By: Reuters

Qatar's economy shrank 7% in the first-quarter of 2026 from a year earlier, dragged down by a sharp decline in energy production caused by the ongoing Middle East conflict, official data showed.

Qatar, one of the world's largest liquefied natural gas exporters, has suffered major disruptions to production and ranks among the economies hardest hit by the conflict.

Here are some details:

Qatar's first-quarter gross domestic product fell to 170.8 billion riyals ($46.9 billion) from a revised 183.7 billion riyals in the same period of 2025.

Compared with the fourth quarter of 2025, economic output fell 7.9%.

Mining and quarrying activity, which consists primarily of energy production, fell 25.8% to 49 billion riyals, making it the biggest drag on first-quarter GDP. The sector accounted for nearly one-third of the economy.

Qatar has lost $24 billion in gas sales since the war began six months ago. Based on Reuters calculations using 2025 economic data, that amount is equivalent to nearly five months of national income. Before the conflict, Qatar supplied about one-fifth of the world's daily LNG.

Non-mining and quarrying activities, which account for about 71.3% of GDP, rose 3.5% year-on-year to 121.8 billion riyals.

Within the non-mining sector, accommodation and food services posted the strongest growth, rising 12% from a year earlier.

Among the weakest sectors, transportation and storage fell 13.8%, while manufacturing declined 8.1%.
Airlines across the Gulf faced major disruptions in the early stages of the conflict, but have gradually restored their networks. ($1 = 3.6450 Qatar riyals)

(Reporting by Siddarth S in Dubai. Editing by Mark Potter)