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Who is Richer, Saudi or Qatar?

Published in Middle East Economies 3 mins read

While Saudi Arabia commands a much larger overall economy, Qatar is richer when measured by wealth per person, or GDP per capita. This distinction is crucial in understanding the economic prosperity distributed among the populations of these two nations.

Understanding "Richer": GDP vs. GDP Per Capita

When comparing the wealth of nations, it's important to differentiate between a country's total economic output (Gross Domestic Product, or GDP) and the average wealth available to each individual (GDP per capita).

  • Total GDP: Reflects the overall size and strength of a country's economy. Saudi Arabia, with its vast oil reserves and larger population, has a significantly larger total GDP than Qatar.
  • GDP Per Capita: Indicates how much wealth, on average, each person in the country could claim if the total GDP were divided equally among the population. This metric often provides a better sense of the standard of living and individual prosperity within a nation.

Why Qatar is Richer Per Capita

Qatar consistently ranks among the wealthiest nations globally on a per capita basis. This is primarily due to its massive natural gas reserves and a relatively small population.

  • Disproportionate Wealth Distribution: Qatar's abundant natural gas wealth is distributed among its population of approximately 2.8 million people. This concentrated wealth per individual elevates its GDP per capita significantly.
  • Saudi Arabia's Larger Population: In contrast, Saudi Arabia, despite its vast oil wealth, has a population of nearly 37 million people. This much larger population means that the nation's considerable wealth is distributed across a broader base, resulting in a lower GDP per capita compared to Qatar. In fact, Saudi Arabia's GDP per capita is less than half of Qatar's, highlighting the difference in individual wealth distribution.

Comparative Overview

Here's a simplified look at how these two nations compare in terms of key economic indicators relevant to wealth:

Metric Qatar Saudi Arabia Implication
Population Approx. 2.8 million Approx. 37 million Smaller population means more wealth per person.
GDP Per Capita (Relative) Significantly higher Less than half of Qatar's Higher individual prosperity in Qatar.
Primary Economic Driver Natural Gas Oil Both are resource-rich economies.
Overall Economy Size Smaller Much Larger Saudi Arabia has a larger total economic output.

The Impact of Population Size

The stark difference in population sizes is the primary factor explaining why Qatar boasts a higher GDP per capita. Even if Saudi Arabia's total wealth far surpasses Qatar's (which it does), dividing that wealth among nearly 37 million people results in a lower average for each individual compared to dividing Qatar's substantial wealth among just 2.8 million.

In conclusion, while Saudi Arabia holds a more prominent position in terms of overall economic scale and global influence due to its sheer size, Qatar is the richer nation when considering the average wealth per individual citizen.