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

Strategic Insights -

Qatar's construction industry is poised for growth in 2025, supported by investments in residential, renewable energy, and transportation infrastructure sectors. With a total allocation of QAR210.2 billion ($57.8 billion) in the 2025 Budget, an increase of 4.6% compared to the 2024 Budget, the industry is expected to expand by 3.4% in real terms in 2025. The healthcare sector will receive QAR22 billion ($6.04 billion) and the municipality and environment sector will receive QAR21.9 billion ($6.02 billion), among other allocations. However, the dwindling commercial construction output continues to weigh on the industry.

Key Takeaways:

  • The Qatar construction industry is expected to expand by 3.4% in real terms in 2025, supported by investments in residential, renewable energy, and transportation infrastructure sectors.
  • The total allocation of QAR210.2 billion ($57.8 billion) in the 2025 Budget will increase by 4.6% compared to the 2024 Budget.
  • The healthcare sector is expected to receive QAR22 billion ($6.04 billion) and the municipality and environment sector is expected to receive QAR21.9 billion ($6.02 billion) in the 2025 Budget.
  • 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.
  • 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 government's National Renewable Energy Strategy, launched by the Qatar General Electricity and Water Corporation (Kahramaa) in April 2024, aims to increase solar energy sources in the country.
  • The development of the North Field Expansion Project, with an investment of QAR198.4 billion ($54.5 billion), will support growth in the natural gas sector by the end of 2030.

Statistics:

  • The Qatar construction industry is expected to expand by 3.4% in real terms in 2025.
  • The total allocation of QAR210.2 billion ($57.8 billion) in the 2025 Budget will increase by 4.6% compared to the 2024 Budget.
  • 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 government's National Renewable Energy Strategy aims to reduce carbon dioxide emissions by 25% by 2030 compared to Business as usual (BAU) level.
  • The North Field Expansion Project will have an investment of QAR198.4 billion ($54.5 billion) by the end of 2030.

Sources:

  • Research and Markets, "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.