Rising oil prices give Qatar record revenues

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Qatar has announced its biggest-ever state budget of QAR 72.46bn (US$19.9bn) for 2007-2008.

The record-breaking revenue estimates are based on an oil price of US$40 a barrel. The budget for the 2006-2007 fiscal year was QAR 56.9bn (US$15.6bn) - based on US$36 a barrel oil prices - marking a rise of about 27% this year, according to Minister of Finance Youssef Kamal.

Kamal told Arabian Business: "We don't know for sure where the price of oil is going exactly, but it is clearly giving us a great opportunity for development. We are very pleased with what we have done so far but I really think that this is only the beginning.

The state budget is mainly allocated for infrastructure development projects.

Kamal added: "We have already outlined that the long-term goal is not tourism but the infrastructure development needed to attract world-class companies to Qatar, and that's what we are succeeding in doing. In the next few years you will see some major new developments across the country."

The country's expenditure estimates hit QAR 65.7bn (US$18.05bn), with QAR 20.9bn (US$5.7bn) going to infrastructure projects such as roads, sewage, electricity and water facilities. A huge US$2.2bn, or 12% of public expenditure, is allocated for education, while the health sector will receive QAR4.8bn (US$1.3bn). A surplus of QAR6.74bn (US$1.85bn) is expected, with the oil-rich state set to pull in the US$19.9bn in revenues.

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