About the CBI

February 2006
 Note: Qatar

Flag of Qatar is maroon with a broad white serrated band - nine white points
- on the hoist side.

PROFILE

OFFICIAL NAME:
State of Qatar

Geography
Area: 11,437 sq. km. (4,427 sq. mi.); about the size of Connecticut and Rhode
Island combined.
Cities: Capital--Doha 431,525 (2005 est.). Other cities--Umm Said, Al-Khor,
Dukhan, Ruwais.
Terrain: Mostly desert, flat, barren.
Climate: Hot and dry, some humidity in summer.

People
Nationality: Noun and adjective--Qatari(s).
Population (2005 est.): 863,051.
Population growth (2005 est.): 2.61%.
Ethnic groups: Arab 40%, Pakistani 18%, Indian 18%, Iranian 10%, other 14%.
Religion: Islam (state religion, claimed by virtually all of the indigenous
population).
Languages: Arabic (official); English (widely spoken).
Education: Compulsory--ages 6-16. Attendance--98%. Literacy (2004 est.)--89%
total population, 89.1% male, 88.6% female.
Health (2005 est.): Infant mortality rate--18.6 deaths/1,000 live births.
Life expectancy--73.7 years.
Work force (1997): 280,122. Industry, services, and commerce--70%;
government--20%; agriculture--10%.

Government
Type: Constitutional Emirate.
Independence: September 3, 1971.
Constitution: Approved by popular vote 2003; came into force June 2005.
Branches: Executive--Council of Ministers. Legislative--Advisory Council
(currently appointed pending elections in 2006 or 2007; has assumed only
limited responsibility to date). Judicial--independent.
Subdivisions: Fully centralized government; nine municipalities.
Political parties: None.
Suffrage: Universal over age 18, since 1999.

Economy
GDP (2004): $28.45 billion.
Real growth rate (2004) 20.5%.
Per capita income (2004): $32,966.
Natural resources: Petroleum, natural gas, fish.
Agriculture: Accounts for less than 2% of GDP. Products--fruits and
vegetables (most food is imported).
Industry: Types--oil production and refining (31% of GDP), natural gas
development, mining, manufacturing, construction, and power.
Trade (2004): Exports--$18.45 billion, principally oil 47% and gas 36%.
Partners (2004)--Japan 42.1%, South Korea 15.8%, Singapore 9.1%, India 5.4%,
and U.A.E. 2.9% (U.S. 1.2%). Imports--$6 billion, principally consumer goods,
machinery, food. Partners (2004)--France 26.7%, U.S. 9.6%, Saudi Arabia 9.5%,
Germany 5.2%, and Japan 5.2%.

PEOPLE
Natives of the Arabian Peninsula, most Qataris are descended from a number of
migratory tribes that came to Qatar in the 18th century to escape the harsh
conditions of the neighboring areas of Nejd and Al-Hasa. Some are descended
from Omani tribes. Qatar has 863,051 people, the majority of whom live in
Doha, the capital. Foreigners with temporary residence status make up about
four-fifths of the population. Foreign workers comprise 52% of the total
population and make up 88% of the total labor force. Most of them are South
Asians, Egyptians, Palestinians, Jordanians, and Iranians. About 6,000 U.S.
citizens resided there as of 2001.

For centuries, the main sources of wealth were pearling, fishing, and trade.
At one time, Qataris owned nearly one-third of the Persian Gulf fishing
fleet. With the Great Depression 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. Qatar has an
increasingly high literacy rate.

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
Sheikh Abdullah bin Jassim Al Thani as Ruler. The Al Thani family had lived
in Qatar for 200 years. The 1916 treaty between the United Kingdom and Sheikh
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 U.K. 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 Qatar Petroleum Company, a
subsidiary of the Iraq Petroleum Company, which was owned by Anglo-Dutch,
French, and U.S. interests. High-quality oil was discovered in 1940 at
Dukhan, on the western side of the Qatari Peninsula. Exploitation was delayed
by World War II, and oil exports did not begin until 1949.

During the 1950s and 1960s gradually increasing oil reserves brought
prosperity, rapid immigration, substantial social progress, and the
beginnings of Qatar's modern history. When the U.K. announced a policy in
1968 (reaffirmed in March 1971) of ending the treaty relationships with the
Gulf sheikdoms, Qatar joined the other eight states then under British
protection (the seven trucial sheikdoms--the present United Arab
Emirates--and Bahrain) in a plan to form a union of Arab emirates. By
mid-1971, however, the nine 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.

In February 1972, the Deputy Ruler and Prime Minister, Sheikh Khalifa bin
Hamad, deposed his cousin, Emir Ahmad, and assumed power. This move was
supported by the key members of Al Thani and took place without violence or
signs of political unrest.

On June 27, 1995, the Deputy Ruler, Sheikh Hamad bin Khalifa, deposed his
father Emir Khalifa in a bloodless coup. Emir Hamad and his father reconciled
in 1996. Since then, the Emir has announced his intention for Qatar to move
toward democracy and has permitted a free and open press and municipal
elections as a precursor to parliamentary elections expected by early 2007.
Qatari citizens approved a new constitution via public referendum in April
2003, which came into force in June 2005.

GOVERNMENT AND POLITICAL CONDITIONS
The ruling Al Thani family continued to hold power following the declaration
of independence in 1971. The head of state is the Emir, and the right to rule
Qatar is passed on within the Al Thani family. Politically, Qatar is evolving
from a traditional society to one based on more formal and democratic
institutions to meet the requirements of social and economic progress. The
country's constitution formalizes the hereditary rule of the Al Thani family,
but it also establishes a two-thirds elected legislative body and makes
ministers accountable to the legislature. National elections are not expected
until 2007 or 2007, and in current practice, 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 is institutionalized in the Advisory Council, an appointed
body that assists the Emir in formulating policy. Elections in 1999 in which
men and women participated resulted in the formation of a municipal council.
One woman candidate was elected to the municipal council in 2003.

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. As the most visible sign of the move toward
openness, the Al Jazeera satellite television station based in Qatar is
considered the most free and unfettered broadcast source in the Arab world.
In practice, however, Al Jazeera rarely criticizes the ruling Al Thani
family.

Principal Government Officials
Emir, Commander in Chief of the Armed Forces, and Minister of Defense--HH
Sheikh Hamad bin Khalifa Al Thani
Deputy Ruler, Crown Prince, deputy Chief of the Armed Forces--HH Sheikh Tamim
bin Hamad bin Khalifa Al Thani
Prime Minister--HH Sheikh Abdullah bin Khalifa Al Thani
Minister of Foreign Affairs and Deputy Prime Minister--HE Sheikh Hamad bin
Jassim bin Jabir Al Thani
Ambassador to the U.S.--HE Nasir Bin Hamad Mubarak Al-Khalifa

Qatar maintains an embassy in the United States at 4200 Wisconsin Ave. NW,
Suite 200, Washington, DC 20016 (tel. 202-274-1600) and a consulate in
Houston at 4265 San Felipe Street, Suite 1100, Houston, Texas 77207 (tel.
713-968-9840). Qatar's Permanent Mission to the United Nations is at 747
Third Ave., 22nd floor, New York, NY 10017 (tel. 212-486-9335).

DEFENSE
Qatar's defense expenditures ($723 million) accounted for approximately 10%
of GNP in 2001. Qatar maintains a modest military force of about 6,797 men,
including an army, navy, air force, and public security. Qatar also has
signed defense pacts with the U.S., U.K., and France. Qatar plays an active
role in the collective defense efforts of the Gulf Cooperation Council (the
regional organization of the Arab states in the Gulf; the other five members
are Saudi Arabia, Kuwait, Bahrain, the U.A.E., and Oman). Qatari forces
played an important role in the first Gulf War, and Qatar has supported U.S.
military operations critical to the success of Operation Enduring Freedom and
Operation Iraqi Freedom. Qatar hosts CENTCOM Forward Headquarters.

ECONOMY
Oil formed the cornerstone of Qatar's economy well into the 1990s and still
accounts for about 60% of total 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. The trend has continued, thanks in part to burgeoning gas exports.

Qatar's economy was in a downturn from in the mid-1990s. The Organization of
Petroleum Exporting Countries' quotas on crude oil production, the lower
price for oil, and the generally unpromising outlook on international markets
reduced oil earnings. In turn, 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. With the economy
recovering in the late 1990s, expatriate populations have grown again.

Oil production is currently around 800,000 barrels per day (bpd), and is
expected to reach 1,000,000 bpd by 2008. At the current production pace, oil
reserves are expected to last more than 40 years. Moreover, large natural gas
reserves have been located off Qatar's northeast coast. Qatar's proven
reserves of gas are the third-largest in the world, exceeding 900 trillion
cubic feet. Qatar has the largest single non-associated gas field in the
world, the North Field. Qatar sits on 14% of the world's total proven gas
reserves. Qatar currently exports 14 million metric tons per annum (mmta) of
natural gas, and it expects to reach 77 mmta of liquefied natural gas (LNG)
exports by 2010, thus becoming the largest natural gas exporter in the world.
In five years, Qatar could very likely supply one-third of the world's LNG
needs.

The economy was boosted in 1991 by completion of the $1.5-billion Phase I of
North Field gas development. In 1996, the Qatar gas project began exporting
liquefied natural gas to Japan. Further phases of North Field gas development
costing billions of dollars are in various stages of planning and
development, and agreements have been concluded with the U.A.E. to export gas
via pipelines and to Spain, Turkey, Italy, the U.S., France, South Korea,
India, China, Taiwan, and the U.K. via ship.

Qatar's heavy industrial projects, all based in Umm Said, include a refinery
with a 140,000 bpd capacity, a fertilizer plant for urea and ammonia, a steel
plant, and a petrochemical plant. All these industries use gas for fuel. Most
are joint ventures between U.S., European, and Japanese firms and the
state-owned Qatar Petroleum (QP). The U.S. is the major equipment supplier
for Qatar's oil and gas industry, and U.S. companies are playing a major role
in North Field gas development and related energy and water infrastructure
development.

The country's economic growth potential is stunning. Qatar's GDP, currently
around $30 billion, has grown at an average of 19% over the past five years.
GDP grew by 20.5% in 2004. Qatar's per capita GDP is more than $30,000, soon
to be the highest in the world. Even more important is the Qatari
Government's strategy to utilize its wealth to generate more wealth by
diversifying the economic base of the country beyond hydrocarbons.

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 U.S., are returning home to assume
key positions formerly occupied by expatriates. In order to control the
influx of expatriate workers, Qatar has tightened the administration of its
foreign manpower programs over the past several years. Security is the
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
U.K. and friendship with neighboring states. Most Arab states, the U.K., and
the U.S. 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 U.S.S.R. and China in 1988. It was
an early member of OPEC and a founding member of the GCC.

In September 1992, tensions arose with Saudi Arabia when a Qatari border post
was allegedly attacked by Saudi forces, resulting in two deaths. Relations
have since improved, and a joint commission has been set up to demarcate the
border as agreed between the two governments.

Qatar and Bahrain disputed ownership of the Hawar Islands. The International
Court of Justice in The Hague issued a ruling in June 2001, which both sides
accepted. In the agreement Bahrain kept the main Hawar Island but dropped
claims to parts of mainland Qatar, while Qatar retained significant maritime
areas and their resources.

U.S.-QATARI RELATIONS
Bilateral relations are strong and expanding. The U.S. embassy was opened in
March 1973. The first resident U.S. ambassador arrived in July 1974. Ties
between the U.S. and Qatar are excellent and marked by frequent senior-level
consultations in Doha and Washington. Emir Hamad visited Washington in 2004,
and President Bush visited Qatar in 2003. Qatar and the United States
coordinate closely on regional diplomatic initiative, cooperate to increase
security in the Gulf, and enjoy extensive economic links, especially in the
hydrocarbons sector. Qatar sees the development of a world-class educational
system as key to its continued success. As a result, hundreds of Qataris
study in the United States. Cornell University has established a degree
granting branch medical school campus in Doha, and other universities
including Texas A&M, Carnegie Mellon University and the Virginia Commonwealth
University School of Design also have branch campuses in Qatar's newly
inaugurated "Education City" complex.

Principal U.S. Officials
Ambassador--Chase Untermeyer
Deputy Chief of Mission--Scott McGehee
Political/Economic Counselor--Rob Pyott
Political Officer--Farah Chery-Medor
Economic/Commercial Officer--Guy Strandemo
Consular Officer--Larry Mitchell
Public Affairs Officer--Mirembe Natongo

The U.S. Embassy in Qatar is located in Doha at 22 February Road, Al Luqta
District, Doha, Qatar Mailing address: P.O. Box 23, Doha. Tel.: 974-488-4161;
fax 4884150. The embassy is open Sunday through Thursday (Qatar's workweek),
closed for U.S. and Qatari holidays.