Qatar is planning to spend around $125bn on construction and energy projects over the next six years, ahead of the FIFA 2022 Football World Cup, a new report said on Thursday.
A report compiled by the Saudi NCB bank said the tiny gas-rich nation will embark upon public spending projects as part of its plan to foster growth in the non-oil areas including construction of stadiums and other supporting facilities for the 2012 World Cup.
The Qatar Financial Centre recently suggested that Qatar’s project pipeline can increase from its current level of $63bn to $108bn in the coming years, driven partly by increases in government spending, but also by efforts to reverse a recent decline in its oil production to 730,000 barrels of oil per day – 630,000 of which are exported.
Oil industry sources said a redevelopment of the country’s three oil fields is expected to boost capacity over one million barrels per day.
The country recently set its annual budget for 2012-13, which included a 27.2% increase in its projected spending, to $48.9bn.
Around 35% ($17bn) of the total has been dedicated to public infrastructure projects.
The government has also allocated $6bn to launch new education initiatives.
“However, mirroring something of a regional trend, a significant proportion of this is going on public sector salaries which have increased by 46.8% YoY and now total more than $10bn,” the report said.