Qatar's revenue fell 42 per cent in the first half of this year, as exports of liquefied natural gas (LNG) dropped due to the impact of the Iran war, Emir Sheikh Tamim said during a Shura Council meeting.
LNG exports from Qatar, the world’s second-largest supplier before the conflict, has fallen sharply due to the effective closure of the Strait of Hormuz as well attacks on its Ras Laffan complex.
“The crisis naturally had an adverse impact on public finances, with total revenues falling by 42 per cent during the first half of the year, while public expenditures decreased by 14 per cent – all without compromising essential services or development priorities,” Sheikh Tamim said.
“We decided against curtailing essential services and chose not to alter development priorities, aiming to sustain the economic momentum Qatar is experiencing.”
Measures taken before the crisis, such as strengthening reserves, reducing public debt, adopting conservative oil-price assumptions in the budget and developing non-oil revenue, helped Qatar absorb the economic fallout, he said.
About 17 per cent of Qatar’s LNG capacity is offline after Iranian strikes damaged two of its 14 export trains, removing 12.8 million tonnes a year from the market.
QatarEnergy has said repairs will take three to five years, meaning even a safe reopening of Hormuz would restore access to only part of Qatar’s prewar supply. Gas prices have soared globally due to the disruption.
Disruption to Qatar's energy sector affects markets and consumers worldwide, the Emir said on Tuesday.
“The closure of the Strait of Hormuz, along with direct damage to some energy facilities in Ras Laffan Industrial City, has disrupted a significant portion of the country's exports,” he said.
However, the economic fallout is concentrated mainly in the energy sector, while non-hydrocarbon industries continue to grow, accounting for about 80 per cent of real gross domestic product, he added.
“This reflects the national economy's ability to withstand and continue growing under exceptional and complex circumstances,” Sheikh Tamim said.
Economies across the Gulf are projected to contract by an average of 4.3 per cent for 2026, down 5.7 percentage points from April, driven by lower export volumes due to the Strait of Hormuz's closure, leading to significant losses in output and government revenue, the World Bank said last week.
Qatar's economy is estimated to be hit the hardest among all countries in the region, facing a 20.9 per cent contraction this year, compared to 1.8 per cent growth in 2025, the World Bank said.
The estimate would represent the country's weakest economic performance in five decades, after its average monthly gas production fell by about 67 per cent between March and July due to damage sustained at its sites.
Meanwhile, the International Monetary Fund in its update this week said it expects Qatar's economy to contract by 15.6 per cent this year, before rebounding to growth of 18.8 per cent in 2027.
Investments of $60.7 billion
However, Qatar will emerge from the regional crisis more resilient and better adapted to global changes, Sheikh Tamim said.
“We have a portfolio of projects and investment opportunities valued at approximately 221 billion riyals [$60.7 billion] over the next five years,” he said.
Planned investments will cover infrastructure, public-private partnerships and private-sector projects in real estate and hospitality, he added.
Sheikh Tamim said Qatar had faced three simultaneous responsibilities during the crisis: protecting its sovereignty, fulfilling its role in global energy and economic security, and keeping diplomatic channels open.
“Our strategy for shouldering these responsibilities consisted of four main elements: first, firmly defending the homeland without being drawn into war; second, maintaining services, supply chains and economic activity; third, contributing to efforts to secure a ceasefire and open waterways; and fourth, encouraging negotiations and seeking opportunities to return to talks to reach peaceful solutions to the conflict,” he said.
Sheikh Tamim said the goal is “not merely to return to the pre-crisis status quo, but to use recovery as a springboard to accelerate economic diversification and strengthen national capabilities”.
“God willing, Qatar will emerge from this crisis more resilient and better adapted to global changes,” he added.