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This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile S&P Global Ratings expects economic growth in Qatar to average 2% in 2024-2025, supported by nonhydrocarbon sectors. The government's sizable fiscal and external net asset positions will remain a rating strength, boosted by an expected 60% increase in Qatar?s LNG production capacity by 2027. -- Growth momentum should strengthen from 2026, bolstered by the North Field Expansion (NFE), a major liquified natural gas (LNG) project. -- Supported by favorable hydrocarbon prices and increasing production, Qatar's current account will average an annual surplus of about 20% of GDP over 2024-2027. -- Despite current geopolitical tensions in the region, full-scale regional conflict in the Middle

...Ongoing geopolitical volatility in the Middle East is unlikely to have an adverse impact on Qatar's economy in the short term. Since most of Qatar's long-term gas contracts are linked to oil prices, the current favorable oil prices are beneficial for the sovereign's credit profile. In addition, the government's sizable fiscal and external net asset positions will continue to support the rating. The impact of disruption to Red Sea traffic on Qatar's LNG exports should remain manageable, in our view. More than 70% of Qatar's LNG exports go to Asia and we expect this to remain broadly unaffected by the current geopolitical tensions, including the Israel-Hamas war and the incidents in the Red Sea. We understand that shipments going north to Europe have been rerouted around the Cape of Good Hope, which adds at least 10 days to the average journey. Although transportation costs have risen, the disruptions have not prevented delivery of Qatar's LNG. We expect Qatar to remain one of the largest...

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