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The International Monetary Fund (IMF) praised Qatar’s economic reforms and said the country is well-positioned to withstand global shocks, provided it sustains sound fiscal and structural policies.

Nathan Porter, IMF Assistant Director for the Middle East and Central Asia, said after a staff visit to Doha that “fluctuations in global energy prices, heightened global uncertainty and possible disruptions to trade routes pose challenges to Qatar’s export earnings, fiscal revenues and economic activity.”

The comments came just as regional instability deepened: an Israeli airstrike in Doha, reportedly targeting Hamas leaders, underscored geopolitical risks alongside economic ones.

Strong Fundamentals Drive Confidence

The IMF applauded Qatar’s progress under its Third National Development Strategy (NDS3), designed to accelerate diversification, boost competitiveness, and attract skilled foreign talent while creating more private-sector opportunities for nationals.

At the heart of Qatar’s resilience is the North Field LNG expansion project, set to start production soon. The IMF said it will strengthen both fiscal and external balances, giving the economy a cushion against future volatility.

Meanwhile, non-hydrocarbon growth is strong. GDP rose 2.4% in 2024, thanks largely to tourism, which jumped nearly 30% year-on-year. Inflation remained low at 1.3%, and Qatar’s sovereign credit spreads are now the lowest in more than a decade.

Why It Matters for MENA

Qatar’s ability to maintain stability while diversifying highlights a playbook other MENA economies can study. By leveraging energy wealth, sovereign reserves, and reform strategies, Gulf states may be able to cushion external shocks better than markets heavily reliant on a single sector.