Qatar

The February 13 bomb blast that killed former Chechen president Salim Khan Yandarbiyev on the streets of Doha pulled Qatar briefly into the forefront of the "war on terror". It also highlighted the emirate's difficulty in balancing disparate, often conflicting, political interests, as with it have come international dispute, contradictory accusations and some tough decisions.

With the spotlight often firmly on Qatar's vast oil and gas resources, the country's current - and potential - industrial output can be easily overlooked. Nevertheless, industrial development remains an integral part of the little Gulf state's ongoing ambition to build a viable private sector, albeit from the top down.

In recent years, Qatar's oil exports have closely followed the rise and fall of world oil prices. This has created a budgetary risk for the state, which still relies on oil for more than 40% of its income, despite the fast-rising importance of gas. Not surprisingly, the economic managers of the tiny Gulf state have therefore learned to like predictability, even in boom times. In a recent exclusive interview, Minister of Energy and Industry, Abdullah Bin Hamad al-Attiyah told the OBG he would prefer to strive for price stability in the oil market, for the good of both consumers and producers, rather than ruthlessly attempting to maximize short-term gains.

Qatar and its northern island neighbour Bahrain have agreed to enhance regional co-operation by building closer links across the 45 km of seawater that separates them. The latest statements from the two countries' governments indicate that the proposed Qatar-Bahrain Friendship Bridge, discussed on and off for the past three years, is currently on again.

Recently, the OBG conducted an exclusive interview with Abdulla bin Khalid al-Attiya, the governor of the Qatari central bank. With the resultant discussion covering many aspects of finance and banking within the country, the OBG is proud to present extracts from this interview in the following briefing.

While most Qataris would probably say that last year's US-led invasion of Iraq had little impact on their country's booming, gas-fuelled economy, it has made for major changes in at least one area - the labour market.