Qatar Achieves Budget Surplus Amid Economic Diversification Efforts

Qatar posted a budget surplus of 2.6 billion riyals in Q2 2024. Despite a 12.4% revenue drop due to weaker gas prices, the surplus will be used to reduce public debt. Spending decreased by 2% to 57.3 billion riyals year-on-year. The nation aims to diversify beyond gas revenue.

Qatar recorded a budget surplus of 2.6 billion riyals ($713.31 million) in the second quarter of 2024, according to the Finance Ministry's Wednesday announcement. The ministry specified that the surplus would be allocated to reducing public debt.

The Gulf state, a leading exporter of liquefied natural gas (LNG), reported a surplus of 2 billion riyals in the first quarter. Total revenue for the second quarter declined by 12.4% year-on-year to 59.9 billion riyals, owing to weaker demand that suppressed international gas prices.

Year-on-year spending fell nearly 2% to 57.3 billion riyals in the same period. The entire surplus is earmarked for lowering Qatar's public debt, leaving no cash surplus. Despite its efforts to diversify economic sectors and revenue streams, Qatar remains heavily dependent on gas revenue. In December, the country forecast a 14.5% decline in oil and gas revenue for 2024, while expecting non-oil revenue to increase by approximately 2.4%. ($1 = 3.6450 Qatar riyals)

(With inputs from agencies.)