Prudent fiscal policy. Substantial external liquidity. Strong economic prospects and high per capita income. Relatively high public sector external debt. Developing political and economic institutions. The ratings on the State of Qatar primarily reflect the country's very strong economic prospects--driven largely by the gas industry--combined with continuous prudence in fiscal policy and the ongoing improvement in domestic political institutions. Standard&Poor's expects Qatar's prudent fiscal policy to continue. The State's budget for 2004-2005 assumes an average oil price of $19.0 per barrel and targets a deficit of about 2.5% of GDP. By contrast, taking a baseline assumption of an average Brent crude price of about $34.5 per barrel, there will be a fiscal surplus of about 11.6% of GDP
