Qatar’s non-hydrocarbon economy expanded by 3.5 percent year-on-year in the first quarter of 2026, according to data released by the National Planning Council (NPC). This growth highlights the resilience of the country’s diversified economic base despite ongoing regional and global challenges.

The NPC report indicated that non-hydrocarbon sectors sustained positive momentum despite disruptions affecting regional shipping routes, elevated transportation and insurance costs, and heightened pressures on global supply chains. These conditions have posed significant obstacles to trade and economic activity in the region.

Dr. Abdulaziz bin Nasser bin Mubarak Al Khalifa, Secretary General of the National Planning Council, noted that the Qatari economy’s ability to withstand external pressures stems from strong institutions, prudent fiscal policies, and long-term strategic investments. He emphasized that these factors have contributed to economic stability, consumer protection, and the advancement of development objectives even amid geopolitical tensions.

Sector-specific data showed broad-based gains among key non-hydrocarbon industries. Wholesale and retail trade led these sectors with a 9 percent increase year-on-year, contributing QR1.314 billion to real non-hydrocarbon GDP growth, equivalent to 1.1 percentage points. The construction sector grew by 6.2 percent, adding QR1.374 billion or 1.2 percentage points to overall non-hydrocarbon growth. Real estate activities rose 6.1 percent, contributing QR814 million, while financial and insurance services increased by 4.8 percent, adding QR774 million. Public administration also expanded by 4 percent, contributing QR580 million to growth in the non-hydrocarbon economy.

Despite this robust performance outside hydrocarbons, Qatar’s overall GDP contracted by 7 percent in the first quarter due to a steep 25.8 percent year-on-year decline in hydrocarbon sector output. The NPC attributed the hydrocarbon sector downturn primarily to recent regional restrictions impacting shipping and export activities, which have added to the broader economic challenges facing the country.

In response, government agencies have worked to maintain uninterrupted supply chains for essential goods and services, closely monitor market conditions, and support economic activity to mitigate the effects of external disruptions on residents and businesses.

The NPC highlighted that the strong showing of non-hydrocarbon sectors underscores the effectiveness of Qatar’s economic diversification efforts, aligning with the goals outlined in Qatar National Vision 2030. This strategic framework aims to reduce dependency on hydrocarbons and promote sustainable growth through broader economic development.