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Qatar GDP growth to reach 2.8 per cent in 2025 as digital transformation accelerates: World Bank
The Qatar economy is projected to grow 2.8 per cent in 2025, underpinned by resilient non-oil activity and major liquefied natural gas (LNG) sector expansion, according to a new World Bank report.
The findings, released under the title Digital Transformation in the Gulf: A Powerful Driver of Economic Diversification, outline how technology, innovation and structural reform are shaping the region’s economic trajectory.
The planned expansion of the North Field will substantially increase LNG capacity, reinforcing Qatar’s role in meeting global energy demand and supporting overall fiscal performance.
Qatar diversification
The report examines the evolution of economic diversification indicators across Qatar and the GCC over the past decade. It finds that while progress has been moderate, a number of recent indicators point to positive momentum.
However, the World Bank noted that hydrocarbon activity still exerts a dominant influence on economic conditions and national development strategies.
Non-oil exports remain modest, with chemicals leading the category, underscoring the need for sustained efforts to reduce reliance on hydrocarbons.
The World Bank highlighted the Gulf’s rapid digital transformation and its accelerated adoption of artificial intelligence. GCC countries benefit from extensive telecommunications infrastructure, including over 90 per cent 5G coverage, affordable high-speed internet and significant investment in data centres and high-performance computing.
These advances are supporting improved AI readiness across the region, complemented by strong ecosystems for incentives, innovation and finance. The report also cites increased use of generative AI in government operations.
World Bank forecast
Safaa El Tayeb El Kogali, Division Director for the GCC countries at the World Bank, said diversification and technological transformation are essential to long-term stability: “Diversification and digital transformation are no longer luxuries; they are necessities for long-term economic stability and prosperity. Strategic investments in non-oil sectors and innovation will be essential for sustaining growth and economic resilience.
“The digital leap achieved by GCC countries is remarkable. Strong infrastructure, growing computing capabilities, and expanding AI talent pools position the region for leadership and innovation, provided environmental and labour-market challenges are addressed proactively.”
Women drive digital competitiveness
The report notes that women’s participation in STEM fields in the Gulf exceeds the global average, enhancing the region’s competitiveness in the digital economy. To maximise the benefits of transformation, the World Bank recommends:
- Supporting SMEs to adopt AI tools
- Strengthening innovation ecosystems
- Implementing skills-training programmes to address labour-market gaps
The World Bank stresses the importance of developing unified digital markets across the Middle East, North Africa, Afghanistan and Pakistan.
The report calls for enhanced regional cooperation in digital infrastructure and the creation of AI centres of excellence to help drive economic transformation and improve long-term resilience.
