Video|19 December 2024

MENA | What are the highlights of Qatar’s 2025 Budget and key inflations trends in Saudi Arabia?

Maya Senussi

Lead Economist

Qatar’s budget for 2025 balances higher expenditure against conservative revenue assumptions. The projected uplift in spending to 210 billion riyal includes key allocations for education and healthcare and is in line with Qatar’s long-term development goals. On the revenue side, the government has maintained its cautious oil price estimate of 60 dollar per barrel for next year, resulting in lower projected hydrocarbon revenue and leaving a budget deficit of 13.2 billion riyal. Our 2025 oil price projection stands above the government’s estimate, at $72.6pb, and we continue to forecast budget surpluses both this year and next.

Over in Saudi Arabia, inflation edged up to 2% in November, the highest in over a year. The rise was driven by higher prices of miscellaneous goods and services, while housing rental prices remained a key source of upward pressure. The recent rise in inflation aligns with our average inflation forecast of 1.7% for this year and we expect it to increase to 2.3% in 2025.

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