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Like Bahrain, Qatar was a British protectorate until independence in 1971.

From being one of the Gulf's poorest states with an economy dependent largely on pearl fishing, Qatar now has one of the world's highest per capita gross domestic products (GDP) thanks to the discovery of large oil fields in the 1940s, and the development of the giant North Field gas reservoir.

In 1995, Crown Prince Hamad Bin Khalifa al-Thani deposed his father to become emir, and has brought in various political reforms. The first parliamentary elections are planned for 2003. The population is very small at only around 600,000, and expatriates outnumber Qataris.

Relations with neighbour Bahrain have improved considerably since the International Court of Justice (ICJ) ruling settling the dispute over ownership of the Hawar islands, which went in favour of Bahrain. A project is underway to link the two physically for the first time in 8,000 years by means of the world's longest fixed link, a 45-kilometre causeway known as the Friendship Bridge.

Table: Qatar at a glance

Government

Government officials

• Emir: Hamad bin Khalifa al-Thani

• Prime Minister: Hamad bin Jasim bin Jabir al-Thani

• Dep. Prime Minister: Abdallah bin Hamad al-Atiyah

• Min. of Communications & Transport: Ahmad bin Nasir al-Thani

• Min. of Defense: Hamad bin Khalifa al-Thani

• Min. of Economy & Commerce: Yusif Husayn al-Kamal

• Min. of Education: Shaykha bint Ahmad al-Mahmud

• Min. of Electricity & Water: Abdallah bin Hamad al-Atiyah

• Min. of Endowments & Islamic Affairs: Faysal bin Abdallah al-Mahmud

• Min. of Energy & Industry: Muhammad Salih al-Sadah

• Min. of Finance: Yusif Husayn al-Kamal

• Min. of Foreign Affairs: Hamad bin Jasim bin Jabir al-Thani

• Min. of Interior: Abdallah bin Khalid al-Thani

• Min. of Justice: Hasan bin Abdallah al-Ghanim

• Min. of Labor & Social Affairs: Sultan Hasan al-Dhabit al-Dusari

• Min. of Municipal Affairs & Agriculture: Abd al-Rahman bin Khalifa bin Abd al-Aziz al-Thani

• Min. of Public Health: Dr Hajar bin Ahmad al-Hajar al-Binali

• Min. of State: Hamad bin Abdallah bin Muhammad al-Thani

• Min. of State: Hamad bin Suhaym al-Thani

• Min. of State for Cabinet Affairs (Acting): Sultan Hasan al-Dhabit al-Dusari

• Min. of State for Foreign Affairs: Ahmad bin Abdallah al-Mahmud

• Min. of State for Internal Affairs: Abdallah bin Nasir bin Khalifa al-Thani

• Governor, Central Bank: Abdallah bin Saud al-Thani

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Economy

Qatar's economy has been transformed by the development of the world's largest non-associated gas reservoir, the North Field, and in 2002 the size of the field was more than doubled to an estimated 900 trillion cubic feet (tcf), promising further prosperity. 2001 gross domestic product (GDP) of $16,152 million represented a 60 per cent increase on 1998, while inflation has averaged no more than 3 per cent a year over the same period, suggesting growth in real terms of an average of roughly 11 per cent to the end of 2001.

The government is pursuing a four-pronged strategy to develop the gas industry: the first is to address domestic needs driven by soaring demand for electricity and water; the second is to expand the liquefied natural gas (LNG) industry; the third is the development of a regional gas pipeline network; and the fourth is to develop export-oriented downstream industries.

In May 2002 the government launched a $2,800 million crash investment programme in the state's infrastructure, the largest allocation going to road building, the second largest to buildings and the third to drainage, thus opening a huge market for construction contractors. As there has been a lack of major infrastructure projects in previous years, there are few established players on the scene. In the energy sector Qatar Petroleum (QP) and its foreign partners are planning to spend $3,000 million a year for the next five years expanding oil and gas capacity and the downstream industrial base.

The government is committed to ongoing privatisation. In telecoms, the government sold off a 45 per cent stake in the state-owned Qatar Telecom (Q-Tel) in 1998. Privatisation of the power sector is also in progress: in May 2000 the Ministry of Electricity and Water (MEW) transferred assets to the Qatar General Electricity and Water Corporation (QEWC), which is 43 per cent government-owned and 57 per cent owned by private local investors. QEWC plans to buy all other existing government power and water assets by the end of the 2002.

Table: Economic indicators

($ million, unless stated)