The sustainability of private sector development in a late rentier state : case of Qatar

Since the 1970s, Qatar's economy has been mainly dependent on oil and gas export rents and revenues, where the private sector mainly undertakes rent seeking business activities and enjoys governmental support while paying no tax in return Qatar has to diversify its economy and focus on increasing the real value-added contributions of the private sector to the overall development. The role of the private sector is essential towards any economic development plans. Thus, in 2008, Qatar introduced its national vision to develop the country. The question arises within the "rentier state" context about the sustainability of private sector development, as the sector is highly dependent on government subsidies and on public sector demand through massive government expenditures. This research sheds light on the challenges facing the Qatari private sector in this economic development by studying the most relevant theories and by raising questions for future academic research.