QEF: Strong Alliances With International Players Supported by Wealth, Infra & Strategic Location
The geographical location of Qatar plays an important role in strengthening its economic ties with various countries of the world
THE geographical location of Qatar plays an important role in strengthening its economic ties with various countries of the world, and at the same time helps it develop its foreign trade system.
It is characterized by a coastline of 563 km on the western coast of the Arabian Gulf, a transportation infrastructure, a road network, and a developed airport and port, which strengthened its endeavor to take the lead in this field regionally and globally, until it became a link between East and West and Asia and Europe. It also made it a destination for conference tourism and major events, including the Qatar Economic Forum, which also contributed to the promotion of the national economy and investment opportunities.
Qatar’s economy was based on fishing and the pearl trade before the discovery of oil and gas, which changed the features of the state. With the establishment of the city of Zubarah in 1766, the modern history of Qatar began to take shape, as the city became an important economic hub. Since that date, the country has made great strides, to transform from a society based on diving, to the richest country in the world, as its geographical location contributed to ensuring the freedom of exchange of exports and imports. The country’s economic geography has enhanced the chances of its industrial, oil and gas exports reaching the countries of the world. It exports huge amounts of oil and natural gas around the world, representing 97 percent of its export volume, with a total value estimated at $58 billion.
Its economy has become today the strongest and most developed at the global level, and it has the third largest reserves of natural gas after Russia and Iran, accounting for 13 percent of it. In recent years, it has witnessed rapid changes. The discovery of oil in the middle of the twentieth century led to unprecedented growth, accompanied by a renaissance that continues to this day. The question which arises is how did economic geography help the country strengthen its partnerships and trade alliances and develop its interests? Especially since its partners in the field of gas trade around the world are India, China, Japan, South Korea and the United States of America.
Qatar News Agency (QNA) surveyed the opinions of a number of academics, who emphasized the importance of its location in fulfilling renewable gas contracts for decades, and the role of the local private sector, which has become transnational, after it succeeded in forging strong alliances with international trading partners from the main players. According to the certificate of origin issued by the Qatar Chamber, the value of its exports in the first quarter of 2023, amounted to QR9.1 billion, achieving a growth of 17.5 percent, compared to its volume in the same quarter of 2022, which amounted to QR7.73 billion.
Khaled Walid Mahmoud, PhD researcher in political science, said that the strategic location of the State of Qatar contributes to making it a point of convergence between East and West, and between the continents of Africa, Asia and Europe. Geography enhances Qatar’s location on the global economic map, and helps, despite the difficult geopolitical scene, to facilitate access to international markets, especially in the Middle East and Europe, and Qatar dedicates this site to expanding the scope of exporting its products, especially gas, and increasing the volume of trade exchange and developing it with other countries.
He added that the Qatari geography plays an important role in enhancing and developing its trade links, strengthening its relations and economic exchange, and qualifying it to become a center for international trade, thanks to its seaports, airports and other logistical centers, thus, it helps to facilitate the movement of goods, reduce the cost of production, and the quality of products and services, thus increasing its competitiveness in the global markets. It also helps them understand international trade patterns and identify their partners. Hence, the geographical location helped the State of Qatar to be an important hub and a difficult figure in international trade. where geography has contributed, despite its small size, to making the country the most prosperous and fastest growing region in the world, due to its location linking Asia, Africa and Europe, as well as its proximity to global trade centers and lines, and emerging markets.
He pointed out that this geographical advantage provides easy access to various countries of the world, thanks to its marine transport lines through Hamad Port, which is considered a strategic window on global maritime navigation, and Qatar’s gateway to international trade. It connects Qatar with various sea destinations around the world, and it is one of the largest and most modern ports in the Middle East.
He noted the great role also played by Hamad International Airport, which has a five-star rating, and the modern fleet owned by Qatar Airways that contributed to linking the State of Qatar with the globe and helped accelerate the transfer of Qatari exports to various international destinations, which increased the competitiveness of the national economy, strengthened its capabilities, and provided it with elements supporting its cycle.
For his part, Dr. Nizam Al Shafei, part-time professor of geography at Qatar University, enumerated the advantages of Qatar’s economic geography, and its natural resources and wealth, which have a direct impact and a vital impact on the national economy, as well as the axis of movement of production outputs to consumption sites and markets, by land, sea and air, citing the achievements of liquefied natural gas carriers in developing Qatari economic relations and developing them in order to achieve common interests. Qatar Airways has also promoted direct and indirect economic exchange around the world, in addition to the integrated, quality and global infrastructure of the ports of Ras Laffan and Hamad, where they strengthened the role played by the Qatari site in expanding the circle of economic relations east and west, in quantity and quality.
Al Shafei asserts that the geographical location affects the economic relations of countries, as the one closest to the world of trade is the easiest and least expensive. This requires an integrated infrastructure in terms of transportation and communication, and this is what the State of Qatar has noticed, as the world has become small and close to it.
In turn, the financial analyst Waleed Al Fuqaha touched on the role played by Qatar’s geography in strengthening trade relations, as its strategic location made it a center for trade and investment for its proximity to the corridors of global communication, which strengthened its location as a focal point in trade exchange, especially in the energy and gas sectors.
He referred to the effective contribution of the infrastructure and facilities granted in attracting strategic partners, which strengthened Qatar’s strategic partnerships with major economies of the world, such as China, the United States of America, and Europe, and provided an attractive environment for foreign direct investment. Qatar has also become one of the preferred destinations for economic and investment events, aimed at bringing together economic decisionmakers to enhance cooperation and discuss issues affecting the world.
He noted the role of the Qatari private sector in developing intra-trade, as it also contributes to stimulating the national economy, by focusing on innovation and technology. The sector’s entry into partnerships with foreign entities also contributed to the revitalization of trade exchange with friendly countries.
He also noted Qatar’s success in providing an advanced structure and modernizing its economic legislation, which contributed to the prosperity of commercial and industrial movement, making it a leading destination and a center for international business and trade, thanks to the logistical services it provides.
Regarding the importance of the state’s location, Associate Professor Of Economics, at the College of Business and Economics at Qatar University Dr. Mahmoud Abdellatif, pointed out that Qatar mediates the countries of the world, and this has achieved economic integration with the Arab Gulf states and the rest of the Arab countries, and other countries in the Middle East region such as Turkiye and Iran. It also increased the volume of its trade exchange with Europe, Africa and Asia.
He added that the geographical distinction enabled the State of Qatar to export gas to many countries in Europe and the Near East, such as Japan and Korea, contributed to achieving a surplus in the Qatari balance of payments, contributed also to doubling the country’s ability to invest in many countries in the region, Europe and Asia and exploiting the surplus funds generated from oil and gas in investments that achieve remunerative returns that serving current and future generations.
On the other hand, Dr. Abdullatif noted the role of Qatar Airways in bringing distances closer and increasing the tourist flow to Qatar, as its network covers many destinations in Africa, Central Asia, Europe, the Far East, South Asia, the Middle East, North America, South America and Oceania, which made Doha in heart of the world. It contributed to promoting tourism in the country, increasing the number of tourists, and then increasing the contribution of the travel and tourism sectors to the Qatari economy, and supporting efforts to achieve economic diversification, by doubling the performance of the non-oil sectors in terms of gross domestic product.