Doha: Qatar’s economy is forecasted to grow by 2% in 2024, bolstered by stability in the hydrocarbon sector and robust growth in non-oil industries such as tourism and construction, according to Roberta Gatti, the World Bank’s Chief Economist for the Middle East and North Africa (MENA).
Gatti attributed the growth to a strong start to the year in the tourism sector and the pivotal role of construction in driving non-oil economic activity. Qatar’s ongoing diversification initiatives, aligned with its third National Development Plan, are targeting sectors like tourism and IT to broaden the country’s economic base.
Hydrocarbon Sector and LNG Expansion
While hydrocarbons remain a cornerstone of Qatar’s economy, Gatti highlighted the sector’s anticipated surge starting in 2026, when new liquefied natural gas (LNG) projects begin production. These developments are expected to significantly enhance Qatar’s long-term economic growth.
Regional Growth Outlook
For the broader MENA region, the World Bank projects a moderate growth rate of 2.2% in 2024, up from 1.8% in 2023, with the Gulf Cooperation Council (GCC) countries leading the uptick. GCC economies are expected to see growth rise to 1.9% in 2024, driven by non-oil sector expansion, despite ongoing oil production cuts.
Key Regional Highlights:
Saudi Arabia: Non-oil private sector growth is projected at 4.4%, contributing to 51% of its economy in 2024.
Developing Oil Importers: Growth is expected to slow to 2.1% in 2024, compared to 3.2% in 2023.
Developing Oil Exporters: Growth is forecasted to decline from 3.2% in 2023 to 2.7% in 2024, with recovery expected in 2025.
Challenges and Long-Term Prospects
Gatti warned of challenges, including oil production limits, global economic uncertainties, and potential regional conflicts, which could dampen short-term growth. However, she forecasts an acceleration in MENA’s overall growth to 3.8% in 2025, driven by strengthened GCC economies, expected to grow at 4.2%.
Qatar’s Diversified Growth Path
Qatar’s focus on developing its non-oil sectors, coupled with its strategic investments in LNG expansion, positions the country for sustained economic resilience and long-term growth.
credit by SyndiGate Media Inc. (Syndigate.info).
