Qatar Construction Market Size
| Study Period: | 2019 - 2028 |
| CAGR: | > 10 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Qatar Construction Market Analysis
The size of the Qatar Construction market is 55.6 USD Billion in the current year and is anticipated to register a CAGR of over 10% during the forecast period.
- For mechanical, electrical, and plumbing items, Qatari contractors, are particularly dependent on European suppliers and manufacturers; hence, a European supply deficit forced Qatari contractors to look for alternate suppliers. This affected the prices of the goods and raised questions about the cancellation of purchase orders and the termination of existing contracts.
- As a result of its commitment to hosting the 2022 FIFA World Cup, its commitment to its National Vision 2030, and its ambition to host the Asian Games in 2030, Qatar is undertaking an impressive array of infrastructure and industrial projects. The current Emir (in power since July 2013) focuses on the country's domestic welfare by implementing the Second National Development Strategy.
- Under Qatar's 2050 Transport Plan alone, 22 new projects worth a total of USD 2.7 billion are expected to be awarded in 2023. Dentons listed The Blue Line, an expansion of the current Doha Metro network, which would be constructed as part of the second phase of the Doha Metro Project, as one of two major projects that "may be procured" this year. The second of these projects, the multibillion-dollar Sharq Bridge, will construct a three-part bridge with underwater tunnels joining it to connect Katara Cultural Village to Hamad International Airport. Dentons was ranked as the fourth-largest law company in the world by revenue for the fiscal year 2021, with gross sales of USD 2.9 billion.
- The city of the Gulf country has quickly developed its infrastructure, making it a popular travel destination. This includes cutting-edge highways, a metro system, colleges, the Museum of Islamic Art, and the stunning new National Museum of Qatar. During the FIFA World Cup Qatar 2022, the Lusail Iconic Stadium, which hosted the championship match, the Stadium 974, and the Al Bayt stadium all served as exhibits for building wonders.
Qatar Construction Industry Segmentation
The construction market includes a wide range of activities that cover upcoming, ongoing, and growing construction projects in different sectors, which include but are not limited to geotechnical (underground structures) and superstructures in residential, commercial, and industrial structures as well as infrastructure construction (like roads, railways, and airports) and power generation and transmission related infrastructure.
The report offers a complete background analysis of the construction sector, including an assessment and contribution of the sector to the economy, a market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, etc. The report also covers the impact of the COVID-19 pandemic on the market. The Qatar Construction Market is Segmented by Type (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utilities Construction). The report offers market size and forecasts for the Qatar Construction Market in value (USD billion) for all the above segments.
| By Type | |
| Commercial Construction | |
| Residential Construction | |
| Industrial Construction | |
| Infrastructure (Transportation) Construction | |
| Energy and Utilities Construction |
Qatar Construction Market Trends
This section covers the major market trends shaping the Qatar Construction Market according to our research experts:
Government’s Focus on the Construction Sector
- Government spending will play a crucial role in boosting the construction sector's growth. According to Qatar's 2021 budget, new projects worth QAR 53.9 billion (USD 14.80 Billion) were identified. These infrastructure-related projects will be awarded from 2021 to 2023.
- The government aims to develop infrastructure and diversify the economy by moving away from its dependence on the oil and gas sector. In efforts to diversify the economy, Qatar has opened economic free zones attracting companies from around the world.
- The endorsement of new laws regulating public-private partnerships (PPPs) is expected to attract private sector investment in developing infrastructure, educational institutes, and healthcare projects, hence supporting industry growth during the forecast period. Investments in transportation infrastructure projects will also support growth during the forecast period. State-run Qatar railways plan to begin construction of a rail line linking Qatar and Saudi Arabia later this year.
- In addition to building stadiums specifically to host World Cup matches, Qatar has been investing and continues to invest in modernizing its infrastructure. The goal is to develop into a more significant global transportation hub. Top priorities are the development of airports, a more extensive metropolitan network, and upgraded roadways and emerging cities.
- While some projects will have a long-term impact, the government already has many initiatives with concrete short-term benefits. The Qatari government has identified several urgent projects for the medium term, earmarking QAR 54 billion (USD 15 billion) for these. In the second quarter of 2021, spending on major infrastructure projects totaled QAR 15 billion (USD 4 billion), or 20.8% of the state's spending budget.
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Booming Realty Helping the Construction Sector
- The construction and realty sector prospects are brighter, especially outside the capital of Qatar. According to official statistics, compared to an overall decline at the national level, there was a significant year-on-year increase in the number of building permits issued in five municipalities in October 2021.
- The overall number of building licenses issued in the nation in October 2021 decreased by 6.3% from the previous year. However, Umm Slal, Al Khor, Al Shahaniya, Al Wakra, and Al Shamal all had higher growth rates, with Umm Slal recording the highest growth of 42.9%, followed by Al Khor (25%), Al Shahaniya (20%), Al Wakra (16.7%), and Al Shamal (14.3%). In the case of Al Daayen, Doha, and Al Rayyan, there was a decrease of 28.7%, 22%, and 13.8%, respectively, in the period studied.
- As per figures released by the Planning and Statistics Authority (PSA), Qatar issued a total of 685 building permits in October 2021, with Al Rayyan, Al Wakra, and Al Daayen municipalities together constituting as much as 65% of the total.
- On a monthly basis, there was a decrease of 7% in the number of building permits issued, with Al Daayen registering a 35% plunge, followed by Al Shamal (33%), Doha (21%), Al Shahaniya (17%), and Al Rayyan (1%). Meanwhile, there was a 31% increase in the case of Al Wakra, 18% in Al Khor, and 11% in Umm Slal. The building permits data is of particular importance as it is considered an indicator of the performance of the construction sector, which in turn, occupies a significant position in the national economy.
Qatar Construction Industry Overview
The Qatar construction market is fragmented in nature, with the presence of both local and regional players. Some of the key players in the market include QD-SBG Construction, Gulf Contracting, HBK Contracting, and AlJaber Engineering. Major and specialized companies have witnessed unprecedented stability and growth in the Qatari construction market. The country has undertaken large-scale infrastructure projects of various types and invited the participation of international companies.
Many construction service providers and facility management companies are racing to enter the Qatar market for services. Companies are partnering with developers to offer after-construction services. The country's facility management industry is anticipated to experience exponential growth over the following years as towers, low-rise structures, stadiums, and malls are constructed and nearing completion.
Qatar Construction Market Leaders
QD-SBG Construction WLL
Gulf Contracting Co. WLL
Qatari Diar Vinci Construction (QDVC) QSC
HBK Contracting Co. WLL
AlJaber Engineering WLL
*Disclaimer: Major Players sorted in no particular order
Qatar Construction Market News
- November 2022: A subsidiary of renowned construction and infrastructure solutions provider Tadmur Holding, Tadmur Trading, recently announced a collaboration with Henkel Polybit, the world's top producer of waterproofing and construction chemical products. Together, the two parties will work to supply the local market with Henkel Polybit's premium line of building chemicals, including locally produced goods in the state of Qatar.
- January 2022: Qatar's transport minister reported the construction of the GCC rail network, which would link the country with neighboring Saudi Arabia. The 2,177 km Gulf Railway is a proposed rail system connecting all six GCC member states in East Arabia. The project is anticipated to cost USD 250 billion, which will be split among the six nations based on the length of the rail network within their respective territories.
Qatar Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Economic and Construction Market Scenario
4.2 Technological Innovations
4.3 Government Regulations and Initiatives
4.4 Mapping of Industrial Clusters and SEZs and a Brief Analysis of Investment Opportunities
4.5 Comparison of Key Industry Metrics of Qatar with Other GCC Member Countries
4.6 Comparison of Construction Cost Metrics of Qatar with Other GCC Member Countries
4.7 Real Estate Prices (Sales and Leasing) by Asset Classes (Residential, Commercial, and Retail)
4.8 Insights into Building Permits in Qatar, by Type and Municipality
4.9 Impact of COVID-19 on the Market
4.10 Market Dynamics
4.10.1 Drivers
4.10.2 Restraints
4.10.3 Opportunities
4.11 Porter's Five Forces Analysis
4.11.1 Threat of New Entrants
4.11.2 Bargaining Power of Buyers/Consumers
4.11.3 Bargaining Power of Suppliers
4.11.4 Threat of Substitute Products
4.11.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Commercial Construction
5.1.2 Residential Construction
5.1.3 Industrial Construction
5.1.4 Infrastructure (Transportation) Construction
5.1.5 Energy and Utilities Construction
6. COMPETITIVE LANDSCAPE
6.1 Overview
6.2 Company Profiles
6.2.1 QD-SBG Construction WLL
6.2.2 Gulf Contracting Co. WLL
6.2.3 Qatari Diar Vinci Construction (QDVC) QSC
6.2.4 HBK Contracting Co. WLL
6.2.5 AlJaber Engineering WLL
6.2.6 Redco Construction - Almana
6.2.7 Boom Construction Co.
6.2.8 UrbaCon Trading & Contracting WLL
6.2.9 PORR AG
6.2.10 Besix Group
6.2.11 Midmac Contracting Co. WLL*
6.3 Other Key Companies
*List Not Exhaustive7. INVESTMENT ANALYSIS
8. INSIGHTS INTO MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS
9. FUTURE OF THE CONSTRUCTION SECTOR IN QATAR
10. APPENDIX
Qatar Construction Market Research FAQs
What is the study period of this market?
The Qatar Construction Market is studied from 2019 - 2028.
What is the growth rate of Qatar Construction Market?
The Qatar Construction Market is growing at a CAGR of >10% over the next 5 years.
Who are the key players in Qatar Construction Market?
QD-SBG Construction WLL, Gulf Contracting Co. WLL, Qatari Diar Vinci Construction (QDVC) QSC, HBK Contracting Co. WLL, AlJaber Engineering WLL are the major companies operating in Qatar Construction Market.
Qatar Construction Industry Report
Statistics for the 2023 Qatar Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Qatar Construction analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Qatar Construction Report Snapshots
