Construction supports Qatar economic boom
External dangers are expected to impact prices of oil and gas, impacting economy by year end
The research unit of Kuwait Finance House, KFH-Research has said despite the slowdown in Qatar’s GDP growth expectations, the booming constructions sector would underpin the overall economic growth which is expected to grow 8% in 2012.
External dangers are expected to impact the prices of oil and gas, which is seen to negatively hit the Gulf country’s economy by the end of this year, the firm said.
Since Qatar was named as the host of the World Cup in 2022, the government has devised a strategy involving the development of infrastructure in preparation for the event.
The construction industry, which accounts for some 5% of Qatar’s GDP,climbed to 10% year-on-year in 2011 after two consecutive years of decline and is expected to gain the same momentum in 2012.
The country’s construction activity involves four major projects, the first of which encompasses directly related 2022 World Cup expenditures.
The second is the new $11.1bn Doha Airport, with its first phase set to commence operations in late 2012, while waiting for the second in 2015.
The new Doha Port is the third project, valued at $8.2bn, that will replace the existing one located in the downtown of the capital, with the first phase to be completed in 2016 while awaiting full completion in 2030. The fourth project is the $25bn rail plan.
