Qatar has been focused on diversifying its economy through industrialization, with most of the manufacturing sector consisting of large firms with mixed state and foreign private ownership. Diversification into manufacturing depends on an abundance of cheap energy to run plants, and Qatar’s hydrocarbon resources provide just that. Its natural gas reserves have been vital in the development of a robust liquefied natural gas (LNG) industry. 

Qatar possesses enormous deposits of natural gas, and its offshore North Field is one of the largest gas fields globally. In an attempt to reduce its dependency on oil, Qatar began to develop its natural gas resources in the mid-1990s, successfully leveraging high oil prices in the early 21st century. Natural gas has since surpassed oil as the largest share of the government’s revenues and the country’s GDP.