For much of the past decade, projects relating to the Fifa football World Cup 2022 have driven construction activity in Qatar. With one year to go before the tournament starts, Qatar’s project sponsors, contractors and manufacturers are now looking to what comes after 2022, even as they push to complete projects in time for the tournament.
And while there have been concerns over a drop off in construction activity as the event nears, there is growing visibility on what the longer-term projects will be. These include an expansion to Hamad International airport, construction projects in the Ras Laffan area supporting the expansion of the North Field – the world’s largest gas field, and infrastructure projects that include an expansion to Doha’s storm water drainage system. The future of Qatar’s real estate sector is less clear but it will continue to provide considerable construction opportunities.
Qatar construction has proved itself to be highly adaptable and resilient in the face of considerable financial and logistical challenges over the past five years from the Covid-19 pandemic, lower energy prices, and the GCC diplomatic dispute, each of which has affected national finances and industry supply chains,
Unlike most other construction markets in the Middle East and North Africa (Mena) region, Qatar performed consistently in 2020, with about $10.5bn of construction and transport project contract awards, up 3.9 per cent on 2019.
Qatar was one of only two countries in the GCC to record an increase in the value of construction contract awards in 2020. Despite this, construction activity in Qatar shrunk in 2020 due to the high volume of major projects being completed in in 2019 and 2020. According to GlobalData, Qatar’s construction sector output fell -4.5 per cent in 2020.
About $33.6bn of construction and transport projects were in execution in Qatar on 30 June 2021 with most major projects relating to either the World Cup 2022, the Lusail Development, the national railway or the Doha Metro.
With a $75.6bn pipeline of planned construction and transport projects, the prospects for Qatar construction are good. Some 17bn of construction contracts were being tendered on 30 June 2021 with a further $58.6bn of construction and transport projects under study or in design.
The growing use of public-private partnerships (PPPs) to deliver public services will change relations between clients and their contractors and adds private-sector drive to the need to innovate and reduce waste.
The new PPP Law is a critical development as Qatar continues its investments in infrastructure ahead of the World Cup, and as its Qatar National Vision 2030 deadline approaches.
Qatar Construction 2021 is a comprehensive analysis of the key trends, opportunities and challenges facing Qatar in 2021 and 2022. The report provides construction companies, contractors, suppliers, manufacturers and consultants with a powerful resource that will help them to identify new opportunities, set strategy, and mitigate risk in Qatar.