Qatar Economic Outlook Issue Number 13

Figure 2-24: Public expenditures (percentage 
points and %)
 
1.0
7.9
-30
-20
-10
0
10
20
30
Q1
Q2
Q3
Q4
2020
U
pToQ
3_
20
Q1
Q2
Q3
U
pToQ
3_
21
2020
2021
Po
int
s 
& 
%
Capital expenditure
Other Current Expenditure
Salaries and Wages
Total Expenditure (%)
Total Revenue (%)
Source: MOF and prepared by PSA

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Qatar Economic Outlook 2021 - 2023 
78 
Stability of the QCB Assets
Dealing with Covid-19 repercussions in 2020 
was not only limited to the increase in 
government support by all countries 
according to the IMF experts’ estimates but 
also the central banks around the world 
increased their balance sheets (financial 
assets), by about US$ 7.5 trillion, to integrate 
with the expansionary financial policies 
adopted by governments to provide the 
necessary liquidity to continue economic 
activities. 
The measures taken by the QCB to confront 
the financial challenges faced the Qatari 
economy during the period (2016 through 
November 2021),including the repercussions 
of fluctuations in oil and gas prices, the 
blockade of 2017 - 2020, and measures to 
contain Covid-19, led to an increase in its 
balance sheet by about QR 82 billion during 
the same period, equivalent to US$ 22.5 
billion, including $11.8 billion since the onset 
of COVID-19 (January 2020). 
To meet the challenges has faced the Qatari 
economy since the collapse of oil prices in 
2015, the procedures of the Qatar Central 
Bank have focused on maintaining financial 
stability and the exchange rates against the 
riyal, as well as taking measures to manage 
domestic liquidity. As can be discerned from 
Figure (2-25), during the blockade crisis that 
started in mid-2017, which caused immense 
pressure on liquidity, the QCB was forced to 
withdraw part of its external official reserves, 
i.e., its balances with foreign banks and its 
liquid investments in foreign bonds and 
treasury bills, and deposit them into local 
banks. As soon as financial stability had 
been restored, the QCB reversed these 
measures in the following two years, 2018 
and 2019, together with the first quarter of 
2020, as it reduced its deposits with local 
banks in favor of increasing its balances with 
foreign banks and its investments in foreign 
bonds and treasury bills.
In regard to the measures taken by the QCB 
to contend with the repercussions of Covid-
19 during the period (April 2020 - November 
2021), they are relatively different from the 
measures that were taken during the 
blockade in terms of both size and rate of 
change, as it is the case that that QCB 
increased its deposits with local banks during 
the first quarter of 2020 as a precautionary 
measure to counteract any pressure in local 
liquidity. However, at the same time, it 
increased its investments in foreign bonds 
and treasury bills at the expense of reducing 
its balances with foreign banks for the 
purpose of maintaining official reserves in 
good standing.
And QCB continued to use these procedures 
as required; for example, during the first 
eleven months of 2021, QCB raised its 
investments in foreign bonds and treasury 
bills from QCB QR 85.9 billion in January of 
2021 to QR 105.7 billion in November 2021, 
in return for reducing its balances with foreign 
banks from QR 48.5 billion in January of 2021