Qatar, Gas and the Credit Crunch

Oil prices have fallen over a hundred dollars, credit has dried up and neighbor Dubai is already experiencing severe problems.

Yet one small gulf country is hoping that its huge gas reserves will mean that it will escape the worst of the credit crunch.

Huge Gas Reserves

Qatar has the third largest gas reserves in the world, and for years it has been investing heavily in its infrastructure and gas production.

Now it is hoping that its Natural Gas, which is often sold on a long term contract basis which can help minimize long term fluctuations in price, will help it not just survive the recession but actually grow.

Predicted Growth

Saudi bank Samba Financial Group have predicted that the Qatar economy will grow 10% in 2009. After inflation has been factored in, that's not a huge amount compared to the growth of the past.

However, it certainly beats growth in the UAE which is predicted to fall below 3%. And it is likely to be looked at with envy by much of the rest of the world.

A Safe Haven

As a job market, Qatar is currently getting a lot of attention. Some expats who planned to move back to the UK have cancelled their return.

We know of one expert with over 20 years of experience in his field who had decided to return home. After six months of looking for work he gave up, and returned to his old job in Qatar.

Dangers ahead?

However, there is no consensus on whether Qatar is clear yet. Some fear that the construction boom here has been built on cheap credit that is now drying up. The price of property and land is also falling dramatically - up to 50% in some areas!

Yet at New Years parties, most expats were still thanking their stars that they were in Qatar, and not back in their home countries.