Qatar’s debt has taken a huge leap in respect to the falling economic revenues, a decline in the economic indicators, and dislocation of deposits. This is mainly due to the Arab boycott of Doha for its support of terrorism that has completed a year.
The internal and external public debt Qatar owes rose to over half a trillion riyals ($138 billion). By the end of the year 2016, it had amounted to $115.4 billion. Apart from this, the external and domestic public debt had risen to $23.5 billion in the year 2017 and the initial months of 2018. In June, Egypt, the United Arab Emirates, and Saudi Arabia had severed their diplomatic ties along with the transport lines with Qatar.
This was also due to Doha’s support for terrorism. The total debt of the banks operating in Qatar’s public sector amounted to 350.9 million riyals at the end of March.
The internal public debts which are due to the public sector banks of Qatar is divided in between permits and bonds which is issued by the debtors and also the direct loans that the semi-government and government institutions receive.
The internal public debt owed to the public sector banks of Qatar rose from 314.7 billion riyals in the month of June 2018. In contrast to this, Qatar had issued the largest bond in the history this year, worth the US $12 billion. This was to finance the budget deficit of the year. The public finances of Doha had been affected due to the boycott.
Thus, it didn’t issue any bonds of debts instruments in the year2017. The external debt that was due to the international institutions and banks in Qatar amounted to 108.8 billion riyals. As per the Qatar Central Bank Figures, since 2015, the foreign debt of Qatar has increased by large percentage from 73 billion riyals ($20 billion).