Qatar is confronted by a sobering variety of economic challenges

Qatar is expected to run its first deficit in 15 years in 2016, a sobering reminder that this gas-fuelled economy has its vulnerabilities, even though the fiscal pressures are more moderate than in most other Gulf Co-operation Council (GCC) states. The 2016 budget, approved by Emir Sheikh Tamim Bin Hamad Al-Thani on 17 December, plans for a deficit of $12.8bn (about 7% of GDP), based on an oil price assumption of $48/bbl, a modest cut in current spending and a slight increase in capital spending.