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Qatar Infrastructure Report Q4 2012
Business Monitor International, October 2012, Pages: 58
The Qatar Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Qatar's infrastructure industry.
There are currently construction and energy projects worth US$150bn in the pipeline, which are being implemented to support Qatar’s mammoth 2030 Vision and the 2022 FIFA World Cup. Hence,
despite disappointing data for 2011, we remain positive toward Qatar's long term construction sector potential, and believe its construction industry will maintain its position as one of the region's top performing markets in the long-term. With vast hydrocarbon wealth inflating public coffers and a business environment offering stability at a time of wider regional unrest, we expect Qatar's construction market to be regarded as a safe haven for the region's investors. However, we note that due to long leadtimes the majority of awarded projects have yet to take off, meaning the impact will not be notable on construction sector growth until 2013, and only make a considerable impact beyond 2016. Furthermore,
we note the potential risk of decreasing margins due to continuously rising construction costs as a result of a surge in infrastructure investment.
Key developments in Qatar’s infrastructure industry include:
- According to a statement on October 25 2011 by the Minister of Economy and Finance, Yousef Hussein Kamal, Qatar's spending on infrastructure is expected to reach US$150bn ahead of the 2022 FIFA World Cup, in line with the country’s 2030 Vision. A series of infrastructure projects are in the pipeline, including: a US$1bn transport corridor project in Doha; a US$20bn investment in roads; US$25bn to be invested in railways; US$15.5bn to be spent on a new airport; US$4bn to be invested in stadiums; US$8bn to be spent on a deepwater seaport; tens of thousands of hotel rooms to be built; and even a new city.
- In July 2011, the Public Works Authority of Qatar announced a road construction plan to connect Ras Laffan Industrial City with University Road and the Shamal Road, providing three lanes in each direction. The plans were unveiled as part of a larger scheme to build roads around the western and northern borders of the Ras Laffan Industrial City.
- The first phase of the Ras Qartas energy plant was completed in August 2011. The US$4bn plant will generate 2,730MW of power and 63mn gallons of desalinated water. The plant will supply the Qatar General Electricity and Water Corporation (Kahramaa) under a 25-year contract.
The production will then be used to feed the local network or the GCC electricity link-up system.
The development marks the commissioning of the biggest electricity generation plant in the country.
- Work has begun on the US$1.37bn Doha Festival City project. This is just one of a series of flagship projects that have got under way in Qatar since the country was awarded the FIFA 2022 World Cup in December 2010.
- Preparations for the FIFA 2022 World Cup will instigate major changes in Qatar’s infrastructure industry. While major international players undoubtedly stand to win from big-ticket stadia and infrastructure projects, local contractors also stand to benefit substantially, either through partnering with foreign firms or undertaking a smaller project, of which there are many.
- On the back of the growing numbers of flagship projects Qatar is seeing significantly higher construction costs. According to the 2012 International Construction Costs Report, by quantity surveyor EC Harris, Qatar (now placed 13th out of 53 countries) has surpassed both the UK
(15th) and the US (16th) following a surge in infrastructure investment ahead of the 2022 FIFA World Cup, and in order to deliver its mammoth 2030 National Vision.
- Politically Qatar is taking an increasingly more assertive course within the Middle East and North Africa region (MENA), rapidly expanding its political and economic links with countries newly reshaped by the Arab Spring. The Gulf state has established close ties with Egypt since the downfall of the Mubarak regime. In September 2012 Qatar announced planned investments of US$18bn in tourism and industry projects within the Egyptian economy over the next five years.
BMI Industry View 5
SWOT Analysis 7
Qatar Infrastructure Industry SWOT 7
Market Overview 8
Competitive Landscape 8
Table: EQS 8
Building Materials 10
Middle East 13
Cement Forecasts 17
Table: Qatar Cement Production and Consumption Data, 2009 – 2016 17
Table: Qatar Cement Production and Consumption Long Term Forecast, 2014 – 2021 17
Industry Forecast Scenario 18
Table: Qatar Construction And Infrastructure Industry Data, 2009 – 2016 18
Table: Qatar Construction And Infrastructure Long Term Forecast, 2014 – 2021 18
Construction And Infrastructure Forecast Scenario 19
Transport Infrastructure 22
Outlook And Overview 22
Major Projects Table – Transport 24
Table: Major Projects – Transport 24
Energy And Utilities Infrastructure 27
Outlook And Overview 27
Major Projects Table – Energy And Utilities 29
Table: Major Projects – Energy and Utilities 29
Residential/Non-Residential Construction and Social Infrastructure 33
Outlook and Overview 33
Major Projects Table – Residential/Non-Residential Construction And Social Infrastructure 36
Table: Residential/Non-Residential Construction And Social Infrastructure 36
Risk/Reward Ratings 38
Qatar’s Risk/Reward Ratings 38
Regional Overview 39
Table: Regional Infrastructure Risk/Reward Ratings 45
Consolidated Contractors Company (CCC) 46
Global Overview 48
Table: BMI Infrastructure Index - YTD Top Performers (%) 51
Table: BMI Infrastructure Index - YTD Worst Performers (%) 51
Industry Forecasts 52
Construction Industry 53
Qatar Infrastructure Report Q4 2012
© Business Monitor International Ltd
Data Methodology 53
New Infrastructure Data Sub-sectors 53
Capital Investment 55
Construction Sector Employment 56
Infrastructure Risk/Reward Ratings 56
Table: Infrastructure Business Environment Indicators 57