Qatar remains focused on sustainable investments in technology, infrastructure, and education and healthcare amid the challenges posed by the Covid-19 pandemic.
Qatar has a solid line-up of infrastructure and hospitality projects to prepare itself for the large influx of visitors expected during the FIFA World Cup Qatar 2022, although the tournament’s flagship projects, such as the stadia, are fast nearing completion.
Qatar has identified new projects valued at QR54bn in the medium term; even as the Ministry of Finance, in co-operation with the Public Works Authority (Ashghal), is working on implementing a strategic plan by linking targeted performance indicators for new projects.
Expenditure on major projects during the second quarter of this year already reached QR15bn, representing 20.8% of 2021 budget, Ministry of Finance recently said.
This however, showed a marginal decline of 0.4% compared to the previous quarter. Nevertheless, larger payments are anticipated in the second half of the year, the Ministry of Finance said.
Newly-awarded projects during the second quarter of 2021 amounted to over QR2.7bn. In terms of awarded projects during the second quarter of 2021, infrastructure, roads, and parks totalled QR1.72bn and sewer and drainage QR314.7mn.
According to the Ministry of Finance, projects to be completed this year are Lusail Light Rail Transit, Doha Old Port, Sabah Al-Ahmad Corridor and the one related to Food Security.
Total expenditure for Q2, 2021 amounted to QR46.2bn and represents 23.7% of 2021 budget.
Compared to the previous quarter, total capital expenditure remained relatively stable, while total current expenditure increased by 4.5% leading to an increase of 2.6% in total expenditure.
Oil price averaged $69.1 per barrel during the second quarter, the Ministry of Finance said.
Similar to the previous quarter, revenue continued to outperform the state budget as oil prices remained higher than the conservative $40 per barrel budget assumption.
As a result of controlled expenditure and enhanced revenue, the state budget recorded a surplus for the second consecutive quarter totalling QR3.8bn, the Ministry of Finance noted.
Qatar’s budget for the current fiscal demonstrates that there will be plenty of investment opportunities going forward, especially regarding infrastructure projects.
The 2021 national budget provides for huge spending on major projects, as well as on education and health.
The overall allocation of QR72.1bn for major projects, a 37% share of the total expenditures worth QR194.7bn indicates the state’s continued efforts to complete the projects related to the 2022 FIFA World Cup in a timely manner.
On the other hand, higher oil prices will narrow Qatar’s fiscal deficit, freeing up resources for higher investment spending, which could create opportunities mainly in the country’s construction sector.
Also, higher favourable energy prices mean Qatar’s need for external financing gets reduced.
Qatar’s stronger fiscal position likely means that it will also focus on paying down its external debt obligations.
The country’s total public debt declined by 2.9% during the second quarter to reach QR370.8bn. The decline was a result of both external and domestic redemptions.
External debt redemption in Q2 totalled QR13.7bn, while redemption of domestic debt amounted to QR0.95bn, the Ministry of Finance said.
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