Tourism Boosts Retail Growth in Qatar, Driving Demand for Lifestyle and Destination Malls

Published on December 19, 2025

The retail sector in Qatar has posted steady growth throughout the third quarter of 2025, buoyed by robust consumer spending and continued growth in tourism. Indeed, according to market insights from global real estate firm Cushman & Wakefield, the retail market also has remained stable amidst fluctuating consumer preferences, along with various retail formats, due to a strong tourism sector that keeps the country’s retail landscape on its feet.

Data from Q3 2025 indicates that retail activity within Qatar is generally driven by domestic demand, as tourist arrivals grew 2.2 percent year-on-year during the period compared to the same time in 2024. This increase in tourist numbers has been fundamental for sustaining foot traffic across retail hubs within the country, especially in high-end destination malls and lifestyle-driven developments. These factors have contributed to the overall stability of the retail market.

Tourism Boosts Retail Footfall and Sales

Experts attribute the current retail resilience to the significant role tourism plays in Qatar’s retail environment. The influx of tourists has led to a sustained increase in foot traffic and sales at prime retail locations, underscoring Qatar’s growing reputation as a global tourism and retail hub. Rahman, a local retail owner, commented that high-quality, experiential shopping environments, which integrate retail, dining, and leisure, are particularly popular with visitors. This trend is reflected in both rental performance and occupancy levels in these prime locations.

The continuous growth in Qatar’s tourism sector is also supported by the ongoing development of Qatar’s infrastructure and the country’s efforts to position itself as a major destination for international events and travelers. With an increasing number of tourists visiting Qatar for leisure and business, retail destinations are experiencing significant boosts in both footfall and overall sales performance.

Shift Toward Destination Malls and Lifestyle Developments

While the overall retail market remains steady, there has been a noticeable shift in consumer preferences. Shoppers are increasingly drawn to high-quality destinations that offer a combination of retail shopping, dining, and leisure activities. This shift is particularly evident in the performance of lifestyle-led developments and destination malls, which have continued to outperform other retail formats in the country.

Cushman & Wakefield’s latest data indicates that prime retail assets, such as these destination malls, are significantly outpacing the wider retail market in terms of performance. Rents for prime retail spaces now exceed QR320 per square meter per month, with smaller retail units fetching even higher rates. This is due to the strong occupancy levels and consistently high foot traffic seen at these locations, a trend supported by Qatar’s growing tourism sector.

In contrast, secondary retail formats, including older community malls, continue to lag behind in terms of performance. These retail formats typically command lower rents, ranging from QR180 to QR230 per square meter per month, reflecting a shift in consumer preferences toward more modern and experiential shopping environments.

Open-Air and Lifestyle-Oriented Retail Destinations on the Rise

The latest wave of retail developments in Qatar has been focused on open-air and lifestyle-oriented destinations, which are better equipped to meet evolving consumer demands and provide experiences beyond just shopping. These new retail centers, which feature climate-controlled, open-air spaces and pedestrianized areas, are proving to be particularly attractive to tenants and customers alike.

Rents for these modern developments range between QR150 and QR200 per square meter per month, with some of the upcoming projects expected to command slightly higher prices. Notable developments such as The Avenues in Al Waab and Bahara Town in Abu Hamour, both slated for launch in 2026, are expected to further enhance Qatar’s retail landscape, offering tenants even more attractive options. These developments will cater to the growing demand for retail spaces that combine leisure, dining, and entertainment in one location.

The success of these open-air and lifestyle-oriented destinations underscores the importance of advanced cooling technologies in creating comfortable shopping environments in Qatar’s hot climate. As the country’s tourism industry continues to thrive, these modern developments provide a shopping experience that appeals to both local residents and international visitors.

Event-Driven Spending and FIFA Arab Cup’s Positive Impact on Retail

Qatar’s retail sector has also been bolstered by event-driven tourism, particularly during large-scale international events such as the FIFA Arab Cup 2025. The event provided a short-term boost to the retail sector, with increased tourist arrivals and heightened spending activity across malls, dining hubs, and entertainment venues.

Retailers in food and beverage, sports merchandise, and experiential concepts have benefited from the higher sales volumes driven by event-driven tourism. Additionally, landlords have capitalized on the increased foot traffic by activating pop-up stores and extending trading hours to accommodate the surge in demand. This demonstrates how Qatar’s retail sector is closely linked to the success of global events, further emphasizing the role of tourism in supporting local retail businesses.

Prime Retail Destinations and Their Continued Dominance

As Qatar’s retail market continues to grow, prime retail assets and lifestyle-driven developments remain the main drivers of success. The data shows that high-quality retail environments that offer a mix of shopping, dining, and leisure are proving to be particularly resilient, even in the face of economic uncertainties. These types of retail spaces continue to attract both consumers and tenants, creating a vibrant and dynamic retail landscape that enhances Qatar’s appeal as a destination for tourism and investment.

According to Cushman & Wakefield’s insights, prime retail assets in Qatar are expected to maintain their strong performance, supported by the continued growth of the tourism sector. The combination of high occupancy rates, strong demand, and the ongoing development of lifestyle and destination malls positions Qatar’s retail market for sustained success.

Outlook for Qatar’s Retail Sector: A Bright Future

Looking ahead, experts remain optimistic about Qatar’s retail sector. The country’s retail market is expected to continue benefiting from rising tourism levels, particularly as global events like the FIFA Arab Cup bring increased foot traffic and spending activity to local retail hubs. The dominance of prime retail and lifestyle-driven destinations, coupled with strong consumer demand, points to a healthy outlook for the retail sector in the coming months.

With new developments on the horizon and tourism levels continuing to rise, Qatar’s retail market is well-positioned to capitalize on the growing demand for high-quality shopping experiences. As the country continues to establish itself as a global tourism and retail hub, the retail sector is likely to see even more growth, driven by both domestic and international consumers.

Qatar’s Retail Market Remains Resilient with Tourism Support

Qatar’s retail sector will remain very resilient through the third quarter of 2025, supported by strong domestic consumption and an ever-growing tourism momentum. The shift in trend has shown a change in consumer preference towards lifestyle-driven developments and destination malls; meanwhile, the continued influx of international visitors sustains the levels of footfall and turnover. With Qatar set to capitalize on its successes of global events and infrastructure development, the country’s retail market is positioned for heady success with a good prospect outlook.