Qatar construction industry facing soaring costs
Report warns that Gulf Arab state could see 18% price rise by 2017
Qatar’s construction industry could be faced with soaring costs as preparations for the 2022 FIFA World Cup step up, a special report on the Gulf Arab country has found.
According to the Tender Price Index for Qatar, prepared by MEED Cost Indices, construction costs in 2017 will be 18% higher than current price levels.
This rise in costs will put a strain on Qatar’s supply chain and will ultimately have an impact on the value of contract awards from 2013 onwards, reaching a peak of $40bn in 2017, the report added.
However, the report pointed out that the Qatari government had already taken steps to mitigate the rise in costs, with organisations such as Qatar Primary Materials Company securing imports by signing supply contracts with quarries in the UAE and Oman. Furthermore, supplies of basic construction materials have also be secured.
As a result, with these measures in place, and with a port capable of handling and processing the supplies, Qatar should be able to ensure that contractors working to deliver infrastructure for the Cup, would not experience shortages or drastic price increases.