Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Qatar lost its status of leading exporter of liquefied natural gas to Australia in 2020 but holds the third largest gas reserves in the world (estimated at 12% of the global total in 2022). The Emirate’s economy is thus heavily concentrated in the gas industry, which represents two-thirds of its GDP and almost 80% of export earnings. Like other Gulf monarchies, Qatar has been hit by the global decline in oil prices since 2014. However, the economic results have been better than that of its neighbours, due to successful economic diversification, namely via the development of large-scale projects. The country weathered the diplomatic rift with other Gulf crisis by finding new import and export routes, with its growth rate reaching 0.8% in 2019. Due to the COVID-19 pandemic, it plummeted to -3.6% in 2020 but came back to +1.6% in 2021 and +3.4% in 2022, pushed by a boom in the services sector associated with the FIFA 2022 World Cup. It is expected to reach 2.4% in 2022 and 1.7% in 2024 (IMF, January 2023).

General government debt has grown from 62.3% of GDP in 2019 to 72.1% in 2020 as the country continued to borrow on international markets and then back to 58.4% in 2021 and 46.9% in 2022. The IMF anticipates a debt reduction in 2023 and 2024, with levels reaching 43.4% and 42.4% of GDP respectively. The negative economic impact of the COVID-19 pandemic and the fall in oil prices translated into a current account deficit in 2020 (-2% of GDP) before returning to positive territory in 2021 (+14.7%) and 2022 (+21.2%). It is expected to reach 22.1% in 2023 and 15.2% in 2024. In the medium term, the expansion of North Field gas projects is expected to be completed by 2024, further boosting gas output. Qatar has been implementing an economic diversification program to lower its dependency on the hydrocarbon sector, and in December 2018 the country announced it would leave OPEC in January 2019 to focus its efforts on natural gas (mainly due to the diplomatic tensions with neighbouring countries). New projects are planned in infrastructure and telecommunications, and various construction projects were completed for the World Cup in 2022. Inflation was estimated to have fallen to -2.7% in 2020 but came back in 2021 at 2.3% and 2022 at 4.5%. The IMF estimates inflation to decrease to  3.3% in 2023 and 2.1% in 2024 in its latest World Economic Outlook of January 2023. Qatar is planning the introduction of a 5% VAT in 2023-2024.

Qatar is overall a politically stable, rich country (it had the second highest income per capita in the world in 2021 according to the World Bank, PPP). It is estimated that 85% of the inhabitants are expatriates, whose rights are limited, despite the progress made with recent reforms. According to World Bank, unemployment is almost null, representing under 1% of the total labour force in 2021.

Foreign Trade

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 membership in several organisations, such as the WTO. Trade represents 93% of the country's GDP in 2021 (World Bank, 2023). Mineral fuels, oils and distillation products represented over 85% of the country’s exports in 2022 (mainly natural gas, followed by crude and other oil products), while imports were led by manufactured products, especially machinery, boilers, Electrical and electronic equipment and Vehicles other than railway and tramway.

In 2021, the main trading partners were China (15.5%), Japan (13.6%), India (15%) and South Korea (12.8%). Qatar’s leading suppliers were China (16.3%), the United States (11.8%), India (6.4%) and Germany (5.8%). 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, and has concluded a new trade deals with Pakistan on February 2020.

Benefiting from strong oil and gas revenues, Qatar's merchandise trade balance is structurally positive (27.1 billion USD in 2020 and 60.33 billion USD in 2021). The fluctuation in oil prices, the COVID19 pandemic and the global effect of the war in Ukraine has impacted on the surplus in recent years. Exports increased in 2021 to 87.20 billion USD from 51.50 billion USD a year earlier) while imports increased from 25.83 billion USD to 27.98 billion USD). As many countries in the region, Qatar remains a net importer of services: imports reached USD 34.34 billion in 2021, while exports amounted to USD 18.34 billion. The trade surplus including services was estimated to have sharply increased to USD 44.34 billion in 2021, from USD 11.86 billion the year before (WTO, 2023).

Qatar’s trade balance surplus has surged to hit QAR 28.2 billion  (7.75 billion USD) in December 2022. The figure reflects a 10% increase on an annual basis and a 7.6% climb on a monthly basis. The surge in the Gulf country’s trade balance surplus is mainly attributed to the increase in exports and the curbing of imports (Qatar Planning and Statistics Authority, 2023).

COVID-19 Country Response

COVID-19 epidemic evolution

To find out about the latest status of the COVID19 pandemic evolution and the most up-to-date statistics on the COVID-19 disease in Qatar, please visit the Qatari Ministry of Public Health’s Coronavirus Disease 2019 (COVID-19)  website with the official data.

For the international outlook you can consult the latest situation reports published by the World Health Organisation as well as the global daily statistics on the coronavirus pandemic evolution including data on confirmed cases and deaths by country.

Sanitary measures

To find out about the latest public health situation in Qatar and the current sanitary measures in vigour, please consult the video How to Protect Yourself Against Coronavirus (COVID-19) and the Home Quarantine Information page.

Travel restrictions

The COVID-19 situation, including the spread of new variants, evolves rapidly and differs from country to country. All travelers need to pay close attention to the conditions at their destination before traveling. Regularly updated information for all countries with regards to Covid-19 related travel restrictions in place including entry regulations, flight bans, test requirements and quarantine is available on TravelDoc Infopage.
It is also highly recommended to consult COVID-19 Travel Regulations Map provided and updated on the daily basis by IATA.
The US government website of Centers of Disease Control and Prevention provides COVID-19 Travel Recommendations by Destination.
The UK Foreign travel advice also provides travelling abroad advice for all countries, including the latest information on coronavirus, safety and security, entry requirements and travel warnings.

Import & export restrictions

For information on all the measures applicable to movement of goods during the period of sanitary emergency due to the COVID-19 outbreak (including eventual restrictions on imports and exports), refer to the PWC webpage “Qatar: Customs exemption of certain food and medical goods due to COVID-19”.

For a general overview of trade restrictions due to COVID-19 pandemic, please consult the section dedicated to Qatar on the International Trade Centre's COVID-19 Temporary Trade Measures webpage

Economic recovery plan

For information on the economic recovery scheme put in place by the Qatari government to address the impact of the COVID19 pandemic on the Qatari economy, refer to KPMG Qatar’s Government and institution measures in response to COVID-19.

For a general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and  macroeconomic) taken by the Qatari government to limit the socio-economic impact of the COVID-19 pandemic, please consult the section dedicated to Qatar in the IMF’s Policy Tracker platform.

Support plan for businesses

For information on the local business support scheme established by the Qatari government to help small and medium-sized companies to deal with the economic impacts of the COVID19 epidemic on their activity, refer to the Qatar Development Bank’s webpage “COVID-19 National Response Guarantees Program”.

For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the World Bank's Map of SME-Support Measures in Response to COVID-19.

Support plan for exporters

There are no specific support plans for exporters in Qatar so far. For future possible up-to-date information please visit the website of the Ministry of Commerce and Industry. Export insurance is provided by the Qatar Development Bank.