Doha: American companies have been key partners in Qatar’s development and the levels of public spending in the 2023 budget will certainly increase interest from US companies looking to take advantage of the many projects in the pipeline said US-Qatar Business Council Managing Director and Treasurer of the Board of Directors Mohammed Barakat.
He said an impressive 20 percent of the spending in 2023 has been allocated to the health and education sectors. The health sector will reign in 11 percent of the total public budget while the education sector will receive nine percent of the total public budget. These will be used to expand and develop schools and educational institutions as well as develop healthcare centers and expand the existing health facilities. Both health and education are some of the key areas for collaboration between the United States and Qatar.
US-Qatar Business Council Managing Director and Treasurer of the Board of Directors Mohammed Barakat.
“Investments in health and education offer a great deal of synergies for both US companies and institutions and Qatar. By partnering with Qatar, US companies and institutions have the opportunity to provide state-of-the-art healthcare technologies and services to the country,” Barakat said adding that collaboration between Qatar and the US education sector can provide numerous benefits for both parties.
He said by working together, the US and Qatar can share knowledge and expertise, leading to the development of innovative educational programs and approaches.
The development of human capital not only will contribute to Qatar’s strong knowledge-based economy, but also provide the necessary skilled labour for the many American companies who have established or are looking to establish themselves in the country.
This large allocation of the total budget reflects Qatar’s persistent dedication towards investment in the cultivation of its human capital and its knowledge economy. In its bid towards transitioning to a sustainable economy as part of its Qatar National Vision 2030, Qatar has invested heavily in educating its local workforce to facilitate an economic transition towards a non-oil based economy. This substantial contribution towards education and healthcare underscores Qatar’s determination and persistence to reach its aspirational goals that benefit not only its citizens and economy but the environment as well,” Barakat said.
The continual spending on public projects, a decrease in public debt, and a remarkable estimated revenue of QR228bn will further grow and cement Qatar’s position as a leading economic power on the international and regional stage. This healthy trade & investment environment will certainly lure in many US companies looking to expand their international footprint with both the manufacturing and sale of high quality products and services. In sum, this budget will only reinforce Qatar’s position as a dominant FDI destination for American companies.
He said Qatar’s budget for the fiscal year 2023 is expected to have a highly impressive estimated surplus of QR29bn, with total revenues reaching QR228bn.
This budget report including the substantial surplus emphasises fiscal responsibility and the successes of the government and financial institutions. Through prudent financial management, guidance by the government and the associated ministries, Qatar has been able to navigate through turbulent challenges such as as the COVID-19 pandemic and inflationary pressures.
Total budgeted expenditure in 2023 is almost 3 percent lower than in 2022 as costs associated with the World Cup are completed. An important feature of this budget is the high level of spending, despite the completion of major projects. Maintaining the same levels of spending is very positive and encouraging for the markets, and will have a crucial and direct impact on financial markets, the economy, and the country’s trade and investment portfolio.
The 2023 budget presented by the Finance Minister H E Ali bin Ahmed Al Kuwari aims at achieving an estimated revenue for the current fiscal year of QR228bn which is a 16.3 percent increase compared to the last year’s budget estimates with an expenditure of QR199bn and a budget surplus of QR29bn.
The budget for the current fiscal year has allocated funds of around QR9.8bn on 22 new projects while also curtailing allocations for major projects which is expected to decline by 13.6 percent compared to 2022 estimates at QR63.9bn with the completion of several infrastructure and strategic projects the latest of which is the expansion of Hamad International Airport prior to the start of the FIFA World Cup 2022.
A noteworthy feature of the budget 2023 is measures to streamline expenditure on key sectors. Allocation for health and education sectors which has been increased for the current year in line with the state’s continued focus on the two sectors.
