Qatar predicts $600m budget deficit for 2026

• Spending to rise 5%
• Revenue to stay flat
• 4% medium term growth

Qatar has forecast a budget deficit of QR21.8 billion ($602 million) for 2026, and the gap will be covered through local and external debt, the Qatar News Agency said.

Total 2026 expenditure is estimated to be at QR221 billion, a year-on-year increase of 5 percent on the year, the agency said, quoting the minister of finance Ali Bin Ahmed Al Kuwari. 

Total revenue is projected to be almost flat at QR199 billion based on an oil price of $55 per barrel. This is down nearly 10 percent compared with the price on December 11. 

The estimate is a conservative approach adopted by the state to ensure fiscal sustainability and enhance resilience against market fluctuations.

Qatar’s economy at a glance

Qatar has been a regular issuer on the international debt market and has been witnessing robust demand. 

In November, the country closed a dual tranche $1 billion, 3-year unsecured bond and $3 billion 10-year sukuk with an order book of $11.5 billion.

Qatar’s planned expansion of LNG production in the North Field is expected to strengthen the country’s position as a key global energy supplier and support its fiscal and external balances, according to the International Monetary Fund. 

The IMF said that the new addition will put Qatar on track for a projected medium-term growth of 4 percent.

Further reading:

• Qatar’s economy in numbers
• High-speed rail to connect Riyadh to Doha in two hours
• Qatar expects EU to resolve sustainability laws by year-end

Oil and gas will contribute QR55 billion to Qatar’s total revenue, while the remaining QR44 billion will come from non-oil revenues. 

The fossil fuels account for 80 percent of the country’s annual income. However, under the National Policy 2030 the government is actively working on a strategy to diversify the economy away from hydrocarbons.