Qatar’s construction market is expected to outperform many developed economies over the next decade, a report released by Commercialbank Capital has said on Monday.
The Gulf Arab state is expected to average growth of around 12.5% a year for the next ten years, the report said. It added that in comparison, European countries will average just 1.7% through to 2020. According to its data, Commercialbank Capital said that the value of Qatar’s projects (planned and underway), stood at $214bn as off October 2011.
“Qatar’s ambitions and investment plans are different compared to other GCC countries,” the bank said in a report by Gulf Times, a Doha based daily newspaper. “Qatar has won the right to host the 2022 FIFA World Cup, which has imposed a time frame for completing the projects.”
The infrastructure of the country will have to be built over the next decade, which dovetails with the objectives of the National Development Plan, the paper reported.
As a result, preparation for the World Cup 2022 will focus spending on sports and transport infrastructure, while the Qatar National Vision 2030 will focus on social infrastructure such as education, healthcare and culture.
Between 2005 and 2008, Qatar’s construction grew at the unprecedented rate of 46%, the Commercialbank Capital report said.
The value of projects has grown at a compound annual growth rate of 40% between 2005 and 2011, it added. The value of projects under execution stands at $59.8bn, with the transportation sector accounting for around 30% of those projects.