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
