Qatar announced in January a budget of 210.5 billion riyals from Qatar (US$ 57.83 billion), an increase of 1.9% in expenses compared to 2019, reported the Ministry of Finance.
State Budget Expenses for 2020 are the highest in the last 5 fiscal years, reflecting the country’s commitment to the completion of various development projects in various sectors. Total revenue forecast is QR211 billion, at an average oil price of $ 55 / barrel.
Local and foreign companies, investors and experts from the banking and financial sector are optimistic about Qatar’s national budget for 2020 and the business opportunities that are expected to arise as a result of huge public spending during the next financial year.
Despite presenting an expansionist budget, it comes with a modest surplus, reflecting development projects without obstacles in sectors such as new housing for citizens and residents, food security and in the free economic special zones, proving to be a stimulus for the productive sector.
Expenditures on large projects increased 0.6% to QR90 billion, compared to QR89.5 billion in 2019. Large projects, which make up almost 43% of total expenditure, represent the largest portion of the overall budget. It highlights the country’s commitment to timely conclude projects in the main sectors, including health, education and transport, in addition to those related to the organization of the FIFA World Cup in 2022. The expected consequence of this public expenditure is the creation of many opportunities for local and foreign businesses in 2020 and beyond.
According to market experts, the provisions of the 2020 budget will further help to consolidate financial stability in Qatar. The same optimism is shown about macroeconomic fundamentals and their impact on GDP growth, where the fiscal and current account surplus aligned with monetary policy should create more economic momentum.