June 5, 2008

Egyptian President Hosni Mubarak and Syrian President Bashar Assad (AP)

Despite it’s small size, Qatar plays an important role in the Middle East, largely by steering an independent diplomatic course. The country hosts Al Udeid Air Base, the largest U.S. military facility in the Middle East. It is also home to the region’s most-watched television station, Al Jazeera. Qatar has the third-largest gas deposits in the world and recently became the world’s largest liquefied natural gas exporter, providing the country with the largest per capita GDP in the world.

Lebanon
In May, Qatari diplomacy was critical in ending the eighteen-month deadlock in Lebanese politics. Through five days of intensive shuttle diplomacy Qatari Prime Minister Sheik Hamad bin Jassem al-Thani in Doha, Qatar was able to bring the government and opposition to a compromise that had eluded other outside parties. Qatar has a history of involvement with Lebanon. In the aftermath of the 2006 Israel-Hezbollah War, Qatar’s emir Sheikh Hamad bin Khalifa al-Thani was the first Arab leader to visit Lebanon. The Qatari government pledged to rebuild the southern Lebanese town and Hezbollah-stronghold of Bint Jbeil. Qatar also provided more than 200 troops for UNIFIL peacekeeping efforts in southern Lebanon.

Iran
Qatar has a closer relationship with Iran than the other Gulf Arab states. The two countries maintain strong economic and diplomatic relations. They share the largest gas field in the world–the North Field/South Pars natural gas field in the Persian Gulf. Qatar has also regularly called for greater dialogue between Gulf Cooperation Council (GCC) states and Iran. In July 2006, while serving as a rotating member of the United Nations Security Council (UNSC), Qatar was the only member to vote against UNSCR 1696, which called on Iran to suspend uranium enrichment and reprocessing activities. Despite tensions between Iran and Saudi Arabia, Qatar invited Iranian President Mahmoud Ahmadinejad to the GCC summit in Doha in December 2007.

Iraq
Qatar has limited relations with the new Iraqi government. According to a January 2008 U.S. government report, Qatar has pledged $100 million in Iraq reconstruction aid and has so far supplied roughly $27.5 million. A point of contention between the two governments concerns Saddam Hussein’s wife Sajida Khayrallah Tilfa and daughter Hala, who both live in Qatar. The Iraqi government added Saddam’s wife to its “most wanted” list in July 2006 for reportedly providing financial assistance to insurgents, and seeks her extradition.

Israel
Despite the absence of formal diplomatic ties between Israel and Qatar, Qatar has been a leading player in increasing economic ties in times of progress on Arab-Israeli peace. Israel has maintained a trade office in Doha for the past 12 years. Qatar’s official policy adheres to a 1994 GCC ruling that abandoned indirect boycotts on Israel but maintained, at least in theory, the primary Arab boycott of the state. In April, Israeli Foreign Minister Tzipi Livni participated in the Doha Forum for Democracy, Development and Free Trade, marking her first visit to an Arab state other than Jordan or Egypt as foreign minister.

Palestinian Authority
In 2006, Qatar offered $50 million to the Palestinian Authority (PA) after the European Union and United States froze financial aid following Hamas’ victory in January elections. Qatar has since worked to resolve internal Palestinian disputes, including presenting a six-point plan for a Palestinian unity government in October 2006. During the same period, Qatar sought an agreement to release captured Israeli soldier Gilad Shalit from Hamas. Qatar’s independent diplomatic course continued in June 2007 when it did not publicly criticize Hamas’ takeover of Gaza. At the Palestine Investment Conference from May 21-23, a Qatari government-owned company signed a $350 million agreement to build a new West Bank town that will include 5,000 homes. The town, Rawabi, will be the first planned community in the West Bank and will house 40,000 residents.

Saudi Arabia
Qatar and Saudi Arabia have long-running disputes regarding territorial borders. The disputes grew in the mid-1990s when Qatar accused the Saudis of supporting a failed coup attempt in Qatar. In response, the Qatari government issued a $150 million grant to found the Al Jazeera television station, which threatened Saudi control of the Arab media. In September 2002, Riyadh recalled its ambassador to Qatar after Al Jazeera aired a program that included a critique of the Saudi Peace Initiative. A visit by the Qatari emir and the Chairman of Al Jazeera Sheikh Hamad Bin Thamer al-Thani, to Riyadh in September 2007 helped improve relations between the states. In response, the Saudi government agreed to return its ambassador to Qatar, participate in the December GCC summit in Doha and permit Al Jazeera to open an office in Riyadh. Analysts say the recent rapprochement with Riyadh was critical in Qatar’s ability to lead Arab League mediation efforts in the Lebanese crisis.

Syria
Qatar invests substantially in the Syrian economy while also offering diplomatic support to the Assad government. The countries announced the creation of the Syrian-Qatari Investment Company in 2005, and a state-owned property investment company reported plans in February 2008 of a $250 million investment project, the Ibn Hani Bay Resort project. In May 2007, Qatar abstained from voting for UNSCR 1757, which created an international tribunal to try suspects in the assassination of former Lebanese Prime Minister Rafik al-Hariri.

Yemen
In February 2008, Qatar mediated an agreement between a rebel group led by Abdul-Malik al-Houthi and the Yemeni government. The Shia Muslim group had fought government forces since 2004. Qatari officials returned in May after a new outbreak of fighting, but were not successful in resolving differences between the sides.



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