The revenue from the exports is then reinvested towards purchasing food stuff and machinery in order to sustain the rapidly growing economy of Qatar (Mclachlan, 2010).
The current high oil prices are responsible for making sure that Qatar has a favorable balance of payment. It should however be noted that, the country’s dependence is not sustainable and its oil reserves are expected to be completely used up by the year 2023. This has led to the government of Qatar shifting its focus towards the development of the natural gas industry. The government has embarked on a plan to increase its production of liquid natural gas that has been attributed as being the major driving force in Qatar’s rapid growth levels in recent years. There are ongoing plans to expand the production of (LNG) exponentially, which according to estimates, will make the country the biggest exporter of LNG in the world.
In 2010, Qatar’s major partner in import trade was the US and it accounted for 11.8% of all imports of Qatar marking a shift from Japan, which had been the main trade partner in exports and imports with Qatar.
The country’s foreign trade has grown rapidly in recent years because of developments in the oil, gas industries and related infrastructure undertakings. In 2009 for example, the rate balance for goods rose from $ 25,555million in 2009 to $ 53,863million in 2010 which was an increase of 110.8%.I n 2010, the exports of goods including ere exports was estimated to be $95,736 million which was 75% of the overall nominal GDP.
The total imports into Qatar between 2006 and 2010 increased by 41.4 % due to the improvement in, economic activities coupled with Qatar’s hydrocarbon increase in production and extension. A significant portion of the imported items included metal and machinery that are necessary for the development of the hydrocarbon industry of Qatar. Additionally, there were increases in expenditure on non-oil materials for