One should try to look and eventually deconstruct the narrative around Qatar’s economy in 2025. Whereas some sectors are experiencing a challenge or two, the overall picture is far different from doom-and-gloom headlines that intuitively arise. Let’s take a close look at the data across key economic sectors.
The Short Answer: No, Qatar Is Not Down
Qatar’s economy is growing steadily. In the first quarter of 2025, it expanded by 3.7%, and the government expects solid growth through 2029. So where does this “Qatar is down” story come from?
The “Down” Narrative: Where It Comes From
The perception that Qatar is struggling comes mainly from one sector, which is construction and architecture. This is where the real slowdown exists, but it’s important to understand the context.
Infrastructure and Construction: The Post-World Cup Adjustment
Qatar’s construction market is expected to decrease by 1% in 2024 due to high interest rates, a decline in building permits for non-residential buildings, and industrial market weakness. The sector has changed after the 2022 FIFA World Cup, with the deceleration of projects in both the non-residential and transport infrastructure sub-sectors.
The numbers are stark: permits for commercial buildings declined 69.5% year-over-year in the first eight months of 2024; this represents a natural correction relative to the pre-World Cup construction boom, not an economic catastrophe.
The Recovery Outlook: The construction industry will recover at an annual average growth of 4.5% from 2025 to 2028, backed by investments in renewable energy, industrial projects, and oil and gas initiatives. The sector is set to grow by 3.4% in real terms in 2025, indicating that the worst is indeed over.
The “Safe Zone” Sectors: Thriving and Growing
1. Booming of Information Technology
The tech sector of Qatar is growing annually at a rate of 8.5%, adding a full $2.31 billion by 2029. The government is creating 13,000 new tech jobs by 2030 and is investing heavily in digital transformation. Companies like Microsoft and Google have opened data centers here. If you’re in IT services, Qatar is red-hot right now .If you’re looking for IT services opportunities, Qatar is red-hot right now.
2. Tourism – Breaking Records
In just the first half of 2025, Qatar welcomed 2.6 million visitors, a number that continues to grow. Tourism now makes up 8% of GDP, from virtually nothing in just a few short years. Hotels are 71% full, with major events continuing to bring people in. The goal? Reach 10-12% of GDP by 2030.
3. Real Estate – Smart and Strong
While construction slowed down, real estate sales are blowing up. . Residential transactions jumped 114% in early 2025, worth more than 9 billion Qatari Riyals. The market is shifting from rapid building to smart investments in mixed-use developments and urban projects. Plus, foreigners can now get 99-year residency with investments starting at just US$200,000.
4. Logistics – Strategic Hub
Qatar’s location is ideal for logistics. It is an emerging sector that is growing 7.1% a year. With the Hamad Port expansion and opening of new logistics parks, companies position Qatar as their Middle East distribution hub.
5. Sports – More Than the World Cup
It brought in billions with the World Cup, but Qatar’s sports industry continues to grow. E-sports revenue is projected to hit $152.9 million by 2027. Major events are lined up for years, and Qatar is building the region’s first sports business district. This sector isn’t going anywhere.
Why The Confusion?
People see construction slowing and assume the whole economy is in trouble. But construction was always going to slow after the World Cup. Meanwhile, Qatar has successfully diversified its economy-over 60% of GDP now comes from non-oil sectors like tourism, tech, and services.
The Verdict: Qatar Is Not Down – It’s Transforming
The narrative that “Qatar is down” is fundamentally misleading; what’s happening is the following:
- Strategic Recalibration: Normalizing post-World Cup construction was planned, not problematic
- Diversification Success: Non-hydrocarbon sectors are thriving and growing rapidly.
- Digital Transformation: IT, fintech, and e-commerce industries are thriving.
- Tourism Excellence: Record visitor numbers and hospitality performance
- Infrastructure Foundation: World-class facilities supporting future growth
- Strategic Investments: Targeted spending on renewable energy, LNG, and technology
The Real Challenges
But Qatar does have a number of real issues that need to be addressed:
- Oversupply in specific segments of the construction sector
- Need to maintain momentum in economic diversification
- Global economic uncertainties
- Regional competition for tourism and business
But these are manageable challenges within a fundamentally sound economic framework.
Opportunities for Business Services
To companies such as Ayam Groups and partners eyeing the market in Qatar, there are clear opportunities:
High-Growth Sectors:
- IT Services & Digital Transformation: 8.5% yearly growth, huge government support
- Tourism & Hospitality: Over 5 million visitors, infrastructure expansion continues.
- Real Estate Services Smart diversification, PropTech opportunities, high transaction volumes
- Logistics & Supply Chain: 7.1 percent growth, e-commerce driving warehouse demand
- Sports Technology E-sports, SportsTech accelerator, global events pipeline
Strategic Timing: The slowdown in construction offers a buyer’s market in real estate investment, while growth sectors can avail of immediate opportunities. Qatar combines economic stability with government support; zero income tax further solidifies its strategic location to expand any business to.
Conclusion
Is Qatar really down? Absolutely not.
While one sector (construction/architecture) was going through a planned correction in the wake of extraordinary, World Cup-driven growth, the broader economy is healthy, growing, and effectively diversifying. IT, tourism, real estate sales/transactions, logistics, and sports are in growth mode, supported by strong fundamentals, government investment, and strategic vision.
Qatar’s 2025 economy is not shrinking; instead, it is evolving from hydrocarbon dependency towards a balanced, knowledge-based economy. The foundation is solid, the growth sectors are thriving, and the future outlook is positive. To businesses and investors who look deeper than the headlines, Qatar offers compelling opportunities in a stable, forward-looking market.
About Ayam Groups: Ayam Groups, through its Buizart Solutions division, provides comprehensive business services across multiple sectors. Our analysis helps clients identify real opportunities beyond market noise and position strategically in emerging markets like Qatar.
Data compiled from official government sources, IMF reports, World Bank assessments, and leading market research firms. Last updated: November 2025.