meed-logo

line1 line2 line3
SIGN IN / REGISTER

Qatar economy rebounds alongside diplomatic activity

13 January 2025

 

Qatar welcomed some 5.1 million visitors in 2024, the highest number on record and representing a 25% year-on-year increase. But the growing waves of holidaymakers have not been the only notable arrivals of late – regional political figures have also been showing up, as Doha resumes its efforts to resolve the Gaza conflict while also seeking to play a role in rebuilding Syria.

The diplomatic activity comes at a time when the broader economy is emerging from its post-World Cup slump. After the football tournament ended in 2022, there was something of a slowdown, as activity in the construction and services sectors eased off.

According to the Washington-based IMF, real GDP growth fell from 4.2% in 2022 to just 1.2% in 2023. In its latest report on the economy, published in early December, the IMF suggested the rebound had started, with GDP growth of about 2% in 2024/25.

Over the medium term, the IMF expects growth to rise to about 4.75%, helped by a significant expansion of LNG production.

Others take a similar view. On 7 January, Dubai-based bank Emirates NBD revised down its 2024 GDP growth forecast for Qatar to 1.7%, from 2% previously. But it said it expects growth to tick up to 2.6% this year and then accelerate to 4.8% in 2026, as more gas exports come online.

While hydrocarbons will continue to be the most important element of the economy for many years, tourism will play an increasingly important role in economic diversification efforts. 

The country now has more than 40,000 hotel rooms – substantially more than the 31,000 permanent rooms in place when the football tournament was on (augmented by 100,000 temporary rooms on cruise ships and in fan villages and rented homes and apartments).

The number of visitors since the tournament has risen substantially: from 2.6 million in 2022, the figure rose to 4.1 million in 2023 and over 5 million last year. Many more travel through Hamad International airport, which handled almost 53 million passengers in 2024, some 15% more than the year before.

Citizens of more than 100 countries are eligible for visa-free entry to Qatar. That open-minded approach also informs the country’s diplomatic activities.

Diplomatic re-engagement

On 28 December, Prime Minister and Foreign Affairs Minister Sheikh Mohammed Bin Abdulrahman Al-Thani met a Hamas delegation led by Khalil Al-Hayya to discuss a potential Gaza ceasefire deal. Doha had shuttered its mediating efforts in early November, saying neither Hamas nor Israel were engaging seriously.

In January, the diplomatic activity stepped up further, as indirect talks mediated by Qatar resumed. David Barnea, the head of Israel’s Mossad intelligence agency, travelled to Doha, as did US President Joe Biden’s Middle East envoy Brett McGurk. Early reports suggest some progress was being made.

“There are extensive negotiations. Mediators and negotiators are talking about every word and every detail. There is a breakthrough when it comes to narrowing old existing gaps, but there is no deal yet,” one unnamed Palestinian official close to the talks told Reuters.

Activity relating to Syria has been even more pronounced. Unlike some other Gulf states, Doha had resisted the urge to normalise relations with Bashar Al-Assad in recent years, even as many observers assumed his regime had survived the revolution and would continue to hold power in Damascus indefinitely.

As other countries reopened their embassies, Qatar’s remained shuttered. That changed nine days after the Assad regime fell, when the Qatari diplomatic presence in Damascus reopened for business on 17 December. Khalifa Abdullah Al-Sharif was appointed as charge d’affaires.

The new Syrian regime led by Hayat Tahrir Al-Sham (HTS) appears warmly disposed towards Doha. Visiting the Qatari capital on 5 January, Syria’s Foreign Affairs Minister Asaad Al-Shaibani described Qatar as “a strategic partner”.

On 23 December, Minister of State at the Ministry of Foreign Affairs Mohammed Bin Abdulaziz Al-Khulaifi had travelled to Damascus, where he met HTS leader Ahmed Al-Sharaa (better known during the revolution by his nom de guerre Abu Mohammad Al-Julani) to discuss bilateral relations.

Among other things, Qatar has been helping to restart operations at Damascus International airport – international flights resumed on 7 January, with the first arrival coming in from Doha (the first departure went to Sharjah). Qatar, along with Turkiye, has also reportedly pledged to supply electricity-generating ships to provide 800MW of power to the country. 

Al-Shaibani’s visit to Doha in early January was part of a wider tour of key Gulf capitals. While in Qatar, he called on Western countries to remove sanctions on his country, saying they “constitute an obstacle to the rapid recovery of the Syrian economy … We renew our demand for the United States of America to lift the sanctions to speed up the recovery and start building the new Syria”.

The following day, the US announced a six-month suspension of sanctions on dealings with the Syrian government. Senior European figures have indicated they could soon take similar steps. Among other things, relaxing sanctions could enable Doha and other Arab governments to help fund salaries for Syrian public sector employees.

The health of Qatar’s public finances means such support is easy to provide. The government has consistently run a budget surplus in recent years, and that is expected to continue. Emir Sheikh Tamim Bin Hamad Al-Thani approved the budget for 2025 in mid-December. It includes spending of QR210bn ($58bn) and revenues of QR197bn, pointing to a deficit of QR13bn.

However, UK-based Oxford Economics has pointed out that the figures were based on conservative oil price assumptions. The consultancy expects Doha to actually run a surplus of QR12bn for this year, down from QR25bn in 2024 but still substantial. “These projections underscore Qatar’s fiscal discipline and sustainable policies,” it said in a 19 December report.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13257617/main.gif
Dominic Dudley

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • AtkinsRealis wins key Riyadh infrastructure roles

    14 July 2026

    Canadian engineering firm AtkinsRealis has been awarded a contract by the Royal Commission for Riyadh City (RCRC) to support the operation and expansion of the Riyadh Metro and oversee the delivery of major road infrastructure projects across the capital.

    AtkinsRealis will provide engineering consultancy, project management, construction supervision and technical oversight for ongoing works on the Riyadh Metro.

    The agreement was signed during the Saudi Arabia-Canada Investment Forum in Jeddah, held on the sidelines of Canadian Prime Minister Mark Carney’s visit to the kingdom.

    The company will also supervise a portfolio of strategic road development schemes designed to strengthen Riyadh’s wider transport network.

    AtkinsRealis also recently secured a contract to deliver lead design services for the Place & Planet Pavilion at the Expo 2030 Riyadh site.

    The contract was awarded by Expo 2030 Riyadh Company, which is tasked with delivering the Expo 2030 Riyadh venue.

    AtkinsRealis will deliver the full architectural and engineering design for the pavilion, coordinate all relevant design disciplines and embed sustainable design principles throughout.

    The Place & Planet Pavilion is anticipated to be a key attraction at Expo 2030 Riyadh.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17660065/main.jpg
    Yasir Iqbal
  • I Squared eyes $2bn deployment across PIF portfolio

    13 July 2026

    Saudi Arabia's Public Investment Fund (PIF) has signed a memorandum of understanding (MoU) with US infrastructure investor I Squared Capital, under which the firm will pursue the deployment of up to $2bn in real estate and infrastructure assets owned by the sovereign fund and its portfolio companies.

    The non-binding agreement, announced on 13 July, will see the two work with PIF portfolio companies to identify opportunities in digital infrastructure and district cooling, which the parties describe as critical enablers of the real estate sector. I Squared will target allocating up to $1bn in each of the two areas, with the option to scale across additional related business themes.

    The MoU aligns with PIF's 2026-30 strategic objectives to partner with global investors on opportunities within its portfolio and to maximise the value of its portfolio companies. The collaboration is expected to accelerate project delivery and increase the contribution of third-party capital into opportunities across the portfolio.

    Founded in 2012 and headquartered in Miami, I Squared Capital manages $60bn in assets across power and utilities, transport and logistics, digital infrastructure, and environmental and social infrastructure. Its portfolio includes more than 100 companies operating in over 70 countries.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17655682/main2812.png
    Colin Foreman
  • Former emir of Qatar Sheikh Hamad dies aged 74

    13 July 2026

    Sheikh Hamad Bin Khalifa Al-Thani, the former emir who presided over Qatar's transformation into one of the world's richest states and its largest exporter of liquefied natural gas (LNG), has died at the age of 74.

    The Amiri Diwan, Qatar's official administrative office, announced his death on the morning of 12 July, describing him as a great leader and mourning the loss to the nation. The country declared a four-day period of public mourning, with work suspended across ministries, government agencies and public institutions from Monday 13 July until employees resume on Sunday 19 July. Flags are to be flown at half-mast throughout the mourning period. Funeral prayers were held after Maghrib prayer on 12 July at the Imam Muhammad Bin Abdul Wahab Mosque, after which his body was laid to rest in Lusail Cemetery.

    Sheikh Hamad ruled Qatar from 1995 to 2013 and led its modern economic development. When he took power from his father, the country's finances were strained and its oil reserves were declining. Over the following 18 years, he oversaw an era of rapid economic, social and cultural change that established Qatar as a significant global player in energy, finance and diplomacy.

    Gas foundations

    Central to that transformation was the development of Qatar's North Field gas reserves, one of the largest single accumulations of natural gas in the world. Through a series of international partnerships and investments, Sheikh Hamad's government built the infrastructure that turned the country into the world's largest exporter of LNG, a position that underpinned decades of budget surpluses and funded an expansive development programme across construction, infrastructure and social services.

    The wealth generated by gas exports allowed Qatar to invest heavily both at home and abroad. Sheikh Hamad founded the Qatar Investment Authority (QIA), the sovereign wealth fund that acquired stakes in assets ranging from the London department store Harrods to the football club Paris Saint-Germain. The QIA remains one of the most active sovereign investors in the world and a cornerstone of Qatar's economic strategy.

    Born in Doha in 1952, Sheikh Hamad studied at the UK's Royal Military Academy Sandhurst before joining the Qatar Armed Forces and later serving as defence minister. He was named heir apparent in the late 1970s and took power in 1995 while his father was abroad.

    Global profile

    Sheikh Hamad used Qatar's growing wealth to raise its international standing well beyond its size. In 1996, he backed the launch of the Al-Jazeera television network, which grew into one of the most influential media organisations in the region and further afield. His government also pursued an active diplomatic role, hosting negotiations and international events that positioned Doha as a mediation hub.

    The most prominent, and most contested, achievement of his tenure came in 2010, when Qatar won the right to host the 2022 Fifa World Cup. The tournament prompted a multibillion-dollar construction programme, spanning stadiums, transport networks, hotels and wider urban infrastructure, and accelerated the build-out of projects across the country. The bid and the subsequent preparations drew scrutiny over labour conditions and allegations of corruption, of which Qatar was later cleared.

    Sheikh Hamad's rule also brought institutional change, including the promulgation of Qatar's first permanent constitution in 2004 and the introduction of municipal elections in which women were permitted to vote and stand as candidates.

    In 2013, he handed power to his son and heir apparent, Sheikh Tamim Bin Hamad Al-Thani, then 33, in a rare voluntary abdication by a hereditary Gulf ruler. The transition allowed for a managed handover of a state that had been reshaped over the previous two decades.

    Tributes were offered by leaders across the Gulf and beyond, including UAE President Mohamed Bin Zayed Al-Nahyan, Egyptian President Abdel Fattah El-Sisi and the UK's King Charles III, who said Sheikh Hamad had dedicated many years of distinguished service to Qatar.

    Qatar was a British protectorate until 1971, with the Al-Thani family having ruled since 1851. Sheikh Hamad leaves a state whose economic weight, built largely on the gas reserves developed during his reign, continues to shape the wider Gulf economy.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17651433/main.jpg
    Colin Foreman
  • Contractors submit bids for Ras Tanura refinery gas pipeline

    13 July 2026

     

    Register for MEED’s 14-day trial access 

    Contractors have submitted bids to Saudi Aramco for a tender to replace a pipeline in the Gas Line Abqaiq-Ras Tanura (GART) transmission network.

    The GART grid transports associated gas and natural gas liquids (NGL) from the Abqaiq oil processing complex as feedstock, northwards to the Ras Tanura refinery in Saudi Arabia’s Eastern Province.

    The aim of the project is to replace the GART-22 pipeline that connects the Juaymah export terminal on the Gulf coast in the Eastern Province to the Ras Tanura refinery, to ensure reliable fuel gas supply and meet ongoing demand.

    The basic scope of work for the project is to install a new 24-inch pipeline system to replace the GART-22 line and the abandoned GART-24 line. It will cover a distance of 18 kilometres between Juaymah and the Ras Tanura terminal.

    The scope also includes the installation of associated scraper trap facilities (launcher and receiver), pressure control valves, motor-operated valves and gas detection and sampling systems.

    Aramco issued the tender for the project in May, setting an initial deadline of 30 June for contractors to submit proposals, MEED previously reported.

    The Saudi energy giant then extended the deadline until 10 July, and then allowed bidders until 12 July. Contractors submitted their proposals by that final deadline, according to sources.

    The following contractors, among others, are understood to be bidding for the project:

    • ACE Pipeline Arabia
    • Combined Group Contracting Company
    • Gas Arabian Services Company
    • Max Streicher Saudi Arabia
    • National Basics Company
    • Saad Ali Alessa Group
    • Sicim
    • Sinopec Engineering Group Saudi
    • Tecton Engineering & Construction
    Ras Tanura refinery complex

    The Ras Tanura refinery is the oldest, and one of the largest, crude oil refineries in Saudi Arabia. The complex has a refining capacity of 550,000 barrels a day (b/d).

    The facility also has a 305,000 b/d NGL processing facility, a 960,000 b/d crude stabilisation facility, combined steam and gas turbine electrical power generation plants with a summer capacity of 145MW and a winter capacity of 158MW, and a combined 150-pound and 600-pound steam capacity of 6,217 million pounds an hour.

    It has 75 crude oil and products storage tanks with a combined capacity of 5.8 million barrels.

    The Ras Tanura refinery’s major facilities include a 325,000 b/d crude distillation unit, a 225,000 b/d gas condensate distillation unit, a 50,000 b/d hydrocracker and 107,000 b/d of catalytic reforming capacity.

    The facility is Aramco’s only refinery to contain a Visbreaker processing unit, which has a 60,000 b/d capacity.

    The Visbreaker reduces the quantity of residual oil produced in the distillation of crude oil and increases the yield of more valuable middle distillates, heating oil and diesel.

    The refinery complex also produces 17,000 b/d of asphalt, more than any other refinery in Saudi Arabia.

    Ras Tanura receives crude feedstock from the Abqaiq, Safaniya and Manifa oil field developments.

    Crude is typically transferred to Ras Tanura through a pipeline and can also be supplied by ship.

    Most of Ras Tanura’s production is transferred to the Dhahran bulk plant for domestic use, while some products are exported from the nearby Ras Tanura shipping terminal.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17649169/main2152.jpg
    Indrajit Sen
  • AtkinsRealis wins Expo 2030 Riyadh design deal

    13 July 2026

    Canadian engineering firm AtkinsRealis has won a contract to deliver lead design services for the Place & Planet Pavilion at the Expo 2030 Riyadh site.

    The contract was awarded by Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue.

    AtkinsRealis will deliver the full architectural and engineering design for the pavilion, coordinate all relevant design disciplines and embed sustainable design principles throughout.

    The Place & Planet Pavilion is anticipated to be a key attraction at Expo 2030 Riyadh.

    The latest development follows ERC tendering a contract to build the Saudi Arabia pavilion at the site.

    The pavilion is a major asset located within the KSA District on the eastern side of the Expo 2030 Riyadh masterplan, within the Loop of Nations district.

    The tendering of the pavilion structure followed swift progress on the site’s infrastructure development works.

    In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Al-Yamama Company.

    The scope covers the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle charging.

    These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners. That scope covers about 50 kilometres of integrated infrastructure networks, including internal roads and utilities such as water, sewage, electrical and communication systems and electric vehicle charging stations.

    The overall infrastructure works – covering the construction of main utilities and civil works at Expo 2030 Riyadh – are split into three packages:

    • Lot 1 covers the main utilities corridor
    • Lot 2 includes the northern cluster of the nature corridor
    • Lot 3 comprises the southern cluster of the nature corridor 

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, and will provide direct access to various landmarks within Riyadh.

    The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17642053/main.jpg
    Yasir Iqbal