Doha

- Specialists expected that the new budget of the State of Qatar for the year 2023 will contribute to clearly enhancing trade and trading in the stock market, with continued spending in the infrastructure sector related to industry and tourism, and a noticeable activity in the energy sector, which is witnessing an increase in global demand.

The new budget for the State of Qatar will enter into force a few days after the start of the new year, following its official approval by the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, last week, with a total value of 228 billion Qatari riyals (about $62.5 billion) and expected financial surpluses of up to 29. One billion riyals (about 8 billion dollars).

The Qatari Minister of Finance, Ali bin Ahmed Al-Kuwari, told Qatar News Agency (QNA) that the total revenue estimates in the new budget amount to 228 billion riyals, an increase of 16.3%, compared to last year, while the expenditure estimates amount to 199 billion riyals.

Al-Kuwari attributed the increase in public revenues mainly to the adoption of an average oil price of $65 per barrel for the year 2023 instead of $55 per barrel as in the 2022 budget, as a result of the remarkable recovery in global energy prices during the current year, in addition to expectations that energy prices will continue to rise over the long term. average.

Gas production from the North Field in Qatar is expanding significantly (Shutterstock)

The 2023 budget witnesses a decrease in expenditures by 2.6% compared to last year, and the allocations for salaries and wages in the new budget increased by 4 billion riyals from 2022, while 21.1 billion riyals were allocated to the health sector, which constitutes 11% of total expenditures. Education accounts for approximately 9% of total expenditures, amounting to 18.1 billion riyals.

Resilience in the face of global fluctuations

Economic expert Dr. Abdul Rahim Al-Hour expected - in an interview with Al-Jazeera Net - that the new budget would contribute to enhancing trade and trading in the Qatari stock exchange clearly, stressing that it indicates the strength and durability of the Qatari economy and its ability to withstand the current global fluctuations that are witnessing geopolitical and economic crises. Supply chains, energy and the Russian-Ukrainian war that cast a shadow over the global economy.

He pointed out that the Qatari government presented its budget for the new year amid a clear reading of the state of spending stability, diversity in sources of income, and a noticeable surplus in the budget, and that through these broad lines it is possible to predict what the state's economic situation will be next year, taking into account the expectations of the global geostrategic and political economic situation. In which several reports were issued indicating the inevitability of the existing political and economic crisis intensifying, which will affect the movement of global trade and financial markets around the world.

But this government spending - according to the hour - will have repercussions on all accompanying sectors, ensuring growth in the country's commercial and financial movement.

Al-Hour: The adoption of a unified and balanced methodology in previous years was reflected in stability and parallel growth in most sectors (social networking sites)

"Looking at some details of the Qatari budget, we find that it estimated oil prices at $65 per barrel of oil, in anticipation of price fluctuations despite their continuous escalation due to the increase in demand for energy sources, in addition to working to balance production quantities," Al-Hour added.

He explained that the State of Qatar is working to strengthen its economic and political strategic partnerships with many partners, as it signed a few days ago an agreement to export liquefied gas to China in a 27-year deal, in order to achieve stability in the liquefied gas sales market and the expected returns from it, in addition to the benefits of that partnership for the rest of the world. Sectors such as technology, communications, free trade, direct investment, and others.

He added that by returning to the estimated budget, "we find that the adoption of a unified, balanced methodology over the previous years has reflected on stability and growth in parallel in most sectors, foremost of which is the annual systematic spending on education, health, public works, salaries, scientific research and other sectors."

Expanding the activities of the Qatar Investment Authority

Businessman Fawaz Al-Hajri indicated - in his interview with Al-Jazeera Net - that the demand for energy continued to rise, and then prices escalated against the background of the repercussions of the war in Ukraine, as well as the spread of inflation rates in the vast majority of countries in the world due to the increase in demand for various products.

He explained that the surpluses of the new budget are expected to be directed to capital projects and to increase wages and salaries, in addition to using part of these surpluses to pay off the public debt and invest it by the Qatar Investment Authority, and then benefit from the surplus for future generations or in anticipation of any economic crises in the future.

Fawaz Al-Hajri: Budget surpluses will be directed to projects, increasing wages and paying off public debt (Al-Jazeera)

He pointed out that the Qatar Investment Authority (the sovereign fund) owns a huge portfolio that includes the real estate, retail, automotive and other sectors, as it is a strong investor in the United States and Europe, with a capital of more than $400 billion.

"There is no doubt that part of the expected surpluses will be directed to investment during this period, which is witnessing a lot of investment opportunities due to the decline in global markets and the bankruptcy of some international banks or companies," Al-Hajri said.

He stressed that it is natural for spending on infrastructure projects to decrease after the end of the World Cup due to the completion of these projects, but it is expected that money will continue to be pumped into projects that include infrastructure, hospitals and schools, pointing out that there is a trend from the State of Qatar towards the tourism, hotel and hospitality sector in a large way. Hence, its responsibility is to provide the infrastructure for this sector to attract foreign investments.

It is expected that spending on infrastructure projects to serve the industrial and sports sectors will continue, especially that Qatar will host the Asian Cup next year, and there are plans to host the Olympic Games in addition to the sports events and tournaments that are held annually.

Katara Hills Hotel is inspired by the Scandinavian architecture (the island)

growth of the energy sector

For his part, businessman Ahmed Al-Khalaf pointed out that during the past years there was a great focus on infrastructure, which cost more than 20 billion riyals annually, but after the completion of the World Cup projects and the completion of the infrastructure significantly, it is expected that the movement in the stock market will be active And in existing companies and petrochemical projects linked to the expansion of gas production.

Al-Khalaf expected that the economic growth in the State of Qatar would continue, but in another way, as it was previously focused on growth in the infrastructure sector, while the energy sectors will witness greater growth in the next stage.

He explained that they are sectors that will have a large economic return, especially with the increase in production in the North Field, which will be reflected in many petrochemical industries.