Qatar’s non-oil economy is expected to grow by over 2% this year as it witnesses rising tourism and consumer spending and new business opportunities related to major infrastructure projects.

According to a report by Fitch Solutions, many non-oil industries can expect “stronger-than-expected” growth, enhancing Qatar’s economy. 

Among the non-oil sectors, the hydrocarbon industry stood out after seeing a growth of 2.3% YoY. According to Fitch Solutions, the third quarter of 2023’s headline growth was strong due to stronger-than-expected non-oil activity. Qatar hosting the FIFA World Cup in 2022, the mega sporting event, augmented non-oil sectors.

“We have long argued that Qatar’s economic growth will accelerate in 2024 as lower inflation, stronger tourism activity, and investment in construction and infrastructure projects cause the non-oil sector to recover. Supporting our view, high-frequency data for Q1 2024, such as Purchasing Managers Indices, new building permits, and tourist arrivals, all point to stronger non-oil activity so far in 2024,” noted Fitch Solutions.

Additionally, the report mentioned that inflation in Qatar slowed from an average of 4.2% YoY during Q1 2023 to 2.2% YoY in Q1 2024.