War hits Qatar’s public finances as revenue drops sharply

• Spending fell 14%, emir says
• Damage threatens LNG exports
• Non-oil sectors account for 80% 

The US-Iran war has negatively affected Qatar’s public finances, leading to a sharp decline in revenues during the first half of 2026, Emir Sheikh Tamim bin Hamad al-Thani said.

Revenue dropped 42 percent while spending declined 14 percent between January and June, the state-run Qatar News Agency reported, quoting the emir’s speech at the 55th annual session of the Shura Council.

The closure of the Strait of Hormuz and the direct damage inflicted on some energy facilities in Ras Laffan Industrial City significantly impacted gas exports, the Qatari leader said.

The war started on February 28 and Iranian attacks in March knocked out nearly 17 percent of Qatar’s liquefied natural gas export capacity, with QatarEnergy CEO Saad Al-Kaabi estimating annual revenue losses of $20 billion.

Qatar supplies around one-fifth of the world’s LNG trade and controls the world’s third-largest proven gas deposits. Its Ras Laffan facility, the largest in the world, accounts for nearly 20 percent of global supply.

The Gulf state has warned that repairs could take up to five years.

The emir said policies such as building reserves, reducing public debt, budgeting on conservative oil-price assumptions and developing non-oil revenues have allowed the government to absorb the repercussions of the war so far.

“Our aim is not to return to the pre-crisis situation, but rather to use the recovery as a springboard to accelerate economic diversification and strengthen national capabilities,” he said.

Non-hydrocarbon sectors have continued to grow, with their contribution reaching 80 percent of real GDP, Sheik Tamim said, adding that Qatar will offer a portfolio of projects and investment opportunities valued at QAR221 billion ($61 billion) over the next five years.

The emir said work on the North Field Gas expansion is progressing as planned, which will increase LNG production capacity.

“The Golden Pass project in the US has made significant progress, while the state-owned QatarEnergy continues to expand its investments and international partnerships,” he said.

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The North Field expansion is expected to produce 126 million metric tonnes of LNG per annum by 2027, expanding QatarEnergy’s output by 85 percent from its current 77 million metric tonnes per annum.

Golden Pass LNG gives Doha access to supply outside the Gulf and has a total planned capacity of approximately 18 million tonnes annually.

In September, ratings agency Fitch said it expected Qatar’s economy to contract by 19 percent this year because of lower LNG production. However, it anticipates a sharp rebound when LNG flows normalise and output from the North Field expansion begins.