The international research company "Fitch Solutions", affiliated with the global credit rating agency "Fitch", raised its estimates of the expected surplus for the State of Qatar's budget to 4.1% of GDP in 2021, compared to a level of 3.3% in its previous estimates as a result of the record rise in oil prices.
The company stated in a report that Qatar's budget surplus in 2022 will record a level of 4% of GDP, as a result of the record increase in the number of visitors to the impact of the World Cup.
The general budget of the State of Qatar achieved a surplus of 4.9 billion riyals ($1.35 billion) during the first nine months of 2021.
Fitch said: "The Qatari economy is strong, as the assets of the Sovereign Wealth Fund of the State of Qatar (Qatar Investment Authority) amounting to $295 billion equal 200% of GDP, which represents a protection umbrella against potential financial shocks, and enhances the stability of the Qatari economy during medium term".
She pointed out that gas pricing is linked to oil prices, and therefore its current record rise will positively affect 15% of the total LNG contracts, while the rest of the contracts are long-term contracts.
LNG prices have doubled since August 2021, rising from an average of $15 per million British thermal units, to $33 per million British thermal units, in October 2021.
Fitch suggested the growth of tourism revenues as a result of the influx of fans to the World Cup in 2022, in conjunction with the implementation of the Hamad Airport expansion project to accommodate about 53 million passengers before the World Cup, and to enhance its role as a major transit hub for long-distance flights between Western countries and Asia.
It is estimated that the 2022 World Cup will attract at least one million visitors. It is expected that Qatar will achieve growth in international tourism revenues from 21.56 billion riyals (5.9 billion dollars) in 2020, to a level of 31.26 billion riyals (about 8 billion dollars) in 2021, The growth momentum will continue to reach 67.34 billion riyals ($18 billion) in 2022, and 76.48 billion riyals ($21 billion) in 2023.
Sports events play a major role in promoting tourism, as Qatar has hosted nearly 80 sports events during the past three years, including the World Championships in Athletics (2019) and the World Beach Games in 2019. Of course, the State of Qatar is in the process of finalizing the hosting of 2022 FIFA World Cup and Vienna World Swimming Masters 2023.
Fitch estimates that the total number of visitors to Qatar will reach more than 3 million by 2025, while the national strategy for the tourism sector aims to attract 5.6 million visitors to Qatar annually.
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