Qatar budget deficit doubles to 5 billion euros in Q2 2026

Qatar has reported its largest quarterly budget deficit in nearly a decade, with the deficit more than doubling to 21.2 billion riyals (approximately 5 billion euros) in the second quarter of 2026. This follows a deficit of 10.3 billion riyals in the first quarter, bringing the total deficit for the first half of the year to 31.5 billion riyals, which exceeds the full-year 2026 projection.

The deficit is driven by a sharp decline in energy sector revenues. LNG exports dropped significantly from approximately 20 million tons in the same quarter last year to less than 2 million tons between April and June 2026. This decline is attributed to regional instability, including maritime disruptions in the Strait of Hormuz and drone and missile attacks on energy facilities, such as a March attack on a major export facility in Ras Laffan.

In response to these challenges, QatarEnergy has extended ‘force majeure’ on deliveries to the Italian company Edison until early November, affecting 29 shipments. While non-energy revenues increased fivefold to 25 billion riyals, total revenues fell by roughly 30% to 25.6 billion riyals. The International Monetary Fund estimates that the Qatari economy could see a contraction exceeding 8% during 2026 due to these ongoing energy and trade disruptions.