Qatar has experienced rapid economic growth over the last several years on the back of high oil prices, and in 2008 posted its eighth consecutive budget surplus. Economic policy is focused on developing Qatar's nonassociated natural gas reserves and increasing private and foreign investment in non-energy sectors, but oil and gas still account for more than 50% of GDP, roughly 85% of export earnings, and 70% of government revenues.
Oil and gas have made Qatar the second highest per-capita income country – following Liechtenstein – and one of the world's fastest growing. Proved oil reserves of 15 billion barrels should enable continued output at current levels for 37 years. Qatar's proved reserves of natural gas are nearly 26 trillion cubic meters, about 14% of the world total and third largest in the world.
Before the discovery of oil, the economy of the Qatari region focused on fishing and pearl hunting. After the introduction of the Japanese cultured pearl onto the world market in the 1920s and 1930s, Qatar's pearling industry faltered. However, the discovery of oil, beginning in the 1940s, completely transformed the state's economy. Now the country has a high standard of living, with many social services offered to its citizens and all the amenities of any modern state.
Qatar’s national income primarily derives from oil and natural gas exports. The country has oil reserves of 15 billion barrels (2.4 km³), while gas reserves in the giant North Field (South Pars for Iran) which straddles the border with Iran and are almost as large as the peninsula itself are estimated to be between 80 trillion cubic feet (2,300 km3) to 800 trillion cubic feet (23,000 km3) (1 trillion cubic feet is equivalent to about 80 million barrels (13,000,000 m3) of oil). Qatar is sometimes referred to as the Saudi Arabia of natural gas. Qataris’ wealth and standard of living compare well with those of Western European states; Qatar has the highest GDP per capita in the Arab World according to the International Monetary Fund (2006)[15] and the second highest GDP per capita in the world according to the CIA World Factbook.[8] With no income tax, Qatar, along with Bahrain, is one of the countries with the lowest tax rates in the world.
