Qatar's economy sees annual growth of 3.7%

02/07/2025 04:03 AST

Qatar's economy expanded by 3.7 percent in real terms in the first quarter of 2025 compared to the same period a year earlier, driven primarily by robust gains in non-hydrocarbon sectors.

According to data released by the National Planning Council, gross domestic product at constant prices rose to 181.5 billion Qatari riyals ($49.8 billion), up from 175 billion riyals in the first quarter of 2024.

The latest figures reflect the country's ongoing efforts to reduce reliance on hydrocarbons and foster private sector growth, with the non-hydrocarbon economy accounting for 63.6 percent of real GDP, an increase from 62.6 percent a year earlier.

Non-hydrocarbon activities grew by 5.3 percent year-on-year, supported by strong performances across manufacturing, construction, real estate, wholesale and retail trade, and services.

This growth aligns with the ambitions set out in the Third National Development Strategy, which targets an annual 4 percent expansion in non-hydrocarbon GDP by 2030.

More broadly across the region, Saudi Arabia's economy grew by 3.4 percent year on year in the first quarter of 2025, driven by a 4.9 percent increase in non-oil GDP and a 3.2 percent rise in government activity.

Commenting on Qatar's recent data, Secretary General of NPC Abdulaziz Al-Khalifa stated: "These indicators highlight the progress of Qatar's economy, particularly in terms of non-hydrocarbon economic growth, whose activities have recorded remarkable growth demonstrating greater diversification and stability for Qatar's economy as the State continues to strive to build a sustainable economy."

According to a report by the Qatar News Agency, Al-Khalifa added: "The current growth rates also indicate additional opportunities for development, as there remains significant potential that we seek to unlock through the Third National Development Strategy to continue to build sustainable economic growth that offers unique investment and entrepreneurial opportunities for the private sector."

The manufacturing sector expanded by 5.6 percent, while construction grew by 4.4 percent and real estate advanced by 7 percent.

Wholesale and retail trade saw the sharpest increase, rising by 14.6 percent compared to the same period in 2024.

Smaller segments of the economy also posted notable gains, including accommodation and food services, which grew by 13.8 percent, and transport and storage, which rose by 3.5 percent.

These developments indicate broad-based momentum across diverse areas of economic activity.

Service industries also contributed to the expansion, with professional, scientific and technical activities growing by 7.2 percent, human health and social work by 2.6 percent, and the education sector recording a marginal gain of 0.1 percent.

The National Statistics Center noted that these trends reflect continued prioritization of human capital development and improvements in quality of life, both central objectives of national policy.

To enhance the accuracy of economic measurement, the National Statistics Center implemented an updated methodology for calculating GDP and revised quarterly data covering the period from 2018 to 2024.

The revisions included updated indicators and advanced calculations aligned with international standards.

Despite persistent global economic uncertainty and fluctuations in energy markets, hydrocarbon activities continued to grow modestly, accounting for 36.4 percent of real GDP, equivalent to 66 billion riyals, and rising by 1 percent compared to the first quarter of 2024.

The NPC emphasized that this performance demonstrates the resilience of Qatar's hydrocarbon sector alongside expanding non-hydrocarbon contributions.