Saudi Arabia and Qatar have experienced a significant improvement in their economic and diplomatic ties since Crown Prince Mohammed bin Salman’s visit to Doha in 2021. This visit marked the end of a three-year rift between the two Gulf nations and sparked a surge in business collaborations.
Qatari companies, having gained expertise from constructing World Cup infrastructure, are now actively participating in Saudi Arabia’s ambitious development projects. These include NEOM, a massive economic zone, and other “giga projects” aimed at diversifying the Saudi economy away from oil by 2030.
Redco International, a Qatari construction company, has secured contracts worth USD 3 billion in Saudi Arabia and relocated most of its workforce and equipment to the kingdom. Other Qatari firms are also seizing opportunities in Saudi Arabia, with total contracts estimated at USD 10 billion.
The growing economic ties are complemented by increasing diplomatic alignment. Qatar supports Saudi Arabia’s efforts in mediating the Israel-Hamas conflict, while Riyadh backs Doha’s peacemaking initiatives. The two countries are also exploring defense collaborations through their respective state-owned companies, Barzan Holdings and SAMI.
This renewed partnership is viewed positively by Western allies, who see it as a stabilizing factor in the region. The transformation is particularly notable given the previous Saudi-led boycott of Qatar, which had severely impacted Qatar’s economy.
The Al-Khayyat brothers, Qatari entrepreneurs who famously airlifted cows to Qatar during the boycott, now have USD 7 billion worth of projects in Saudi Arabia and are aiming to double that amount.
This rapprochement demonstrates how economic interests can help overcome past political differences, fostering a new era of cooperation between Qatar and Saudi Arabia.