With 2022 FIFA World Cup approaching, the construction sector is experiencing a boom in terms of growth accounting for 10% of the nation’s GDP at the end of 2015. It is believed that the construction sector in Qatar is the largest employer in the country with about 37% of working population involved directly or indirectly. The construction sector in Qatar is growing at a rapid pace and is projected to reach USD XX billion by 2021 at a CAGR of X%. Greater exposure to trade, attractive investment environment, competition, 2022 FIFA World Cup and diversification are factors affecting the growth of this market.
Hosting of 2022 FIFA World Cup Driving the Sector
The international focus on Qatar has increased in anticipation of the FIFA World Cup, scaling up its investments to deliver the Qatar National Vision 2030.It is estimated that USD 275 billion worth of projects are planned or are underway in Qatar for the World Cup. This sum shall be spent on big projects including hotels, tourism, transport, stadiums, and other infrastructure projects.
An increase in the demand for residential constructions due to the increasing local and foreign population is driving this market.
Restraints and Challenges
Doha was ranked as the region’s most expensive city for construction, in 2016. Due to this, there have been budget constraints, leading to problems like cancellation and frequent delays of projects. Working conditions are pathetic. It was reported last year that many workers die each year onsite or offsite due to poor working and living conditions. After the conclusion of the FIFA world cup in 2022, the Qatar government will shift its focus to other sectors and construction will come down the table.
A world cup host-nation never runs out of opportunities when it comes to infrastructural development in transport, tourism, and commercial sector. With a country ready to spend, opportunities are not limited at least till 2022. New airports, railway tracks, roads, houses, hotels, business spaces etc. are all planned or are under construction.
New developments include a metro system, Doha festival city mall covering an area of 433,000 square meters and Sharq Crossing Doha Bay worth USD 5 billion. Anatara’s Banana Island Resort was opened at the start of 2015, which is established on an entire island located about 20 minutes from Doha. More hotels like Double Tree Doha by Hilton and Marsa Malaz Kempinski were opened. There are many new projects which will be completed by the end of this year.
Key Deliverables in the Study