Qatar’s Economy Expands 1.9% in Q2 on Strong Non-Hydrocarbon Growth

Qatar’s economy recorded steady growth in the second quarter of 2025, driven largely by gains outside the oil and gas sector, official data showed on Sunday.

Figures released by the National Planning Council on September 21 revealed that real gross domestic product (GDP) rose by 1.9 percent year-on-year, reaching 181.8 billion Qatari riyals ($49.9 billion) at constant prices. That compares with 178.5 billion riyals in the same period last year.

The expansion was fueled by a 3.4 percent increase in non-hydrocarbon activities, which now account for more than 65 percent of Qatar’s economic output. The value added by non-hydrocarbon sectors climbed to 119.3 billion riyals, up from 115.4 billion riyals in the second quarter of 2024.

Officials said the results underline the impact of ongoing diversification strategies under the country’s Third National Development Strategy and its broader Vision 2030 plan, which aim to reduce reliance on hydrocarbons and strengthen the private sector.

“The continued momentum in non-hydrocarbon activities demonstrates the resilience of the Qatari economy and the success of policies aimed at broadening the economic base,” the Planning Council said in its quarterly update.

Breakdowns of sectoral performance highlighted double-digit growth in several areas. Agriculture, forestry, and fishing expanded by 15.8 percent in the quarter, while accommodation and food services rose 13.4 percent, reflecting a strong boost from tourism. Arts, entertainment, and recreation activities grew 8.9 percent, wholesale and retail trade increased 8.8 percent, and construction advanced 8.7 percent.

Overall, 11 out of 17 economic activities posted positive real growth, according to the data. Service-related sectors, including hospitality and entertainment, continued to be standout performers, underlining robust domestic demand alongside rising international visitor numbers.

The trends mirror broader forecasts across the Gulf. In June, the World Bank projected growth across the Gulf Cooperation Council states at 3.2 percent in 2025, with an acceleration to 4.5 percent in 2026. Much of this outlook is tied to economic diversification initiatives and large-scale investments in non-oil industries.

Qatar’s focus on developing its tourism, services, and infrastructure sectors has been reinforced in recent years through targeted initiatives such as expanding visitor facilities and promoting new entertainment hubs. Analysts say this approach is positioning the country as a competitive regional trade and tourism hub while supporting sustainable, long-term growth.

While hydrocarbons remain vital to state revenues, the latest figures suggest that non-hydrocarbon growth is emerging as a key engine of the economy. The Planning Council stressed that strengthening these sectors will be critical for achieving the goals of Qatar National Vision 2030, particularly in ensuring sustainable development and economic stability beyond energy markets.