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      Qatar budget gap widens on wartime erosion of state coffers

      Qatar’s fiscal deficit widened significantly in the second quarter of 2026, as the start of the Iran war in February curtailed the Gulf state’s energy exports.

      The budget gap hit QAR21.2 billion ($5.8 billion), versus QAR800 million in the second quarter of 2025 and QAR10.3 billion in the first three months of 2026, the state-run Qatar News Agency reported, quoting a finance ministry statement.

      Revenue dropped 57 percent year on year to QAR25.6 billion, as expenditure fell by over one-fifth to QAR46.8 billion.

      No breakdown between energy and non-energy income was given.

      Government tenders and auctions declined to QAR4.4 billion in the second quarter, with contracts awarded to foreign companies falling 90 percent annually to QAR300 million.

      Most contracts were awarded in healthcare, energy, culture and sports.

      In December the GCC nation forecast a budget deficit of QAR22 billion for 2026. Total 2026 expenditure was estimated at QAR221 billion, while revenue was projected almost flat at QAR199 billion, based on an oil price of $55 a barrel.

      Fitch Ratings this week removed Qatar from its “rating watch negative” list, saying the risk of further severe damage to the country’s liquefied natural gas facilities had receded even as the US-Iran conflict reignited.

      Further reading:

      Qatar is likely to take six months to return to pre-war output, minus the 17 percent of capacity damaged in March’s Iranian attack on Ras Laffan, the world’s largest LNG export hub. Repairs could take up to five years at the site, which accounted for 20 percent of global supply in peacetime.

      The economy contracted by 7 percent year on year in the three months to March 31, the National Planning Council said last month.


      Source: AGBI
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