Introduction
Qatar has become one of the key economic powerhouses in the Middle East due to the policies and initiatives introduced within the past decade. The government has remained supportive of different sectors of the economy in an attempt to achieve positive results. State policies aimed at strengthening the partnership between private and public sectors have led to a paradigm shift in economic diversification. This paper analyzes the nature of such policies and evaluates the validity of this thesis statement.
Policies and Diversification
For many decades, Qatar relied on oil as its major source of capital to develop the economy. However, the government launched the famous Qatar National Vision 2030 in an attempt to diversify the economy and introduce new opportunities to the people. On top of the list were several policies aimed at supporting the power of partnerships between private sector players and public organizations (Biygautane 92). Such a move was seen as a strategic plan intended to deliver positive results and overcome most of the obstacles that hindered economic development.
The government focused on some of the key private sectors that remained instrumental in delivering positive results, such as transport, finance, ICT, and manufacturing. The notable plan was the Economic Diversification and Private Sector Development (PSD) strategy that presented additional strategies for maximizing competitiveness in both the public and private sectors (Alkhateeb 36). Currently, these sectors represent over 40 percent of the current GDP (Alkhateeb 37). Government planners were keen to present evidence-based ideas and procedures for empowering the people to take the economy to the next level.
The implemented policies earmarked various sectors that would improve the level of diversification and make it possible for Qatar’s economy to become more stable. For instance, the areas of science, logistics, and tourism were pursued since they would set the stage for supporting every other sector (El-Radhi 47). These are providing employment to over 200,000 citizens in this country (Alkhateeb 36). Government officials considered various cross-sector initiatives that would attract different players in public and private industries and involve them to solve existing barriers and shift the economy in the right direction.
Within the past decade, the level of diversification remains admirable in this country. In 2017, it was revealed that the gas and oil industries only occupied around 48 percent of the GDP (Alkhateeb 61). Such partnerships were making it possible for the country to start depending on other sectors, including tourism, manufacturing, and science (Alkhateeb 64). The model to the construction of additional infrastructure that benefited from the support of both the government and the public sector. A good example is the Hamad International Airport which became the best destination for tourists and business people visiting the country.
The lessons gained from the implemented partnerships between the private and public reveal that Qatar has the capacity to record positive results in the future. New sectors have developed that continue to support the economy, including logistics and tourism (Biygautane 99). Financial institutions and ICT companies have emerged that are meeting the needs of the people and contributing over 16 percent to the GDP (Biygautane 100). Such developments will continue to improve economic performance.
Conclusion
Economic diversification remains an evidence-based model for minimizing reliance on a specific sector. Qatar’s case is a powerful model that can encourage more countries to introduce private-public relations and partnerships in an attempt to accelerate economic growth. This kind of trend will eventually make Qatar one of the leading economic powerhouses in the Middle East. In conclusion, more people will become empowered and achieve their maximum potential.
Works Cited
Alkhateeb, Haitham M. Qatar: Political, Economic and Social Issues. Nova Science Publishers, 2019.
Biygautane, Mhamed. “Infrastructure Public–Private Partnerships in Kuwait, Saudi Arabia, and Qatar: Meanings, Rationales, Projects, and the Path Forward.” Public Works Management & Policy, vol. 22, no. 2, 2016, pp. 85-118.
El-Radhi, Yesenn. Economic Diversification in the Gulf States: Public Expenditure and Non-Oil Economic Growth in Bahrain, Oman and Qatar. Gerlach Press, 2018.