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Qatar Economy

Qatar Economy
The most notable weaknesses with regard to the Qatar trade environment regards to the issue of globalization. The liberalization approach has accorded significant growth within the nation’s economy as the export and import factors have been enhanced. Last year, the economic expansion was accorded to the oil industry whose exports accorded a near twofold and thereby according a proportionate increase within the nation’s monetary inflows. However, the purchasing power hinged to the additional inflows has considerably been reduced by the heightened levels of price increases due to deflation activities attributable to global trade. Currency fluctuations have amplified this issue, especially with the fact that the nation employs the dollar as its standard measure. Consequently, this has inhibited the capacity of the state authorities to control the level of prices through monetary policies like the amplification of interest rates. Additionally, the prices cannot be checked through exchange revaluation towards a downward review of import overheads due to bloc trading regulations instituted by the Gulf Monetary Union.
Adjacent to the economic challenges infused by the liberalization approach, increased cultural divergences also bear a significant weakness within the Qatar trading needs. The nation is primarily an Islamic state with the main language being the Arabic dialect. Subsequently, the same is accorded as an official language within the work environment and this has created severe communication problems with overseas investors. The intricate nature of Islamic ideals with regard to trading practices in the business world has led to various constraints. For instance, the Islamic religion prohibits interest charges with loaning practices and this has hindered the expansion of banking and other financial institutions within the region. As the money supply is reduced or constantly held to the consumers, the economic expansion need is affected. Additionally, cultural perspectives have adverse affect on business dealings as it has led to segregation instances within the preference to business and trading partners. Qatar natives accord positive impressions concerning foreigners with the ability of one to accord proficiency with regard to the Arabic language. This approach is quite unhealthy to the economic progression of the regions as beneficial investments are inhibited by the function.

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