Qatar’s retail sector is set for sustained growth in 2026 and 2027, driven by rising tourism and strong domestic demand from Qataris and expatriates with high disposable income and purchasing power. Despite heightened geopolitical tensions in the wider Middle East following the Iran conflict, Qatar’s retail sector has remained resilient, supported by strong domestic consumption, stability, and continued investment in tourism and infrastructure. Robust consumer spending – especially for luxury brands, duty-free shopping and premium technology products – is underpinned by the world’s 13th-highest GDP per capita.
Qatar’s logistics sector is also expanding to meet fast-rising demand, propelled by e-commerce as consumers increasingly shop online. With consumers switching to online retail and digital payments, it is crucial for retailers – from small local boutiques to major supermarket chains – to expand their online platforms and social media presence, while adopting artificial intelligence (AI)-powered tools and data analytics to attract and retain customers both in stores and online. Developers are focused on creating experience-led destinations that blend shopping, entertainment and leisure in new shopping malls, outlet villages and climate-controlled open-air retail spaces, as the sector shifts away from traditional retail towards more immersive and interactive environments.
Key Authority
The Ministry of Commerce and Industry (MoCI) is responsible for the regulation of trade and industrial activities, including the development of industrial zones. The MoCI issues business licences and conducts inspections of retail shops, warehouses and factories. It is responsible for ensuring fair trade and competition practices, implementing initiatives to monitor and combat fraud and money laundering, and protecting intellectual property and consumer rights. It is guided by the MoCI Strategy 2024-30, a roadmap aligned with Qatar National Vision 2030 that seeks to diversify the country’s economy away from oil and gas.
New Regulation
Qatar continues to study the introduction of value-added tax (VAT) as part of GCC tax harmonisation efforts, although implementation timelines remained uncertain as of mid-2026. Most goods and services would be taxed, with exceptions including financial services and insurance. At the time of writing, a VAT had not been introduced and details had not been released. Global advisory firm KPMG expects a 5% standard VAT rate to be applied, aligning with other GCC countries where VAT is already standard and similar to the initial tax rates introduced in Saudi Arabia, the UAE and Bahrain. In February 2026, Qatar introduced implementing regulations for the OECD Pillar 2 global minimum tax framework, applying a 15% effective tax rate to large multinational enterprises with annual revenues exceeding €750m. The measure aims to ensure that multinationals pay a baseline level of taxation, thereby reducing the incentives for profit shifting in low-tax jurisdictions.
Size & Performance
In 2025, retail sales in Qatar reached $19.6bn, bolstered by high average disposable incomes among Qataris, ranging from $27,000 to $35,000 as of late 2025, well above neighbouring GCC countries. Further boosting retail sales in 2025 was the FIFA Arab Cup, attracting visitors from the Middle East and North Africa, alongside a 2.2% increase in tourist arrivals between 2024 and 2025.
Retail locations in Doha’s prime shopping malls – such as Doha Festival City, Villaggio and Gate Mall – continued to perform well in 2025, with rents exceeding QR320 ($87.83) per sq metre per month. In contrast, mid-sized malls faced challenges in attracting retailers and customer flows, experiencing higher vacancies and lower rental rates, ranging from QR170 ($46.66) to QR220 ($60.38) per sq metre per month for prime retail space. Retail lease rates declined by 2.6% in 2025, with the market averaging QR199 ($54.62) per sq metre per month, as supply continues to rise amid heightened competition, according to consulting firm Knight Frank. In late 2025, the firm noted Qatar’s retail sector “continues to experience a phase of recalibration, driven by a surge in supply and evolving consumer preferences.”
Looking ahead, the market size of Qatar’s retail sector is expected to increase from $18.7bn in 2026 to $23.7bn in 2031, growing at a compound annual rate (CAGR) of 4.1% over 2025-31, according to market research company Mordor Intelligence. Supporting Qatar’s retail market is resilient consumer spending, backed by elevated disposable incomes and a wealthy consumer base, with GDP per capita of $76,688 as of 2024 (current US dollar prices), the 13th-highest globally, according to the World Bank. This presents an attractive market for retailers and luxury brands, with retail experts highlighting that Qatari consumers are open to new high-quality products. Overall, the region’s wealth and high standard of living also play a role in underpinning robust retail spending in Qatar and among GCC countries. A 2024 report by investment banking advisory firm Alpen Capital projected Qatar to account for 6.7% of total GCC retail sales through 2028.
Shopping Centres
In line with global trends, Qatar’s retail sector is increasingly experience led. Popular malls are now day-trip destinations, offering consumers a blend of shopping, pop-ups, leisure activities, dining, cultural events and live entertainment, to encourage foot traffic, dwell time and spending. Some malls, such as Doha Festival City, focus on providing family-friendly spaces and offer play areas; indeed the mall features an indoor snow park and outdoor cycling trails. Such prime malls continue to lead Qatar’s retail market, commanding the highest rents at QR265 ($72.73) per sq metre per month in 2025, supported by robust foot traffic.
In recent years, Doha’s retail sector has significantly expanded with new shopping malls built in and around the capital. In Qatar, malls are part of weekly life and have emerged as social and cultural centres. An Ipsos 2025 poll showed most Qataris visit a mall one to two times a week for an average of around 2.7 hours, which supports sustained consumer spending. According to global consulting group ValuStrat, Qatar’s total retail supply reached 5.5m sq metres gross leasable area (GLA), comprising 2.5m sq metres of organised and 3m sq metres of unorganised retail space as of the second quarter of 2025. The opening of new malls in Doha – like Avenues Mall (3,000 sq metres) and nearly 20,000 square metres of additional unorganised retail in West Bay and Lusail Marina – boosted new retail space in 2025. Across Qatar, overall average mall occupancy rates rose slightly from 79% in 2024 to 82% in 2025.
Doha’s largest malls in 2025, as a percentage of the GLA share in descending order, were Doha Festival City and Place Vendôme, holding a 12% share each, followed by Mall of Qatar (10%); City Centre (7%); and Doha Mall and Villaggio (5%), according to real estate services firm Cushman & Wakefield. The Mall of Qatar is the biggest mall in Qatar, with 500,000 sq metres of retail space and 520 shops, while Doha Festival City bills itself as Qatar’s most visited mall, bringing together over 500 stores. Cushman & Wakefield noted in a 2025 report that Primark’s confirmed entry into Doha Festival City mall, expected by late 2026, reflects growing international retailer confidence in Qatar’s retail market.
Outdoor Destinations
With developers now conceiving of new retail districts not merely as shopping destinations but as areas offering diverse consumer experiences, the trend is boosting demand for pedestrian outdoor retail destinations and climate-controlled, open-air shopping centres. Such retail spaces outperform older enclosed malls, with rents between QR150 ($41.17) and QR200 ($54.89) per sq metre per month as of 2025. The planned Qatar Outlet Village, underway on Qetaifan Island North in Lusail City, is a prime example of a new outdoor retail development expected to boost growth in the country’s retail sector. Set to open in 2026, the outlet village is billed as the world’s first outdoor air-conditioned mall, offering more than 100 global luxury boutiques, high-end waterside dining, air-conditioned walkways and a festival plaza spread across 150,000 sq metres. Another notable example is the planned Baraha Town, a mixed-use development offering residential, retail and commercial properties in Abu Hamour district, also expected to launch in 2026. Additionally, the recent redevelopment of Old Doha Port offers more than 100 local and international retail outlets in its bustling Mina District, mainly catering to cruise liner and yacht tourists throughout the year.
Transforming mall and consumer experience in Qatar and worldwide is the increasing use of AI, augmented reality (AR) and immersive media, as malls shift from being traditional retail centres into destinations for digitally enhanced experiences. Doha’s malls are set to increasingly adopt AR-powered virtual try-ons, AI styling and smart fitting, as well as predictive analytics used to personalise loyalty programmes and promotions in order to increase foot traffic to malls and retain customers. Traditionally, Qatari consumers have been consistently early adopters of new technology in retail. This means their willingness to pay for quality and innovation allows many retailers to test smart-store concepts and upscale formats in malls that often become blueprints for the wider GCC market.
Despite the positive outlook for Doha’s shopping centres, Mordor Intelligence noted in early 2026 that the capital faces an oversupply of malls, with vacancy rates exceeding 20% in several properties in 2025 as “rapid GLA expansion outpaced immediate consumer demand, prompting rental rebates and shorter lease cycles in the Qatar retail market.” The continued rollout of new upscale shopping destinations offering luxury boutiques and local and international designer brands – including in Lusail City, Msheireb Downtown, and The Pearl Island, an exclusive human-made island in Doha’s West Bay district – has increased competition among landlords across all segments. Over the longer term, however, population growth and tourism arrivals are expected to help fully absorb the expanded capacity in Qatar’s retail market over time.
Luxury Retail
Notwithstanding Qatar’s relatively small population of 3.2m as of January 2026, the country is well-positioned to remain a major player in the Gulf’s luxury retail market, although regional geopolitical uncertainty may temporarily affect luxury tourism and discretionary spending patterns across the region. Looking ahead, Qatar’s thriving luxury goods market is expected to grow from $1.6bn in 2026 to $2.6bn in 2031, backed by rising tourism and an affluent consumer base, according to Mordor Intelligence. Doha is emerging as a popular destination for luxury shopping, with its upscale shopping districts playing a key role in attracting tourists and local visitors. “Luxury retail in Qatar is becoming more experience-driven and digitally enabled,” Bader Al-Darwish, Chairman and Managing Director of Darwish Holding told OBG. “This is especially pronounced among our digitally native consumer base, who expect a seamless dialogue between online and offline worlds.”
High purchasing power and an enduring affinity for luxury goods and premium experiences among Qataris and the country’s large expatriate population also present opportunities for retailers to target the high-end consumer market. Several luxury fashion and jewellery brands launched in Doha in 2025 – including in Place Vendôme mall, which houses a collection of luxury stores and exclusive boutiques, and Msheireb Downtown, known for its eco-friendly fashion and local designer label boutiques – strengthen Qatar’s position as a luxury shopping destination. Among leading and established Qatari luxury brands are QELA, a homegrown global fashion brand and boutique launched in 2013 by the Qatar Luxury Group, and Pharmakeia, an organic beauty and wellness boutique opened in 2016.
Hypermarkets & Supermarkets
Hypermarkets are key players in Qatar’s retail landscape, attracting a large customer base with extensive product offerings and competitive pricing. By retail format, hypermarkets held a 47.7% revenue share of Qatar’s retail market in 2025, underscoring their dominant position. Qatar’s food retail sector is diverse, from global retail giants like Lulu Group, Spar, Monoprix, and Carrefour, to well-established local supermarket chains such as Al Meera, Gulf Food Center, Family Food Centre and Safari Group. Qatari Al Meera is the largest supermarket chain with over 65 stores, offering food, household items and electronics, while UAE-headquartered Lulu Group operates 24 hypermarkets across the country overall.
Technology adoption is now widely viewed as a core requirement in Qatar’s retail sector, with supermarket chains such as Al Meera and Lulu increasingly introducing predictive ordering systems and cashier-less checkout technologies. Alongside hypermarkets, mini-market convenience stores, including supermarket chain express shops, are gaining traction in Qatar. Neighbourhood convenience stores are forecast to increase at a CAGR of 13.2% through 2031, driven by gig-worker snack demand, as well as new locations at metro exits and residential towers.
Food & Beverage
By product category, food, beverage and tobacco dominated Qatar’s retail landscape in 2025, accounting for 42% of total market share. In terms of monthly rental prices, rents for food and beverage outlets remained resilient in 2025, holding steady at QR228 ($62.58) per sq metre. Qatar’s food and beverage sector has evolved from being dominated by US franchise brands to the creation of several homegrown labels. New upscale urban developments have boosted demand for new dining options. Outdoor climate-controlled shopping areas are also driving growth, with the Crystal Walkway on Gewan Island leading the way. The 450-metre-long air-conditioned promenade has become a tourist destination since its launch in 2024. Also shaping the retail food sector is the rising demand for locally sourced and organic fresh food and ready-to-eat meals. Another notable trend is the growing demand for premium coffee, with more than 150 local and international brands vying for market share. In 2025, Qatar’s gourmet coffee retail market was valued at $1.2bn. Meanwhile, Mordor Intelligence noted in 2026 that while food retail provides stability in Qatar’s retail market, electronics and household appliances were among the fastest-growing products, driven by smart-home adoption, which is projected to expand at a CAGR of 11.3% through 2031.
Growth Driver
Tourism is a key driver of Qatar’s retail market. Qatar is increasingly positioning itself as a top shopping destination, attracting tourists to luxury shopping at Doha’s Place Vendôme, Al Hazm and Galeries Lafayette, among others, alongside family-friendly malls. Moreover, Qatar’s appeal as both a tourism and sport destination is growing, with the country receiving 5.1m visitors in 2025, marking a 3.7% rise from the previous year. More than one-third of tourists were from GCC countries, with a high level of disposable income and appetite for luxury brands. The GCC Unified Tourist Visa, set to launch in late 2026, is expected to further boost tourist flows to Qatar and regionwide. Qatar aims to attract up to 7m tourists annually by 2030, bolstering the retail and hospitality sectors, as well as hotel occupancy. However, the regional geopolitical tensions and disruptions to airspace and travel patterns in the first half of 2026 impacted short-term tourism sentiment and travel demand in 2026. In November 2025 Knight Frank noted that Qatar was doubling down on events to drive tourism development, offering yearround sporting, cultural and business events to sustain visitor flows. This, in turn, translates into more foot traffic to Doha’s shopping centres and duty-free shopping. According to market intelligence firm Ken Research, Qatar’s travel retail market was estimated to be worth $1.2bn in 2025, supported by rising traveller numbers and expanded duty-free offerings at Doha’s Hamad International Airport. Regional airspace disruptions and heightened security concerns following the Iran conflict could create short-term volatility in passenger flows across Gulf aviation hubs, but Qatar’s position as a major transit and tourism gateway remains structurally strong and resilient. Indeed, Flightradar24’s Gulf airline recovery index showed Qatar Airways flights had already recovered more than 80% of its pre-conflict capacity by mid-June 2026, reflecting ongoing recovery trends across the broader Gulf region.
E-Commerce
The ongoing shift from traditional retail to the burgeoning e-commerce market is transforming the retail sector, compelling businesses to adapt and innovate to online retail. Online shopping is experiencing the strongest growth outlook in terms of how consumers are buying in Qatar. The increasing importance of supply-chain resilience, inventory diversification and digitally enabled logistics has also gained prominence across the Gulf following regional geopolitical disruptions. E-commerce is projected to achieve a CAGR of 18% to 2031, driven by high internet and smartphone penetration. Expanded duty-free logistics and warehouse space at Doha’s Hamad International Airport is also key, allowing brands to replenish flagship stores within 48 hours of Customs clearance. Retailers and hypermarkets introducing e-commerce platforms, online ordering and delivery services, mobile apps and big data analytics to increase customer engagement.
Digital instant payments and new flexible payment solutions are also boosting e-commerce. The rise of buy now, pay later services reflects a shift in consumer spending habits, with GCC-based financial technology firms capitalizing on this trend. Qataris are increasingly buying meals and groceries through food delivery apps, such as Kuwait’s Talabat, and homegrown Snoonu, Baladi Express and Rafeeq. Also present is Chinese food delivery platform Keeta, the newest entry into Qatar’s growing retail e-commerce market.
Outlook
Qatar’s retail sector is reinforcing its role as an important engine of economic growth, while contributing to the country’s economic diversification goals. Growth is underpinned by sustained consumer wealth, rapid digital adoption and expected rising tourism. Looking ahead, Qatar’s retail sector will continue to be bolstered by the country’s high GDP per capita forecast to reach $76,530 at current prices in 2026 and real GDP growth for 2026 estimated at 6.1% by the IMF. Such significant purchasing power contributes to robust consumer spending in Doha’s main malls, supermarkets and restaurants, along with new shopping centres opening in 2026 as retail space expands.
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