Qatar Economic Outlook Issue Number 13

The service Sector
 
The GDP data for the first three quarters of 
2021 showed that the sub-sector activities of 
the service sector recovered from the 
contraction of 2020 by 218%, from negative 
2.9% in 2020 to positive 3.5% during the first 
three quarters of 2021. Therefore, it is 
expected to maintain such a growth level 
during the fourth quarter of 2021, to achieve 
a growth rate by the end of the year between 
3.7% and 4.7% for the three scenarios. 
As regards the years 2022 and 2023, a 
combination of quantitative assumptions has 
been applied to its subsidiary activities, 
including the aspects of wholesale and retail 
trade, financial and real estate services, hotel 
and restaurant services, transportation, and 
arts and entertainment. The result showed a 
growth rate for 2022 that can be in a range 
between 4.1% and 5.6%, which reflects the 
added value of the activities associated with 
hosting the 2022 World Cup, before returning 
to achieve a more moderate growth rate in 
2023 ranging between 2.3% and 3.1%. 
Building and Construction Sector
The GDP data for the first three quarters of 
2021 showed that construction activities 
witnessed a recovery of 115%, as the annual 
rate of change increased from negative 3.9% 
in 2020 to negative 0.6% by end of 
September 2021. Therefore, it is reasonable 
to expect the sector to achieve a positive 
growth rate during the fourth quarter 2021 
with a range between 1.1% and 1.8% for the 
three scenarios, to reflect the start of 
construction for the North Field Gas Project, 
as previously mentioned. 
As for the years 2022 and 2023, the level of 
performance depends on the extent to which 
the population needs of infrastructure are met 
in Qatari cities, especially in the field of 
drinking water and sanitation services, 
utilities and roads, and to complete the many 
hotel and residential projects in preparation 
for hosting the 2022 World Cup, including the 
completion of airport construction.
Bearing in mind that the works at both Hamad 
International Airport and Hamad Port are still 
in progress, according to the available data, 
the report team believes that the level of 
contribution of the construction sector 
performance to the GDP will either grow 
modestly by 0.6% in 2022, and stabilize in 
2023 for the base scenario, or it will grow in 
2022 by 2.4% and 3% for both the medium 
and optimistic scenario, respectively then it 
will decline slightly in 2023 to positive 2.1% 
for the medium scenario, but will grow again 
in the optimistic scenario by 4.3%. 

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