Former Emir Sheikh Hamad bin Khalifa Al Thani Dies at 74, Oversaw Qatar's Economic Transformation

The 'father' of Qatar, Amir Sheikh Hamad bin Khalifa Al Thani, has passed away at the age of 74. During his 18-year reign, Sheikh Hamad reshaped the energy-rich country's domestic and global presence.

When he took power in 1995, Qatar's economy was small and primarily dependent on oil. At that time, the vast gas reserves of North Field were in the early stages of development.

In less than two decades, Qatar became the world's largest exporter of liquefied natural gas (LNG). The country also became the owner of the largest sovereign wealth fund and one of the countries with the highest per capita income.

This transformation was not just an oil or gas boom driven by rising energy prices. It was a complete overhaul of the country's economic model. It was strengthened by a strategy of investing wealth derived from natural resources into productive assets, financial institutions, infrastructure, and human capital development.

This economic transformation did not begin only after Sheikh Hamad took power. Earlier, in 1989, he was appointed chairman of the Supreme Council for Planning. That body was responsible for formulating Qatar's economic and social policies. Through this, he had the opportunity to oversee the preparation of development programs even before coming to power.

Here we discuss Sheikh Hamad's economic legacy. It helped transform Qatar from a small economy in the Gulf into a major and influential player in the global energy and investment market.

• How did gas change Qatar's economy?

The development of the world's largest natural gas reserve, 'North Field', was the real beginning of Qatar's economic transformation.

In the late 1990s, decisions were made to increase investment and expand gas liquefaction projects. This changed Qatar's position in the energy market and propelled it towards global leadership.

Qatar, which exported its first lot of LNG in 1996, became the world's largest exporter in less than 15 years.

According to data from Qatar Energy and the International Energy Agency, its production capacity reached 77 million tons per year by 2010.

The impact of this boom was not limited to increasing revenue. It strengthened Qatar's position as a strategic partner for global energy security, especially for the economies of Asia and Europe.

Data from Qatar's Amiri Diwan reflects the scale of transformation in the energy sector. During Sheikh Hamad's reign, the value of the hydrocarbon sector increased from 11 billion Qatari riyals (approximately 3 billion dollars) to 403 billion riyals (approximately 110.4 billion dollars).

• Unprecedented Economic Growth

The boom in gas production was directly reflected in Qatar's economy. In the first decade of the new millennium, it became one of the fastest-growing economies in the world.

According to World Bank data cited by Bloomberg, Qatar's economy grew more than 20 times during Sheikh Hamad's reign. The Gross Domestic Product (GDP), which was around 8 billion dollars in 1995, reached around 199 billion dollars in 2013.

According to the International Monetary Fund (IMF), Qatar's economy achieved the highest growth rate in the world during that period. As LNG production projects came online, the real economic growth rate, which was 18 percent in 2006, reached 26.2 percent in 2011.

• From Gas Boom to Capital Export

This economic transformation did not stop at production or revenue growth; it also extended to the way wealth was managed.

As part of the system for managing financial savings, Qatar established the Supreme Council for Economic Affairs and Investment in 2001, chaired by Sheikh Hamad.

According to the Qatari Amiri Diwan, that council was given the goal of 'developing Qatar's financial reserves'. It was also tasked with diversifying domestic and foreign investments with the aim of 'diversifying sources of income'.

Four years later, the Qatar Investment Authority (QIA) was established to manage the financial savings generated from oil and gas exports.

Sheikh Hamad implemented a policy of allocating a portion of the revenue from energy for long-term investment. His objective was to create sustainable sources of income beyond natural resources.

QIA quickly became one of the largest sovereign wealth funds in the world. It acquired stakes in companies like Barclays and Volkswagen. It also invested in the UK's Harrods department store in 2010.

Qatar's investment policy spread across almost all continents of the world. Qatar invested in everything from football clubs to global financial institutions and London'sShard skyscraper.

According to the Sovereign Wealth Fund Institute, the authority's assets are now estimated to be over $500 billion. This has made Qatar one of the largest government investors in the world.

• Rising Living Standards for Qatari Citizens

This economic growth was also reflected in welfare indicators. According to the World Bank and IMF, during Sheikh Hamad's reign, Qatar became one of the countries with the highest per capita GDP in the world.

Based on purchasing power parity, it exceeded $90,000. The country increased spending on housing, education, and health. Unemployment also fell to very low levels.

According to experts, this increase in income was not just a result of high energy prices. It was also a result of expanded government investment and job creation linked to energy and infrastructure projects.

• Investment in Citizens

Along with investment in the energy sector, Qatar also moved towards building a knowledge-based economy. One of the key development decisions after Sheikh Hamad took power was the establishment of the 'Qatar Foundation for Education, Science, and Community Development' in August 1995. It was established as a key body for investing in education, scientific research, and innovation.

Later, the country brought in international universities such as Georgetown, Texas A&M, and Carnegie Mellon. This was seen as part of a strategy to prepare for the post-oil and gas era.

There was also significant expansion in the health sector. The Hamad Medical Corporation was developed, and new hospitals and specialized centers were established. This was done to improve the quality of public services and meet the needs of a growing population.

At the same time, the country's economic openness and its policy of strengthening itself as a financial and business hub in the region worked. This transformed the expanding capital, Doha, into an important center for international economic and investment conferences.

• World Cup and Future Economy

During Sheikh Hamad's reign, revenue from gas was not limited to Qatar's budget. It was also invested in large infrastructure projects.

During that period, projects such as Hamad International Airport, Hamad Port, Lusail City, and modern road networks were initiated. Also, projects that later laid the foundation for the Doha Metro were started.

These efforts helped transform Doha from a small city in the Gulf into a global urban hub. Standing on this foundation, Qatar became the first Arab and Middle Eastern country to host the 2022 FIFA World Cup.

After winning the right to host this major football tournament, the country's infrastructure and construction sectors saw a major boom. The government approved a massive expenditure plan of over $200 billion on infrastructure, including roads, stadiums, railway lines, and new airports and ports.

• Continuously Running Economic Legacy

In 2008, the state implemented 'Qatar National Vision 2030'. It was a strategic plan to build a knowledge-based economy with the goal of ensuring continuous prosperity for future generations.

This vision continues to serve as the main framework for economic policies today. It reflects the direction initiated under Sheikh Hamad's leadership, based on transforming natural wealth into a foundation for sustainable development.

The development of the gas industry was the beginning of Qatar's economic transformation. But Sheikh Hamad's most significant legacy is the transformation of extraordinary revenue from energy into tools for long-term development.

Institutions such as the Supreme Council for Economic Affairs and Investment and QIA were established. Qatar National Vision 2030 was launched, and investments were made in education and infrastructure. Through these, Qatar moved from an economy dependent on oil exports to a model that combines energy power with global investment influence.

This framework still forms the basis of the state's economic policies. It is being continued to this day by Sheikh Hamad's son and successor, Amir Sheikh Tamim bin Hamad Al Thani.

Al Jazeera