Qatar's infrastructure market poised for growth spurred by policy support, investment incentives

Zawya

3 days ago

Doha, Qatar: Qatar's infrastructure sector is poised for robust expansion over the next five years, driven by government capital spending, strategic economic diversification, and ambitious energy and transportation upgrades.
According to Mordor Intelligence, the infrastructure market for construction works across diverse sectors is valued at $33.40bn (QR121.59bn) in 2025 and is projected to reach $41.30bn (QR150.35bn) by 2030, expanding at a 4.30 percent CAGR.
The data highlights that the sustained expansion rests on the Third National Development Strategy's mandate to diversify the economy, the $22.2bn five-year capital plan from the Public Works Authority, and the country's rapid digital-infrastructure rollout that has already delivered median 5G download speeds above 520 Mbps.
Speaking to The Peninsula, Neil Wilson, Managing Director at The Sovereign Group, said: 'Currently, several sectors in Qatar stand out as highly attractive for foreign investors.
Infrastructure and construction remain strong due to ongoing development projects and preparations for future events.'
On the other hand, the report highlights the transportation infrastructure as a dominant focus. Seven new expressways, metro extensions, and capacity enhancements at Hamad Port are designed to transform Qatar into a pivotal logistics hub for the Gulf region. Parallel to this, the North Field LNG expansion that boosts output from 77 million tonnes per annum (MTPA) to 142 MTPA is channelling multibillion-dollar EPC contracts into marine facilities, processing complexes, and export terminals.
'The energy sector, particularly renewable energy and natural gas, continues to offer significant opportunities as Qatar diversifies its energy portfolio.
Finance and banking are also growing rapidly, supported by regulatory reforms and Qatar's role as a regional financial hub. Additionally, technology and innovation sectors, including digital services and smart city initiatives, are gaining momentum as the country invests heavily in modernisation,' the analyst explained.
The data indicates that private-sector participation is rising sharply, enabled by 100 percent foreign-ownership rules, signalling greater public-private collaboration across major projects.
Meanwhile, environmental priorities are also shaping the market, as tightening green-building codes open opportunities in renovation and retrofitting for contractors offering low-carbon solutions.
The market expert noted that the biggest drivers attracting foreign investors include the $1bn incentive programme, which was launched in 2025, offering up to 40 percent support on setup, leasing, staffing, and equipment costs for companies in strategic sectors.
Wilson also pointed out that the full-foreign ownership law enables investors to completely own businesses in most sectors, with streamlined approval processes, a low tax rate, and the right to repatriate profits and capital. Additionally, QFC, QFZ, and QSTP offer full ownership, tax exemptions, customs waivers, and sector-specific legal and infrastructure support. 'These policies have created a highly competitive, transparent, and investor-friendly environment that's driving record levels of foreign business registrations,' he said.
Wilson further added, 'Tourism and hospitality are emerging sectors as Qatar promotes itself as a global destination, creating new opportunities for foreign investment. Overall, these sectors align well with Qatar's National Vision 2030 goals and offer promising prospects for investors.' As Qatar advances towards its 2030 economic vision, the infrastructure sector's trajectory underscores the nation's dual focus on physical connectivity and economic openness redefining its role in the regional and global economy.
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