Oman Construction 2013-Rising Potential from Unexpected Quarters
As a part of its National Vision 2030, Qatar has earned itself a number of distinctions in its journey toward diversification and improvement in the standards of living of its economy and its masses, bringing Qatar into focus in the global stage as a leading destination for tourists and investors alike. Having earned the titles of the fastest growing economy in 2011, and the economy with the largest disposable income in the world for successive years till date, Qatar is now grabbing investor attention for the planned and well monitored way in which it is scaling up its investments in preparation to host the World Cup 2022 FIFA event, backed by its large hydrocarbon reserves and its strong global position as the world’s third largest producer and supplier of Liquefied Natural Gas (LNG) and being among the top 20 world oil producers. The winning of the prestigious bid to host the World Cup 2022 FIFA football event has only helped the economy in moving toward its Vision with a greater focus in its investments into a well planned timeline.
The event has been shrouded in controversies beginning with whether the country would be able to control the spiralling prices with the sudden spurt in construction activity as it edges closer to the timelines for projects to be readied for the World Cup event, whether it would be able to accommodate the large influx of population including workers, tourists and investors as construction projects are scaled up and the country gears up to host the World Cup, to allegations on unfair treatment of labour and labour practices in the construction projects already underway. Qatar has so far firmly managed to brush aside these controversies and forge ahead with a well planned and monitored construction programme while hosting a number of trial events along the way such as the Asian Football Cup and Cup of Nations in January 2011 and 2012, the Match Racing International Regatta in April 2013, the annual World Powerboat championships and the Men’s Handball World Championship to be hosted in 2015 among others to smooth out any unforeseen obstacles along the way.
Meanwhile, the primary focus of Qatar is currently on building up the necessary infrastructure including roads, rail and metro works, ports and airports, while the spill over effects of the build up have thrown open enough opportunities for the related construction markets including buildings, industrial, power and water and hydrocarbons or oil and gas sectors, to enjoy a long and sustainable growth path up to the World Cup and beyond. Prices are also being monitored closely along with sufficient supply checks to ensure unexpected shortages do not result in sudden spikes in prices as was experienced when Qatar hosted the Asian Games in 2006.
The country having already invested US$ 125 billion across sectors as a part of the plan to put Qatar on the World map for tourists and investors alike, successive budgets have invested further amounts toward upgrading infrastructure such as building of the Qatar Metro, the international airport building and expansion, investments across the hospitality, commercial and retail sectors also the construction of venues and stadia to host the events of the World Cup. The budget for the year 2013-14 for Qatar was proclaimed as the largest in its history with a budgeted expenditure totalling US$ 58 billion.
With the required spurt given to the construction industry in the country, investment and technology flowing in from across the world, and spending not being a constraint for it to achieve world class standards, the State of Qatar is also using pioneering technology and environmentally sound techniques to prepare one of the hottest climes for the World Cup 2022 event to be hosted in the peak summer season, one of the hottest months. It is also readying the infrastructure to give the required fillip to its real estate and tourism sectors while hosting other sporting events as a sort of precursor to the World cup event hosting. The State of Qatar has also undergone a legal and regulatory overhaul to accommodate foreign investment and know-how by easing procedures and bringing regulations on par with international standards to attract investment and know-how easily.
Based on its vast experience of tracking construction markets across the GCC and MENA region, this Ventures Middle East report the “Qatar Construction Industry-Forging Ahead Despite Controversies” explores how the winning bid for the World Cup among other factors have helped Qatar speed up its developmental plans, while its clear planning and continuous detailed monitoring of progress with help from previous experience of hosting the Asian Games in 2006, have fuelled growth across its construction industry and the economy at large. It also explores the factors shaping the growth of the industry through an analysis of the Political, Social, Economic, Technological, Legal and Regulatory and Environmental factors that govern its growth and the key market drivers and restraints with the help of a probability-impact matrix, to its achieving its full potential.
The report also provides an individual analysis of the key sectors of the Qatar construction industry namely, building construction, infrastructure, oil and gas, power and water desalination and industrial sectors are analysed individually highlighting the main opportunities and challenges faced by each sector in its race toward growth along with vital statistics on the market size and contracts awarded across the industry and its core sectors along with forecasts till 2014.
The latest ongoing projects in each sector are also provided for an insight into the goings on in the Qatar construction industry and the sectors to watch out for. This report helps the reader understand how some of the sectors such as industrial and infrastructure form the cornerstone of the growth plans of Qatar, while others such as buildings and oil and gas from its core components and keep the growth process sustainable and high.