Qatar has cut government budgets by up to 30% and reduced foreign aid by nearly 85%, as war in the region destroys an economy dependent on LNG.

The Islamic Republic of Iran’s attacks on Ras Laffan, the world’s largest LNG hub, have cut export capacity by 17%, and complete recovery is expected to take 3 to 5 years.

Effective closure of the Strait of Hormuz has further paralyzed exports.

The International Monetary Fund predicts that Qatar’s GDP will fall by 8.6% in 2026.

Goldman Sachs estimates that Qatar and Kuwait are losing between $1.5 and $2 billion in energy revenue every week.

To maintain its liquidity, Qatar is using its roughly $500 billion sovereign wealth fund, but if the crisis continues, it is seriously considering further cuts.

Source: Financial Times