Infrastructure spend will drive Qatar’s economy
The outlook for Qatar’s construction market remains bullish despite the long lead-times experienced in awarding projects to date.
According to a new report by Business Monitor International, an expected spend of $150bn over the next decade as part of the country’s 2030 Vision development plan will underpin growth in the market, including a $40bn spend on railways, the new $15.5bn airport, a $20bn investment in roads, the new $7.4bn port and $4bn on stadiums.
“A strong commitment to public spending coupled with the most attractive and stable business environment in the region will help Qatar in achieving its ambitious infrastructure development targets to facilitate the 2022 FIFA World Cup and its own 2030 Vision,” Business Monitor International said.
It added that the country’s economic growth will be “underpinned” by the non-hydrocarbons sector as the recent revenue increases from oil & gas that have given the country the highest per-capita income in the world stabilise.
The country’s GDP is forecast to grow by 5% this year and 4.8% next year, with non-hydrocarbons growth largely be driven by “robust household consumption and construction activity”.
Already this year, alongside the award of over $8bn of contracts for the new Doha Metro, construction supervision contracts have been granted for the $4.5bn Doha Expressway and the $5bn Doha Bay Crossing.
“The country is believed to have one of the busiest road markets in GCC to date, with contacts awarded so far being valued in excess of US$1.8bn,” BMI said.