ABSTRACT
This chapter explores an examination of the rationale in the Qatar's industrial strategy, the problem of absorptive capacity and its relationship to Qatar's industrialisation programmes, and the role of the agricultural sector in the nation's development. It also analyzes the rationale for industrial development strategy followed in Qatar. The most developing countries and all the oil-producing states in the Gulf face the problem of absorptive capacity in varying degrees. While Qatar has been spared the problem of inadequate financial capital which confronts most developing countries, two factors, however, represent major barriers to economic development in Qatar: the small size of the domestic market and the limited absorptive capacity of the economy. These problems are not unique to Qatar but are shared by some other Gulf states as well. The narrowness of the market primarily results from the smallness of Qatar's territory and a population of around 200,000.
