Leiden University Student Repository

Laurent, Lars (2020)

The Structural Challenges to Economic Diversification in Qatar

Bachelor thesis | International Studies (BA)

Economic diversification is understood as an important factor in stabilizing an economy based on the export of natural resources. As one of the richest countries per capita in the world, Qatar has gained most of its wealth from the export of natural gas. At the same time, the reliance on this export might lead to a vulnerable flow of income, with a changing energy market and volatile prices on oil and gas. Economic diversification has therefore become an important policy tool for Qatari leaders to ensure a sustainable future for the economy. However, even though diversification has been seemingly enhanced through economic policies, this thesis argues that there are several structural problems to the diversification process. Making use of the framework from the rentier state theory to explain these underlying structures, the thesis concludes that the structura problems to diversification in Qatar is the reliance on expatriate labour (1), a dominant public sector (2), redistributive...Show moreEconomic diversification is understood as an important factor in stabilizing an economy based on the export of natural resources. As one of the richest countries per capita in the world, Qatar has gained most of its wealth from the export of natural gas. At the same time, the reliance on this export might lead to a vulnerable flow of income, with a changing energy market and volatile prices on oil and gas. Economic diversification has therefore become an important policy tool for Qatari leaders to ensure a sustainable future for the economy. However, even though diversification has been seemingly enhanced through economic policies, this thesis argues that there are several structural problems to the diversification process. Making use of the framework from the rentier state theory to explain these underlying structures, the thesis concludes that the structura problems to diversification in Qatar is the reliance on expatriate labour (1), a dominant public sector (2), redistributive politics (3) and the established social contract between state and citizens (4).Show less

Diversification

Rentier State Theory

Qatar

Gulf

Author

Laurent, Lars

Faculty

Faculty of Humanities

Specialisation

BAIS Middle East

Supervisors

Englert, Sai

ECTS Credits

15

Language

en