Major projects and programmes move ahead

Construction market outlook

The Plan for Qatar 2050 ↓

Energy fuels growth ↓

The pinch points ↓

New era for construction ↓

Foreign investment ↓

Accelerating green growth ↓

Qatar construction market outlook

Major projects and programmes move ahead

Qatar’s development drive stands as an integrated portfolio of transport, energy and city‑building projects that underpin Qatar National Vision 2030 while keeping the nation ‘event‑ready’ for a new round of global sporting fixtures.

The Transport Master Plan for Qatar 2050 continues to guide new road, rail and aviation developments

Qatar Rail is actively advancing several rail infrastructure projects to enhance connectivity and support its long-term development goals. This includes the ongoing development of the Lusail Tram Network, which is now operational across three lines (orange, pink, and turquoise), with anticipated further development of the purple line. The Lusail tram will serve as the main transportation hub for Lusail City, the largest single sustainable development in the State of Qatar.

Additionally, at Hamad International Airport, the recent completion of Concourses D and E has boosted the airport's capacity to over 65 million passengers annually. Potential plans are underway to develop an additional satellite concourse and a dedicated transfer cargo facility, which would further increase the airport’s capacity.

Energy remains the fiscal engine with QatarEnergy North Field Expansion Project (NFXP) moving forth

Construction continues on the North Field East (NFE) and North Field South (NFS) LNG expansions. The four mega‑trains at North Field East (NFE) will add 32 Mtpa of LNG and fund the state’s growing renewables budget. North Field South (NFS) involves the construction of two additional mega LNG trains, each with a capacity of 8 Mtpa and associated offshore and onshore facilities.

FEED for North Field West (NFW, Phase 3) has now been awarded and will push national capacity to 142 Mtpa by 2030, anchoring carbon‑capture at scale.

In addition, downstream diversification is under way at Ras Laffan; ground has officially broken on the US $6 billion petrochemicals complex, featuring a two‑million‑tonne per year ethylene cracker scheduled to start up in the coming years.

Understanding the pinch points

Qatar’s construction sector is navigating a challenging environment shaped by global economic headwinds, including regional conflicts, tighter monetary policies, and slowdowns in major economies. These factors are influencing trade and investment flows across the region, with potential implications for Qatar’s pipeline and investor confidence. On the domestic front, the sector faces rising material and investment costs, persistent supply chain pressures, and increased competition for a shrinking pool of projects. Even when work is secured, delivery remains a challenge due to the difficulty in sourcing and retaining skilled labour and technical expertise.

This is being exacerbated by Saudi Arabia’s accelerating infrastructure programme, which is attracting talent and resources from across the region, including Qatar. As a result, professional services and contractor capacity are under strain, with upward pressure on delivery costs. In addition, as we look ahead, a major structural challenge will be shifting from a public sector-led model to a more diversified, private sector-driven economy, an ambition outlined in the Qatar National Vision 2030. Delivering on this vision will require bold reforms to enhance productivity, foster a more business-friendly environment, and unlock opportunities through digital innovation and climate-focused development.

"Qatar is witnessing challenges related to professional services, workforce, and contractor capability against the backdrop of the current and forecasted expenditure in the region. The ongoing activity in the region will lead to increased competition in labour and resources, which is likely to contribute to future cost escalation as regional demand continues to rise."

George McCallion Associate Director Cost Management, Qatar

Challenges faced	Impact (significant, high, medium, little no impact)
Difficult contractual and legal conditions	Medium impact
Excessive materials lead-in times	Significant impact
Government red tape, bureaucracy, delayed approvals	Significant impact
Increasing contractor insolvency	Significant impact
Difficulties accessing credit, tight credit conditions	High impact
Lack of confidence in the market resulting in fewer projects getting underway	Significant impact
Low workplace productivity, inefficient and outdated work practices	Little impact
Economic instability/ downturn	High impact
Net Zero commitments	Little impact
Political/ policy instability	Medium impact
High costs of construction	Medium impact
Skilled labour shortages	Significant impact
The market is oversupplied, e.g. high vacancy rates and excess supply to be absorbed	Medium impact
Too many contractors chasing too few projects, e.g. too much competition in the market	Little impact
Trading tariffs (increasing uncertainty, rising costs, new investment slowing etc.)	Significant impact

A new era for construction

Qatar's Digital Agenda 2030 aims to contribute QAR40bn to its non-hydrocarbon GDP. As Qatar's construction market develops, technological investment becomes increasingly important.

Msheirab Downtown exemplifies a community that leverages smart infrastructure, energy-efficient transport systems and eco-friendly materials. By incorporating solar energy, smart lighting, water-saving solutions, green mobility, and waste management, the community has achieved more than a 30 percent reduction in energy consumption.

Foreign investment driving growth

The Ministry of Commerce and Industry Strategy 2024-2030 focuses on ‘Creating a high-level business environment to attract investments and enhance partnerships between the government and private sectors, encouraging strategic partnerships to drive development and economic diversification.’ This along with Qatar’s strategy for foreign direct investment (FDI) is significantly impacting its construction sector by drawing international capital and expertise into major infrastructure projects.

The introduction of Law No. 1 of 2019, which allows up to 100 percent foreign ownership in various sectors, including construction, is encouraging foreign involvement in large-scale developments beyond the hydrocarbons industry. This legislative change, along with the creation of investment-friendly zones, is promoting growth in urban development, transportation, utilities, and tourism-related construction. Additionally, FDI is enabling the adoption of advanced construction technologies and sustainable practices, in line with Qatar's Vision 2030 goals. As a result, the construction sector is set to benefit from increased competition, improved quality, and a strong pipeline of strategic projects driven by both public and private investment.

Accelerating green growth in the Qatar built environment

Qatar is making significant strides in reducing its carbon footprint by targeting major emitters such as flaring gas, oil, and cement production, which together account for approximately 20 percent of global carbon emissions annually. The government’s commitment, clear strategies and quantifiable plans aim to position Qatar as a leader in green and carbon-neutral buildings in the Middle East and North Africa by 2030.

By adapting to climate change, investing in green energy, improving water infrastructure, and adopting modern construction methods, Qatar is enhancing productivity and efficiency. These initiatives are also expected to attract both foreign and local investments, create job opportunities, and boost overall economic confidence, aligning with Qatar’s National Vision 2030.

New regulations, such as mandatory compliance with Global Sustainability Assessment System standards for all new projects, continue to steer the industry towards greener construction practices. This shift includes considering the whole-life carbon footprint of projects and ensuring that the entire supply chain is committed to reducing environmental impact.

NDS3 emphasises sustainable economic growth and balancing fiscal and environmental goals. However, Qatar needs a clear net zero plan and sector-specific emissions targets to support its 2030 vision. Investments in infrastructure, such as the Tarsheed programme, network optimisation, new technologies, and decarbonising the electricity grid, are crucial to achieving these goals.