Post by : Mariam
Al-Faris
Qatar’s economy saw a healthy growth of 3.7% in the first quarter of 2025 compared to the same period last year. This improvement was mainly due to strong performances in non-oil sectors, highlighting the country’s efforts to diversify its economy.
According to official data from the National Planning Council (NPC) and the National Statistics Centre, the country’s real Gross Domestic Product (GDP), which measures the value of goods and services after adjusting for inflation, reached QAR 181.5 billion in Q1 2025. This is a rise from QAR 175 billion in Q1 2024.
A major contributor to this growth was the non-hydrocarbon sector. It made up 63.6% of the real GDP, equal to around QAR 115 billion. This marks an increase from 62.6% in the same quarter of the previous year, showing a steady shift away from oil and gas dependence.
The non-oil economy showed strength across several key industries. The manufacturing sector recorded a growth of 5.6%, indicating solid industrial activity and local production gains. This sector remains vital for value-added exports and job creation.
The construction sector also grew by 4.4%, driven by infrastructure projects, housing developments, and ongoing urban expansion. This signals continued investment in the country’s physical and economic foundation.
Meanwhile, the real estate industry expanded by 7%, showing increased property demand and investment activity. Both residential and commercial constructions appear to be benefiting from increased population and corporate confidence.
The wholesale and retail trade sector experienced the most significant growth, gaining 14.6%. This is most likely attributable to increased consumer spending, tourism activity, and a positive market atmosphere in Qatar's shopping and commercial sectors.
While non-oil sectors are expanding rapidly, the oil and gas (hydrocarbon) industry still plays a crucial role in Qatar’s economy. In Q1 2025, it contributed 36.4% of the real GDP, which amounts to approximately QAR 66 billion. Despite facing global uncertainty and price swings, this sector managed a 1% growth compared to the same quarter last year.
According to officials, these findings demonstrate that Qatar is making progress. The country is gradually establishing a balanced economy that is not entirely reliant on hydrocarbons. The robust performance across several sectors indicates a promising start to 2025 and shows that the country is slowly moving toward long-term economic resilience and sustainability.
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