Qatar has slashed government department budgets by up to 30% and cut overseas aid by about 85%, reflecting the financial toll of the six-month war. The small Gulf state halted LNG production — its main revenue source — due to war damage and shipping difficulties through the Strait of Hormuz.

The cuts respond to sharp decline in LNG revenue; Qatar's 2026 budget is about $61bn. IMF forecasts GDP will shrink 8.6 per cent this year, the largest contraction among the six GCC states. Qatar has significant buffers, including a $500bn sovereign wealth fund (Qatar Investment Authority) and a population of 3.2mn.

A Qatari official said the country is well-equipped to navigate the crisis, citing resilience through past crises. However, with no resolution in sight, the conflict will likely continue affecting domestic spending and could impact overseas investments by regional sovereign funds managing about $5tn. Last year Qatar donated $1.5bn to UN OCHA, among top five donors.