Qatar Real Estate News
Soaring prices of building materials to pose challenge for Qatar
Qatar may have to grapple with soaring prices of building materials, together with shortage of skilled labour, as it embarks on new ambitious infrastructure programme for hosting of 2022 FIFA World Cup, say experts.
According to consultants, the carbon-neutral stadiums with state-of-the-art cooling technology and $52bn underground rail system to be ready in next 10 years, all require specialized labour force to work under limited time frame.
According to Ken Jones, the Group Director, UK Consultant Engineer Buro Happold, the challenges and time constraints are not applicable only for the stadiums, but for the whole infrastructure in general.
The Dubai-based Director of Aedas, the global architecture firm, Simon Summers said that sourcing labour could also prove to be difficult. The firm plans to bid for upcoming transport projects in Qatar, including Doha Metro.
Delivering such high quality designs on limited deadlines require sophisticated contractors with highly skilled labour, he agreed and said that logistical complexities of accommodating, training and transporting labour may be an added burden for the nation.
The Regional Rail Director in Dubai, Geoff Leffek, mentioned that Doha Metro project will throw in trickiest recruitment challenges, as there could be need for more engineering resource, which indicates surge in cost of engineering.
All materials in the region are imported. Further, shipping in concrete, steel and specialized materials, if they are held up at customs, physical constraints are likely to arise on various parts of the supply chain, Leffek explained.
When all ask for building materials at the same time, prices are likely to spiral, and anyone who is a supplier to Qatar in the next ten years will do well, said Aedas.
Qatar won the right to host 2022 Soccer World Cup in December, out beating competitors from Korea, Australia, US and Japan.
According to analysts, $100bn worth infrastructure works are planned for the World Cup, including $25bn metro system and larger national rail network, which were planned before the country was chosen to host the soccer marquee event. Qatar has announced 55,000 new hotel rooms, wide range of amenities for training sites, fan areas and team facilities. It aims to invest at least $3bn on nine new and three renovated stadiums with revolutionary cooling systems.
Following the winning of the bid to host the World Cup, Qatar has earmarked $225bn on domestic investment alone in the next five years. Also on its agenda are investing $20bn on roads, investing $11bn on airport, and $5.5bn on deepwater seaport. Even the $4bn Bridge to be built between Bahrain and Doha Metro are likely to be fast-tracked by the World Cup. Qatar is already home to one million annual visitors. But, it needs to be prepared to cater to needs of larger numbers of visitors during the World Cup, according to FIFA. Due to the scale and scope of the project planned, including revamp of transport system, and the level of investment needed, Qatar may have to face bigger challenges, say experts.
Furthermore, another unique challenge faced by Qatar is the need to import all its building materials and equipments including cranes, concrete and piling rigs, leading to potential supply constraints, say consultants.
Posted on 10/5/2011