PESTEL Analysis of Qatar - Paper Example

A PESTEL analysis refers to a tool or framework that is mostly used by marketers to help them monitor and analyze the external marketing environment that they are working in and how they impact their business. The PESTEL analysis usually helps in the identification of the external economic, technological, social, legal, political and environmental factors that are affecting the organization or business. The information that is acquired after the PESTEL analysis is conducted enables the managers to be in a position of making the right decisions for the organization. Qatar is a small country with just over 900,000 people. It is located on the east of Saudi Arabia. Qatar has its own identity, and Arabic is their national language (Qatar, 2012).

Political Factors

In Qatar, there is no a democratic government since no elections are usually held in the country. The country is led by a king. A large number of foreign individuals live in Qatar, but they are not in a position of applying for citizenship. The King has the cabinet ministers who are mainly chosen from the royal family. The Qatar government claims that there is constitutional autonomy in the country, but there is no holding of elections and political parties. Elections are carried out at the Municipality level, but the municipalities hold no powers rather they are only allowed to advise the minister (Qatar, 2012).

Economic Factors

The economy of Qatar is considered to be strong since it is rich in natural gas and oil. There is development in the business sectors since Qatar is a peaceful country hence giving entrepreneurs and industrialists time to expand their businesses. This factor may contribute towards Qatar being a big business hub in some years to come. In the year 2010, the global economic growth rate was 3.9% while the rate of expansion of the economies that were emerging was 6.0.The GDP of Qatar is expected to increase due to the hydrocarbon revenue that has been enhanced and also the support that the government is offering. The income that is generated from the natural oil in the country is about 800,000 barrels in one day. Qatar is currently looking towards the production of LPG which will greatly boost their economy (Aljazeera.com, 2017). .

The economy of Qatar has been dominated by the industrial sector whereby in 2015 it contributed around 66.8% of their Gross Domestic Product. The Qatar government has set up a development plan which assists in the creation of jobs for the nationals who are in the private sector, encouraging of private investment and as well as prioritizing of capital expenditure. The government has also diversified the economy of Qatar from oil sector to non-oil sector. The non-oil sector is expected to foster economic growth which includes residential housing, health sector, financial sector, banking sector and the retail sector.

Social Factors

The country of Qatar has given education a priority and also dedicated special attention to the education sector. The young people living in Qatar are getting more educational services. Foreign countries are also offering education to the local, national people and this has helped them to be in a position of holding various positions after they complete their learning. Education and public health services are provided for free by the state through the ministry of social affairs and the ministry of labor. Assistance is also given to the widows, orphans and other Qatari nationals who are in need.

In Qatar a large number of people are Muslims, and they respect their religion as they also adhere to the Islamic culture. Islamic customs and the law restrict various activities being carried out by the Qatari women who are mostly supposed to handle various roles at home. In Qatar, the women are prohibited from acquiring a driving license without the permission of their husband. The Shari'ah law governs child custody and inheritance, and it favors the men.

Domestic violence in Qatar is not a widespread problem although it does occur. The non-Muslims and Shia Muslims face acts of discrimination in the education and employment sector. The workforce consists of non-citizens who make up 75% of the entire workforce and are mistreated and as well as discriminated against.

Technological Factor

A significant development in the technology sector has greatly been experienced in Qatar. New computer technology and mobile phones have been introduced in the country. The latest technology has been implemented in the country to help in the monitoring of natural gas and oil. Due to technological advancement, people can access the internet and as well as use the social media sites. The Qatar government has developed their airline and is currently the 5th best airline in the world.

The good technology in Qatar has contributed towards the country winning the bid to hold the 2022 FIFA world cup. In the year 2010 Qatar proved to have a better IT market as compared to others despite it not being the largest. Between 2010 and 2014 the IT market in Qatar was forecasted to be the fastest growing sector outdoing the software and the hardware sector. Technology in Qatar has led to the advancement and provision of better healthcare, communication, and financial services. Technology has increased the innovation and invention rate in the country leading to the trending of mechanization (Alkhatib and Rine, 2008).

Environmental Factors

The ministry of Agriculture and industry have established an environmental protection committee which is supposed to monitor any factor that could contribute towards the pollution of the environment. Legislation policies are being set up by the government which will help in the conservation of the environment. These actions will assist in ensuring that the environment is kept clean and green which will give the country a good look. An environment that is green will help attract investors.

The preservation of wildlife, conservation of the oil supplies and an increase of water supply through desalination are among the environmental issues that are given priority in Qatar. Water, air, and land are some of the major environmental issues that Qatar is dealing with. Qatar was affected by the air pollution that was caused by the Persian Gulf War (Aljazeera.com, 2017). It has also been affected by acid rain and smog. The oil industry is a threat to the water that is consumed nationwide through pollution. Some of the agricultural activities that take place in the country cause damage to the soil due to excessive use of fertilizers, pesticides. Due to the arid climate that is experienced in the country, the soil tends to have a coarse texture (Robbins, 2007).

Legal Factors

The Qatar government have ensured that the country is governed by laws which have been adequately implemented. The judicial system of Qatar is strong, and those living in the country are expected to abide by the set laws and regulations. The set laws which have been implemented efficiently ensure that the safety and security of the people and as well as their properties.

The laws of Qatar are considered to be liberal laws, especially when compared to those of other Arab states such as Saudi Arabia. In the year 2010 Iran and Qatar signed an agreement regarding defense co-operation whereby they both stressed on the necessity of expanding their defense cooperation (El Mallakh, 2015).

In conclusion, Qataris considered being among the richest countries of the Arab. Most of its revenues are from its gas and oil resources. Qatar is developing its IT sector, and this is posing a great threat to other markets.

References

Aljazeera.com., 2017. Qatar-Gulf crisis: All the latest updates. Available at: http://www.aljazeera.com/news/2017/06/qatar-diplomatic-crisis-latest-updates-170605105550769.html [Accessed 24 Oct. 2017].

Alkhatib, G. and Rine, D., 2008. International journal of information technology and web engineering. Hershey, Pa.: IGI Global.

El Mallakh, R., 2015. The economic development of the Yemen Arab Republic. London: Routledge.

Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Qatar 2013. , 2013. Paris: OECD Publishing.

Qatar. , 2012. Washington, D.C.: International Monetary Fund.

Robbins, P., 2007. Encyclopedia of environment and society. Thousand Oaks: Sage Publications.