Projecting north from the Arabian peninsula into the Persian Gulf, Qatar is mostly flat, semi-arid desert. Oil production began in the late 1940s and quickly transformed Qatar from an impoverished pearl producer into a prosperous shaikhdom and a founder member of OPEC. Plentiful oil and gas reserves have made it one of the wealthiest states in the region. Politics is being democratized gradually under the ruling al-Thani clan.

Only one in five inhabitants is native-born. Most are guest workers from the Indian subcontinent, Iran, and the northern African countries. Western expatriates enjoy a high standard of living and take no part in politics.

Most Qataris are followers of the Wahhabi interpretation of Sunni Islam and espouse conservative religious views. However, women are not obliged to take the veil and can hold a driving license. Expatriate Christians are allowed freedom to worship but not to promote Christianity.

Since the advent of oil wealth, the Qataris, who were formerly nomadic Bedouins, have become a nation of city dwellers. Almost 90% of the population now inhabit the capital Doha and its suburbs. As a result, northern Qatar is dotted with depopulated and abandoned villages.

Strengths

A steady supply of crude oil and huge gas reserves, plus related industries. Soaring world oil prices in 2000. Modern infrastructure. Budget surplus.

Weaknesses

Dependence on foreign workforce. All raw materials imported. Virtually all water has to be desalinated. Large foreign reserves, but new industries depend on cementing agreements with foreign partners. Potential threat to security from Iraq and Iran makes some multinationals wary of investment.

Qatar is a traditional emirate. The government and religious establishment is dominated by the amir, Shaikh Hamad, who took power from his father, Shaikh Khalifa, in 1995. A failed coup against Hamad in early 1996 was linked with efforts to regain power by Khalifa. The prodemocracy movement has called for reform of the 35-member Advisory Council. Shaikh Hamad responded by authorizing Qatar's first elections, to a new municipal council, in 1999, in which all adults, including women, were able to vote and stand as candidates. In early 2001 he promised the establishment of a directly elected parliament before 2003.

Although Qatar was a founder member of the GCC, Shaikh Hamad has adopted a somewhat ambivalent stance toward it. However, Qatar entered into the region's first-ever mutual defense pact, under the aegis of the GCC, in 2000. In 2001 Qatar reached an agreement on the border with Saudi Arabia, but lost its claim to the Hawar islands when the International Court of Justice ruled in Bahrain's favor.

Although keen to retain strong links with the West, the amir has criticized the USA and the UK for their bombing of Iraq and over the campaign in Afghanistan. Qatar supplied liquified natural gas (LNG) to Israel in the late 1990s, but relations, previously the most cordial of the Gulf states, have suffered greatly since the start of the Palestinian intifada in 2000.

The estimated 12,000-strong armed forces are too small to play a significant role in Qatari affairs, even in the event of political turmoil. A defense agreement with the USA has provided for joint exercises, the stockpiling of US equipment, and US access to bases.

Qatar has the smallest reserves of crude oil within OPEC but abundant reserves of gas (the third-largest in the world), including the world's largest field of gas unassociated with oil.

The desert hinterland supports little plant or animal life. Most native species are extinct in the wild. Oil pollution has damaged marine life. There are salt flats in the south.

There is no public transportation system to speak of outside Doha, and car ownership is high.

Primary health care is free to Qataris. Hospitals operate to Western standards of care and the government also funds treatment abroad.

Education is free from primary to university level. The government finances students to study overseas.

Traditional Islamic punishments have deterred crime. However, narcotics trafficking is on the increase. The incidence of street crime is low.

Qataris have a high income per capita. There is no income tax, public services are free, and the government guarantees jobs for school-leavers. There are no exchange controls.

Tourism is expanding. A government drive to turn Qatar into a leading tourist destination aims to net over 1.5 million tourists a year by 2010. Attractions include unspoiled beaches, duty-free shopping, and modern hotels.

The al-Thanis, related to the Khalifa family of Bahrain, took control of the Qatar peninsula in the 18th century.

• 1971 Sovereignty recognized by UK.
• 1972 Accession of Amir Khalifa.
• 1995 Shaikh Hamad overthrows Shaikh Khalifa.
• 1999 First ever polls, to elect new municipal council.