Last Friday, Fitch Rating Agency announced that it had fixed the long-term sovereign credit rating of the State of Qatar in foreign currency at the level of “AA”, while keeping the outlook “stable”. The agency attributed this assessment to the strength of the country’s balance sheet, in addition to its ambitious plans to significantly increase liquefied natural gas production, which will contribute to reducing the potential impact of the increasing conflicts in the Middle East region.
The ongoing conflict between the United States and Israel on the one hand, and Iran on the other hand, has caused disruptions to shipping movement through the Strait of Hormuz, a vital oil corridor that represents about 20% of the total supply of oil and liquefied natural gas globally.
According to Fitch estimates, any negative impact on liquefied natural gas exports may lead to an increase in Qatar’s financial deficit in 2026, depending on the duration of the conflict. However, the agency believes that the state is able to deal with this matter by resorting to debt markets or relying on its sovereign fund, the Qatar Investment Authority, which has accumulated significant assets over the years through various investments inside and outside the country.
