Qatar reduces spending amid lower gas income

The Financial Times reported that Qatar has implemented significant budget cuts, reducing government spending by approximately 30% and halting around 85% of foreign aid, due to a decline in natural gas revenues, which are the primary source of the country's funding. Liquefied natural gas (LNG) operations have been suspended since March following attacks on production facilities and tensions in the Strait of Hormuz, leading to a sharp economic contraction. The government projects a GDP shrinkage of 8.6% this year, the largest among Gulf countries. Amid worsening financial conditions, the budget deficit increased more than 20-fold during the first quarter. According to officials, Qatar is considering further spending cuts if the crisis continues until the end of 2026, despite having restarted some production facilities at reduced capacity. The extent of foreign aid, including a $1.5 billion grant to the United Nations, remains uncertain, but Qatar is regarded as one of the largest donors to international agencies.

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