JEDDAH: Qatar’s economy grew 2.9 percent in 2025, with non-hydrocarbon activity driving expansion as inflation remained contained and the country maintained a strong external position and resilient financial markets, according to official data.
Non-hydrocarbon GDP grew 4.8 percent over the year, exceeding the country’s national development strategy’s annual growth target of 4 percent.
The growth reflected the continued expansion of Qatar’s economic base, with non-hydrocarbon sectors and activities becoming increasingly important in supporting economic activity and strengthening the country’s ability to achieve more diversified and sustainable growth, according to Qatar News Agency.
The growth came amid a broader economic expansion across the Gulf, although the pace varied in the region. The UAE recorded the strongest growth among GCC economies at 6.2 percent, followed by Saudi Arabia at 4.5 percent and Bahrain at 3.5 percent, while Kuwait and Oman grew 2.7 percent and 2.4 percent, respectively.
Globally, the economy grew an estimated 2.9 percent in 2025, according to the World Bank.
In its 2025 Annual Macroeconomic Review, the Qatar Central Bank said the economic growth “reaffirms the resilience of Qatar’s economy and its ability to withstand challenges and sustain economic stability.”
Inflation and real estate remain stable
Inflation remained contained in 2025, with the average rate standing at 0.5 percent, with price pressures largely limited to selected categories, including jewelry and related goods.
Real estate prices also remained stable during the year, indicating orderly market conditions and no signs of overheating, according to the review.
Tourism and private sector expand
The tourism sector continued to strengthen, with visitor numbers reaching 5.1 million in 2025, compared with around 4.9 million in 2024 and 4 million in 2023.
The increase reinforced Qatar’s position as a prominent regional tourism destination as the country continued developing the sector and diversifying activities and events aimed at attracting visitors, QNA reported.
In the non-oil private sector, economic activity remained in expansion territory, with the Purchasing Managers’ Index averaging 51.2 points in 2025, above the 50-point threshold separating expansion from contraction.
The reading indicated continued expansion in non-oil private-sector activity and highlighted its growing role in supporting economic activity and diversifying sources of growth, QNA said.
Solid external and financial positions
Qatar also maintained a strong external position, with the current account recording a surplus of 116.2 billion Qatari riyals ($31.9 billion), equivalent to 14.8 percent of GDP.
The surplus reflected the strength of external earnings and their contribution to the country’s economic and financial stability, according to QNA.
In financial markets, the Qatar Stock Exchange Index gained 1.8 percent in 2025, reflecting the resilience of the market despite developments and challenges in global markets.
Strong sovereign credit ratings
Qatar also maintained strong sovereign credit ratings during the year, at AA from S&P Global Ratings and Fitch Ratings and Aa2 from Moody’s, with stable outlooks from all three agencies.
The ratings reflected international credit-rating agencies’ confidence in the strength of Qatar’s economy and financial position, QNA said.
QNA concluded that the country ended 2025 with a “balanced performance combining real economic growth, price stability, a strong external position and resilient financial markets,” supporting the state’s continued economic diversification efforts.
