S&P affirms Qatar’s ‘AA/A-1+’ credit rating, maintains stable outlook

Doha, Qatar - S&P Global Ratings has affirmed Qatar's sovereign credit ratings as 'AA/A-1+' for both long-term and short-term debt, maintaining a stable outlook. The agency cited Qatar's substantial fiscal and external assets, strong financial buffers, and flexibility in government spending as key factors enabling the country to withstand potential security and trade disruptions stemming from the ongoing Middle East conflict.

Qatar's considerable financial reserves, particularly those held through the Qatar Investment Authority (QIA), were highlighted as a major source of protection against external shocks. The government's liquid assets were estimated at approximately 200% of gross domestic product (GDP), including QIA assets and government deposits in the banking system. Additionally, Qatar Central Bank's foreign exchange reserves amounted to $60.6bn, with foreign currency liquidity reaching about $11.5bn.

S&P expects Qatar's economy to begin recovering in 2027 as gas production nears pre-conflict levels. The non-hydrocarbon economy, which grew by 3% during the first half of 2026, is also anticipated to stay resilient, bolstered by the benefits of expanding LNG production. Government spending flexibility and low public debt levels further contribute to Qatar's creditworthiness.

Government spending decreased by 14% in the first half of 2026 compared to the same period in the previous year. S&P noted that Qatar has demonstrated fiscal discipline during previous economic pressures, reducing spending by 6% in 2014, 15% in 2015, 8% in 2017, and 12% during the Covid-19 pandemic. The agency expects the government to maintain a prudent spending approach, which, along with a projected recovery in LNG production, will help Qatar return to fiscal surpluses from 2027.

The expansion of Qatar's liquefied natural gas (LNG) production capacity, from 77 million tonnes to 142 million tonnes by 2030, is expected to significantly boost the country's export prospects. Rising global energy demand from developing Asian economies and LNG's role as a transitional fuel in the energy transition will support Qatar's economic performance and improve its fiscal and external balances from 2027.