Industrial Market Shows Resilience Amid Cautious Business Sentiment

Doha, Qatar: Qatar's industrial and logistics sectors showed mixed performance during the first quarter of 2026, with warehouse rents continuing to rise despite softer maritime activity and broader regional disruptions, according to ValuStrat.

The report, citing the latest data from the National Planning Council (NPC), showed that Qatar's Industrial Production Index (2018=100) reached 107.4 points year-to-date as of January 2026, representing a 6 percent increase compared to the fourth quarter of 2025.

The Mining and Quarrying Index rose 1.4 percent year-on-year during the period, supported by continued activity in the energy sector, while the Manufacturing Index declined 1.7 percent over the same timeframe.

Qatar's trade balance surplus stood at QR13bn in February 2026, marking a 26.4 percent decline compared to the same month last year, reflecting softer external trade conditions amid fluctuating global demand and commodity markets.

ValuStrat noted that maritime activity slowed during the quarter, with Qatar Maritime reporting 552 vessel calls across Hamad Port, Doha Port, and Ruwais Port in Q1 2026, down 25.7 percent compared to the previous quarter.

Container handling activity also moderated, with an estimated 291,000 twenty-foot equivalent units (TEUs) processed across the three ports during the first quarter.

Despite softer logistics activity, warehouse rental rates continued to show resilience. The monthly median asking rent for ambient warehouses increased 3.6 percent quarter-on-quarter to QR36.9 per square metre, reflecting a 4.4 percent increase year-on-year.

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Within the Industrial Area, ambient warehouse rental rates rose 4.4 percent compared to Q4 2025, supported by steady occupier demand and limited supply adjustments.

In contrast, cold storage facilities experienced softer leasing conditions. Median monthly rents for cold storage warehouses declined 8.2 percent quarterly to QR39.6 per square metre, while rates within the Industrial Area fell 10 percent compared to the previous quarter.

Anum Hasan, Head of Research at ValuStrat, stated that Qatar's industrial and logistics sectors demonstrated varying performance trends during the quarter.

“Industrial and logistics segments presented mixed performance, with warehouse rents increasing quarterly and cold storage rates declining yearly. Maritime activity was impacted, with vessel calls recording a decline amid broader regional disruptions,” Hasan said.

She noted that the broader market remained relatively stable despite softer operational activity and cautious leasing sentiment.

According to ValuStrat, near-term sentiment across the industrial and logistics property market remains measured as businesses continue monitoring regional geopolitical developments, trade activity, and global economic conditions.

However, the consultancy indicated that current market trends appear to reflect cyclical and seasonal factors rather than a structural downturn.

“While near-term sentiment remains measured, current indicators suggest a cyclical and seasonal impact rather than a structural shift, with Q2 performance expected to provide greater clarity on the persistence of these trends,” Hasan said.

Industry analysts remark that Qatar's logistics and industrial sectors continue to benefit from long-term infrastructure investments, strategic port connectivity, and its role as a regional trade and energy hub.

Experts stressed that the demand for warehousing facilities, particularly ambient storage space, remains supported by retail, e-commerce, food distribution, and industrial supply chain activity, even as businesses adopt a more cautious approach amid evolving regional and global market conditions.

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