Qatar is considered by many observers to be an economy in transition, moving slowly from a heavy reliance on oil and gas to a more balanced knowledge- and resource-based economy. In the short term, however, the country is facing the dual challenge of having to rein in spending at a time of low oil prices while also continuing with huge infrastructure expenditure as the country gears up to host the FIFA World Cup in 2022.
For the first time in 15 years, Qatar is expected to post a budget deficit in 2016, of about $12.8bn, in large part due to the continuing low price of oil on the global market. Despite this, and because of the country’s strong liquefied natural gas revenues, as well as its high level of infrastructure spending and its growing non-hydrocarbon sector, the economic situation is anything but dire.
