Qatar's GDP Growth To Average 4.1% Between 2025-2029: Al-Kuwari

(MENAFN- Gulf Times) Qatar's GDP growth is expected to average 4.1% between 2025 and 2029, HE the Minister of Finance Ali bin Ahmed al-Kuwari said Sunday.
The medium-term outlook is bolstered mainly by the huge expansion of Qatar's LNG production at the North Field, al-Kuwari said at a press conference in Doha.
Next year, Qatar's Economy is expected to grow at 2.4%, he said. The GDP growth expected in 2026 is 5.2% and 7.9% in 2027, 3.5% in 2028 and 1.6% in 2029.
This year, the GDP is expected to grow at 1.7% with non-hydrocarbon GDP growing at 1.9% and hydrocarbon GDP at 1.4%.
The rate of inflation this year will be around 1%. Next year, it is projected to be 1.4% and 1.9% in 2026. Between 2027 and 2029, the rate of inflation is projected at 2%.
Tourist arrivals in Qatar this year will be around 4.6mn, he said.
Qatar's 2025 budget approved by His Highness the Amir Sheikh Tamim bin Hamad al-Thani clearly aligns with the country's plans and strategies to support its ongoing economic growth and achieve economic diversification within the framework of the Qatar National Vision (QNV) 2030.
Giving details of the 2025 budget, which was presented last week, al-Kuwari said it expects total revenues of QR197bn and an expenditure of QR210.2bn with an anticipated deficit of QR13.2bn.
Qatar has set an oil price of $60 per barrel in preparing the budget, he noted.
Al-Kuwari said,“Qatar continues to adopt a conservative approach in estimating oil and gas revenues, with an average oil price of $60 per barrel. This approach aims to enhance financial flexibility and ensure spending stability.”
The minister noted that Qatar's total expected revenues for the 2025 fiscal year budget are estimated at QR197bn, reflecting a 2.5% decrease compared to the 2024 budget revenues.
He stated, "The anticipated oil and gas revenues for 2025 are QR154bn, down from QR159bn in the 2024 budget, marking a 3.1% decrease. Non-oil revenues for 2025 are estimated at QR43bn, which remains unchanged from 2024 levels.”
Two key sectors – education and health have been allocated a significant outlay they deserve - QR41.4bn, which accounts for 20% of the total budget.
QR21.9bn has been set apart for Municipality and Environment, QR3.6bn for tourism and culture, QR6.6bn for sports, QR3.9bn for transportation and QR3bn for communications.
These sectors, he said, have been allocated significant resources to support economic diversification and sustainable development efforts. They play a vital role in shaping a knowledge-driven, innovative economy.
Allocations for salaries and wages are set to rise by 5.5% in 2025 compared to 2024, totalling QR67.5bn.
On the anticipated deficit of QR13.2bn in the next year's budget, al-Kuwari clarified it is“theoretical deficit”.
“Qatar has set an oil price of $60 per barrel in preparing the budget. This is a very conservative price. If there is a surplus, it will be used to repay debt, strengthen Qatar's foreign exchange reserves and also channelled into the sovereign wealth fund,” he said.
He said a“dedicated fund” will be set up by the Ministry of Finance to ensure the economy did not suffer even if the energy prices plummet.
“While there are goods days, there will be bad days too. We need to be prepared for such situations,” the minister emphasised.
The Finance Minister said Qatar recently listed green bonds on the London Stock Exchange.
The first issue of its kind issued by the Ministry of Finance in Qatar is aimed at financing environmentally friendly projects.
Al-Kuwari noted that Qatar enjoyed very high sovereign ratings. Moody's credit rating for Qatar stands at Aa2, S&P Global (AA) and Fitch Ratings (AA).
“These highlight Qatar's robust, well managed economy and its credit worthiness. These help banks and other Qatari companies to obtain debt at attractive prices, among the best in emerging markets,” the minister said.
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