Qatar's Diversification Drive Bolsters Growth Beyond Energy Sector

Doha, Qatar: Qatar is entering a new phase of economic expansion with growth increasingly fuelled not only by its world-leading LNG industry but also by strategic investments in non-energy sectors, stated ICAEW Economic Insight in its recent report.

Experts remark that this diversification push is positioning Qatar as a resilient, forward-looking economy capable of striking a balance between energy dominance and a broader, more sustainable development agenda.

Scott Livermore, ICAEW's Economic Advisor and Chief Economist & Managing Director at Oxford Economics Middle East, noted that the outlook reflects positive contribution from both the energy and non-energy sectors, with growth seen surging next year, primarily due to the LNG production boost.

“The outlook over the next few years looks promising for several priority sectors in the non-energy space, Livermore told The Peninsula.“Finance and insurance, tourism, transport, storage, and the health sector are also expected to see sustained strong growth.”

He emphasised that Qatar's public finances are robust, with the government facing few concerns that would hinder growth. However, analysts forecast a positive outlook for budget surpluses next year and beyond, which will further reinforce the country's ability to weather future shocks.

“We expect the government to remain the primary source of financing for non-energy projects across priority sectors,” he said. “Tariffs have caused uncertainty worldwide and will be a headwind to global growth in the coming months, but the hit to Qatar's economy should be relatively minor, thanks to the structure of its supply chains and exports; the lowest tariff level and cooperation deals agreed with the US in May limit downside risks."

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Livermore explained that the ongoing regional tensions have had a limited impact on the country's GDP growth, including the vital tourism sector, which continues to enjoy growth. He said,“The risk of conflict escalation, which could directly affect sentiment towards Qatar, has risen after Israel's attack on Doha on September 9, introducing greater uncertainty and downside risks to the outlook.”

The economist reiterated that Qatar's GDP prospects remain resilient, underpinned by LNG expansion, fiscal stability, and ambitious diversification strategies. While regional risks persist, sustained government investment and private-sector participation are expected to drive balanced growth. This positions Qatar not only to maintain competitiveness in energy but also to cement its role as a diversified, forward-looking economy.

He added,“Investment in non-energy sectors is paramount to achieving desired development goals encompassed in the overall 4 percent annual growth rate targeted in Qatar's Third National Development Strategy (2024-2030), higher than the average rate of expansion in the last decade.”

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