Country Report Qatar

Summary

The political reform programme of the emir, Sheikh Hamad bin Khalifa al-Thani, is likely to progress slowly over the outlook period, although foreign policy challenges will take priority.
Qatar will maintain an active and independent foreign policy. In its approach to Iran, however, Qatar will align itself with the rest of the GCC, in an effort to distance itself from the stand-off between the US and Iran.
Qatar will continue to pursue its economic diversification strategy, although the bulk of foreign investment will still be directed into the oil and gas sectors.
Economic growth will rise steadily, reaching 11.8% in 2008 and 13.4% in 2009, as new liquefied natural gas and petrochemicals projects come on stream and government expenditure growth remains high.
Average annual inflation will reach 15% in 2008, before easing slightly to 11.9% in 2009.
The current-account surplus will remain large throughout the outlook period, despite strong import growth, on the back of high energy prices and increasing oil and gas production.

A new electoral law that provides the framework for the creation of a two-thirds elected parliament has been approved. It places some limits on the rights of naturalised citizens to vote and stand for office.
A draft law on the creation of a Supreme Constitutional Court has been referred to the Advisory Council.
Qatar has successfully brokered a deal between Lebanon's rival factions, leading to the appointment of a president, a post that had been vacant since October, and the formation of a unity government that includes Hizbullah.
The Central Bank has proposed a series of limitations on mortgage lending for both residential and commercial property. The measures will restrict the size and duration of mortgages and the size of banks' mortgage loan books.
Inflation for the first quarter of 2008 reached 14.8% year on year. Prices of food and of rents and fuel rose particularly strongly, by 18.5% and 22.5% year on year.
Qatar has revised up its population figures, concluding that there are now 1.45m people in the country, about 50% more than previously estimated. The new data show an average annual growth rate of nearly 20% since 2004.