Qatar’s state budget for 2025 reflects a strategic commitment to economic diversification, sustainable growth, and tourism development. Total revenues are projected at $54.2 billion (QR197 billion), representing a 2.5% decrease compared to the previous year, while expenses are estimated at $57.8 billion (QR210.2 billion), a 4.6% increase from 2024. These figures highlight Qatar’s focus on enhancing public services, fostering human capital, and supporting critical sectors such as tourism, trade, and innovation.
A cornerstone of the budget is its conservative assumption of an average oil price of $60 per barrel, underscoring the state’s financial flexibility and prudent spending policies. Oil and gas revenues are estimated at $42.4 billion (QR154 billion), a slight 3.1% decrease, while non-oil revenues remain steady at $11.8 billion (QR43 billion), aligning with Qatar’s diversification objectives.
The health and education sectors will receive $11.5 billion (QR41.4 billion), or 20% of total expenditures, demonstrating Qatar’s prioritization of human development and public service quality. Moreover, increased funding has been allocated to strategic sectors such as tourism, digital transformation, and research and innovation, crucial for achieving sustainable development and boosting Qatar’s global appeal.
Strengthening Tourism and Travel
Tourism is a key pillar of Qatar’s diversification strategy. Following the success of the FIFA World Cup, Qatar is channeling resources into enhancing its tourism infrastructure, cultural offerings, and eco-tourism initiatives. These efforts aim to establish Qatar as a premier global destination, drawing environmentally conscious travelers and elevating the country’s profile on the world stage.
Luxury accommodations, improved transport connectivity, and digital transformation projects are central to this strategy. By leveraging technology and data-driven insights, Qatar plans to create personalized experiences for travelers, enhancing visitor satisfaction while preserving its unique cultural heritage and landscapes.
Investments in the Workforce and Capital Projects
The budget includes a 5.5% increase in salaries and wages, amounting to $18.5 billion (QR67.5 billion), emphasizing the state’s commitment to its workforce. Current expenses and secondary capital expenditures have grown by 6.3% and 7.7%, respectively, while major capital projects—essential for economic diversification—see a 1.4% increase.
Balancing Ambition with Fiscal Responsibility
Despite an anticipated $3.6 billion (QR13.2 billion) deficit, Qatar intends to address this through domestic and international debt instruments. This approach maintains fiscal stability while supporting key investments in health, education, tourism, and innovation.
Qatar’s focus on sustainability, both in its budget planning and sectoral development, is a hallmark of its long-term vision. With $57.8 billion allocated to advance public services and strategic sectors, the state is poised to attract global attention and achieve sustainable growth.
