DOHA: Qatar’s retail sector is strengthening its position as a key driver of economic expansion, supported by rising consumer wealth, rapid digital adoption, and increasing demand for premium retail experiences. 

Analysts say the sector’s growth this year and beyond will have a multiplier effect across logistics, real estate, employment, and retail technology. “Retail in Qatar has moved well beyond basic consumption,” said Faisal M, a Doha-based retail economist. “It is now a strategic pillar of economic diversification, generating value across supply chains and creating high-skilled jobs linked to technology and data-driven retailing.”

Mordor Intelligence says the market is estimated to reach QR70.87bn this year, up from QR68.10bn in 2025.

The market is projected to expand to QR86.37bn by 2031, growing at a compound annual growth rate of 4.05 percent between 2026 and 2031. Experts say the steady trajectory reflects resilient consumer spending and continued investment in organised retail formats.

Meanwhile, Qatar’s strong purchasing power remains a central growth driver, with GDP per capita at $95,273, among the highest globally. This has translated into sustained demand for premium, sustainable, and technology-enhanced products.

He stressed that “Qatar’s consumers are early adopters. Their willingness to pay for quality and innovation allows retailers to test smart-store concepts and upscale formats that often become blueprints for the wider GCC market.”

By product category, food, beverage and Tobacco dominated the retail landscape in 2025, accounting for 42.02 percent of total market share.

Market observers note that while essential goods continue to anchor revenues, growth momentum is shifting toward higher-value categories.

“Food retail provides stability, but the real upside is in electronics and smart-home appliances,” said Faisal.

“These segments capture Qatar’s appetite for connected living.” Supporting this trend, electronic and household appliances is forecast to grow at an 11.28 percent CAGR through 2031, the fastest among product categories.

Experts attribute this to rising demand for energy-efficient appliances, home automation, and advanced consumer electronics.

From a channel perspective, modern trade formats captured 62.73 percent of the market in 2025, reflecting strong consumer preference for large-scale, experience-driven retail environments. However, digital channels are expanding rapidly. E-commerce and other online channels are expected to grow at a 17.95 percent CAGR through 2031.

“Digital retail is no longer complementary; it is becoming core,” said Rosa Silva, founder of a Doha-based retail chain. “This shift will significantly boost last-mile logistics, fintech adoption, and data analytics within Qatar’s economy.”

By retail format, hypermarkets held a commanding 47.66 percent revenue share in 2025, benefiting from scale and variety.

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