The World Bank projected that Qatar’s economic growth will remain stable at 2.4% in 2025, before accelerating to an average of 6.5% in 2026-27 due to the expansion of its LNG capacity.

These improved prospects are supported by strong non-hydrocarbon growth, particularly in education, tourism, and services, the World Bank said in its report ‘Gulf Economic Update.’

The hydrocarbon sector is expected to grow timidly in 2025 (0.9%), before undergoing a significant boost in 2026 thanks to the North Field LNG expansion coming online, supporting a 40% rise in LNG output.

Non-hydrocarbon growth is expected to remain robust thanks to infrastructure upgrades and international investments, the report said.

“Economic growth across the Gulf Cooperation Council (GCC) is projected to increase in the medium-term to 3.2% in 2025 and 4.50% in 2026. This growth is likely to be driven by the expected rollback of OPEC+ oil production cuts and robust expansion of non-oil sectors,” according to the report.

The report states that regional growth was 1.7% in 2024 – an improvement from 0.3% in 2023.

The non-hydrocarbon sector remained resilient, expanding by 3.7% — largely fuelled by private consumption, investment, and structural reforms across the GCC.

At the same time, global trade uncertainty presents challenges, as a global economic slowdown remains a key downside risk for the region. To mitigate these risks, GCC countries need to accelerate economic diversification reforms and strengthen regional trade.

“The resilience of GCC countries in navigating global uncertainties while advancing economic diversification underscores their strong commitment to long-term prosperity,” Division Director for the GCC countries at the World Bank Safaa El Tayeb El-Kogali said.

“Strategic fiscal policies, targeted investments, and a strong focus on innovation, entrepreneurship, and job creation for youth are essential to sustaining growth and stability,” she 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