Qatar's construction market set to reinvent itself, says report
The Qatar Market Intelligence 2025 report outlines how the country is repositioning itself as a regional hub for finance, education, tourism, and sports, with construction playing a pivotal role in achieving the goals of Qatar National Vision 2030.
Despite elevated construction costs, as Doha emerges as the second most expensive city to build in across the Middle East (average cost per sqm reaching $2,631), Qatar has one of the lowest inflation rates across the six nations in the GCC, stated the report.
According to Turner & Townsend, this reflects strong fiscal management in Qatar with analysts forecasting the economy will double in size by 2031, restoring revenues to pre-2014 levels.
Tendering conditions have also improved, with fewer but more qualified bidders fostering balanced competition and more stable pricing.
The report highlights that Qatar's construction outlook is being shaped by the Third National Development Strategy (2024–2030), which reinforces the sector's role in driving economic resilience.
The Ministry of Commerce and Industry's strategy further supports this by encouraging private sector partnerships and foreign investment.
Despite wider regional disruption, energy remains a cornerstone of growth, with the expansion of its liquefied natural gas (LNG) pipeline which is anticipated to increase its overall LNG capacity approximately by one third.
Meanwhile, the issuance of $2.5 billion in green bonds will fund renewable energy and sustainable infrastructure, aligning with the country's long-term development goals, stated the report.
Turner & Townsend pointed out that tourism was also a key growth driver. Following the FIFA World Cup in 2022, the country expects visitor numbers to reach just shy of three and half million in 2025, with a target of six million by 2030. This is spurring demand for real estate and hospitality developments, it added.
However, the report also identifies several headwinds. Regional competition, particularly from Saudi Arabia's infrastructure boom, is intensifying the battle for skilled labour, pushing up delivery costs.
High global shipping rates and limited local manufacturing capacity continue to inflate tender prices, despite improvements in domestic production.
Michael Brady, Director at Turner & Townsend, said: "Qatar's construction market is at a pivotal moment. While the sector faces cost and capacity challenges, the country's long-term vision and strategic investments are creating a resilient and forward-looking industry which is set to reinvent itself."
"The focus on sustainability, innovation, and economic diversification - including digital and infrastructure advancement - is setting the stage for a new era of growth," he stated.
"To stay competitive, stakeholders must adapt to evolving market dynamics, embrace digital transformation, and build stronger supply chain resilience," he added. -TradeArabia News Service
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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