Economic and Political Overview

flag Qatar Qatar: Economic and Political Overview

In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

 

Economic Indicators

The Emirate’s economy is heavily concentrated in the gas industry, which represents two-thirds of its GDP and around 85% of export earnings. Following the 2022 FIFA World Cup, growth normalization persisted, with recent signs of strengthening activity. According to the IMF, real GDP is projected to gradually rise to 2% in 2024–25, driven by public investment, spillovers from the ongoing LNG expansion, and robust tourism. Over the medium term, growth is expected to accelerate to an average of 4.75%, fueled by a major LNG production boost and early benefits from reforms under the Third National Development Strategy (NDS3). With lower hydrocarbon prices, Qatar's current account and fiscal surpluses narrowed in 2023 to 17% and 5.5% of GDP, respectively, and moderated further in 2024. Over the medium term, despite a significant LNG production expansion, both surpluses are expected to persist but decline as a share of GDP due to falling hydrocarbon prices.

The overall fiscal surplus narrowed to 5.6% of GDP in 2023 and declined further in the first three quarters of 2024 as hydrocarbon revenues weakened. The 2024 budget had planned spending cuts of 2 percentage points of GDP from the 2023 outturn, mainly in capital expenditure, but fiscal data up to Q3 suggested milder cuts, closer to 1.5 percentage points of GDP. Despite this, the fiscal stance tightened, with the NHPB improving by around 0.75 percentage points of non-hydrocarbon GDP. Looking ahead, the 2025 budget outlines prudent spending plans amid a growth rebound, while the medium-term budget has been updated to align with NDS3 spending needs, maintaining a path of gradual fiscal consolidation (IMF data). Fitch Ratings expects Qatar's debt-to-GDP ratio to drop to around 43% by 2027, down from 49% in 2024 and a peak of 85% in 2020. This is based on the assumption that the government will refinance most of its upcoming external debt and pay down loans with a moderate budget surplus, excluding QIA investment income. How the government uses its fiscal surpluses in the future will determine the debt path going forward. Headline inflation dropped from 5% in 2022 to 3% in 2023 (average for the year) and slowed further to 1.2% by October 2024, as inflation in rent and recreation services eased. Producer prices and wage inflation stayed under control.

Qatar is overall a politically stable, rich country (it had one of the highest incomes per capita in the world in 2024 according to the IMF, estimated at USD 115,074 – PPP). It is estimated that 85% of the inhabitants are expatriates, whose rights are limited, despite the progress made with recent reforms. According to the World Bank, unemployment is almost null, representing 0.1% of the total labour force in 2023 (latest data available).

 
Main Indicators 2023 (E)2024 (E)2025 (E)2026 (E)2027 (E)
GDP (billions USD) 213.00221.41226.22242.14262.19
GDP (Constant Prices, Annual % Change) 1.21.51.95.87.9
GDP per Capita (USD) 69,54171,56872,76077,49283,493
General Government Gross Debt (in % of GDP) 43.341.240.238.936.8
Inflation Rate (%) 3.11.01.41.92.0
Current Account (billions USD) 36.4729.7430.0331.1837.18
Current Account (in % of GDP) 17.113.413.312.914.2

Source: IMF – World Economic Outlook Database , Latest available data

Note: (e) Estimated Data

Main Sectors of Industry

Qatar’s agricultural sector is almost non-existent due to the country’s climate and a lack of arable land. It is estimated to account for only 0.3% of GDP, employing 1.7% of the workforce (World Bank, latest data available). Although Qatar experiences a dry climate, it has embraced and implemented sustainable and intelligent technologies, such as automated irrigation systems, hydroponics, and aquaponics, to improve both the quality and quantity of fruits and vegetables. The country is self-sufficient in fresh poultry and dairy.

The economy of Qatar is based on the oil and natural gas sectors: proved natural gas reserves represent 11% of the world total and the third-largest in the world (these reserves are primarily located in the offshore North Gas Field, shared with Iran), while proved oil reserves exceed 25.2 billion barrels, which means the production could continue for over 50 years at current levels. Qatar's liquefied natural gas (LNG) industry has attracted tens of billions of dollars in foreign investment and made Qatar the world’s third-largest exporter of this commodity (after the U.S.). Being the country’s main economic engine and government revenue source, Qatar is highly dependent on the oil & gas sector, thus after the drop in commodity prices in recent years, it tried to diversify its economy, focusing mainly on manufacturing, construction, leading non-oil GDP to steadily rise to just over half the total. Overall, the industrial sector contributes 60.4% of GDP and 39.4% of employment, while manufacturing accounts for 9% of GDP (World Bank). According to the Ministry of Commerce and Industry, Qatar's industrial sector experienced growth in 2024 with the establishment of over 1,400 new industrial firms. The total production value of registered and licensed companies in the country rose to QAR 2.634 trillion, reflecting a 3% increase from QAR 2.557 trillion in 2023.

The services sector is based mainly on financial services and is estimated to account for 45.3% of GDP, giving employment to 58.9% of the active population (World Bank). According to official data, approximately 8% of the country's GDP in 2022 came from the financial sector (USD 19 billion), as Qatari banks maintain profitability, supported by robust capitalization and sufficient liquidity. Tourism is also an important economic sector: the “Qatar Tourism Strategy 2030” set a target to attract over 6 million international visitors a year by 2030. In 2024, Qatar surpassed its annual visitor arrivals target of 4.79 million, reaching 5.08 million visitors. This growth was accompanied by outstanding performance in the hospitality sector, with nearly 10 million room nights recorded, exceeding the initial target of 8.8 million (data Qatar Tourism). The transportation and storage sector’s contribution to Qatar’s GDP as of 2022 stood at USD 9.9 billion (latest official data available).

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 1.7 39.4 58.9
Value Added (in % of GDP) 0.3 60.4 45.3
Value Added (Annual % Change) 5.4 0.3 2.1

Source: World Bank - Latest available data.

 

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Monetary Indicators 20162017201820192020
Qatari Rial (QAR) - Average Annual Exchange Rate For 1 MUR 0.100.110.110.100.09

Source: World Bank - Latest available data.

 
 

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Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:
72/100
World Rank:
31
Regional Rank:
3

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

Business environment ranking

Definition:

The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.

Score:
7.20/10
World Rank:
28/82

Source: The Economist Intelligence Unit - Business Environment Rankings 2020-2024

 

Country Risk

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Foreign Trade in Figures

Qatar's trade policy is essentially focused on creating a modern and liberal economy. This is reflected in its promotion of investment (both domestic and foreign), its trade diversification programs at the regional and international levels and its membership in several organisations, such as the WTO. Trade represents 100% of the country's GDP (World Bank, latest data available). Mineral fuels, oils and distillation products represented over 85.6% of the country’s exports in 2023 (mainly natural gas, followed by crude and other oil products), while plastics accounted for 2.2%. In terms of product category, machinery and transport equipment constituted the main import (31.6% of the total), ahead of motor vehicles (22.7%), mineral fuels (16.4%), and aircrafts and their parts (15.2% - data PSA).

In 2023, Asia emerged as the primary destination for Qatar's exports. On a country level, the main export partners were China (19.6%), South Korea (13.2%), India (11.9%), Japan (7.6%), and Singapore (7.2%). Qatar’s leading suppliers were the United States (14.6%), China (14.5%), Italy (6.2%), India (5.7%), and Germany (5.1%). Qatar has very few trade barriers and relatively low customs duties. It has signed a number of free trade agreements, both bilaterally and via the Gulf Cooperation Council.

Benefiting from strong oil and gas revenues, Qatar's merchandise trade balance is structurally positive. In 2023, the country’s goods exports stood at USD 97.3 billion (from a record of over 130 billion one year earlier amid high global hydrocarbon prices), whereas imports totalled USD 30.9 billion (-7.6% y-o-y). Like many countries in the region, Qatar remains a net importer of services: imports reached USD 41.2 billion in 2023, while exports amounted to USD 30.1 billion. For the year, the trade surplus was estimated at 37% of GDP by the World Bank (the third highest worldwide). According to data from the Qatar Planning and Statistics Authority, in the first three quarters of 2024, the country exported QAR 260.3 billion worth of goods against QAR 94.9 billion in imports (-4.9% and +13% y-o-y, respectively).

 
Foreign Trade Indicators 20192020202120222023
Imports of Goods (million USD) 29,17825,83527,98533,47930,928
Exports of Goods (million USD) 72,93551,50487,203130,96497,365
Imports of Services (million USD) 35,41634,69834,34041,00041,199
Exports of Services (million USD) 19,11119,42918,34630,72830,173
Imports of Goods and Services (Annual % Change) 1.9-8.9n/an/an/a
Exports of Goods and Services (Annual % Change) -2.2-1.5n/an/an/a
Imports of Goods and Services (in % of GDP) 37.940.934.131.6n/a
Exports of Goods and Services (in % of GDP) 52.249.158.768.6n/a
Trade Balance (million USD) 41,58127,13760,33997,44568,306
Trade Balance (Including Service) (million USD) 25,27611,86944,34587,17356,535
Foreign Trade (in % of GDP) 90.090.092.8100.2n/a

Source: WTO – World Trade Organisation ; World Bank , Latest Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2023
China 19.7%
South Korea 12.6%
India 12.0%
Japan 8.0%
Singapore 7.2%
See More Countries 40.4%
Main Suppliers
(% of Imports)
2023
United States 15.9%
China 14.5%
Italy 6.4%
India 5.6%
Germany 5.6%
See More Countries 51.9%

Source: Comtrade, Latest Available Data

 
 

Main Products

97.8 bn USD of products exported in 2023
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 60.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 17.2%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 8.7%
Polymers of ethylene, in primary formsPolymers of ethylene, in primary forms 2.3%
Mineral or chemical nitrogenous fertilisers (excl....Mineral or chemical nitrogenous fertilisers (excl. those in pellet or similar forms, or in packages with a gross weight of <= 10 kg) 1.9%
See More Products 9.2%
31.4 bn USD of products imported in 2023
Turbojets, turbopropellers and other gas turbinesTurbojets, turbopropellers and other gas turbines 7.4%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 4.4%
Parts of aircraft and spacecraft of heading 8801...Parts of aircraft and spacecraft of heading 8801 or 8802, n.e.s. 3.7%
Telephone sets, incl. telephones for cellular...Telephone sets, incl. telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, incl. apparatus for communication in a wired or wireless network [such as a local or wide area network]; parts thereof (excl. than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528) 3.2%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.2%
See More Products 79.2%

Source: Comtrade, Latest Available Data

 
 

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Main Services

Source: United Nations Statistics Division, Latest Available Data

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Sources of General Economic Information

Ministries
Ministry of Interior
Ministry of Foreign Affairs
Ministry of Finance
Ministry of Economy and Commerce
Ministry of Justice
Statistical Office
Qatar Planning and Statistics Authority
Central Bank
Qatar's Central Bank
Stock Exchange
Qatar Stock Exchange
Search Engines
Arabo.com
Google Qatar
Economic Portals
Arabian Business
Arab Economic Portal

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Political Outline

Current Political Leaders
Emir of Qatar: Tamim bin Hamad Al Thani (since 25 June 2013)
Prime Minister: Muhammad bin Abd al-Rahman Al Thani (since 7 March 2023)
Next Election Dates
Shura Council: September 2025
Main Political Parties
The Qatari citizens enjoy limited political rights, and the formation of political parties is prohibited in the country. The only elections are for an advisory municipal council, and all candidates for municipal elections run as independents. Legislative elections for the Advisory Council are yet to be held.
Type of State
Absolute monarchy
Executive Power
The Emir of Qatar is the head of state and holds a hereditary title. Although Qatar is officially a constitutional monarchy, the Emir exercises executive authority and has the power to approve or reject legislation after consulting the Advisory Council (Majlis al-Shura). The Emir also appoints the Prime Minister and, based on the Prime Minister’s recommendations, approves the formation of the Council of Ministers.
Legislative Power
Qatar’s legal system combines civil law with Islamic law (Sharia), which is the main source of legislation. The Advisory Council (Majlis al-Shura) has the authority to draft and approve laws, but the Emir has the final say on all legislation. Until 2024, the Council consisted of 45 members, with 30 elected by direct, general secret ballot and 15 appointed by the Emir. However, following a constitutional referendum in late 2024, all Council members are now appointed by the Emir. The Council of Ministers can also propose draft laws and decrees for review by the Advisory Council. Sharia law is applied in areas such as family law, inheritance, and certain criminal cases.
 

Indicator of Freedom of the Press

Definition:

The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

World Rank:
128/180
 

Indicator of Political Freedom

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:
Not Free
Political Freedom:
6/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

 

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Latest Update: May 2025