Qatar Construction Market to Expand by 3.4% in 2025, Supported by Renewable Energy and Infrastructure Projects

Strategic Insights -

Qatar's construction industry is expected to experience significant growth in 2025, driven by investments in residential, renewable energy, and transportation infrastructure sectors. According to a new report, the industry is anticipated to expand by 3.4% in real terms in 2025, following an annual growth of 1.4% in 2024. The allocation of QAR210.2 billion ($57.8 billion) in the 2025 Budget, an increase of 4.6% compared to the 2024 Budget, will also contribute to the growth.

The major allocations in the budget include QAR22 billion ($6.04 billion) for the healthcare sector and QAR21.9 billion ($6.02 billion) for the municipality and environment sector. Despite the presence of positive factors, the waning commercial construction output continues to weigh on Qatar's construction industry. The analyst expects the industry to rebound at an annual average growth rate of 4.7% from 2026 to 2029, supported by public and private sector investments in renewable energy, water infrastructure, and liquefied natural gas (LNG) projects.

Moreover, Qatar aims to increase the country's renewable energy share in the total power mix from 5% in April 2024 to 18% by 2030, while reducing carbon dioxide emissions by 25% by 2030 compared to the Business as usual (BAU) level. The country also plans to achieve a carbon zero footprint by 2050 as part of its National Renewable Energy Strategy.

Key Takeaways:

  • Qatar's construction industry is expected to expand by 3.4% in real terms in 2025, driven by investments in residential, renewable energy, and transportation infrastructure sectors.
  • The allocation of QAR210.2 billion ($57.8 billion) in the 2025 Budget will contribute to the growth, with major allocations in the healthcare and municipality and environment sectors.
  • The industry is expected to rebound at an annual average growth rate of 4.7% from 2026 to 2029, supported by investments in renewable energy, water infrastructure, and LNG projects.
  • Qatar aims to increase the country's renewable energy share in the total power mix from 5% in April 2024 to 18% by 2030.
  • The National Renewable Energy Strategy aims to reduce carbon dioxide emissions by 25% by 2030 and achieve a carbon zero footprint by 2050.

Statistics:

  • QAR210.2 billion ($57.8 billion) allocated in the 2025 Budget, an increase of 4.6% compared to the 2024 Budget.
  • QAR22 billion ($6.04 billion) allocated for the healthcare sector and QAR21.9 billion ($6.02 billion) for the municipality and environment sector.
  • Qatar's renewable energy share in the total power mix expected to increase from 5% in April 2024 to 18% by 2030.
  • Carbon dioxide emissions expected to be reduced by 25% by 2030 compared to the Business as usual (BAU) level.
  • Qatar aims to achieve a carbon zero footprint by 2050.

Sources:

  • "Qatar Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)" report.
  • "ResearchAndMarkets.com's offering"

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