Qatar’s strategy propels growth in tourism, logistics and digital sectors

DOHA: Qatar s economy is charting an optimistic path beyond the FIFA World Cup era, shifting from years of infrastructure heavy investment toward a mo...

DOHA: Qatar’s economy is charting an optimistic path beyond the FIFA World Cup era, shifting from years of infrastructure-heavy investment toward a more diversified, service-led model of expansion, according to an analysis by Knight Frank.

The report published this week highlights that between 2020 and 2024, real non-hydrocarbon GDP grew at a compound annual rate of 3.4 percent, driven by rapid gains in the hospitality, logistics, retail, and real estate services sectors. That momentum has carried over into this year, with non-hydrocarbon activity rising 5.3 percent in the first quarter of 2025 and 3.4 percent in the second quarter.

Researchers attribute this sustained performance to Qatar’s successful efforts to leverage the physical and institutional legacy of the 2022 World Cup, while simultaneously advancing long-term reforms. Central to this shift is the government’s Third National Development Strategy (NDS3), which places greater emphasis on productivity, innovation, and the creation of knowledge-based industries.

The study notes a meaningful structural rebalancing across the economy. While construction continues to play a significant role, its share of GDP has declined from 13.4 percent in 2021 to 11.3 percent last year as other sectors expand. Industries such as accommodation and food services, arts and recreation, logistics, and real estate have grown sharply since 2022.

This evolution is reshaping the labor market as well, with more jobs emerging in tourism, logistics, and digital services. Knight Frank says these trends are transforming the real estate sector, where demand is increasingly driven by underlying economic activity rather than large, project-led development cycles.