It is yet not known how much money Qatar has paid to fund its foreign operations, including financing terrorist groups such as the Muslim brotherhood, Al Nusra Front and others that have sought to stir up chaos, particularly in the Gulf region.
Irrespective of the numbers, the closest to the truth was announced by Tunisian government officials, who said that Qatar had transferred an estimated $8 billion to extremist groups in Libya. This is double the amount transferred to similar groups in Syria, Iraq, Yemen and Lebanon in addition to what has been lately discovered of financing opposition groups in Saudi Arabia and Bahrain.
But the question arises — What good will that do? What does Qatar want from wasting its wealth financing foreign operations in bid to play a game that it cannot handle considering its population and geographical capabilities? It has only resulted in tens of billions of dollars going down the drain. The game has now ended and this spells the end of Qatar’s role, with the prospects of withdrawing into its shell once again.
Unfortunately, Qatari decision-makers could have channelled those billions to develop the economy, specifically in renewable energy and non-oil sectors as Qatar is still lagging behind other GCC countries. This despite enjoying great potential to develop renewable energy resources such as solar energy.
Yet, the investments are negligible unlike those made by fellow Gulf States, with the UAE setting up the world’s largest solar power plants as part of its post-oil approach. The UAE has contributed to similar projects in other countries, and the same applies to wind power where the UAE has established the London Array.
As for non-oil sectors, Qatar needs sizeable investments in this field, which would have been boosted if the funds transferred to finance foreign operations had been used to that end. More so as the world is now moving rapidly away from oil and gas, so that there has to be an alternative to maintain good living standards for the next generation.
The billions wasted in financing foreign operations could have built state-of-the-art infrastructure suitable for establishing solar power plants. In addition, those billions could have helped set up a Qatari fund for future generations similar to what has been done by Kuwait years ago where a significant portion of the annual oil revenues is allocated.
It is true that Qatar has a sovereign wealth fund with assets exceeding $300 billion, but establishing another fund is of great importance given that it enjoys financial surpluses that were misused and contributed to destroying fellow Arab countries and funding acts of sabotage in others. Kuwait has a sovereign wealth fund whose volume of assets exceeds that of Qatar’s, but that has not precluded it from establishing another fund for the next generation.
These are just examples of how much things Qatar still needs to do in the field of development and preparing for the future as well as devising alternatives to oil and gas. However, things are not moving in the right direction and instead Qatar is financing extremist groups, wasting a lifetime opportunity for unknown reasons that even perplexes experts.
In fact, the ongoing crisis may give Qatar a historical chance to reconsider its approach and stop financing groups the world had agreed to consider as terrorists. It may also propel Qatar to harness its wealth towards a non-oil and gas reliant economy while integrating with the Gulf common market and away from regional polarisation to satisfy the Wilayat Al Faqih (Guardianship of the Jurist) in Iran, which has it in for the Gulf countries.
Given the GCC’s economic experience is diverse, Qatar has over the years taken advantage of the UAE’s experience, which has become a role model for the entire world in the way it has exceptionally managed to developed its tourism and aviation sectors. It also benefited from the Saudi experience in the industrial field.
However, trying to get involved in dubious financing and supporting terrorist groups has not only wasted a significant development opportunity but also places what Qatar has achieved at risk.
For instance, the situation in the tourism and hotel sectors are vivid examples of what the Qatari situation may end up with if it continues with its arrogant approach and financing foreign operations that are larger than its role as a small country. It is supposed to adopt a peaceful approach and away from polarisation.
If Qatar continues doing so, more calamities will take place and the Qatari people will have to miss out on irreplaceable opportunities.
Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.
