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The Qatari construction market was valued at USD 55 billion in 2021, and it is expected to reach a value of USD 76 billion by 2027, registering a CAGR of 10.54% over the period of 2022-2027 (hereafter referred to as the forecast period).
The impact of the COVID-19 pandemic was negative on the Qatari construction sector. As the pandemic’s epicenter shifts from China to mainland Europe and the US, the Qatari construction sector is likely to face shortages of materials from these regions. Contractors in Qatar are particularly reliant on suppliers and manufacturers in Europe for mechanical, electrical, and plumbing products, and the supply shortage from Europe may lead contractors to find alternative suppliers. This may affect the prices of the goods themselves and raise questions about the cancellation of purchase orders and the termination of existing contracts.
Qatar's economy is likely to continue to grow for the foreseeable future due to the end of the embargo on Qatar (which was put in place in 2017) by the Gulf Cooperation Council (GCC), Qatar's National Vision for 2030, and its preparations for hosting the FIFA World Cup in 2022.
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) is focusing on the country's domestic welfare by implementing the Second National Development Strategy. Launched in March 2018, the Second National Development Strategy sets national priorities aimed at transforming Qatar into a knowledge-based economy through infrastructural investments, economic diversification, private sector development, natural resources management, human development, sustainable social development, and sustainable environmental development. This strategy is being driven by expectations of growth for the economy through activities within the non-oil and gas sector, especially in the areas of merchandise and traded services.
Scope of the Report
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, 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 Qatari construction market is segmented by type (commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utilities construction). The report offers size and forecasts for the construction market in value (USD billion) for all the above segments.
|Infrastructure (Transportation) Construction|
|Energy and Utilities Construction|
Key Market Trends
Government’s Focus on the Construction Sector
Government spending will play a crucial role in boosting the growth of the construction sector. According to Qatar’s 2021 budget, new projects worth QAR 53.9 billion have been identified. These infrastructure-related projects will be awarded from 2021 to 2023.
The government aims to develop infrastructure and diversify the economy away from its dependence on the oil and gas sector. In efforts to diversify the economy, Qatar has opened economic free zones that are attracting companies from across the world.
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 become more of a transport hub for a significant part of the world. Top priorities are the development of airports, as well as a more extensive metropolitan network, along with upgraded roadways and emerging cities. As per the organizers of last summer’s Qatar Economic Forum, World Cup-related infrastructure projects are currently valued at USD 300 billion.
While some of the projects will have a long-term impact, the government already has many initiatives in place with concrete short-term benefits. For the medium term, the Qatari government has identified several urgent projects, 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 prospects for the construction and realty sector appear to be brighter, especially outside the capital of Qatar. According to official statistics, there was a strong year-on-year surge in the building permits issued in five municipalities in October 2021 compared with an overall decline at the national level.
The total number of building permits issued in the country in October 2021 saw a 6.3% decline year-on-year, while Umm Slal recorded 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.
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 as per figures released by the Planning and Statistics Authority (PSA).
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.
The Qatari 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 Qatari market for services. Companies are partnering with developers to offer after-construction services. As towers, low-rise buildings, stadiums, and malls get built and are near completion, the country’s facility management market is expected to grow exponentially over the coming years.
In November 2021, Trend Micro Incorporated, a global leader in cyber security solutions, announced that Qatar’s Boom Construction Company (BCC) had successfully deployed a comprehensive cloud-based Trend Micro solution to protect the construction company’s digital estate. Part of the Boom Group, BCC is one of Qatar’s largest construction firms and is a key player in the country’s National Vision 2030’s environmental development goals through state-of-the-art infrastructure and megaprojects.
In November 2021, Vanhout, a BESIX Group subsidiary, acquired a 40% stake in the Belgian company BuildUp, formerly known as BeSteel. BuildUp develops innovative and sustainable solutions in the field of modular construction. These solutions include the digital design of custom buildings, their automated prefabrication in the company's workshop, and their on-site assembly.
Table of Contents
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 Review and Commentary on the Extent of Qatar's Economy Diversification
4.6 Comparison of Key Industry Metrics of Qatar with Other GCC Member Countries
4.7 Comparison of Construction Cost Metrics of Qatar with Other GCC Member Countries
4.8 Real Estate Prices (Sales and Leasing) by Asset Classes (Residential, Commercial, and Retail)
4.9 Insights into Building Permits in Qatar, by Type and Municipality
4.10 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.4 Porter's Five Forces Analysis
6. MARKET SEGMENTATION AND ANALYSIS
6.1 By Type
6.1.1 Commercial Construction
6.1.2 Residential Construction
6.1.3 Industrial Construction
6.1.4 Infrastructure (Transportation) Construction
6.1.5 Energy and Utilities Construction
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.2 Company Profiles
7.2.1 QD-SBG Construction WLL
7.2.2 Gulf Contracting Co. WLL
7.2.3 Qatari Diar Vinci Construction (QDVC) QSC
7.2.4 HBK Contracting Co. WLL
7.2.5 AlJaber Engineering WLL
7.2.6 Redco Construction - Almana
7.2.7 Boom Construction Co.
7.2.8 UrbaCon Trading & Contracting WLL
7.2.9 PORR AG
7.2.10 Besix Group
7.2.11 MIDMAC Contracting Co. WLL*
7.3 Other Key Companies
8. INVESTMENT ANALYSIS
9. INSIGHTS INTO MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS
10. FUTURE OF THE CONSTRUCTION SECTOR IN QATAR
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Frequently Asked Questions
What is the study period of this market?
The Qatar Construction Market market is studied from 2018 - 2027.
What is the growth rate of Qatar Construction Market?
The Qatar Construction Market is growing at a CAGR of 10.54% over the next 5 years.
What is Qatar Construction Market size in 2018?
The Qatar Construction Market is valued at 55 Billion USD in 2018.
What is Qatar Construction Market size in 2027?
The Qatar Construction Market is valued at 76 Billion USD in 2027.
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.