Construction in Qatar - Key Trends and Opportunities to 2024

Construction in Qatar - Key Trends and Opportunities to 2024

  • September 2020 •
  • 52 pages •
  • Report ID: 5363525 •
  • Format: PDF
Construction in Qatar - Key Trends and Opportunities to 2024

Qatar’s construction sector had been showing signs of faltering prior to the COVID-19 crisis, with the industry shrinking by 2% in real terms in 2019 - down from growth of 4.5% in 2018, and an annual average growth of 22.1% between 2015-2017. The building of stadiums and associated infrastructure is in its final stages, and there will, as a result, be a slight downturn in major tenders now that the venues have been built. Investment in the hydrocarbons sector will fall as a result of low gas prices and falling demand for Liquefied Natural Gas (LNG) from China, leading to a sharp cut in capital expenditure (CAPEX).

The analyst expects the country’s construction industry to shrink by 4.5% in 2020, hampered by the challenges presented by COVID-19. In April, the country’s emir - Sheikh Tamim bin Hamad Al-Thani, requested the postponement of more than QAR29.1 billion (US$8 billion) in un-awarded contracts on capital expenditure projects, owing to the COVID-19 outbreak and the consequent collapse of global oil prices. The expansion project at the North Field, the world’s largest gas field, was due to go live in 2024, but the authorities have announced its start will be delayed until 2025. Also, in an attempt to shore up its finances to cope with the impact of the pandemic, the Qatari government has instructed all ministries and state-funded organizations to cut spending on non-Qatari employees by 30%, either through lay-offs or pay-cuts, from June 1st. While this move could be interpreted as a negative impact on the economy, as nearly 95% of the country’s workforce is made of foreign nationals, this is understood to be temporary as the country progresses through its phases of easing of restrictions.

Construction output is forecast to record an annual average growth of 3.8% between 2021-2024, supported by the Qatar National Vision 2030, under which, QAR60 billion (US$16.4 billion) will be invested in infrastructure and real estate projects over the next four years. In addition, the country’s plan to increase the LNG production capacity will also support investments in oil and gas projects. The ratification of new law regulating Public-Private Partnership (PPP) will attract private sector investment in the development of infrastructure, schools and healthcare projects, supporting the industry’s growth over the forecast-period (2020-24).

This report provides detailed market analysis, information and insights into Qatar’s construction industry, including -
- Qatar’s construction industry’s growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Qatar’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline

This report provides a comprehensive analysis of the construction industry in Qatar.

It provides -
- Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in Qatar, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy
- Identify and evaluate market opportunities using standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.

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