Qatar’s capital spending will remain high in the coming years, driven by projects linked to the FIFA World Cup 2022 and the Qatar National Vision 2030 diversification programme.
The country’s budget for 2018 has adequate outlay to ensure that spending for major projects will remain Qatar’s top priority.
With a planned spending of QR203.2bn in 2018 and expected revenue of QR175.1bn, the budget projects a deficit of QR28.1bn next year. However, this will be 1.1% lower than the estimated QR28.4bn budget deficit in 2017.
Major projects will have a whopping QR93bn set apart in Qatar’s budget for 2018, which sees higher spending and smaller deficit compared with the current financial year.
The government has already made it clear that the country’s private sector will be actively involved in new projects’ implementation. The next year’s budget has already provided for new contracts worth QR29bn. Qatar’s private companies including SMEs can expect to get involved in these.
Key sectors such as health, education and transport along with those related to the 2022 FIFA World Cup will get QR83.5bn, or 41% of the total expenditure.
The 2018 budget also focuses on supporting food security projects, small and medium enterprises and the development of infrastructure in economic and free-trade zones.
The share on spending for major projects (QR93bn) represents nearly 46% of the total expenditure.
The health sector has been allocated QR22.7bn, which represents 11.2% of the total expenditure in 2018.
The education sector has been given an outlay of QR19bn, up 18% on the current year and will meet the needs of some major projects currently underway in the sector.
Transportation and other infrastructure projects were assigned the largest share in the 2018 budget with allocations of QR42bn, which represents 21% of the total expenditure.
The budget shows that prestigious projects including the Metro, Lusail Light Train, Al Bustan Highway, Orbital Expressway, Al Rayyan/Dukhan Road, Al Khor Coastal Road, expansions in the water and electricity networks and development of infrastructure in existing areas are to be implemented on a priority basis.
That the projects associated with 2022 World Cup, which Qatar is hosting, will have adequate funds is evident from provisions made in fiscal 2018.
The key sports sector and 2022 World Cup projects would have a total allocation of QR11.2bn in the next year’s budget. These are primarily focused on the completion of stadiums in Lusail, Qatar Foundation, Al Rayyan, Al Wakrah and Al Khor in addition to other sport projects.
Rising energy prices and efforts to diversify government revenue may see Qatar’s 2018 budget swing into surplus.
The 2018 budget has taken $45 for a barrel as the conservative oil price, same as that of 2017. But many analysts expect the oil price to be much higher in 2018.
The budget is aligned with the QNV 2030, which focuses on the country’s economic, social, human and environmental development.
Clearly, the 2018 budget achieves efficiency in current expenditure, while maintaining allocations to major projects that contribute to Qatar’s development.
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