Qatar spending $500m a week on FIFA World Cup projects

Last year, Qatar ran an estimated budget deficit of more than US$12 billion, its first in 15 years

Qatar is currently spending $500m a week on capital projects in preparation for its World Cup games in 2022, said its Minister of Finance. This level of spending is expected to continue up to 2021 with mega-projects under construction across the country.

More than US$200 billion (€187 billion) will be spent in total in preparation for 2022. Ali Shareef Al-Emadi said this figure covered not only stadiums but huge and costly projects such as roads, a new airport and hospitals. “Ninety per cent of the 2022 contracts have already been awarded,” added Emadi.

He also added: “We are really giving ourselves a good chance of delivering things on time and we don’t want to get in a place that we start painting while people are coming to the country.”

However, Mr Emadi denied that the plans would make the 2022 match the costliest World Cup. The 2014 World Cup in Brazil is reported to have price $11bn (£eight.8bn) to host, whereas Russia elevated authorities spending on the 2018 World Cup by $321m to $10.7bn.

Brazil struggled to get a lot of its stadiums prepared, however, Mr Emadi instructed reporters in Doha on Tuesday that Qatar had already awarded 90% of the contracts for 2022 tasks and that two-thirds could be delivered throughout the subsequent 24 months. Also Read: Borussia Dortmund, Schalke reach German Cup quarter-finals

Last year, Qatar ran an estimated budget deficit of more than US$12 billion, its first in 15 years. The state budget for 2017 was approved with a deficit of US$7.7 billion.

Qatar, which has the world’s third-largest natural gas reserves and produces up to 800,000 barrels of oil a day, has been forced to tighten its belt following a 2014 collapse in the price of crude.

The market has now partially recovered and Emadi said that Qatar is “very comfortable” with current oil prices. Asked if Qatar would consider financing its deficit by selling debt on international bond markets this year, he said no final decision had yet been taken by the government.

In consort with other Gulf nations, Qatar will introduce a Value Added Tax, probably in 2018. He denied that this could pave the way for an eventual introduction of an income tax in Qatar.