Al Thani Crown Prince and Minister of Defense--HH Sheikh Hamad bin Khalifa Al Thani Minister of Foreign Affairs--Mubarak Ali Al-Khater Ambassador to the United States--Hamad Abdulaziz Al-Kawari Ambassador to the United Nations--Dr. Hassan Ali Hussain Al-Ni'mah Qatar maintains an embassy in the United States at Suite 1180, 600 New Hampshire Avenue, NW, Washington, DC (tel. 202-338-0111). Construction of a new chancery has begun in the Van Ness Embassy Center in Washington, DC. The Permanent Mission to the United Nations is at 747 Third Avenue, 22nd Floor, New York, NY 10017 (tel. 212-486-9335). DEFENSE Qatar maintains a modest defense establishment, including an army (5,000 troops), an air force (1,000), a navy (800), and a police force (6,000). Qatar has purchased arms and equipment from the United Kingdom and, most recently, from France. Modern equipment in the Qatari inventory includes the F-1 Mirage and Combattante Patrole boats. Qatar plays an active role in the collective defense efforts of the Gulf Cooperation Council (the regional organization of Arab states in the Gulf). Qatari forces played a disproportionately important role in Operation Desert Shield/Storm. ECONOMY Oil revenues are the basis of Qatar's economy and provide more than 80% of government revenue. In 1973, oil production and revenues increased sizably, moving Qatar out of the ranks of the world's poorest countries and providing it with one of the highest per capita incomes. Despite a marked decline in levels of oil production and prices since 1982, Qatar remains a wealthy country. Qatar's economy was in a downturn from 1982 to 1989. OPEC (Organization of Petroleum Exporting Countries) quotas on crude oil production, the lower price for crude oil, and the generally unpromising outlook on international oil markets reduced oil earnings, the state's main source of revenue. The Qatari Government's spending plans had to be cut to match lower income. The resulting recessionary local business climate caused many firms to lay off expatriate staff to cut costs. With the economy finally beginning to recover, expatriate populations, particularly from Egypt and South Asia, are growing again. The overall number of Westerners appears still to be declining. Observers expect that Qatar's oil production and revenues will decline toward the end of the century. Oil production will not return to earlier peak levels of 500,000 barrels per day (b/d), due to gradual depletion of oil fields, but the partial recovery of oil prices in 1989, along with production of close to 400,000 b/d, has begun taking Qatar's economy out of the doldrums. The economy was also boosted in 1991 by completion of the $1.5 billion Phase I of North Field gas development. North Field reserves (350 trillion cubic feet) are among the world's largest. Their exploitation will influence Qatar's future plans and public spending significantly. Recent official statements indicate that Qatar is about to start development of Phase II, for domestic consumption. Further phases of North Field gas development involving exports via pipeline and/or gas liquifaction may cost $5-6 billion, not counting associated industrial projects. Qatar's heavy industrial projects, all based in Umm Said, include a refinery with a 50,000 b/d capacity, a fertilizer plant for urea and ammonia, a steel plant, and a petrochemical plant. All these industries use gas for fuel. Most of them are joint ventures between European and Japanese firms and the State-owned QGPC. Although the United States is a major equipment supplier for Qatar's oil and gas industry, and US companies are playing a major role in North Field gas development, to date there has been little American investment in Qatar. At least one US company is conducting some oil/gas exploration and development. Qatar pursues a vigorous program of "Qatarization," under which all joint venture industries and government departments strive to move Qatari nationals into positions of greater authority. Growing numbers of foreign-educated Qataris, including many educated in the United States, are returning to Qatar to assume key positions formerly occupied by expatriates. In order to control the influx of expatriate workers, Qatar, over the past few years, has tightened the administration of its foreign manpower programs. Security is a principal basis for Qatar's strict entry and immigration rules and regulations. FOREIGN RELATIONS Qatar achieved full independence in an atmosphere of cooperation with the United Kingdom and friendship with its neighboring states. Most Arab states, the United Kingdom, and the United States were among the first countries to recognize Qatar, and the state promptly gained admittance to the United Nations and the Arab League. Qatar established diplomatic relations with the USSR and China in 1988. It was an early member of OPEC and a founding member of the Gulf Cooperation Council. Qatar and Bahrain dispute ownership of the Hawar Islands. In October 1991, the two countries agreed to let the International Court of Justice at The Hague decide whether it would accept jurisdiction over the case. Although Qatar is still a foreign aid donor, financial assistance to other countries has been sharply reduced since 1985. US-QATARI RELATIONS Bilateral relations are cordial. The US Embassy was opened in March 1973. The first resident US Ambassador arrived in July 1974. In the summer of 1986, the former Minister of Education, Sheikh Mohammed bin Hamad Al Thani, third-ranking official in the government, visited the United States as guest of US Secretary of Education, William J. Bennett. In October 1987, Energy Secretary John S. Herrington led a delegation on a visit to Qatar which included calls on the emir and the heir apparent and meetings at the Ministry of Finance and Petroleum. Secretary of Energy Henson Moore led a delegation to Qatar in October 1991. Over 400 Qataris study at US universities. Principal US Officials Ambassador--vacant Economic/Commercial Officer--Margarita Ragsdale Consular Officer--Kathleen A. Smith Administrative Officer--Scott R. Heckman Public Affairs Officer--John F. Berry The US Embassy in Qatar is located in Doha. The address is PO Box 2390, (tel. 974-864-701/2/3; telex. 4847 AMEMB Doha; fax: 974-861-669). The embassy is open Saturday through Wednesday (Qatar's workweek) and closed for American and Qatari holidays. Travel Notes Climate and clothing: May through mid-October is extremely hot in Qatar, and light-weight attire is recommended. From mid-October through April, spring and fall clothing is comfortable. One should dress conservatively in public. Visas: American citizens require valid visas to enter Qatar. Generally, travelers are required to show evidence that a Qatari citizen or company will sponsor them during their stay in Qatar. Visas are also available through the major hotels for intended guests, but arrangements must be made several weeks in advance. Communications: Allow 2 weeks for airmail delivery between the US and Qatar. Letters, videos, and packages are subject to inspection and censorship. Cable and telex lines to leading hotels and places of business are good. Telephone connections are excellent, and faxes are widely available. Qatar is eight time zones ahead of eastern standard time.