Qatar market intelligence: navigating change
Qatar’s construction market is advancing with purpose, balancing diversification and sustainability while navigating cost pressures and regional competition.
Our 2025 Qatar market intelligence report examines the country's economic growth and construction outlook. It provides expert insights and strategies to future-proof the construction value chain.
Economic overview
Qatar’s construction market is evolving as the government drives economic diversification. It aims to establish itself as a hub for finance, education, tourism and sports. The construction industry is increasingly focusing on sustainable and innovative practices, contributing to achieve Qatar Government’s Vision 2030 objectives.
Despite high construction costs, Qatar maintains one of the lowest inflation rates in the Gulf Cooperation Council (GCC), reflecting good economic management. By 2031, analysts expect the economy to double in size, restoring revenues to pre-2014 levels.
Tendering conditions have also improved, with fewer but more qualified bidders fostering balanced competition and competitive pricing.
Growth drivers shaping Qatar’s construction outlook
The Third National Development Strategy (2024-2030) outlines economic, social and environmental goals, reinforcing construction’s role in diversification and resilience. The Ministry of Commerce and Industry Strategy also aims to attract investment and boost private sector partnerships.
Energy remains a core driver, with the North Field Expansion Project (NFXP) strengthening Qatar’s global liquefied natural gas (LNG) leadership. Qatar’s US$2.5bn green bonds will fund renewable energy and sustainable infrastructure projects, aligning with development goals.
In real estate, tourism continues to thrive following the World Cup.Visitor numbers are expected to reach 3.3-3.4 million in 2025, with a target of six million by 2030.
Navigating headwinds
Qatar’s construction sector, while growing, faces several challenges. This includes global headwinds, regional competition for resources and domestic cost pressures:
Saudi Arabia’s infrastructure boom intensifies competition for talent, raising delivery costs.
High global shipping rates and limited local manufacturing continue to inflate tender prices. Although domestic production capacity is improving, supply chain inefficiencies and rising material costs persist.
The sector is adjusting to reduced activity and capacity, leading to elevated costs.
Despite these challenges, continued investments in transport, tourism and infrastructure projects sustain long-term development ambitions.
