Qatar is in the process of establishing itself as a regional centre for advanced manufacturing research and activities. A number of related international companies have established a presence in the country in recent years, while significant investment in petrochemicals and fertiliser production from some of the country’s leading industrial conglomerates is designed to drive sector growth and its contribution to GDP. Furthermore, with the relevant authorities working to streamline business and industrial licensing procedures, the hope that Qatar’s manufacturing sector can be harnessed as an engine of economic diversification in the coming years appears ever more realistic.
Structure & Oversight
The Ministry of Commerce and Industry (MoCI) regulates and oversees manufacturing activity in Qatar, and is a leading authority in the development of the country’s broader business environment and the development of export trade. It works to attract investment into commercial and industrial activities, and is also responsible for handling business registration and licensing procedures, working alongside multiple other government entities in strengthening industry, such as the Ministry of Environment and Climate Change (MECC); Qatar Free Zones Authority (QFZA); the Investment Promotion Agency (Invest Qatar); and Qatar Economic Zones Company, known as Manateq. The MoCI’s Industrial Services Platform provides support services to investors, streamlining business processes at the project establishment, facility construction and operational stages, enabling investors to apply for project approval, licence renewals, Customs exemptions and tailored deals on energy prices, among other services.
Qatar Development Bank (QDB) is instrumental in developing Qatar’s industrial value chains. It focuses on providing direct and indirect funding for start-ups and small and medium-sized enterprises (SMEs), with a pointed focus on boosting export-oriented manufacturing operations. QDB invested QR2.9bn ($795.9m) in export finance in 2024, while also training 630 exporters through an array of workshops and training courses, contributing to 55% growth in non-hydrocarbons exports for the country in 2024.
QatarEnergy (QE) is the country’s primary hydrocarbons operator and is a major player in downstream industries, with its recent investment in petrochemicals and fertiliser production set to see Qatar assume world-leading status across a number of manufacturing lines. Meanwhile, Industries Qatar (IQ) is the domestic holding company under whose umbrella Qatar Petrochemical Company, Qatar Fuels Additives Company, Qatar Steel and Qatar Fertiliser Company operate. At the time of writing, IQ was Qatar’s second-largest company by market capitalisation, with a value of $20.6bn.
Regulatory Updates
While Qatar is generally seen to have a welcoming business environment, stakeholders and observers suggest that complex business establishment procedures could be contributing to a recent fall in foreign direct investment (FDI) entering the country. The government has therefore set about reviewing a raft of laws relating to business procedures (see Trade & Investment chapter). In February 2025 the MoCI and the MECC introduced new rules aimed at bringing its environmental licence and permit procedures in line with international standards. Now, 861 industrial activities qualify for direct MoCI licence approval upon completion of factory construction, based on predetermined environmental criteria, benefitting 66% of investors in Qatar’s industrial sector, while 257 industrial activities are now exempt from requiring environmental and operational permits from the MECC.
Strategy
Qatar National Vision (QNV) 2030, the country’s long-term socioeconomic development plan launched in 2008, maps out the government’s vision for the diversification of Qatar’s economy, which remains heavily dependent on hydrocarbons activities, exports and revenue. A series of shorter-term roadmaps have been implemented to guide progress towards the realisation of QNV 2030. The most recent of those is the Third National Development Strategy which covers 2024-30. Sector-specific strategies are also in operation. The Qatar National Manufacturing Strategy 2024-30 details the planned diversification of national production. The development of advanced manufacturing lines is central to the strategy. Fifteen initiatives are to be implemented under the strategy, comprising 60 interconnected development projects designed to strengthen industrial clusters, increase innovation and sustainability – with a strong focus on embedding circular economy principles – and drive the growth and upskilling of the domestic workforce. Indeed, the government is investing heavily in strengthening research, development and innovation (RDI) ecosystems and technological capabilities to support the local manufacture of high-value products and technologies, while also increasing the efficiency and output of established production lines. Pharmaceuticals, chemicals and petrochemicals, plastics, food and beverage, metals, electric vehicles and construction materials are among the lines targeted under the strategy.
The strategic goals aim to boost three key areas in the manufacturing sector by 2030, compared to their levels in 2021. Manufacturing value added is targeted to increase from QR52.4bn ($14.4bn) in 2021 to QR70.5bn ($19.4bn). Non-hydrocarbons exports are expected to grow from QR39.3bn ($10.8bn) to QR49.1bn ($13.5bn). Annual investment in the manufacturing sector is anticipated to rise from QR2.1bn ($576.4m) to QR2.8bn ($755m). Other goals focus on the localisation, of the manufacturing workforce and increasing the number proportion of jobs in the sector classified as high skilled.
Smart Manufacturing
Multiple programmes and facilities are in operation to support the development of advanced manufacturing. QDB’s Factory One and Jahiz initiatives offer support across multiple dimensions of advanced manufacturing, with a keen eye on start-up and SME growth, training and funding. Furthermore, the QDB and MoCI partnered to join the World Economic Forum’s Advanced Manufacturing Hub initiative, establishing one of 14 global nodes in Qatar, with the programme designed to enhance multilateral synergies in smart production implementation. The Qatar National Research Fund was launched by Qatar Foundation (QF), a non-profit entity formed to support the development of education systems and RDI capabilities (see Economy chapter), to promote the development and implementation of advanced technologies such as robotics, artificial intelligence and 3D printing throughout manufacturing. QF-affiliated Qatar Science and Technology Park (QSTP), meanwhile, houses several world-leading tech developers. One such entity, the Gulf Organisation for Research and Development (GORD) announced in March 2024 the launch of its new centre of excellence GORD 3D, which utilises 3D printing to produce additives, metals, polymers and composites, catering for high-priority sectors including energy, aerospace, life sciences and defence.
Performance & Size
According to the National Planning Council (NPC), real manufacturing GDP came in at roughly QR54.9bn ($15.1bn) in 2023. Sector GDP for the first three quarters of 2024 – which is as far as NPC data was available at the time of writing – was around QR39.7bn ($10.9bn), a year-on-year (y-o-y) contraction of 3.1% compared to the corresponding period of 2023. Manufacturing activities contributed 7.3% to total GDP in the first quarter of 2024, 7.4% in the second quarter and 7.7% in the third, for an average of 7.5%, slightly lower than the 7.8% average recorded over the first three quarters of 2023. Meanwhile, manufacturing value added amounted to 9% of Qatar’s GDP in 2021, 2022 and 2023 and has not been higher than that since 2014 when it was 10%. For those same three years growth in manufacturing value added was 3.9%, 2.1%, and 2.7%, respectively, suggesting steady progress, particularly considering that the higher growth recorded in 2021 followed on from a pandemic-induced 6.7% contraction in 2020. At current prices, manufacturing value added was to $18.5bn in 2023, which is close to the government’s 2030 target of QR70.5bn ($19.4bn); it is, however, not clear whether the government target refers to real or current prices.
Despite an overall GDP contribution decline, Qatar’s manufacturing sector saw strong growth in other areas in 2024. The value of registered licensed industrial companies rose by 3% to QR2.6trn ($713.6bn). According to the MoCI, 1461 industrial firms entered the sector, bringing QR235bn ($64.5bn) in investment, up from QR232bn ($63.7bn) in 2023. Fabricated metals, non-metallic minerals, rubber and plastics, food and chemicals witnessed the most factory launches. Top investment segments were chemicals QR85.5bn ($23.5bn), coke and refined petroleum QR77.5bn ($21.3bn), and basic metals QR31.5bn ($8.6bn). While 2024 private sector exports fell 41%, the fourth quarter saw a 68.5% rebound over the same period in 2023.
Global Headwinds
In its 2024 end-of-year statement IQ cited petrochemicals supply and demand challenges that year such as economic downturns in key international markets including China and the EU, high interest rates and reduced consumer spending power. Market saturation in key product lines such as olefins and derivatives stemming from capacity expansion works, most notably in China, was another issue affecting petrochemicals operators in 2024. Fertiliser markets were impacted by gas price volatility, corn price issues, farmers’ cash-flow constraints and tighter environmental regulation regarding fertiliser ingredients causing uncertainty and higher producer costs.
The steel segment, meanwhile, experienced volatility and challenges relating to international banks’ tightening of monetary policy as they attempted to ease inflation. Resulting high credit costs subsequently led to decreased activity in construction and real estate markets, curbing growth, particularly during the first half of 2024. While regulatory countermeasures saw activity pick up during the second half of the year, it remains to be seen how the 25% tariffs imposed by the new US administration on all aluminium and steel imports into the US affect related international supply chains and trade relations, particularly with a fresh raft of US tariffs set to be imposed in April 2025.
Industrial Zones
QFZA and a number of other government entities are responsible for managing the country’s various free zones. Some of those zones, such as the Ras Bufontas and Umm Alhoul free zones and QSTP, are instrumental in drawing investment into the emerging and advanced manufacturing lines targeted to drive industrial diversification.
Manateq was established in 2011 to manage Qatar’s industrial and logistics zones and draw local and international investment into Qatari industry, offering competitive incentives to attract investment. A cooperation agreement signed with Qatar University in October 2024 will see the two entities collaborate on research, training programmes, statistical reports and other activities to help connect national industries and RDI institutions and boost workforce capabilities. Manateq oversees a total of 13 industrial, logistics, commercial, open-yard and warehousing zones, which occupy a combined total of 31.4m sq metres.
As of March 2025, 94% of units in the zones were occupied. Al Khor Industrial Zone was developed to cater for emerging industries and is situated in the north of the country. Al Karaana and Mesaieed industrial zones and the Small and Medium Industries (SMI) Zone – all belong to a concentration of Manateq facilities to the immediate south-west of Doha. Al Karaana offers industrial units for companies requiring open-yard facilities, while the Small and Medium Industries Zone is the most recent addition to Manateq’s portfolio of sites, with a concession agreement signed in January 2025 with the MoCI that will see Manateq manage and oversee the site on a 25-year renewable lease. Mesaieed Industrial Zone has since its 2017 launch become home to building materials and equipment, petrochemicals, fertilisers and metals industries. It is part of QE’s Mesaieed Industrial City (MIC), which houses many of the country’s largest industrial players and operations. QE’s other two industrial areas, Ras Laffan Industrial City, which houses the world’s largest LNG terminal and Dukhan Concession Area, are the country’s primary upstream hydrocarbons zones.
Expanding Cooperation
Sustainable development is a core component of the country’s strategic development agenda. In February 2025 Qatar and Turkey joined Bahrain, Egypt, Jordan, Morocco and the UAE as members of the Integrated Industrial Partnership for Sustainable Economic Development. The partnership is designed to boost mutual private sector competitiveness and encourage deeper multilateral industrial integration and cooperation, focusing on sustainable practices, in the MENA region. Multiple deals were also announced at the meeting across a range of sectors. Qatar Steel and Bahrain Steel signed a deal worth close to $1.3bn that will see Bahrain supply Qatar with 5m tonnes of raw materials over a period of five years. The deal is expected to stimulate investment opportunities in both countries and facilitate the development of regional supply and value chains. The news follows a 15.2% increase in Qatar Steel’s 2023 sales as well as a sales volume reaching nearly 2m tonnes of various products, as the country’s green hydrogen plans position green steel as a viable future value chain.
Petrochemicals & Fertilisers
Qatar is investing in expanding petrochemicals production capacity to diversify hydrocarbons-related revenue as the world shifts away from fossil fuels. In February 2024 QE and US-based Chevron Phillips Chemical (CPC hem) announced the start of construction on a $6bn polymers facility in Ras Laffan Industrial City. The joint venture (JV) consists of QE holding 70% and CPChem 30%, with CPC hem managing project engineering, procurement and construction (EPC). The plant’s ethane cracker will be the largest in the Middle East and among the world’s biggest, producing 2.1m tonnes of ethylene annually – a 40% increase in national capacity. Annual polyethylene production will rise by 50%, with two polyethylene trains offering a combined capacity of 1.7m tonnes per year. Samsung Engineering and Taiwan’s CTCI, through their JV SCJV, secured the EPC contract for the ethylene plant in 2023, while Italy’s Maire won the $1.3bn polyethylene plant contract. US firm Emerson was awarded the main automation contract. The facility is expected to begin production in late 2026, boosting Qatar’s annual petrochemicals production capacity by 130% to 14m tonnes.
Another significant QE investment was announced in September 2024, when the company released details of a partnership between its subsidiary, Mesaieed Petrochemical Holding Company (MPHC), Qatar Industrial Manufacturing Company and Turkish firm Atlas Yatirim Planlama to create a $275m industrial salt manufacturing plant and company (called QS alt), providing vital feedstock for petrochemicals production. MPHC has a 40% stake in the company, while the other two partners each hold 30%. The plant is under construction in the Umm Alhoul Free Zone, and, once core production is operational, the partner entities plan to diversify into bromine, potassium chlorides and demineralised water manufacturing. The plant will use wastewater produced by reverse osmosis desalination units, with the transformation of waste into resource aligning with the government’s circular economy goals. The QS alt factory will produce 1m tonnes of salt per year, reversing to a large degree Qatar’s reliance on imported table and industrial salts, which currently amounts to around 850,000 tonnes per year.
Fertilisers
QE also plans to build a new urea complex that will double national fertiliser production capacity from 6m tonnes to 12.4m tonnes, in turn making the country the world’s largest fertiliser producer and exporter of urea. Around 50% of global food supplies are produced using fertiliser. Qatar’s government states that the aforementioned capacity expansion will enable the country to contribute to feeding around 160m people worldwide, reflecting the government’s intention to harness Qatar’s economic strengths to help solve global existential challenges. In addition, QE is building three new blue ammonia production lines in MIC. The facility will be the largest of its kind globally and will provide feedstock for the aforementioned urea plant. The blue ammonia plant is expected to begin production in 2026, while the urea plant is expected to commence operation “before the end of this decade”.
Electric Vehicles
As of March 2024, 70% of Qatar’s bus fleet was electric (see Transport chapter). The government’s plan to convert its entire public transport fleet and 35% of all road vehicles to electric vehicles by 2030 opens significant opportunities for international investors. To drive progress towards those goals, in-country production of electric vehicles and related industries is being incentivised. It is estimated that electric vehicle sales could account for 20% of all auto sales in Qatar by 2032, with private transport still the primary form of mobility in the country. December 2024 saw construction begin on a new electric bus manufacturing facility in Umm Alhoul Free Zone through a partnership between Qatar’s public transport authority, Mowasalat and Chinese firm Yutong. The factory is set to launch late 2025 with capacity to produce 300 buses per year and plans in place to expand production moving forward. Nascent electric vehicle industries provide opportunities too for Qatar to expand its aluminium value chains, given the use of the lightweight metal for numerous electric vehicle components.
Outlook
Synergised industries are expected to provide a broad-based and sustainable boost to national manufacturing output. That effect has the potential to be enhanced by the implementation of smart manufacturing processes, which stand to enhance efficiency and expand the country’s array of production lines with a focus on high-value goods. The establishment of industries of the future is designed to complement the country’s focus on harnessing its world-leading gas supplies to become global leader across a number of existing high-value manufacturing industries – a strategy that should see Qatar’s manufacturing sector progressively expand in terms of both its value and its importance to the country’s economy moving forwards.
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