Qatar Registers Second Highest Growth Rate In GCC Projects Market

Qatar’s projects market grew 26 percent last year, the second highest growth rate in the GCC, where project awards increased overall by 21 percent between 2012 and 2013, the first growth year since 2009.

The data was presented in a breakfast briefing at the Qatar Projects Conference, where a MEED Insight report detailed a comprehensive review of the GCC projects market from 2008-2013. The report said 2008 was a landmark year for Qatar, when over $22bn worth of projects were awarded predominantly by the construction and power sectors for megaprojects such as Ras Girtas Power & Water, Kharamaa Transmission Phase VIII, Barwa City Development and the Lusail Development.

Fast forward to 2013, Qatar maintains its momentum, awarding as much as $20bn on projects such as Qrail’s Doha Metro Red and Green Lines and several stations, which account for 41 percent of all projects awarded in the country.

Overall, during the period in review from 2008-2013, Qatar’s project market accounted for 12 percent ($96bn) of the total projects awarded in the GCC, for a massive outlay of an average of $16bn a year.

MEED Insight expects a robust 2014, with project awards estimated to range between $140-150bn. The outlook is also positive over the long-term, as GCC economies continue to grow and as the population explodes requiring further investments in infrastructure.

Challenges will most likely come from stiffer competition as contractors from Asia move to gain a bigger share of the market; and financing will play a factor in ensuring projects are not delayed.

Meanwhile, Elie Andraos, General Manager of Al Maysan, says the steady growth of the projects market is a great opportunity for heavy equipment and machinery suppliers. “Our participation in MEED’s Qatar Projects Conference 2014 is due to its importance in attracting local and international contractors. This conference is considered as a unique opportunity to display SANY’s heavy equipment and its proven reliability and quality in major construction projects in the GCC region. We are delighted to have participated, as it falls in line with Qatar’s 2030 vision in all aspects, particularly economic and construction,” he added.

Qatar Projects Conference concluded successfully, with optimism high among project stakeholders about the continued expansion of the projects market in Qatar. This year’s conference was supported by Samsung as the Official Technology Partner, Qatar Steel as Associate Partner, Mashreq and Global Building Solutions as Silver Sponsors, Parsons, Al Maysan and Larsen & Toubro as Bronze Sponsors.

Other corporate partners include Ibq (Gala Dinner Sponsor), Qatar Insurance Group (Lunch Sponsor), SEIB (Dedicated Partner and Breakfast Sponsor), PWC (as Reception Sponsor), HSBC (Masterclass Sponsor), Drake & Scull, ECG Engineering Consultants Group SA, Zurich Insurance and Hill International as Conference sponsors; and Shapoorji Pallonji as the Networking Sponsor.

Exhibiting companies include Al Jaber Engineering, ASTAD Project Management, International Aramoon Co Ltd as well as Salfo and Associates SA.