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Qatar construction sector is the top performer in the region

The construction sector in Qatar will continue to be the top performer in the region in the long-term, given, the giant projects being taken up in the country, a new report showed.

The construction and energy projects, worth total of $150bn are in pipeline in Qatar, and it will have a positive impact on the sector, said researcher BMI in its report.

The construction market in Qatar is considered as a safe haven for regional investors, given, the stable business environment here while there is wider regional unrest, and also due to the vast hydrocarbon wealth inflating public coffers. But, majority of the projects are yet to take off, and hence, its impact on construction sector will be notable only from this year, BMI said.

The construction sector in Qatar is likely to make major gains from 2016, in view of the mega projects at hand. However, BMI warns that there will be potential risk of decreasing margins, due to growing construction costs with the surge in infrastructure investments.

As per data, the spending on infrastructure in Qatar will touch $150bn, ahead of the FIFA World Cup 2022. A series of infrastructure projects are in pipeline, including $1bn transport corridor project in Doha, $20bn investment on roads, $25bn on railways, $15.5bn for new Doha airport, $4bn to be invested in stadia, and $8bn for deepwater seaport.

Further, the hospitality sector in Qatar will see the addition of several new hotels in the city.

New roads are planned connecting Ras Laffan Industrial City with University Road and the Shamal Road, providing three lanes in each direction. Work has also begun on the $1.37bn Doha Festival City project, one of the flagship projects that have got underway ever-since the country was awarded the FIFA 2022 World Cup in December 2010.

The preparations for 2022 FIFA World Cup will bring in major changes to Qatar infrastructure sector. Majority of international players will win from the big-ticket stadia and infrastructure projects, while local contractors will also benefit substantially, the report pointed out.

However, with the growing numbers of flagship projects, Qatar is also experiencing high cost of construction.

The 2012 International Construction Costs Report, prepared by quantity surveyor EC Harris, Qatar is now ranked 13th out of 53 countries, surpassing the ÜK at 15th position, and the US at the 16th position, due to surge in infrastructure investment ahead of the 2022 FIFA World Cup, in order to achieve its National Vision 2030, the report said.

Posted on 2/1/2013

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