Special report: Qatar - Doha struggles with rising inflation

And with $172,000 worth of project spending planned for every person in the state, it also has the highest level of per capita investment in the region.

But because of rampant inflation, Qatari residents are getting poorer in real terms. The massive wave of government investment is one of the key drivers of inflation and economists are urging the state to spend less.

However, the country’s chronic lack of capacity demands that it invests heavily.

In areas such as healthcare, Doha cannot spend money fast enough. The current system is struggling to cope with demand. Expatriates are barred from morning appointments, and the wealthy go overseas for treatment.

Doha is investing in new facilities and is about to make healthcare insurance compulsory for expatriates. Insurers have been expecting the changes for some time, and are waiting for the government to decide on whether it should be employers or individuals that foot the bill.

The example highlights Doha’s unenviable position. Doha must act swiftly to remove bureaucratic obstacles to encourage investment, while at the same time knowing that the price of investment is yet more inflation.

Index of all stories in Qatar special report:

• Getting Qatari inflation under control

• Comment: It is time for Qatar to tackle inflation

• Qatar explores alternatives to gas

• ExxonMobil and Qatar Petroleum: A profitable partnership

• The transformation of Doha’s skyline

• Doha, the region’s peacemaker

• Qtel faces up to competition

• Easing the strain on Qatari healthcare