Qatar: Energy For Development: Submitted By: Avani Patel Enrollment Number: 20205029

Qatar: Energy for Development
Submitted by: Avani Patel

Enrollment number: 20205029
Case Analysis:
Sheik Tamim Sheikh Hamad
He always sends a message to

Qataris that he will focus more on Sheik Hamad is looking at a global
domestic concerns, image.
Sheik Tamim’s government is

composed of young technocrats
who are most concerned with
domestic policies and are in charge
of modernizing the local
administration.
It all started with the quote: the realities have still not changed. The challenge is to divert the income for
future generations by Sheikh Tamin bib Hamid addressing in his first television aid as Emir of Qatar in
2013.
Sheikh transferred his power to his second son. Educating from one of the elite schools in UK and being
all-rounder in military, sports tech or education, he was recognized as a reformer who would continue his
father’s legacy.
Qatar turned into global powerhouse in liquid natural gas, oil and even media under the leadership of
Shaikh Hamad Bin Khalifa from 1995-2013.
Qatar had been at top of the global GDP per capita rankings and under his management it had reached the
center stage of global capitalism.
Under his rule he developed:
 World’s largest non-Associated gas field in late 90’s

 In 2005: Created Qatar Investment Authority-sovereign wealth fund (12 th largest) with stakes in
Volkswagen, Barclays etc.
 Investing not just in Hydrocarbons but also international banks and consulting firms.
 He wanted to revamp the economic management of Qatar.
Steps he undertook to implement these:
 Created new council and replaced his father cabinet to younger fresh talents.
 Executive director of QIA who was identified as mastermind gave authority to 37 year old who
was said to be a good manager.
Geography and history:
Qatar is situated into Persian Gulf, a small peninsular state that shares its border with Saudi Arabia with
Population of approx. 1.3 million where 3/4th were male who came to work but couldn’t bring their
families until they earn about $1992 on monthly basis.
 In 2013: 15-20% Qataris were Migrant workers

 Non Qataris: in Tourism, construction and domestic services covered up to 94% of migrants from
South Asia whereas Qataris were in public services
About Doha:
From an oil based destination to international destination, was home to most of the population, rest lived
in suburbs. A fully air conditioned city with high rise building and luxury hotels increased its population
from 371000 in 1990 to 1.7 million in 2010.
Rise of Althani Family was due to conflicts between Qatar and Baharian. Over years British power grew
during World war-1
 Pearling industry came to an end due to arrival of Japanese pearl in 1993

 Qatar became independent in 1971
 Sheikh Khalifa Althani appointed as Emir
 1995: His son Hamid Bin Khalifa took his father’s power
Moto of new Emir: He wanted to change social economic reforms where his father was bit slow.
Steps he took to change social economic reforms
 Al Jazeera; news media an educational reform that changed the traditional education system.
 Investments in oil and gas
 Real estates
 Drafting new constitution
 Allowed women to vote
 Built Qatar airways Dubai’s Emirates rival
Qatar’s Economy:
Oil and natural gas:
 Like Middle East countries Qatar also heavily invested in Oil wells but due to world war 1&2 it
completely got shut down between 1942-47.Then into infrastructure development,
telecommunications, airport power plant and much more
Being 13th largest in terms of oil, but sheikh was much into oil only but he faced some challenges due to
fund and market distance. To manage price fluctuation risk they wanted to combine all four sectors that is
LNG, GTL, petrochemical and oil piped gas supplier
 To distribute wealth to nation they opened government jobs into oil and gas.
 Stated owned enterprise(SOE):
 Qatar Petroleum being largest provider of tax, Stakes into fertilizers, petrochemicals etc.
 QP and QIA and Qatar holding: largest Gov. Investment
 SOE not only needs to be public oriented but also they need to be profitable.
In a nutshell they need to make money for both royal and state.
Qatar Investment Authority: Most important SOE
Aim: Strengthen company economy which would not invest in Qatar energy sector.
Focus on:
 SME’s
 Asian Games
 Property
 Qatar Airways
 Merger and investments: Hassan food
 Qatar development bank:
Aim: development of private sectors by Funding different projects, loan portfolio.
 It generated maximum return on capital
Qatar National Vision

Building a bridge between present and future
 Economic and social justice for all

 Environmental development. economic diversification
 Human development: education, health and increased workforce in Qataris
 Social development: family values, increased profile.
Development project undertaken:
Infrastructure and transportation
 Real estate and hotels
 Rail system to Bahrain
 New airport
Sports
 Investment in Training and athletics events: Aspire academy for sports
 2002 FIFA world cup
 Winning bids for Asian games.
Tourism
 From hosting sports it made Qatar a tourist destination
 Hotel expansion
 Cultural attractions
 Business travels
Real estate and Education
 Pearl island
 Arabic English math subjects to generate workforce
 Qatar university : where they found more female
Entrepreneurship and construction allowing more innovation.
Regional and international roles:
 Improved relation with Saudi Arabia by air transportation links and shared gas fields.
 Supporting Lebanese war with Israel
 Providing military support to UK and France. And stayed away only from Syria
 Hosted meeting for WTO that is world trade organization and much more
Challenges and risks they faced:
 Economic challenges. Politics backlashes against new reforms.

 Should control credit or real estate price would rise resulting in higher inflation.
 Immigrants control: clash of culture
 Public salaries increased by 60%
 Severe allegation in world cup bidding.
Revenue from hydrocarbon was the highest 43.3 in 2012-13, Oil being second and LNG being third
Educational expenditure in Bahrain 11.7 of total Gov. Expenditure. Qatar 8.2 and UAE being largest with
23.4
According to statistics, most income generated was by hydrocarbons and body was diversifying its
investment but potential income was generated by oil, natural gas etc. Sheikh Tamim had to discover a
new road to diversify and generate potential income from other sectors. It had made a notable image in
world with its development.
Strategic outlook:
 The Gulf crisis has opened the door for Qatar to make drastic changes, as it is ironic that foreign
pressure has forced Qatarians to face the reality of the need to divide the economy.
 This window could be a landmark opportunity to put the country on a sustainable development
path and enable government recognize the goals set out in Qatar's National Vision 2030, which
are to create a knowledge-based economy, diversify the economy and reduce dependence on the
oil sector, become self-sufficient, and become the world's leading nation and the example of its
neighbors.
Learnings from the case:
 Participate in different joint ventures and merger efforts resulted in increase market share,
increased capacity and market image.
 Diversify your investment.
 Maintain global relations
 See public interest.
 Don’t just invest your money into one place even though its profitable, but instead diverting
money to other sectors can lead to long term growth.

Qatar: Energy For Development: Submitted By: Avani Patel Enrollment Number: 20205029

Uploaded by

Copyright:

Available Formats

Qatar: Energy For Development: Submitted By: Avani Patel Enrollment Number: 20205029

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Qatar: Energy For Development: Submitted By: Avani Patel Enrollment Number: 20205029

Uploaded by

Copyright:

Available Formats

Qatar: Energy for Development

Submitted by: Avani Patel

He always sends a message to

Sheik Tamim’s government is

 World’s largest non-Associated gas field in late 90’s

 In 2013: 15-20% Qataris were Migrant workers

 Pearling industry came to an end due to arrival of Japanese pearl in 1993

Qatar National Vision

 Economic and social justice for all

 Economic challenges. Politics backlashes against new reforms.

Learnings from the case:

You might also like