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Business / Qatar Business

Retail sector outlook for 2026 signals continued growth

Published: 12 Feb 2026 - 09:16 am | Last Updated: 12 Feb 2026 - 09:20 am
Partner, Head of Consultancy and Research at Cushman & Wakefield Qatar Johnny Archer addressing the event.

Partner, Head of Consultancy and Research at Cushman & Wakefield Qatar Johnny Archer addressing the event.

Deepak John | The Peninsula

Doha, Qatar: The retail sector’s performance in Qatar is expected to remain strong in 2026, driven by higher tourist arrivals and sustained demand for prime retail destinations.

Cushman & Wakefield Qatar, a leading global real estate services firm held an event yesterday which discussed Qatar’s real estate market overview for the fourth quarter (Q4) of 2025.

Edd Brookes, General Manager and Head of the Middle East delivered the welcome address. Johnny Archer, Partner and Head of Consultancy and Research, presented Qatar real estate’s fourth quarterly report for 2025 highlighting the hospitality, retail, and residential sectors.

Meanwhile Ed Brookes and Mark Proudley, Director and Head of Commercial Agency discussed Qatar’s evolving office market trends during the event.

The latest Q4 report by Cushman & Wakefield revealed that the retail sector is expected to sustain its growth trajectory in this year, supported by rising visitor volumes and resilient footfall in established prime malls. The landscape will be further enhanced by new developments, including Al Waab Avenue, Bahara Town, Qetaifan Island Outlet Village, and North Gate Mall.

The retail activity in Qatar continues to be largely driven by domestic demand with sector growth further supported by a 2.2% year-on-year increase in tourist arrivals compared with 2024.

Retail sales in Q4 were notably boosted during the FIFA Arab Cup, which attracted visitors from across the Middle East and North Africa. Overall retail sales in 2025 reportedly reached $19.6bn, underpinned by Qatar’s high GDP per capita of $71,441 (nominal), one of the highest globally, according to the IMF.

Demand remains strong for new entrants, with Primark confirming its first Qatar store at Doha Festival City, scheduled to open by the end of 2026, reflecting growing international retailer confidence in Qatar’s consumer market, the report said.

The prime retail locations continue to perform strongly, with line store rents exceeding QR320 per sqm per month, and smaller units commanding even higher rates, supported by high occupancy and footfall. Secondary malls typically achieve lower rents, ranging from QR170–220 per sqm per month for line units.

Occupancy rates vary across the market, with prime destinations such as Doha Festival City, Villaggio, and Gate Mall maintaining full occupancy, while other developments face challenges in attracting retailers and footfall.

Similar fragmentation is evident in open-air F&B destinations. Developments such as West Walk and Gewan Island are attracting strong tenant mixes and high footfall, supporting healthy rental rates, while some other developments fail to gain the same traction, it added.

Meanwhile Qatar’s hotel market saw some notable additions in 2025, including Rosewood Doha, the OQ and Muse hotels in Lusail and Andaz Doha in West Bay. Supply has increased by just over 2,000 keys in the past 12 months, and now totals 42,500 keys.

Three-star hotels continued to outperform, achieving 84% occupancy, reflecting strong price sensitivity and demand from regional and value-led travel. Serviced apartments saw a slight softening, with 68% occupancy between July and September, indicating reduced demand in longer-stay formats.

Qatar’s tourism sector closed 2025 on a strong footing, with international visitor arrivals reaching 5.1 million, representing year on year growth of 3.7%. The performance was supported by a busy Q4 calendar of international sporting, cultural, and business events, including the FIFA Arab Cup and a series of major conferences and exhibitions.

These events drove higher hotel occupancy, increased footfall across retail and lifestyle destinations, and stronger demand for short-stay accommodation.

The long-term outlook for tourism strengthened through Q4 2025 following the approval of the GCC Unified Tourist Visa, due to launch in 2026, alongside continued expansion of international air connectivity, including enhanced links between Qatar and Australia.

Together with Qatar’s growing calendar of international events, these factors are expected to support sustained inbound demand into 2026, the report revealed.