Doha, Qatar – Qatar’s non-energy private sector recorded robust growth in the final months of 2024, according to the latest Purchasing Managers’ Index (PMI) data from the Qatar Financial Centre (QFC) and compiled by S&P Global.
The labour market was a key driver of this growth, with employment and wages increasing at record levels. Demand for goods and services also rose, boosting overall activity and creating a backlog of work. Despite wage pressures, overall cost inflation eased, while firms applied marginal price cuts to support sales.
The PMI, a composite indicator of non-energy private sector performance, remained steady at 52.9 in December, signaling solid growth. The figure averaged 52.9 in the fourth quarter of 2024, up from 52.0 in the previous quarter and above the long-term average of 52.3 recorded since April 2017.
Employment saw substantial growth as companies sought to raise output, enhance services, and manage workloads. This was accompanied by a third consecutive rise in backlogged work and one of the fastest expansions in input inventories on record, reflecting expectations of increased activity in 2025.
Firms remained optimistic about the year ahead, citing stable market conditions, tourism and construction demand, population growth, and investments in infrastructure and industrial development.
The financial services sector, in particular, showed strong performance, with the Financial Services Future Activity Index rising to 68.3 in December, well above its historical average. Employment in the sector grew sharply, while total activity and new business continued their steady expansion.
Commenting on the results, QFC Authority CEO Yousuf Mohamed Al Jaida said: “The headline PMI held at 52.9 in December, reflecting a solid improvement in non-energy business conditions. The outlook for 2025 remains highly positive, supported by strong demand for workers and sustained efforts by companies to retain and reward talent.”
The PMI surveys, which are closely monitored globally for economic trends, are based on responses from purchasing managers across around 450 private sector companies in Qatar. These represent sectors such as manufacturing, construction, retail, wholesale, and services.