Doha: Qatar’s construction sector is expected to perform exceptionally well compared to previous years, noted researchers at Fitch Solutions.
Analysts are optimistic about the “rebound in construction activity”, which commenced during the third quarter of last year and will continue in 2025
“The sector grew by 7.7 percent y-o-y in Q3 2024, after contracting by 4.8 percent in 2023 and 1.3 percent y-o-y in H1 2024 and our infrastructure team anticipates that the North Field East expansion, and several smaller government-led projects in the non-residential, water infrastructure and transport sectors will see construction output grow by around 2 percent in 2025, the researchers stated.
However, the growth in the construction market is expected to remain lower than the 2010-19 average of 12.3 percent, as the scope for large-scale projects following the completion of FIFA 2022-related projects will remain limited.
Market experts said, “Our view is further reinforced by the pickup in building permits growth, which will translate into stronger construction activity in coming quarters.”
A recent report by Fitch Solutions indicate that the hydrocarbon sector will grow by 0.7 percent in 2025, after a contraction of 0.2 percent last year.
The Oil and Gas analysts project that Qatar’s hydrocarbon output will increase by 1.6 percent in the current year, after a 0.8 percent expansion in 2024.
The data signaled that the poor Q3 2024 performance in the mining sector prompted experts to revise their forecast for hydrocarbon sector growth from 1.5 percent.
“Growth in the sector will gain momentum from 2026 onwards, averaging 5.6 percent between 2026 and 2030, as new capacity from the North Field Expansion projects comes online,” the report said.
Researchers also highlight downside risks and challenges to the report’s growth forecast. A slower-than-expected pace of monetary easing would maintain high borrowing costs, dampening demand for credit, which in turn would affect investment and credit-driven consumption.
Additionally, falling energy prices could negatively impact public investment due to reduced government revenue.
Delays in the start of construction and infrastructure projects would slow the recovery of the construction sector, leading to weaker-than-anticipated non-hydrocarbon growth.
Qatar’s construction sector is experiencing remarkable growth, fueled by ambitious national development goals and significant sporting events.
