A new report by Timetric’s Construction Intelligence Centre (CIC) indicates that Qatar’s construction has grown, driven by the National Vision 2030 – the country’s economic diversification policy – and the preparations for the 2022 Fifa World Cup.
During the review period (2011 – 2015), the industry’s output value in real terms expanded at a compound annual growth rate of 15.6%. It increased to US$37.2 billion in 2015, compared to only US$20.8 billion in 2011. High levels of spending on infrastructure have been a key factor in driving the industry’s growth, with the government aiming to develop the economy in a way that it becomes more diverse and less reliant on the oil and gas sector.
Low oil prices create a downside risk to the forecast, given the impact this is having on investment plans. However, in the next five years the industry’s output value is expected to register a CAGR of 9.7%, to value US$59 billion in 2020. The hosting of the2022 Fifa World Cup will be one of the major drivers of this growth as the government is planning to boost spending on infrastructure, stadia and commercial buildings to support the event.
The government’s initiatives to improve the transport and tourism infrastructure, while addressing the country’s housing shortage and modernizing energy delivery by increasing the volume of renewable schemes are also important factors in aiding the industry’s growth. Accordingly, the Qatari government introduced the National Development strategy 2011 – 2016 and the Qatar National Vision 2030. These plans will create demand for construction services over the next five years.
Commercial construction will remain the largest sector over the next five years, driven by expanding retail, and tourism sectors. The government aims to attract new investments in the country’s tourism sectors under the Qatar National Tourism Sector Strategy 2030. With an investment of US$15.8 billion, United Development Company is developing the Pearl Qatar project in Doha, which involves the construction of mixed-use facilities on 400 ha area – the project will enhance residential housing capacity, hospitality, commercial and retail facilities. It aims to improve infrastructure and to attract more tourists.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/africa-middle-east/10022016/qatar-construction-sector-evidences-growth-477/