Qatar Posts Strong Second Quarter Industrial Performance

​DOHA: Qatar’s industrial sector demonstrated robust momentum in the second quarter of 2025, reflecting an increasingly resilient and diversified economy. According to the latest data released by ValuStrat, the country’s Industrial Production Index (IPI) rose to 101.9 points (base year 2018=100), marking a 2.8 percent quarter-on-quarter (QoQ) increase, underscoring continued growth in manufacturing and production activity.

This expansion comes on the heels of a thriving external trade performance.

Qatar recorded a foreign merchandise trade surplus of QR57.7bn in Q3 2024, driven by sustained demand for hydrocarbons and related industrial products. 

Industrial development has also been bolstered by strong investment inflows and regulatory reforms. Commercial registrations surged by 32 percent compared to Q1 2024, supported by QR50m in industrial investments and the establishment of eight new factories across the country.

“Qatar’s industrial sector is entering a new growth phase, fueled by public-private collaboration and proactive policymaking,” said Uwais Rahman, a logistics expert.

“The increase in factory openings signals investor confidence, particularly in manufacturing and logistics.”

A new ministerial directive allowing foreign investors to set up companies using only passports and reducing associated fees has played a pivotal role in attracting foreign capital.

As a result, commercial licenses issued rose by 87 percent year-on-year, indicating a surge in entrepreneurial activity and foreign interest in Qatar’s industrial zones.

Maritime trade, a key enabler of industrial growth, also showed promising signs. Qatar’s major ports, including Hamad, Doha, and Ruwais, recorded 726 vessel calls in Q1 2025, an increase of 12.2 percent year-on-year. 

The ports handled a total of 337,000 TEUs (Twenty-foot Equivalent Units) of container cargo over the quarter, highlighting Qatar’s growing position as a regional logistics hub.

The warehouse rental market reflected shifting supply-demand dynamics in tandem with these industrial gains.

The monthly median asking rent for ambient warehouses increased by 2.8 percent QoQ, reaching QR35.3 per square meter, though still 6.8 percent lower year-on-year.

Meanwhile, cold storage facilities saw rents rise by 3.6 percent quarterly and 5.5 percent annually, now priced at QR44.3 per square meter.

Notably, Industrial Area Doha, one of the country’s largest and most active industrial hubs, recorded a 4 percent increase in rental rates for both ambient and cold storage spaces, indicating heightened demand in strategic logistics locations.

“The uptick in cold storage and ambient warehouse rentals—especially in Industrial Area Doha—reflects the growing demand for last-mile logistics and temperature-controlled storage, likely driven by food security initiatives and e-commerce,” Rahman added.

With Qatar continuing to position itself as a regional industrial and logistics powerhouse, supported by strategic reforms, investment incentives, and infrastructure development, the outlook for the industrial sector in the second half of 2025 remains highly optimistic.