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Qatar's manufacturing sector achieved record results in 2025, contributing more than QR69.3bn to the national economy, with expectations to surpass QR70bn this year as the sector posts an annual growth rate of around 3.5%.The growth is supported by the expansion of the LNG and petrochemical industries, as well as open policies adopted by concerned entities to diversify the national economy and transform towards smart and green manufacturing to overcome challenges such as high production costs and swings in international markets.This year, manufacturing industry prospects are projected to grow by 4% due to investment activity in major industrial areas in Qatar, such as Mesaieed, Ras Laffan, and other major sites. The food, medicine, and textile industries are mainly driving these positive outcomes.The number of factories operating in Qatar rose from around 920 in 2023 to over 1,000 during 2025. Similarly, the number of national products rose from around 1,720 in 2023 to over 1,815 locally produced products in early 2025.Such a constant increase in locally produced items shows clear expansion in manufacturing and factories, supported by government strategies that aim to empower and engage the private sector, in particular by promoting Small and Medium-sized Enterprises (SMEs), whilst enhancing consumer trust in local products and improving their ability to compete in the market.Sales of national products at local market outlets increased by almost 75% last year, with more high-quality products expected to hit the market this year. In addition to food and beverage products, there are industries that process plastics, chemicals, rubber, basic metals, cement, and metallic minerals, as well as refined petroleum products.The sector is expected to attract around QR2.75bn in annual investment, which will continue to create more jobs, with a focus on the skilled workforce, as the manufacturing sector in Qatar places great importance on innovation. It is also expected to adopt the latest technological advancements and improve workers' skills to maintain sustainable growth in the field.The Ministry of Commerce and Industry (MoCI) has introduced various initiatives to encourage investment in manufacturing, offering businesses and SMEs various facilities to make the process hassle-free. The Ministry has introduced digital platforms to streamline necessary procedures, with multiple e-services that have significantly reduced the time required to issue an industrial licence and establish new projects.One of the key initiatives is the "1,000 Opportunities" programme, an ongoing collaboration between MoCI and the Qatar Development Bank (QDB) that provides local investors with investment opportunities from major companies in Qatar. The programme received over 1,300 applications by the end of 2024 and is integrated into the MoCI's Single Window digital platform.The main target of this programme is to support local SMEs by helping them develop their products and services, making them more competitive in the local market, which, in turn, would reduce dependence on imported products, enhancing self-sufficiency.Qatar achieved 5th place globally on the business efficiency axis of the 2025 IMD World Competitiveness Report, a significant jump from 11th place in 2024. This clearly reflected the various effective labour reforms adopted by the country, making the local labour market more flexible and attractive for the workforce, and the government's serious efforts to stimulate and engage the private sector in productive projects. 

His Excellency Sheikh Faisal bin Thani bin Faisal al-Thani, Minister of Commerce and Industry, visited Japan to explore advanced automation and the lights-out manufacturing model. The visit is in line with the Third National Development Strategy’s objectives to enhance Qatar's industrial process efficiency, build high-tech domestic productive capacities, and reduce reliance on traditional labour in priority industrial sectors.The accompanying delegation included representatives from the Ministry of Commerce and Industry and the Qatar Free Zones Authority (QFZA). During the visit, His Excellency Sheikh Faisal held technical meetings with SoftBank Company where he was briefed on the company’s operations in robotics system integration, digital control systems, and factory management solutions within the semiconductor sector.Discussions also addressed Japan’s high-quality standards, advanced operational models, and the potential to leverage the South Asian country's industrial expertise to support the development of Qatar’s manufacturing sector.The programme also included field visits across Tokyo and several industrial zones, where the minister toured advanced production facilities and reviewed cutting-edge manufacturing technologies, including lights-out manufacturing systems.This visit reflects the ministry’s efforts to foster industrial innovation and strengthen the competitiveness of Qatar’s manufacturing sector by adopting the latest global technologies and practices across the production ecosystem.These efforts align with the ministry’s strategic objectives and Qatar National Manufacturing Strategy, contributing to the establishment of a sustainable, high-tech industrial base and advancing the nation’s transition towards a knowledge- and technology-driven economy.

China's value-added industrial output expanded 6.5% year-on-year in September, official data showed on Monday. The growth accelerated from a 5.2% rise in August, according to data released by the National Bureau of Statistics. In the first nine months of this year, China's industrial output increased by 6.2% compared to the same period last year. The industrial output is used to measure the activity of large enterprises, each with an annual main business turnover of at least 20 million yuan (about USD 2.82 million). A breakdown of the data showed that the manufacturing sector's value-added output increased by 7.3% year-on-year last month, while that of mining grew by 6.4%. The value-added output of the electricity, heat, gas, and water production and supply sector rose by 0.6%.

In our research project — Assessing Employability Skills and Workforce Needs in Qatar’s Manufacturing Sector: A Skills Need Analysis (Qatar Research Development and Innovation grant PTP01-0714-240004) — we surveyed about 140 owners, directors, managers, and HR professionals across 17 subsectors. The survey covered 38 skills grouped into seven domains (basic skills, thinking skills, resource management skills, informational skills, interpersonal skills, system and technology skills, and personal qualities and values).As Qatar accelerates industrial diversification under the National Development Strategy, manufacturers are clear about the skills they will need in the future: higher-order cognitive skills and interpersonal competencies built on safety-first cultures.The most important personal values were “work safety” (99.3%) and “integrity” (97.2%). Closely followed by thinking and teamwork: “Problem solving” (90.9%) led cognitive skills, and teamwork (90.1%) topped interpersonal skills.Communication basics are also foundational. Respectively, 86.1% and 84.7% of the respondents rated sharing ideas clearly and effectively in conversations and presentations (speaking) and understanding and responding appropriately to spoken messages and body language (listening) as “very important”, with strong scores for understanding written information, like instructions or schedules, to complete tasks effectively (76.1%) and writing messages, reports, and instructions clearly and accurately (69.0%). The use of basic math to solve problems was more role-specific: only 39.2% called it “very important,” and nearly a quarter were neutral.When it comes to higher-order thinking, decision-making (63.2% “very important”) and learning (79.0%) were prioritised ahead of creativity. Creative thinking drew a split verdict — 22.2% “very important” and 61.1% “important” — while visualising data and diagrams reached 54.0% “very important.”Managing time and risk is essential. Risk management (93.0%) and time management (91.4%) were rated “very important,” with material management close behind (83.8%). By contrast, money management (23.2%) and human-resource management (26.1%) were far less frequently flagged as “very important,” reflecting that these skills are less critical.Digital fluency is now standard. Two-thirds (67.4%) rated “using computers for information” as “very important,” though fewer (37.1%) said the same about “acquiring and evaluating information.” On technology operations, respondents emphasised application over selection: applying technology (88.7%) and understanding systems (86.6%) outranked monitoring (71.1%), troubleshooting (67.6%), and selecting technology (68.3%).Finally, interpersonal expectations extend beyond teamwork. Cultural sensitivity registered an 85.3% “very important,” a nod to Qatar’s diverse workplaces, while negotiation (32.2%), leadership (29.6%), and “teaching others” (9.1%) are less essential.Why it matters: The pattern is an operations-first skill mix. Employers prize a safety-first culture and ethical conduct, underpinned by hands-on problem solving and disciplined time/risk management—supported by collaborative communication and digital fluency. In short, soft skills and higher-order thinking skills seem to be more important for future employment than basic technical or manual abilities. Higher-order cognitive and interpersonal competencies are essential for a modern, knowledge-based economy.What to do: Educational and training providers, as well as policymakers, should invest in safety standards, integrity and compliance training, real-world problem-solving drills, and applied technology modules to keep talent job-ready for Qatar’s evolving manufacturing sector and dynamic economy.Charbel Bassil is associate professor of Economics at Qatar University. Jalal Qanas is assistant professor of Economics at Qatar University.