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Doing business (7)

Along these lines, the Expo 2023 Doha Organising Committee announced that the event has welcomed over two million visitors in less than 3 months.

Over the last three months, Expo 2023 Doha has established itself as a major destination in Qatar and the region, attracting visitors from all over the world and offering them a unique combination of environmental, cultural, and entertainment experiences, and reaffirming Qatar's commitment to sustainability and preserving the environment for future generations.

Along these lines, the Expo 2023 Doha Organising Committee announced that the event has welcomed over two million visitors in less than 3 months. This significant turnout is a testament to the global appeal of Expo 2023 Doha and Qatar's growing stature as a global hub for cultural exchange, innovation, and international collaboration in the areas of sustainability, environmental stewardship, and the fight against climate change.

“This significant turnout is a testament to the global appeal of Expo 2023 Doha and Qatar's growing stature as a global hub for cultural exchange, innovation, and international collaboration in the areas of sustainability, environmental stewardship and the fight against climate change,” the statement by the Organising Committee said.

The activities and exhibits at Expo 2023 Doha encompass a variety of themes, such as green innovation, traditional and modern agricultural techniques, sustainability strategies and best practices in horticulture and sustainable agriculture as well as activities designed specifically for families and children.

These have attracted thousands of visitors who enjoyed an unparalleled experience in the beautiful Al Bidda Park. The Organising Committee also ensured to offer programs that suit all tastes, which allowed visitors of all backgrounds, nationalities, and ages to discover enriching content that enlightens and inspires them to contemplate their potential role in building a greener and more sustainable future for our planet.

As far as global participation is concerned, the Organising Committee is proud to announce that nearly 80 countries and organisations have inaugurated their pavilions at Expo 2023 Doha, which is a major milestone given the importance of pavilions in highlighting each country’s culture and innovation and taking visitors on a magical journey involving beautiful landscapes, local agricultural practices and notable produce and handicrafts, which helps raise the public’s awareness and encourages community members to work towards a better future for all mankind.

“As we celebrate Expo 2023 Doha welcoming over two million visitors, we reaffirm our commitment to offering an enriching experience to all visitors that includes learning, engagement and celebrating our cultural and environmental diversity,” Haifa al-Otaibi, Director of Public Relations and Communication at Expo 2023 Doha, said.

“We continue to drive awareness of the Expo’s main themes: modern agriculture, technology and innovation, environmental awareness, and sustainability, given their pivotal role in the global journey of change where Qatar plays a leading role. In addition, and as part of our efforts to offer a comprehensive experience to all Expo visitors, we’ve ensured to organize activities and events for visitors of all ages and backgrounds in order to offer them the experience of a lifetime,” al-Otaibi added.

Source: Zawya

Qatar’s flourishing construction sector is projected at an impressive QAR210.01bn ($57.68bn) this year, industry analysts revealed, with forecasts predicting an increase to QAR325.03bn ($89.27bn) in the near future.

Global research firm, Mordor Intelligence, anticipates the Gulf nation’s construction industry to demonstrate a strong compound annual growth rate (CAGR) of 9.13% by 2028.

The newly released study emphasised the contributing factors to the thriving market, which include a blend of commercial, residential, industrial, and infrastructure projects, along with energy and utility developments.

The researchers highlighted that the country’s reliance on European suppliers and manufacturers for mechanical, electrical, and plumbing materials has spurred the search for alternate providers due to European supply shortages.

This has inevitably impacted pricing and led to reconsiderations of existing contracts and purchasing orders.

“For mechanical, electrical, and plumbing items, Qatari contractors, are particularly dependent on European suppliers and manufacturers; hence, a European supply deficit forced Qatari contractors to look for alternate suppliers”, the report stated.

“This affected the prices of the goods and raised questions about the cancellation of purchase orders and the termination of existing contracts.”

However, the country’s relentless investments and projects in the past years paved the way for it to bounce back.

World Cup impact

Despite the challenges, Qatar’s successful hosting of last year’s World Cup has had an influence on the industry, setting the stage for future major infrastructural and industrial projects.

This year, Qatar is set to dedicate QAR9.83bn ($2bn) towards the ambitious 2050 transportation master plan, underlining the nation’s commitment to improving infrastructure and expanding its leisure industry.

The nation’s track record of mass projects, ranging from the Doha metro, universities, healthcare facilities, museums, to entirely new cities like Msheireb and Lusail, bears testament to the growing strength of its construction market.

This assertion is further reinforced by the impressive array of stadiums that were built for the region’s first World Cup tournament.

In addition, the government’s significant investment of QAR53.9bn ($14.80bn) for infrastructural advancements, as outlined in the 2021 budget, demonstrates the critical role of state authorities in bolstering the regional construction sector.

“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 attracting companies from around the world,” state the analysts.

The recent implementation of laws governing public-private partnerships (PPPs) is anticipated to lure private sector investments in infrastructure, education, and healthcare projects, thereby driving industry growth over the forecast period.

Source: Doha News

Non-Qatari individuals could own properties in nine areas, up from three before, while the number of areas where foreigners may use real estate has also been increased to 16, a government statement said.

DUBAI: Qatar said on Tuesday it will allow foreign companies and individuals to own real estate in more areas in the country, liberalising rules to attract overseas funds in the sector as part of moves to diversify the economy.

Non-Qatari individuals could own properties in nine areas, up from three before, while the number of areas where foreigners may use real estate has also been increased to 16, a government statement said.

Foreign companies can also own properties in nine areas, a big boost from the past when they were only allowed access to real estate ownership within the confines of The Pearl Island project in Doha.

"Such decision would contribute to the advancement of the Qatari real estate market, the acceleration of the economic development, and the stimulation of the real estate sector," the Ministry of Justice statement said.

The Qatar government will also grant residency to owners of property worth at least 730,000 riyals ($200,000) as well as their families, it said.

Qatar passed a law in 2018 permitting greater foreign ownership of its real estate sector, which in recent years has been hit hard by oversupply tied to a rush of construction ahead of the 2022 World Cup which it is hosting.

Another dampener for the sector has been the diplomatic, trade and transport boycott imposed on Qatar in 2017 by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt over allegations, denied by Doha, that it backs Islamist militants.

Qatar, the world's top exporter of liquefied natural gas, is trying to diversify its economy by boosting tourism and foreign investment in non-hydrocarbon sectors.

"By allocating these areas as eligible for foreign ownership and investment, Qatar has created attractive opportunities that will benefit both domestic and international investors," said Minister of Commerce and Industry, Ali bin Ahmed al-Kuwari, in a separate statement

"The changes will also help to grow and strengthen Qatar's economic development."

The International Monetary Fund has said it expects Qatar's economy to contract by 4.3% this year, hurt by the impact of the coronavirus pandemic.

source: realty.economictimes

Doha Bank’s recent webinar discussed Qatar’s initiatives to support entrepreneurship and the private sector and the role of sustainable development in reviving the economy amid the Covid-19 pandemic.

The webinar titled "Sustainable Developments in Qatar" featured experts and high-profile speakers including Sheikh Dr Mohamed bin Hamad bin J al-Thani, director, Public Health at the Ministry of Public Health; Abdulaziz bin Nasser al-Khalifa, CEO, Qatar Development Bank (QDB); Sheikha Alanoud bint Hamad al-Thani, managing director (Business Development) at the Qatar Financial Centre (QFC), and Rashid bin Ali al-Mansoori, CEO, the Qatar Stock Exchange (QSE).

In his concept note, Doha Bank CEO Dr R Seetharaman said, “According to IMF’s April 2020 report, as a result of the pandemic, the global economy is projected to contract sharply by –3% in 2020, much worse than during the 2008–09 financial crisis. According to the OECD June 2020 outlook, if a second outbreak occurs triggering a return to lockdowns, world economic output is forecast to plummet 7.6% this year, before climbing back 2.8% in 2021.

“According to the World Bank forecasts, the global economy will shrink by 5.2% this year. In the WTO April 2020 outlook, world merchandise trade is set to plummet between 13% and 32% in 2020 due to the Covid-19 pandemic.”

Seetharaman said, “A 2021 recovery in trade is expected, but dependent on the duration of the outbreak and the effectiveness of the policy responses. Growth revival by Qatar in 2021 is expected to be 5% in 2021 which is highest amongst the GCC countries, according to the IMF. Qatar unveiled stimulus packages worth QR75bn for the private sector to help mitigate the economic impact of the coronavirus outbreak. Qatar sold $10bn in bonds in tranches of 5, 10, and 30 years in April 2020. Qatar Government’s intiatives will ensure sustainable development amidst Covid-19.”

On QDB's response to the pandemic, al-Khalifa said, “Because of our swift response to the blockade, we had the experience necessary and were fully prepared to effectively respond to any crisis, which is why we were able to respond to the pandemic effectively. Since the outbreak, we have launched several initiatives to minimise the impact of Covid-19 on the private sector ecosystem, as we made strategic decisions that supported SMEs.

“We also listened intently to entrepreneurs’ needs, and prioritised business continuity. QDB is focusing on sustainability in terms of operations as well as communication with entrepreneurs and SMEs across Qatar. Sustainability is a key driver in developing a knowledge-based economy, one of the main pillars of the Qatar National Vision. Private sector institutions should focus on upgrading services and enhancing internal operations to prioritise sustainability. QDB has established a strategy for developing and promoting Qatari products in global markets, securing deals worth more than QR1bn in the first quarter of the year.”

Elaborating on the government's strategy to contain Covid-19, Sheikh Dr Mohamed said: “The rapid spread of Covid-19 across the world, with the absence of vaccine, left governments with little time to respond. Now, Qatar is flattening the curve and from an economic perspective, Qatar is ensuring a rapid but sustainable recovery. Qatar decided carefully to implement a safe and sustainable exit strategy, with continuing of the necessary restrictions on social gatherings, social distancing and use of personal protective equipment.

“In reality, and across the world, easing restrictions is a process of trial and error. In Qatar, we never test out the wrong keys first to find the one that fits. We hold our own key to success: the cross-sectoral collaboration and the informed decisions that shape the future of our nation,” Sheikh Dr Mohamed added.

Al-Mansoori highlighted the QSE's sustainability efforts to support the local economy, and said, “At the Qatar Stock Exchange, we believe we can and should play a significant role in promoting sustainability as an imperative by introducing and supporting initiatives which deal with environmental, social and governance (ESG) issues. Our listed companies cover a large cross section of the Qatari economy, representing approximately two thirds of total economic output. They are therefore key to setting the sustainability agenda and influencing other sectors and participants within the economy.”

In her remarks, Sheikha Alanoud addressed the importance of Doha Bank's webinar, noting : “I am pleased to have joined such a timely discussion on sustainable developments in Qatar and engage with expert points of view on how these developments are proving critical to the success of the business community during Covid-19. Sustainable development has long been a core pillar of Qatar’s vision in advancing its economy, and it has both shaped our nation as a thriving business hub and our economy as highly resilient in times of crisis and otherwise.

“Qatar’s major infrastructural development scheme is key to our nation’s success in diversifying its economy. Legislative and business reforms continue to shape Qatar as a stimulating business environment. The QFC has achieved QR75bn in total assets under management. The QFC also strengthened its digitalisation processes for firms' incorporation, ensuring that all automated processes are approved swiftly.”

source: m.gulf-times

The Arab Monetary Fund expected that economic growth in Qatar would grow broadly, driven by oil and non-oil activity, expecting continued improvement in economic performance in the medium term by supporting economic policies and policy space conducive to growth and employment, according to the report "Arab Economic Outlook" issued by the Arab Monetary Fund.

The Fund expected that increased spending on infrastructure projects within the framework of implementing the Qatar National Vision 2030 will support growth, as the vision includes a strategy to support economic diversification to achieve sustainable long-term growth based on a diversified economy.

According to the Arab Monetary Fund, the oil and gas sector is likely to grow in light of the planned expansion of energy production over the next few years, which will have a stimulating effect on the non-oil sector.

The report showed that the various reforms in the legislative environment, including the issuance of the new foreign direct investment law that allows foreigners full ownership of projects, as well as the creation of an "investment promotion agency" to coordinate investment promotion and marketing activities with major stakeholders will provide an overall environment conducive to attracting foreign capitals and pushing forward the economic development and growth in the short and medium-term.

On the other hand, Qatar's announcement of a set of reforms in the labor market to improve working conditions and the application of the minimum wage will contribute to creating more job opportunities.

In terms of employment conditions, the above-mentioned report showed that according to the workforce survey by the Planning and Statistics Authority, the economic participation rate of the population (15 years and over) was 87.9% in the second quarter of 2019, so that the unemployment rate would remain at 0.1% during the period from the second quarter of 2018 until the second quarter of 2019.

source: uac-org.org

Qatar made a comprehensive leap in the industrial sector over the past three years, where the volume of investments has reached over QR262bn.

The rise in investments contributed to the state’s ability to face challenges, maintain the stability of the local market and boost exports, said the Assistant Undersecretary for Industry Affairs at the Ministry of Commerce and Industry (MoCI) Mohammed Hassan Al Malki. 

Al Malki said in an interview with Qatar News Agency (QNA) that the past three years have posed a real challenge to both extractive and manufacturing aspects of the industrial sector, which has succeeded greatly in consolidating its pillars and establishing its bases to play its central role in the economic growth of the state. 

He said that the state has dealt intelligently with the unjust blockade imposed on it since mid-2017, and managed to turn this crisis into an opportunity to accelerate its plans in the development of the industrial sector and maintaining economic growth. 

The state has dealt intelligently with this situation, addressed weaknesses in the industrial sector and turned them into strengths, which has led to the success of this sector in covering many of the market needs of industrial products, especially food and pharmaceutical products, which have become competitive with those in the region and the world, he added. 

Al Malki pointed out that the volume of investments in the industrial sector has now reached QR262bn, up from QR255bn in 2017, registering a growth of nearly 3 percent over the past three years.

“Investment growth in the industrial sector continues, and we have a clear strategy for the coming years covering a number of vital sectors, reinforced by important regulatory and legislative reforms in the business environment,” he added. 

He said that the number increased to 893 factories in the current year from 765 factories in 2017, an increase of approximately 17 percent, he said adding, focus over the past three years has been on the food industries, which has made a major leap and contributed to securing the market needs from the necessary goods. 

On the industrial sectors, the Assistant Undersecretary explained that the construction and transport industries sector tops list due to its association with 2022 World Cup projects, with 249 factories (27.9 percent of the total factories in the country), followed by the chemical and petrochemical industries, with 231 industrial establishments assisted by the abundance of raw materials (25.9 percent of the total number of factories). 

He said that the cement and building materials sector, and due to the urbanization witnessed by the state, ranks third with 178 factories, accounting for nearly 20 percent of the total number of factories, then the food and beverage industry sectors , which has 80 factories, accounting for 9 percent of the total number of factories in manufacturing industries.

Al Malki attributed the growth in the industrial sector during the past years to improving many investment laws and increasing the facilities provided to investors, in addition to enhancing private sector’s infrastructure, and addressing many of the challenges facing the local and foreign investor, besides other factors that strengthened the Industrial investment. 

He pointed out that Ministry of Commerce and Industry offers a variety of facilities, including those related to providing industrial lands, customs exemptions on raw materials, equipment and machinery, a preference for electricity pricing, and providing integrated services and advanced infrastructure of electricity, water, sanitation and others.

“There is a great direct support for the industrial investor, and last year we exempted factories from the rental fees for a full year and more than 400 factories benefited from them, whether in the industrial zone that belongs to the ministry or Manateq company’s Mesaieed industrial area,” he added. 

He added: “The manufacturing industries strategy aims to form a map for the next ten years until 2030, Technology part is an important part of this strategy, as the industry today depends mainly on it.” 

He stressed that great attention is given to the technological industries sector, which enhances the successes and achieving the goals set in the industrial strategy.

“We hope to reach our goals by 2030, especially with attention given by the government to this sector,” he said. 

source: thepeninsulaqatar

(qatarconstructionnews: by Farwa Zahra): Qatar’s sun-rich environment provides the ideal host for solar projects. With opportunities, however, come some tough questions on viability of solar panels and the lack of professionals here. Speaking with sustainability experts, QCN’s editor Farwa Zahra addresses these issues among some other concerns.

For the Gulf Cooperation Council (GCC), solar is the most abundant form of clean energy that can be capitalised on to meet its growing energy demand. But is the region sufficiently exploiting its natural resources? Ostensibly, governments in the region are well aware of solar’s potential. In 2015 alone, the value of awarded contracts for reusable energy projects in the Middle East and North Africa (MENA) region reached USD7.7 billion (QAR28 billion), representing a 450 percent increase from USD1.4 billion (QAR5.1 billion) in 2014, reported Meed. 

The rise in renewable energy projects also meant their share increased to 24 percent of the total power generation projects awarded during 2015. A key focus of sustainable power generation projects was linked to solar energy, followed by wind and more conventional hydropower. In fact, 58 percent of renewable projects awarded comprised solar utilities. 

Compared to the neighbouring GCC states, Qatar still has to grow its renewables sector as a part of its development drive towards the 2022 World Cup and Qatar National Vision 2030. Giving a comparative analysis of the region, Salman Zafar, founder of EcoMENA, says, “Qatar has been a bit slow in joining the solar energy bandwagon, though the government has a highly ambitious target of 1.8GW by 2020.” At the end of 2015, he adds, the installed solar capacity in the country was a measly 10 megawatts (MW). 

“Depletion of fossil fuel reserves, transition to low-carbon economy and adoption of sustainable development goals are major motivations for Qatar to embrace solar energy.” – Salman Zafar, founder, EcoMENA.

In contrast, United Arab Emirates and Saudi Arabia have current installed solar capacities of 100MW and 50MW, respectively. Both countries, Zafar says, have several large-scale solar power projects in development stages. On the other end of the spectrum are Kuwait, Oman and Bahrain, lagging far behind in the renewable energy sector.

According to Khaled A’amar, general manager at Al Emadi Solar, Saudi Arabia will soon become the region’s largest market for solar. “In other parts of the GCC where there are regulatory pressures or opportunities to secure financial incentives, the interest and roll-out is greater,” says Dr. Neil Kirkpatrick, head of sustainability, Middle East, for
Faithful+Gould. Drawing examples from Abu Dhabi, he explains that Estidama Pearl Rating System, a government-owned building and community rating system linked to the planning process, includes mandatory requirements to ensure that a proportion of the energy supply for hot water generation for villas is provided by renewable energy. With no such mandate in Qatar, Kirkpatrick says, “Faithful+Gould is only recently beginning to see leaders and pioneers emerge both in the public and private sector where we are being asked to explore the possibility of incorporating renewable energy solutions.”

Growth opportunities

As a country with significant reserves of hydrocarbons – readily available at low rates – it comes as no surprise that a large part of Qatar’s energy demands are met via conventional sources. Nevertheless, sustainability experts believe the region’s newfound inclination towards solar and renewables is a product of a few key factors which include reduction in the cost of implementing solar technologies, increasing demand as a result of growing population, and the government’s active stance on saving natural resources. As one of the major generators of greenhouse gas emissions, Mounir Bensegueni, Middle East business development director, OCS Group International – a subsidiary of Tadmur Holding – says, solar power generation development falls within Qatar National Vision 2030.“Leaders in the construction industry are starting to explore the possibilities of benefitting from the use of renewable energy solutions. We believe this has been driven by a sustained reduction in the prices of renewable energy solutions as well as the continued development of new products entering the marketplace,” says Kirkpatrick. Providing some statistics on the cost of solar panels, Luc Graré, REC’s senior vice president for Europe, the Middle East and Africa, says, “During the last six years, global PV system costs decreased by half. By 2020, a further decrease of 40 percent is expected, and will reach a global average of five to eight USD cents per kilowatt hour (kWh).”

Summarising Qatar’s motivation to use solar energy, Zafar says, “Depletion of fossil fuel reserves, transition to low-carbon economy and adoption of sustainable development goals are major motivators for Qatar to embrace solar energy in industrial, institutional and domestic sectors.”

Projects

In capitalising on the current opportunities to grow Qatar’s solar sector, a lot will depend on the willingness of the country’s construction sector. According to Zafar, “Qatar’s global horizontal irradiance is 2140 kWh per square metre per year which makes it well-suited for rooftop solar PV systems. However, the construction sector is yet to capitalise on it as the country is lacking a coherent off-grid and on-grid renewable energy policy and feed-in-tariff mechanism.” That said, considering the fact that Qatar’s government has indicated to mandate green construction over the coming years, it makes more sense for contractors and clients to be proactive in their move from conventional to sustainable construction, a large part of which will comprise solar.  

Among some current projects using solar as a major source of energy is Qatar National Convention Centre. With gold rating as per LEED standards, the facility is equipped with 3500 square metres of solar panels which meets 12.5 percent of the centre’s energy needs. Apart from solar rooftop installations, the higher percentage of energy conservation is also achieved by energy-efficient LED lighting system. 

Another such project is the recently launched Evergreen Building built in accordance with Energy City Qatar Design Guidelines. Explaining its solar features, Bensegueni says that the project’s design-and-build features enhance energy saving through PV solar cells installed on top of the circular structures of the building used to generate electric power which shall bring “energy saving of up to 15 to 20 percent of the lighting load on the common areas and the sub-ground car parking as well as the central domestic hot water system”.

On the infrastructure side, Qatar Railways Company is working towards maximising the use of solar technologies for energy conservation, working closely with Global Sustainability Assessment System that provides specific guidelines for green rail projects. In July 2014, the company signed a memorandum of understand with Qatar Solar Technologies for the installation of up to 80MW of solar technology across its various rail projects underway in Qatar. Summarising Qatar Rail’s interest in exploring solar solution, Engineer Abdullah bin Abdulaziz Turki Al Subaie, managing director and chairman of the executive committee of Qatar Rail, told media, “Solar energy development is one of the main green aspects of our project.” 

Driven mostly by government projects, as solar energy makes inroads in Qatar’s construction practices, experts believe encouraging independent power producers (IPPs) will boost the scope of solar in Qatar. 

Challenges

With opportunities also come challenges that Qatar needs to be prepared for. With the concept of solar technologies new for the country, having experts in the field can be a major issue. Speaking about some turnkey solar projects in the GCC, Graré explains the cost of solar is higher compared to European states. A major factor behind this cost differential is linked to the shortage of expertise. “As an emerging region for solar, the local installation expertise is lower than in countries like Germany, hence more labour resources are required to complete installation,” he says, adding that the costs for components are also three to four times higher in states such as Dubai, reflecting transportation costs and custom duty of five percent.

Seemingly, Qatar’s sun-rich environment provides the ideal host for solar projects. In reality, however, the country’s arid desert climate also contains high amounts of dust, thereby increasing both frequency and proportion of soiling on PV modules and solar mirrors. Research work by experts at Boston University suggests that the problem of soiling is linked to decreasing yield of these panels. Another performance limiting factor relevant to Qatar’s environment is the region’s high temperature, which has also shown deteriorating results on solar panels. Ultraviolet radiation, atmospheric salinity and dust accumulation, Bensegueni says, have a direct and significant impact on the performance of PV modules and their lifespan. 

While soiling can be curtailed by increasing the altitude of panels, strong winds in the region pose another hindrance in doing so. When asked about optical panel contamination, Kirkpatrick agrees that dust and sustained high temperatures are invariably cited as potential issues and challenges when using PV cells or solar thermal water heating. Designed to perform better within a clean air climate, the solar cells’ performance is further reduced due to the lack of rain in the region, says Bensegueni, adding that “it is quite expensive and operationally challenging to maintain a dust-free condition of the solar panels due to the cost of water produced from desalination process.” That said, according to Kirkpatrick, “New materials are being developed to decrease the accumulation of dust as well as to safeguard against a decrease in performance at higher temperatures.” 

“Leaders in the construction industry are starting to explore the possibilities of benefitting from the use of renewable energy solutions.” – Dr. Neil Kirkpatrick, head of sustainability, Middle East, for Faithful+Gould.

Indeed, with the advancement of solar technologies, companies are now introducing self-cleaning solar systems. For existing panels, there are panel cleaning devices being introduced in the market. In Saudi Arabia, the King Abdullah University for Science and Technology has developed a panel cleaning system called the NO-water Mechanical Automated Dusting Device (NOMADD). Requiring zero manual input, NOMADD can clean 99.6 percent of dust from panels, and can be retrofitted or deployed during the design stage. To ensure these systems work efficiently, Kirkpatrick emphasises the importance of involving facility managers in technical aspects of the building before its handover. 

For Zafar, the largest barrier to growth of solar sector in Qatar lies in the lack of renewable energy policy framework, legislations, institutional support, feed-in-tariffs and grid access, “Qatar requires a strong, visionary and coherent renewable energy policy as well as a flagship initiative, like Abu Dhabi’s Masdar City, to accelerate its emergence in regional as well as global cleantech arena.”

Another obvious challenge is subsidised energy prices. “With heavily subsidised electricity and falling oil and gas prices, the comparison between renewable energy solutions and conventional, fossil fuel-based solutions, becomes more challenging,” says Kirkpatrick. Zafar expresses similar concerns, explaining that solar power systems are still considered to be highly expensive for Qatar, which has abundant and cheap supply of fossil fuels for power generation. In consensus, Bensegueni says that despite the reduction in installation cost of PV panels over the last few years, the price differential is still significant. “The kilowatt hour of solar energy produced by PV technology costs almost double of that of electricity extracted from natural gas,” he says.

According to the International Renewable Energy Authority (IRENA), by 2020, MENA’s investment on renewables will reach USD35 billion (QAR127 billion) per year. GCC’s solar, alone, will represent a share of USD10 billion (QAR364 billion), reports Frost & Sullivan. For Qatar, a part of its target this year will be achieved when operations start at Kahramaa’s first solar power facility with a generation capacity of up to 15MW, as announced by the state-run company last year. By 2020, the company aims to reach a target of 200MW solar power. Citing IRENA’s 2016 report, Ahmed Imam, director of business development, Solar Business, MENA Schneider Electric, says, “The Qatari government aims to produce 20 percent of its energy capacity from renewable sources by 2030,” adding that solar is anticipated to be a critical part of this mission. This, Imam explains, can be realised with the state’s support in terms of rising awareness on energy management and environmental protection, along with investment in solar research and development. Indicating a promising trend in Qatar construction practices, Kirkpatrick mentions contractors’ growing interest in renewables with a different perspective, “Contractors are starting to take a long-term perspective where they are looking at renewable energy solutions from the viewpoint of asset management. For instance, contractors [are looking at how they can] use the same renewable energy equipment on successive projects much like a contractor might do when using heavy lifting equipment, etcetera.

For Qatar, the year 2016 started with a memorandum of understanding signed between Qatar Petroleum and Qatar Electricity & Water Company, preparing to establish a solar company. Recently, Qatar Environment and Energy Research Institute announced its ongoing works on a second generation of energy-efficient solar cells.

In terms of motivation, Kirkpatrick sees a marked interest in the development and implementation of strategies to reduce carbon emissions. “This is being led mainly by the public sector where opportunities exist to make massive changes linked to the construction of new infrastructure and public buildings, not forgetting of course, the buildings and infrastructure being developed to help support and facilitate the FIFA World Cup 2022,” he concludes. Indeed, with right direction and continued support, Qatar can achieve what currently looks like ambitious target.

Qatarconstructionnews

 

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