Qatar Faces Financial Challenges Amid Rising Public Spending

Qatar reported a budget deficit of 757 million riyals ($208 million) in Q2 2025, with a 5.7% increase in public spending compared to the previous year, according to the finance ministry.

As the world's third-largest liquefied natural gas exporter, Qatar saw its revenue slightly decrease by 0.1% from Q2 2024, totaling 59.847 billion riyals, while the total spending reached 60.604 billion riyals. This budget was based on an average oil price of $66.80 a barrel.

Despite aims to diversify its economy away from hydrocarbons, Qatar's fiscal health remains tied to oil and gas, which contributed 34 billion riyals of revenue in Q2, as opposed to non-hydrocarbon sectors generating nearly 26 billion riyals.

(With inputs from agencies.)