DOHA: Minister of Finance HE Ali bin Ahmed Al Kuwari has discussed the highlights of Qatar's new public budget and financial plans for 2025. He provided details on revenue and expenditure figures, sector allocations, and significant economic indicators.
In a press conference held on Sunday to announce the 2025 state public budget,Al Kuwari pointed out that the budget's total expenditure amounts to QR210.2 billion. The education sector is allocated QR19.4 billion, with plans to construct 11 new schools and renovate 7 existing ones. Additionally, new buildings for the College of Dentistry and the College of Nursing will be constructed, along with maintenance and development of some facilities to support an advanced educational environment.
He added that the health sector is allocated QR22 billion, which will be used to complete the construction of new hospitals and develop existing facilities for Hamad Medical Corporation and the Primary Health Care Corporation. This reflects the state's ongoing commitment to human capital development and improving public service quality.
The Minister pointed out that the allocation for the municipality and environment sector is QR21.9 billion. Projects include the establishment of a shelter and care center for wildlife, development and rehabilitation of the Al Maha Wildlife Reserve in Al Shahaniya, rehabilitation and maintenance of the central veterinary laboratories building, development of farm complexes in the state, and expansion of the Aquatic Research Center.
He explained that the sports sector is allocated QR6.6 billion in the 2025 budget. The funds will be used to upgrade and develop Aspire Zone facilities, as well as the facilities of the Qatar Racing and Equestrian Club, the Qatar Equestrian Federation, and the Al Uqda Equestrian Complex (Phase 4). Additional projects include the development of covered sports halls and facilities under the Ministry of Sports and Youth.
Commercial affairs are allocated QR3.9 billion, transportation QR3.9 billion, tourism and culture QR3.6 billion, telecommunications QR3 billion, social services QR2.7 billion, and research and development QR1.1 billion.
The finance minister mentioned that the allocations for salaries and wages in 2025 have increased to QR67.5 billion, a 5.5 percent rise from 2024. Current expenditure allocations increased by 6.3 percent and minor capital expenditures by 7.7 percent compared to the previous year.
Major capital expenditure allocations saw a slight increase of 1.4 percent to support the continued implementation of strategic and developmental projects.
Regarding the 2025 government procurement plan, the minister highlighted key sectors.
The Public Works Authority (Ashghal) plans to issue tenders worth QR56.2 billion, the health sector tenders are expected to reach QR7.5 billion, and the Qatar General Electricity and Water Corporation (Kahramaa) tenders are estimated at QR7 billion.
The minister noted that the expected total revenue for the 2025 budget is QR197 billion, with QR154 billion from oil and gas revenues and QR 43 billion from non-oil revenues. The projected deficit for 2025, amounting to QR13.2 billion, is attributed to the state's conservative approach in estimating oil and gas revenues and an average oil price of $60 per barrel to enhance financial flexibility and ensure spending stability.
Discussing key economic indicators for the current year, the minister stated that the country's GDP grew by 1.7 percent in 2024, with non-hydrocarbon GDP growth at 1.9 percent and hydrocarbon GDP growth at 1.4 percent. He explained that the inflation rate has started to return to normal levels, reaching 1.3 percent by the end of September, which is among the best rates globally. Inflation is expected to stabilize at around 2 percent in the medium term.He pointed out that the State of Qatar received 4.6 million tourists up to November, with a budget surplus of 0.3 percent of GDP, and public debt at 40.5 percent of GDP.
Regarding the foundations for preparing the state budget for 2025, Al Kuwari said that it is represented in allocating financial resources to the main sectors that support efforts of economic diversification and sustainable growth, supporting the private sector and facilitating business, in addition to raising the efficiency of spending by starting to implement the budget based on programs and performance, as well as adhering to a balanced spending policy that contributes to maintaining the financial position of the country and its high credit rating and achieving financial sustainability, in addition to improving and raising the level and quality of government services provided to citizens, residents, and the private sector.
Responding to a question from Qatar News Agency (QNA) about the decline in oil revenues by QR5 billion, despite the average price per barrel in the new budget being the same as the current budget price of USD 60 per barrel, the minister said that revenues remain estimated and that Qatar's financial policy adopts a conservative price for oil in anticipation of any changes in the market. He added that the decline in oil revenues compared to the 2024 budget estimates may be due to directing capital expenditures due to expansion projects in the production of liquefied natural gas (LNG).
Regarding the expectations that indicate a leap in the country's GDP growth to 7.9 percent in 2027, from around 2.4 percent in 2025, the Minister of Finance indicated that this is mainly due to the start of production in the LNG expansion projects, and its gradual increase from 2026 until 2030 to reach the targeted levels of QatarEnergy, explaining that this gradual increase will be positively reflected in the growth of the GDP.
He added that what concerns Qatar in this regard is that the average growth of the GDP during the years until 2030 will exceed 4 percent annually, representing high rates and among the best in the world, and reflects the sustainability of the growth of Qatar's economy.
Concerning the increase in the credit rating of the State of Qatar, the Minister of Finance highlighted that one of the main reasons for this is the financial discipline in the country, which is considered one of the most important pillars for raising the credit rating of countries, in addition to the country's continued efforts to raise the efficiency of human resources, enhance financial reserves, control expenditures, and good strategic plans for dealing with crises.
Al Kuwari stressed that the credit rating of the State of Qatar is considered one of the best ratings in the region and the world, and reflects confidence in Qatar's national economy.
Regarding health insurance, he said that the Ministry of Finance is still working on preparing studies and executive regulations for implementation. He emphasized the positive effects of health insurance on the private medical sector and insurance companies upon implementation, praising its performance and the high levels of services it provides, which enhances the options for those wishing to obtain medical care services.
Concerning the contribution of the public budget to enhancing economic growth and sustainability, the Minister of Finance pointed to the integrated role of economic and financial sustainability, through enhancing investment in various economic sectors, promoting economic growth, and encouraging the private sector. He added that financial sustainability enhances the building of financial reserves at the Qatar Central Bank (QCB), as well as the reserves of the Qatar Investment Authority (QIA).