Qatar’s gas expansion plans to drive budget surplus by 2030

Qatar’s gas expansion plans to drive budget surplus by 2030

Qatar is expected to retain budget surpluses until 2030, driven by an increase in gas production at the North Field Expansion (NFE) project, Fitch Ratings has said. The budget surplus is forecast at 8.6 percent of GDP in 2024, compared to 9.3 percent percent in 2023, the rating agency said in a report. “Oil and […]Qatar is expected to retain budget surpluses until 2030, driven by an increase in gas production at the North Field Expansion (NFE) project, Fitch Ratings has said.

The budget surplus is forecast at 8.6 percent of GDP in 2024, compared to 9.3 percent percent in 2023, the rating agency said in a report.

“Oil and gas revenue will only marginally drop as Brent oil price will average $80 per barrel in 2024 compared to $82 in 2023. We expect a budget surplus of 6.2 percent in 2025, despite lower hydrocarbon prices at $70.”

Fitch also upgraded the long-term foreign-currency issuer default rating to “AA” from “AA-“, supported by its large sovereign net foreign assets, one of the world’s highest ratios of GDP per capita and a flexible public finance structure. The outlook remains stable.

However, the country’s heavy dependence on hydrocarbons, below-average scores on some governance measures, higher government debt-GDP ratio