Qatar's economy contracts 7% as regional conflict disrupts energy output

Qatar's economy contracted sharply in the first quarter of 2026, with gross domestic product falling 7% from a year earlier, according to official data released on Monday. The decline was driven primarily by a steep drop in energy production, which has been severely disrupted by the ongoing Middle East conflict.

GDP stood at 170.8 billion riyals ($46.9 billion) in the January-March period, down from a revised 183.7 billion riyals in the same quarter of 2025. On a sequential basis, economic output fell 7.9% compared with the fourth quarter of 2025.

The mining and quarrying sector, which consists largely of energy production, was the biggest drag on growth, contracting 25.8% to 49 billion riyals. The sector accounts for nearly one-third of Qatar's economy.

Qatar, one of the world's largest liquefied natural gas exporters, has lost an estimated $24 billion in gas sales since the war began six months ago — a sum equivalent to nearly five months of national income based on 2025 data. Before the conflict, the country supplied roughly one-fifth of global daily LNG.

Non-mining and quarrying activities, which make up about 71.3% of GDP, rose 3.5% year-on-year to 121.8 billion riyals. Within that segment, accommodation and food services posted the strongest growth at 12%, while transportation and storage fell 13.8% and manufacturing declined 8.1%.

Airlines across the Gulf region faced major disruptions in the early stages of the conflict but have gradually restored their networks, the data indicated.