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Qatar’s Foreign Merchandise Trade Surplus Declines by 5% in Q3 2024

Prime Highlights:

Qatar’s Q3 2024 foreign merchandise trade balance surplus stands at 57.7 billion riyals ($15.8 billion), 5% less than it was during the same period of 2023.

Total exports in Q3 2024, comprising home goods and re-exports, reached 87.8 billion riyals, down 2.2% year-on-year.

Imports in Q3 2024 increased by 4.1% to 30.1 billion riyals.

Key Background:

Qatar’s foreign merchandise trade balance surplus decreased by 5% year-on-year, totaling 57.7 billion Qatari riyals ($15.8 billion) in the third quarter of 2024, according to the Planning and Statistics Authority. The decline in the surplus is part of a move by the government to get government revenues back on track as it was before the oil price shock in 2014, as well as one of the moves toward Qatar’s goal to have its economy doubled by 2031.

The merchandise trade balance surplus is a key indicator used to measure the difference between a country’s exports and imports. In the case of Q3 2024, Qatar’s total exports decreased to 87.8 billion riyals, reflecting a decline of 2.2% over the same period in 2023. For the same period, Qatar’s imports increased by 4.1% to reach 30.1 billion riyals.

A closer look at the nature of exports indicates that the decline in the total exports was basically due to an overall decline of 6.5% in mineral fuels, lubricants, and related materials, whose exports declined by 5 billion riyals. In addition, miscellaneous manufactured articles declined by 22%. All other categories increased, especially chemicals and related products with an increase of 24.5% and machinery and transport equipment with an increase of 53.3%.

Imports of machinery and transport equipment jumped 6.7 percent, chemicals by 17.2 percent, and mineral fuels by a staggering 58.2 percent. Imports of miscellaneous manufactured articles and materials declined.

Geographically, Asia emerged to be Qatar’s largest trading partner, taking up 75.9% of its exports and 39.7% of imports. The second largest was GCC, which amounted to 11.6% of exports, and 11.3% of imports respectively. The third largest was European Union, which equaled 7.7% of exports while amounting to 26% of imports. The data again underlines continued diversification effort and steady non-oil growth in the Qatar economy, making up two thirds of the overall GDP.