Qatar’s economic outlook remains one of the strongest in the region, underpinned by the expansion in liquefied natural gas (LNG) capacity and increased government spending. As of 2011, Qatar has become the world’s largest producer and exporter of LNG with an annual production capacity of 77 million tons compared to 30 million tons in 2008.

A moratorium on increasing gas production until 2016 is likely to taper off growth in the hydrocarbon sector over the medium-term. Meanwhile, the government is expected to maintain high levels of capital spending on education, health and transport to support the non-hydrocarbon sector as part of its long-term strategy to achieve economic diversification as outlined in its 2030 vision.

In preparation for the 2022 World Cup, the budget will allocate at least USD65 billion over the next five years on infrastructure projects, including the New Doha International Airport, nine new stadiums, metro and light-rail systems and at least 65,000 new hotel rooms. Despite higher government expenditure, both fiscal and current accounts will remain in surplus on the back of higher oil prices and the expected increase in LNG volumes. Qatar remains politically stable and a relatively open and tolerable society. The main risk to the outlook is a substantial decline in oil prices or delays in LNG export deliveries.

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