Qatar cuts state spending at home and abroad as war shrinks economy

Qatar announced significant cuts to state spending at home and abroad after economic contraction caused by regional conflict, according to reporting in August 2026. Iranian strikes on the Ras Laffan energy facility and threats to shipping through the Strait of Hormuz cost Qatar billions of dollars and forced the first major bond issuance in years. The cuts reflect sharply downward GDP forecasts as the oil and gas-dependent economy absorbs losses from disruptions to its energy exports.