DID Press: Qatar’s economy is facing mounting financial pressure as war-related disruptions to energy exports and lower government revenues push the country’s budget deficit sharply higher.
Qatar recorded a 10.3 billion-riyal budget deficit in the first quarter of 2026, more than 20 times the deficit recorded during the same period last year, according to the country’s Ministry of Finance.
Government revenues fell to about 37.8 billion riyals, down 23.5 percent from the first quarter of 2025. Government expenditure, despite declining by 3.7 percent, remained high at 48.1 billion riyals.
Qatar’s public finances remain heavily dependent on the energy sector. Attacks on gas facilities at Ras Laffan in March 2026, according to QatarEnergy, reduced the country’s LNG export capacity by 17 percent. The resulting production disruptions could cost Qatar around $20 billion in lost annual revenue, according to estimates cited in the report.
At the same time, disruptions to shipping through the Strait of Hormuz have severely affected Qatar’s LNG exports, increasing pressure on one of the world’s major gas suppliers.
The International Energy Agency has also reported a significant decline in LNG exports from Qatar and the United Arab Emirates between March and June compared with the same period a year earlier.
The developments highlight Qatar’s vulnerability to disruptions in regional energy infrastructure and maritime routes, while raising fresh concerns over the impact of prolonged regional conflict on the Gulf’s energy-dependent economies.