Qatar achieved full independence in an atmosphere of cooperation with the U.K. and friendship with neighboring states. Most Arab states, the U.K., and the U.S. were among the first countries to recognize Qatar, and the state promptly gained admittance to the United Nations and the Arab League. Qatar established diplomatic relations with the U.S.S.R. and People's Republic of China in 1988. It was an early member of OPEC and a founding member of the Gulf Cooperation Council (GCC).

In September 1992 tensions arose with Saudi Arabia when a Qatari border post was allegedly attacked by Saudi forces resulting in two deaths. Relations have since improved and a joint commission has been set up to demarcate the border as agreed between the two governments.

The territorial dispute with Bahrain over the Hawar Islands and the maritime boundary dispute with Bahrain were solved by the International Court of Justice (ICJ) in The Hague; the June 1999 agreement has furthered the goal of definitively establishing the border with Saudi Arabia. Saudi-led mediation efforts continue. In the agreement Bahrain kept the main Hawar Island but dropped claims to parts of mainland Qatar, while Qatar retained significant maritime areas and their resources.