Qatar’s Non-Hydrocarbon Sector Leads Economic Growth Amid Diversification Efforts

Qatar, 17 December, 2024 : Qatar’s economy grew by 1.7%, led by a 1.9% rise in the non-hydrocarbon sector, while the hydrocarbon sector grew by 1.4%, according to Minister of Finance H E Ali bin Ahmed Al Kuwari.

At a press conference, Minister Al Kuwari emphasized the importance of economic diversification under Qatar’s Third National Development Strategy (NDS3), focusing on sectors such as knowledge-based industries, health, education, and tourism. He noted that the non-hydrocarbon sector drove first-half growth of 1.1%, increasing by 2.2%, while the hydrocarbon sector experienced a slight dip due to maintenance and contracts.

Qatar’s economy is projected to grow by 2% this year, with hydrocarbons remaining a key long-term driver, especially as LNG projects ramp up production in 2026.

Expenditures for 2025 are estimated at QR210.2bn, a 4.6% increase, with a projected deficit of QR13.2bn to be financed through local and external debt. Salaries and wages allocations will rise by 5.5% to QR67.5bn, marking the largest increase in years. The Minister cited this as part of NDS3’s efforts to attract talent, boost national workforce performance, and support private-sector job creation.

Qatar’s inflation rate dropped to 1.3% by September, among the lowest globally, and is expected to remain stable at 2% in 2025. Credit agencies Moody’s, S&P, and Fitch affirmed Qatar’s strong economic outlook, highlighting financial stability, efficient resource management, and strategic planning.