Qatar’s economy, measured by its gross domestic product (GDP), is one of the wealthiest in the world, primarily driven by its vast reserves of natural gas and oil. The country possesses the third-largest proven natural gas reserves globally and is a leading liquefied natural gas (LNG) exporter, significantly contributing to its GDP and government revenue.

Qatar’s economic structure is primarily driven by its vast natural gas and oil reserves, making it one of the wealthiest nations globally. Here are some key aspects of Qatar’s economy:

Key economic sectors

Hydrocarbons

The oil and gas sector is the backbone of Qatar’s economy, accounting for over 60 percent of the GDP and more than 70 percent of government revenue, according to the World Bank Group. Qatar is the world’s third-largest producer of natural gas and a leading exporter of liquefied natural gas (LNG).

In 2022, the hydrocarbon sector contributed around 37 percent of Qatar’s GDP, with future contributions estimated to remain significant. The oil and gas industry is still the country’s most active and bullish sector and will likely continue to play a leading role in the future.

Manufacturing

The manufacturing sector contributes significantly to the economy, particularly in petrochemicals and fertilizers. This sector has been driven by oil revenue investments, leading to various industrial facilities’ establishment. Also, this sector benefits from the country’s hydrocarbon resources, with major companies like Industries Qatar playing a key role.

Construction

Qatar invested approximately $200 billion in infrastructure to host the World Cup, including stadium construction, transportation networks, and hospitality facilities. This massive investment has led to a surge in construction activities across the country. The construction sector has been a major source of employment, with estimates suggesting that around 1.5 million jobs were created in construction, real estate, and hospitality in the lead-up to the World Cup. Many of these jobs were filled by expatriate workers, reflecting Qatar’s reliance on foreign labor.

Qatar is working to diversify its economy through initiatives outlined in its National Vision 2030. This includes attracting foreign investment and developing sectors beyond hydrocarbons, such as ICT and financial services.

The services sector in Qatar is experiencing significant growth, driven by government initiatives to diversify the economy away from hydrocarbons. Key expansion areas within the services sector include tourism, education, and healthcare.

Tourism

• Post-World Cup boost: Following the successful hosting of the FIFA World Cup 2022, Qatar has seen a substantial increase in tourism. Visitor numbers surged to over four million in 2023, nearly doubling pre-pandemic levels. The government is investing in tourism infrastructure and promoting Qatar as a world-class destination.
• Cultural and sporting events: Qatar actively hosts various international events, including sports events, cultural festivals, and exhibitions, which enhance its global profile and contribute to the growth of the tourism sector.

Education

• Investment in education: The Qatari government is committed to improving its education sector, focusing on enhancing the quality of education and increasing access to educational institutions. Initiatives include the establishment of new schools and universities and partnerships with international educational institutions.
• Research and development: Qatar also invests in research and development within its educational framework, aiming to foster innovation and create a knowledge-based economy.

Healthcare

• Healthcare expansion: The healthcare sector is another critical growth area, with the government implementing the National Health Strategy 2024-2030. This strategy aims to improve healthcare services, increase the availability of medical facilities, and enhance the overall quality of care.
• Public-private partnerships: Qatar is encouraging public-private partnerships in healthcare to boost investment and improve service delivery. This approach is expected to enhance the country’s efficiency and effectiveness of healthcare services.

Latest GDP figures and data (2024)

According to Trading Economics global macro models and analysts’ expectations, Qatar’s GDP is expected to reach $240.01 billion by the end of 2024. A chart displaying Qatar’s GDP growth from 2013 to 2023 can provide a visual representation of these figures. In the long term, our econometric models project the Qatar GDP to trend around $244.57 billion in 2025 and $249.95 billion in 2026.

Read more: Qatar: Non-energy private sector business activity accelerates in November

GDP per capita: Qatar’s global ranking

Qatar consistently ranks among the highest countries globally in GDP per capita. As of 2022, Qatar’s GDP per capita (PPP) was approximately $114,648, ranking fifth in the world. This high ranking is primarily due to its substantial revenues from natural gas and oil exports, which form the backbone of its economy.

In terms of nominal GDP per capita, Qatar also ranks highly, with values around $82,040, which places it among the top countries worldwide. The country’s wealth is largely attributed to its vast reserves of hydrocarbons, which significantly contribute to its economic output and government revenues.

Qatar’s GDP rankings:

• GDP per capita (PPP): Approximately $114,648 (5th globally).
• Nominal GDP per capita: Approximately $82,040 (among the top globally).

These figures highlight Qatar’s economic strength and its position as one of the wealthiest nations in the world.

Qatari economy grows 0.8 percent to $48.5 billion in Q2 2024

The Qatari economy experienced a real growth rate (adjusted for constant prices) of 0.8 percent in the second quarter of 2024, relative to the projections for the same quarter in 2023. According to the most recent data released by the National Statistics Center at the National Planning Council (NPC), the GDP estimates for Q2 2024 at constant prices reached approximately QAR177 billion ($48.5 billion), compared to revised estimates of QAR175.6 billion for Q2 2023.

Comparison with previous quarters

This reflects a 1 percent increase when contrasted with the revised estimates from the first quarter of 2024, which stood at QAR175.25 billion, QNA reported. The quarterly GDP at current prices for Q2 2024 is projected at QAR194.25 billion, marking a rise of 0.7 percent against the revised estimate for Q2 2023, which was QAR192.84 billion. In comparison to the previous quarter (Q1) of 2024, estimated at QAR192.46 billion, there is an increase of 0.9 percent.

Constant price GDP analysis

The quarterly GDP at constant prices shows a growth of 0.8 percent in Q2 2024 (QAR177.00 billion) compared to the revised estimate for Q2 2023 (QAR175.60 billion). Additionally, when evaluated against the Q1 2024 estimate (QAR175.25 billion), a 1.0 percent increase is also recorded.

The nominal gross value added (GVA) for Mining and Quarrying activities is estimated at QAR72.83 billion in Q2 2024, indicating a decline of 1.0 percent from the revised estimate of QAR73.59 billion for Q2 2023. Compared to the prior quarter’s estimate of QAR75.40 billion, there is a decrease of 3.4 percent in this sector’s GVA.

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The real GVA for these activities is projected at QAR63.14 billion in Q2 2024, reflecting a reduction of 2.6 percent compared to the revised estimate for Q2 2023 (QAR64.83 billion). Additionally, when compared to the Q1 2024 estimate (QAR65.40 billion), a decline of 3.5 percent is also noted.

On the other hand, the nominal GVA for Non-Mining and Quarrying activities is estimated at QAR121.41 billion ($33.25 billion) in Q2 2024, showing an increase of 1.8 percent over the revised estimate for Q2 2023 (QAR119.25 billion). In comparison to the previous quarter’s estimate (QAR117.10 billion), an increase of 3.7 percent is recorded.

The real GVA for Non-Mining and Quarrying activities is estimated at QAR113.86 billion in Q2 2024, which represents a growth of 2.8 percent compared to the revised estimate from Q2 2023 (QAR110.77 billion). When compared to the Q1 2024 estimate (QAR109.85 billion), there is an increase of 3.7 percent.

FAQs about Qatar GDP

What is Qatar’s current GDP value?

According to IMF, the 2024-25 real GDP growth is expected to reach 2 percent, supported by public investment, spillovers from the ongoing LNG expansion project, and strong tourism.

How does Qatar’s GDP compare to other GCC countries?

Qatar’s GDP growth rate of 2 percent for 2024 is below the Gulf Cooperation Council (GCC) average forecast of 2.8 percent, but it remains one of the wealthiest nations in the Middle East. Despite this, Qatar remains one of the wealthiest nations in the region, primarily due to its substantial natural gas reserves and hydrocarbon exports.

What are the primary contributors to Qatar’s GDP?

The primary contributors to Qatar’s GDP are:

• Hydrocarbons: The hydrocarbons sector accounts for about 60 percent of GDP and more than 70 percent of government revenue.
• Manufacturing and industry: This sector, particularly petrochemicals and fertilizers, contributes significantly to the economy.
• Services: The government is actively working to expand the non-hydrocarbon sectors, including tourism, education, and healthcare.

GDP includes the total expenditures for all final goods and services produced within the country.

What role does natural gas play in Qatar’s economy?

Natural gas is crucial to Qatar’s economy, as the country holds the world’s third-largest proven natural gas reserves and is a leading exporter of liquefied natural gas (LNG). Natural gas and its derivatives account for a significant portion of export earnings and government revenue, with LNG exports projected to increase significantly due to ongoing expansion projects.

How has Qatar’s economy diversified beyond oil and gas?

Qatar has initiated several strategies to diversify its economy, mainly through its National Vision 2030, which aims to reduce reliance on hydrocarbons. Efforts include:

• Expanding the manufacturing sector.
• Developing tourism and education sectors.
• Attracting foreign investment and establishing a more robust private sector.

What challenges could affect Qatar’s GDP growth?

Challenges that could impact Qatar’s GDP growth include:

• Volatile regional situations: Political tensions in the Gulf region can affect economic stability and investor confidence.
• Dependence on hydrocarbons: Despite diversification efforts, the economy remains heavily reliant on the hydrocarbons sector, which can be susceptible to global oil price fluctuations.
• Transitioning workforce: The need to localize the workforce through “Qatarization” poses challenges in balancing expatriate labor and national employment.

Analyzing historical data can provide insights into how these challenges have impacted Qatar’s GDP growth in the past.

What is Qatar’s GDP per capita ranking globally?

Qatar consistently ranks among the highest countries globally in terms of GDP per capita, despite its relatively small population. As of 2022, Qatar’s GDP per capita (PPP) was approximately $114,648, placing it fifth in the world.

This high ranking is primarily due to its substantial revenues from natural gas and oil exports.

Qatar also ranks highly in terms of nominal GDP per capita, with a figure of around $82,040, which places it among the top countries worldwide.