Qatar Construction Market Report 2022: Planned Government Projects Worth $14.8 Billion Bolster 10% Annual Growth - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--Dec 21, 2022--
The “Qatar Construction Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)” report has been added to ResearchAndMarkets.com’s offering.
The Qatari construction market is expected to register a CAGR of more than 10% over the forecast period. The COVID-19 pandemic had a negative impact on the Qatari construction sector. As the pandemic’s epicenter shifted from China to mainland Europe and the United States, the Qatar construction sector faced shortages of materials from these regions.
- Contractors in Qatar are particularly reliant on suppliers and manufacturers in Europe for mechanical, electrical, and plumbing products and the supply shortage from Europe may lead contractors to find alternative suppliers. This may affect the prices of the goods themselves and raise questions about the cancellation of purchase orders and the termination of existing contracts.
- As a result of its commitment to hosting the 2022 FIFA World Cup, its commitment to its National Vision 2030, and its ambition to host the Asian Games in 2030, Qatar is undertaking an impressive array of infrastructure and industrial projects. The current Emir (in power since July 2013) is focusing on the country’s domestic welfare by implementing the Second National Development Strategy.
- Launched in March 2018, the Second National Development Strategy sets national priorities aimed at transforming Qatar into a knowledge-based economy through infrastructural investments, economic diversification, private sector development, natural resources management, human development, sustainable social development, and sustainable environmental development. This strategy is being driven by expectations of growth for the economy through activities within the non-oil and gas sector, especially in the areas of merchandise and traded services.
Key Market Trends
Government’s Focus on the Construction Sector
Government spending will play a crucial role in boosting the growth of the construction sector. According to Qatar’s 2021 budget, new projects worth QAR 53.9 billion (USD 14.80 Billion) were identified. These infrastructure-related projects will be awarded from 2021 to 2023.
The government aims to develop infrastructure and diversify the economy by moving away from its dependence on the oil and gas sector. In efforts to diversify the economy, Qatar has opened economic free zones that are attracting companies from across the world.
The endorsement of new laws regulating public-private partnerships (PPPs) is expected to attract private sector investment in developing infrastructure, educational institutes, and healthcare projects, hence supporting industry growth during the forecast period. Investments in transportation infrastructure projects will also support growth during the forecast period. State-run Qatar Railways plans to begin construction of a rail line linking Qatar and Saudi Arabia later this year.
In addition to building stadiums specifically to host World Cup matches, Qatar has been investing and continues to invest in modernizing its infrastructure. The goal is to become more of a transport hub for a significant part of the world. Top priorities are the development of airports, as well as a more extensive metropolitan network, along with upgraded roadways and emerging cities.
While some of the projects will have a long-term impact, the government already has many initiatives in place with concrete short-term benefits. For the medium term, the Qatari government has identified several urgent projects, earmarking QAR 54 billion (USD 15 billion) for these. In the second quarter of 2021, spending on major infrastructure projects totaled QAR 15 billion (USD 4 billion), or 20.8% of the state’s spending budget.
Booming Realty Helping the Construction Sector
The prospects for the construction and realty sector appear to be brighter, especially outside the capital of Qatar. According to official statistics, there was a strong Year-on-Year surge in the building permits issued in five municipalities in October 2021 compared with an overall decline at the national level.
The total number of building permits issued in the country in October 2021 saw a 6.3% decline Year-on-Year, while Umm Slal recorded the highest growth of 42.9%, followed by Al Khor (25%), Al Shahaniya (20%), Al Wakra (16.7%), and Al Shamal (14.3%). In the case of Al Daayen, Doha, and Al Rayyan, there was a decrease of 28.7%, 22%, and 13.8%, respectively, in the period studied.
Qatar issued a total of 685 building permits in October 2021, with Al Rayyan, Al Wakra, and Al Daayen municipalities together constituting as much as 65% of the total, as per figures released by the Planning and Statistics Authority (PSA).
The Qatari construction market is fragmented in nature, with the presence of both local and regional players. Some of the key players in the market include QD-SBG Construction, Gulf Contracting, HBK Contracting, and AlJaber Engineering. Major and specialized companies have witnessed unprecedented stability and growth in the Qatari construction market. The country has undertaken large-scale infrastructure projects of various types and invited the participation of international companies.
Many construction service providers and facility management companies are racing to enter the Qatari market for services. Companies are partnering with developers to offer after-construction services. As towers, low-rise buildings, stadiums, and malls are built, and near completion, the country’s facility management market is expected to grow exponentially over the coming years.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
5 MARKET DYNAMICS
6 MARKET SEGMENTATION AND ANALYSIS
7 COMPETITIVE LANDSCAPE
8 INVESTMENT ANALYSIS
9 INSIGHTS INTO MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS
10 FUTURE OF THE CONSTRUCTION SECTOR IN QATAR
- QD-SBG Construction WLL
- Gulf Contracting Co. WLL
- Qatari Diar Vinci Construction (QDVC) QSC
- HBK Contracting Co. WLL
- AlJaber Engineering WLL
- Redco Construction - Almana
- Boom Construction Co.
- UrbaCon Trading & Contracting WLL
- PORR AG
- Besix Group
- MIDMAC Contracting Co. WLL*
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KEYWORD: MIDDLE EAST QATAR
INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY
SOURCE: Research and Markets
Copyright Business Wire 2022.
PUB: 12/21/2022 06:06 AM/DISC: 12/21/2022 06:06 AM