Doha – Qatar’s 2022 Budget, which was estimated to hit a deficit of QAR 8.3 billion (US$2.28 billion) at the time of approval, posted a record surplus of QAR 89 billion (US$24.45 billion).
“At the time, the deficit estimate was a result of the expenses related to hosting the World Cup, including security and all events accompanying the FIFA World Cup Qatar 2022,” said the country’s Finance Minister Ali bin Ahmed Al Kuwari said.
Data from the Qatar’s Ministry of Finance suggest that the State of Qatar’s budget for the fiscal year of 2022 saw a surplus of QAR 89 billion, a 5462.5 percent increase compared to the surplus of 2021, which was less than QAR 1.6 billion.
The ministry said that the surplus for Q4 of 2022 (October to December) was QAR11.6 billion, compared to a deficit of QAR3.3 billion in the same quarter of 2021. Total revenues for the quarter came in at QAR 65.1 billion, compared to QAR51.5 billion in the same period of last year. Oil and gas revenues were QAR 59.3 billion, compared QAR 44.7 billion in the corresponding period of 2021.
Total expenditures for the quarter came at QR 53.5 billion, compared to QAR 54.8 billion in Q4 of 2021. Wages were QAR 15.4 billion, compared to QAR 15 billion in the same period of last year. Current expenditures were QR 19.3 billion for the quarter, compared to QR 16.1 billion in the same quarter of the previous year. Minor capital expenditure were QAR 1.4 billion, compared to QAR 1.1 billion in Q4 of 2021. Expenditures tied to major projects were QAR 17.4 billion in 2022, compared to QAR 22.6 billion in the same period of 2021.
The 2022’s large surplus brings to mind similar high levels achieved in 2012 (QAR 77 billion), 2013 (QAR 106.3 billion), and 2014 (QR 108.6 billion riyals), mainly due to the control over expenditures and the rise in revenues as oil prices recovered.
Financial analyst Tamer Hassan said that the Ministry of Finance’s announcement of a budget surplus of QAR 89bn in 2022 will have a positive impact on the stock market, expressing his hope that investors respond to the strong performance of the Qatari economy, as shown by various macroeconomic indicators.
Hassan told Qatar News Agency (QNA) that the increase in the budget surplus was mainly driven by the increase in oil and gas surplus, saying that these levels of surpluses weren’t seen since 2012, 2013, and 2014.
The financial analyst pointed out that the banking and financial services sector achieved operating returns during the past year of about QR 25bn, without considering the results of the newly listed Dukhan Bank, which will also boost Qatar Stock Exchange. He said that the banking sector’s profits grew 8% last year, driven by QNB.
The financial analyst highlighted that profits for the listed companies grew compared 2021, even though they were below investors’ expectations.
Hassan also pointed out that dividends have also increased, but are below bond yields, which is a trend in global equity markets following interest rate hikes by various major central banks, led by the US Federal Reserve. He said he expects the market would regain momentum in the coming period, when companies start reporting Q1 results.