Qatar Reports $208 Million Budget Deficit in Q2, Ending 3-Year Surplus Run
Qatar had a budget deficit of $207.6 million in the second quarter of the year, ending its three-year streak of budget surpluses. This was also the second quarter in a row with a deficit, according to the finance ministry.
Why the Deficit Happened
Government spending rose by 5.7% to $16.6 billion, while revenue slightly dropped to $16.4 billion. Most of Qatar’s income still comes from gas, which brought in $9.3 billion this quarter. Other sectors added $7.1 billion. The budget assumes oil prices at $66.80 per barrel.
Spending breakdown:
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$5 billion went to salaries
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$6 billion to other ongoing expenses
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$4.8 billion for major projects
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$767.9 million for smaller projects
In the first quarter, Qatar had a $137.1 million deficit with revenues of $13.5 billion.
Qatar’s Economy
The economy grew 3.7% in the first quarter compared to last year, reaching $49.8 billion. The non-oil sector now makes up 63.6% of the economy, up from 62.6%. This growth was led by:
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Manufacturing (5.6%)
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Construction (4.4%)
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Real estate (7%)
The oil sector grew by 1% and now makes up 36.4% of the economy.
New Investment Program
In May, Qatar launched a $1 billion plan to attract investment. It will cover up to 40% of business costs over five years. This includes spending on setup, buildings, equipment, rent, and staff.
The first phase focuses on:
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New projects
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Expanding facilities
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Going digital
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Creating skilled jobs
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Transferring knowledge
Key sectors include manufacturing, logistics, IT, and finance.
Future Outlook
The IMF expects Qatar’s economy to grow 2% in 2024–2025, with average growth of 4.75% over the longer term. Growth will be helped by more LNG production, public investment, and tourism.
Inflation is expected to fall to 1% soon and settle around 2% in the future.
Published: 18th July 2025
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