The state’s general budget achieved a surplus of 2.6 billion riyals during the second quarter of this year 2024.. The Ministry of Finance issued a statement on its official account on the “X” platform, saying that the surplus will be directed to reducing public debt, and therefore there is no cash surplus. The ministry reviewed the actual data for Qatar’s budget in the second quarter of 2024, confirming that total revenues for the second quarter of 2024 amounted to about 59.9 billion riyals, of which 41.1 billion riyals were oil and gas revenues, while non-oil revenues amounted to 18.7 billion riyals, a decrease of 12.4% compared to the second quarter of 2023.
The Ministry of Finance explained that total public spending during the second quarter of this year amounted to about 57.3 billion riyals, of which 16.5 billion riyals were for salaries and wages, and 21.2 billion riyals for current expenditures, while secondary capital expenditures amounted to 1.3 billion riyals, and major capital expenditures amounted to 18.1 billion riyals, representing a decrease of 1.8% compared to the second quarter of 2023.
On the other hand, the Ministry of Finance announced that the total value of tenders and auctions in government agencies in the State of Qatar amounted to 5.5 billion riyals during the second quarter of this year. It was distributed between 4.5 billion riyals awarded to local companies, which represents a decrease in the value of contracts with these companies by 13.5 percent, compared to the second quarter of last year, and one billion riyals in tenders awarded to foreign companies, an increase of 67 percent compared to the same quarter of 2023.
She explained that the number of tenders, practices and direct agreements awarded in the second quarter of this year amounted to 650 tenders, as the first four sectors according to the sector business index during the aforementioned quarter compared to the second quarter of 2023 were: culture and sports, trade, control and judiciary, and defense and security.
In turn, business sectors and senior financial experts confirmed that the budget surplus supports the development projects that Qatar is currently witnessing in all sectors.
They stressed the state’s commitment to continue working to increase non-oil revenues, by establishing new industries and encouraging investment in small and medium enterprises. They said that the budget included increasing spending on key sectors of health, education and infrastructure, and increasing allocations for projects in these sectors, which contributes to supporting the role of the private sector in development, given that the private sector plays a major role in implementing these projects. These projects will also lead to an increase in bank operations in the local market, as the necessary financing will be made available to the private sector to implement the projects.
They pointed out that the state’s emphasis on continuing to implement major projects confirms the successful economic policy currently being implemented by the state, and also demonstrates the state’s interest in infrastructure projects, especially since these projects serve all industrial, agricultural, commercial and social sectors.
They stressed that infrastructure projects are among the state’s main priorities and increase the growth of the local private sector and its contribution to the gross domestic product, as a large portion of the allocations for major projects from the total expenditures of the general budget has been allocated, which helps in stimulating the local market and creating promising investment opportunities for the local sector.
International rating agencies have praised the Qatari economy and confirmed their confidence in the continuation of high development rates and the existence of large sovereign net foreign assets that support the domestic product. Moody’s said that the Qatar Central Bank has strong foreign exchange reserves, and Moody’s believes that Qatar’s large foreign exchange reserves can be used as sovereign wealth fund assets to support the balance of payments if necessary.
The agency added in its latest reports: The maximum rating ceiling for local and foreign currency in Qatar was raised to Aaa from Aa1, with a stable outlook, which is two notches higher than the Aa2 sovereign rating, and is given to predictable institutions that implement effective policymaking, and whose political risks are moderate.
The global rating agency Fitch raised Qatar’s rating from AA- to AA with a stable outlook. Fitch revealed in its latest report on the Qatari economy that the upgrade came as a result of its increased confidence in the Qatari economy, the presence of large sovereign net foreign assets, high rates of GDP per capita, and a flexible public financial structure.
The international agency expected the general budget surplus to reach 8.6% of GDP in 2024, compared to 9.3% in 2023, and this includes estimates of investment returns on the Qatar Investment Authority’s foreign assets.
The agency confirmed the strength of the Qatari banking sector, as its assets amounted to 255% of GDP and net foreign liabilities amounted to more than $105 billion (50% of GDP) in 2023.
The global rating agency Moody’s decided to raise Qatar’s credit rating from Aa3 to Aa2 with a stable outlook. The agency revealed in its latest report the significant improvement in all economic indicators in the country.
The agency confirmed that Qatar has a financial policy that achieves a balance between financial revenues and the decline in demand for gas as a result of the global shift away from carbon and towards green energy.