Latest Qatar News

Asian, British, construction firms compete to win Qatari contracts

With Qatar getting ready to host the 2022 FIFA World Cup, announcing $275bn worth investments allocated for the purpose, the British construction companies are competing to win major contracts in Qatar, it has been reported.

Doha plans to invest up to $149bn on infrastructure, and another $126bn on housing, and has been bidding contracts for construction of hospitals, schools, shopping centres, and railway networks.

Plans for the $20bn Doha Metro has already drawn interest from more than 60 major international groups, all competing for the $7bn, first phase of the contract, to build tunnels, stations, and other infrastructure.

The £80mn contract to design roads and drainage in the north of Doha has been awarded to Hyder Consulting, while Atkins has been awarded the £65m deal to the same, in the west of the City. Two more deals are to be signed for the east and south of Doha.

Other British companies, including Balfour Beatty and Mace, are bidding for work in Qatar, one of the fastest-growing construction markets in the world. As the US and UK markets are now stagnant, and the growth in China is also on the decline, the Qatari contracts are facing stiff competition, with construction companies worldwide racing to secure a deal.

A consultant at the law firm, Pinsent Masons, said that British construction companies could stand to gain, given, their experience in building the London Olympics venues.

Meanwhile, Asian companies too, are increasingly looking towards international deals, owing to slowdown in these markets. More than ten of the bidding companies in Qatar are Chinese. The China Harbour Engineering Company has already bagged $880mn contract to design the first phase of the new Doha deepwater port.

Further, several construction firms were hit by the collapse of Dubai property market in 2008, but, Qatar was considered a safer bet, given, the strength of the oil and gas markets in Qatar.

The Oxford Economics and Global Construction Perspectives study, said that Qatari construction market is likely to grow by an average of 12.5percent a year over the next decade, in comparison to the average growth of just 1.7percent in European nations by the year 2020.

Posted on 13/12/2011