Qatar’s construction sector is experiencing renewed growth, with projections indicating the market will exceed $68.7 billion (QR250 billion) by 2025 and reach $106.3 billion (QR388 billion) by 2030, according to Research And Markets. This upward momentum is fueled by fresh investments in LNG projects, infrastructure development, and sports tourism.

Michael Brady, Director at Turner & Townsend in Qatar, acknowledged that the sector faced a slowdown after the 2022 FIFA World Cup due to reduced real estate activity and intense contractor competition. However, he noted a renewed sense of optimism, highlighting a strong pipeline of ongoing and upcoming projects as signs of a sector ready for transformation.

Much of the sector’s momentum is being propelled by government-backed projects aligned with the QNV 2030. “Projects in typically strong sectors for Qatar, such as new liquified natural gas (LNG) lines, are being balanced with increased ambition for transport, tourism and infrastructure development,” Brady explained.

According to Global Data, infrastructure spending in Qatar is expected to exceed QR90bn in 2024 alone, with mega-projects from Ashghal and Kahramaa leading the way.  “This high demand, coupled with supply chain challenges, is contributing to elevated tender prices. Doha already ranks as the second most expensive city for construction in the Middle East, and the average cost of construction has reached $2,631,” Brady said.

“Sports tourism remains a key focus for Qatar’s economic growth—contributing between $1.6bn and $2.4bn to overall GDP in 2024,” said Brady. “The Qatar National Vision 2030 prioritises sports as a key sector for national development, and the 2022 FIFA World Cup has acted as a springboard for showcasing wider global sporting events.”

Qatar is gearing up for major events, including the 2027 FIBA Basketball World Cup and the 2030 Asian Games. “Preparations for the tournament included expanding the Hamad International Airport’s capacity to serve 70 million passengers, a new Grand Cruise Terminal, and fresh entertainment districts in Lusail and Msheireb,” Brady said. “This investment in infrastructure has put Qatar in a strong position to develop a thriving visitor economy.” The official also remarked that Qatar’s LNG plays a pivotal role in broader economic diversification.

“Though it may seem counterintuitive, this diversification relies on expanding the LNG industry, as a central driver of economic growth and a home-grown energy source, which provides the opportunity and confidence for government and private finance to invest in wider sectors,” said Brady.

The Director further stated, “Prices for essential raw materials, such as steel and concrete, are much higher than in neighbouring countries. “Demand for such resources will increase alongside the resurgent demand we are seeing, so the sector must find ways of managing costs.”

“Qatar’s government is also seeking to strengthen its domestic manufacturing capability. It’s important that this trend continues in order to fuel Qatar’s long-term development and growth ambitions,” he added.

---

Make sure to check out our social media to keep track of the latest content. 

Instagram - @qatarliving

X - @qatarliving

Facebook - Qatar Living

YouTube - qatarlivingofficial