A sharp rise in gas projects helped Qatar defy the wider GCC slowdown, recording contract growth in 2025 despite a steep regional decline.
Qatar gas investment played a decisive role in sustaining the country’s project momentum in 2025, even as the wider GCC construction and energy market experienced a sharp downturn. New data shows that Qatar stood out as one of only two Gulf states to record growth in contracts awarded during the year.
According to a report by Kamco Invest, the total value of contracts awarded in Qatar rose by 4% year on year to $23.1 billion in 2025, up from $22.2 billion in 2024. This performance contrasted sharply with the overall GCC trend, where awarded contracts fell by 32% to $213.4 billion.
The primary driver behind Qatar’s resilience was a two-fold surge in gas-sector projects. The value of gas-related contracts jumped to $12.3 billion in 2025 from $6 billion a year earlier, accounting for more than half of all contracts awarded in the country. This strong expansion underlined the strategic importance of Qatar gas developments at a time of softer oil prices across global markets.
One of the most significant awards came in the fourth quarter of the year, when QatarEnergy LNG awarded a $4 billion engineering, procurement, construction and installation contract for the second phase of the North Field Production Sustainability project. The contract went to a consortium led by Italian contractor Saipem alongside China Offshore Oil Engineering, reinforcing Qatar’s position as a global LNG powerhouse.
While gas dominated growth, other sectors showed mixed performance. Qatar’s oil sector, traditionally the largest by project value, recorded a 6.4% decline to $6 billion in 2025 from $6.5 billion the previous year. The power sector also contracted, with contract awards falling by nearly 12% to $2.6 billion, although it remained the third-largest contributor to overall project activity.
Infrastructure development continued to feature among notable awards. In the final quarter of 2025, Qatar’s Public Works Authority Ashghal awarded contracts worth $305 million for road and infrastructure works in the Izghawa and Al Themaid areas northwest of Doha. These projects include carriageways, pedestrian facilities, utilities, lighting and landscaping, supporting urban expansion beyond the capital.
Across the GCC, the downturn was largely driven by weaker activity in Saudi Arabia and the UAE, the region’s two biggest project markets. Kamco Invest noted that only Qatar and Kuwait managed to post growth, while the remaining four member states saw declines, many of them in double-digit terms during the final quarter.
The report attributed the regional slowdown to subdued oil prices, which averaged $63.1 per barrel in 2025 compared with $74.5 in 2024. This followed two years of exceptionally high capital spending, during which Gulf states committed heavily to mega hydrocarbon projects and giga-scale developments valued at more than $1 trillion.
Looking ahead, Kamco Invest expects GCC project activity to recover gradually in 2026, supported by stabilising oil prices and continued expansion in non-oil sectors. However, the pace of recovery may remain cautious if crude prices stay under pressure. For Qatar, sustained investment in gas projects is likely to remain a key pillar supporting economic resilience and contract growth.
