The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.With construction and energy projects worth US$125bn planned over the coming years, Qatar's construction industry will strengthen its position as one of the region's top performing markets. With vast hydrocarbon wealth inflating public coffers and a business environment offering stability at a time of wider regional unrest, we expect Qatar's construction market to be regarded as a safe haven for the region's investors. We estimate that the sector will have grown by close to 10% in 2011 in real terms and we our outlook for 2012 is similarly bullish - BMI forecasts 9.5% year-on-year growth in 2012.
Key developments include: - According to a statement on October 25 2011 by the Minister of Economy and Finance, Yousef Hussein Kamal, Qatar's spending on infrastructure is expected to reach US$150bn over the following five years. A series of infrastructure projects are now in the pipeline, including: a US$11bn international airport project; a US$5.5bn deepwater seaport project; a US$1bn transport corridor project in Doha; US$20bn on roads; US$25bn on railways; and US$4bn on stadiums.
- In July 2011, the Public Works Authority of Qatar announced a road construction plan to connect Ras Laffan Industrial City with University Road and the Shamal Road, providing three lanes in each direction. The plans were unveiled as part of a larger scheme to build roads around the western and northern borders of the Ras Laffan Industrial City.
- The first phase of the Ras Qartas energy plant was completed in August 2011. The US$4bn plant will generate 2,730MW of power and 63mn gallons of desalinated water. The plant will supply the Qatar General Electricity and Water Corporation (Kahramaa) under a 25-year contract. The production will then be used for feeding the local network or the GCC electricity link-up system. The development marks the commissioning of the biggest electricity generation plant in the country.
- The announcement in October 2011 that work would shortly begin on the US$1.37bn Doha Festival City project will be one of the largest developments to get underway in Qatar since the country was awarded the right to host the FIFA 2022 World Cup in December 2010. The launch supports our view that with US$125bn worth of construction and energy projects planned over the coming years, Qatar's construction industry will strengthen its position as one of the region's top performing markets. With vast hydrocarbon wealth inflating public coffers and a business environment offering stability at a time of wider regional unrest, we expect Qatar's construction market to be regarded as a safe haven for the region's investors.
- Construction firm Vinci, has become a key bidder in Qatar's infrastructure sector. One of its more recent contract awards in the country is the US$533mn (EUR374mn) contract for work on the Light Rail Transit System being built in Lusail City. The project will be carried out by its joint venture company QDVC, which has already been awarded a contract on the project, cementing its position in Qatar's infrastructure sector.
Preparations for the FIFA 2022 World Cup will instigate major changes in Qatar's infrastructure industry. While major international players undoubtedly stand to win from big-ticket stadia and infrastructure projects, local contractors will also benefit substantially, both through partnering with foreign firms or undertaking the myriad smaller projects required. Problems have, however, begun to surface; some projects, such as the ambitious Qatar-Bahrain Causeway, have been faced with delays and funding restraints. It will clearly be a challenge for Qatar to accommodate the large number of visitors anticipated for the event.
Click for Report details:Qatar Infrastructure Report Q2 2012
