IMF urges Qatar to strengthen private sector

• Fund wants steps to boost smaller companies
• Calls for diverse, knowledge-based economy
• Cites ‘sound macroeconomic management’

Qatar must step up efforts to move more citizens into the private sector by strengthening skills, small and mid-size enterprises, financing and digital adoption, International Monetary Fund officials said this week.

An IMF team met Qatari officials in Doha earlier this month as part of the fund’s annual assessment of the Gulf state’s economy and found Qatar to be highly resilient against a volatile geostrategic environment, a news release said. 

The IMF’s mission chief to Qatar and Sudan Nathan Porter cited “sound macroeconomic management”, an expected hike in liquefied natural gas production from the expanded North Field and strong non-energy growth. 

“The fiscal stance remains consistent with a level that ensures intergenerational equity, and broadly prudent spending plans are envisaged under the 2026 budget,” said Porter, who led the delegation.

“The positive economic outlook provides an opportunity to accelerate revenue diversification.”

Introducing a value-added tax, directing public spending better to support the private sector and making domestic gas-pricing mechanisms more transparent are among the steps Porter advised. 

Further reading:

• Qatar has built prosperity. What comes next?
• Qatar wealth fund commits $25bn to Goldman investments
• Qatar sovereign fund to be ‘selective’ in AI investments

Qatar’s economic growth came to 2.4 percent in 2024, roughly 3 percent in the third quarter of last year, and should hover around 4 percent over the next few years, according to the IMF.

Inflation is projected to stay subdued, while fiscal and current-account surpluses will continue for the medium term.

Qatar should build on these successes by accelerating efforts to develop a “diversified, knowledge-based economy” under the guidelines of the 2024 Third National Development Strategy (NDS3), Porter said. 

“Realising the ambitious goals of NDS3 calls for careful and strategic implementation and reform sequencing,” the IMF official said.

“Enhancing data availability and quality would also support the analysis and development of ongoing and future plans and the path forward.”