Projects being built to help drive regional tourist arrivals in Qatar as well as for the World Cup, Deloitte report says
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Qatar plans to invest over $200 billion in construction projects by 2022, a recent Deloitte report has found, as the Gulf Arab country gears up to meet the demands of the 2022 World Cup and beyond.
Entitled ‘Insight into the Qatar Construction Market and Opportunities for Real Estate Developers’, the report looks into the Qatari government’s strategy of promoting sustainable tourism with the purpose of attracting more tourists and visitors.
Projects such as the Qatar- Bahrain causeway is an example of this strategy, as it will help drive regional tourist arrivals in Qatar. The report also examines Qatar’s plans to invest more than $140 billion into transport infrastructure in anticipation of the 2022 FIFA World Cup.
Plans to construct new roads and a metro system have been put forth in order to support the anticipated influx of football visitors in addition to the airport expansion which is already underway.
Deloitte experts expect this influx to also bring with it an increased demand for accommodation, with numerous worldwide chain hotels actively considering investments in the country.
The Qatar Tourism Authority plans to invest about $20 billion on tourism infrastructure as the number of tourist arrivals grows at a rate of 15.9% compounded annually, to reach 3.7 million by 2022.
This growth also creates opportunities for the development of commercial units, such as various shopping malls around Qatar.
“With the world focused on Qatar’s every move, it is imperative that the local industry prepares itself for the plethora of international organizations that are ready to descend on Doha. Preparing for the competition is as important to everyone on the built environment, as it will be when the games start,” says Jesdev Saggar, Managing Director, Infrastructure & Capital Projects at Deloitte Corporate Finance Limited.
Environmental sustainability has become a key item in the government’s agenda. One of the key goals for the Q2022 program is to improve environmental sustainability, not only limited to the event but also for the entire country.
The Deloitte report suggests that the program may deliver a new environmental sustainability standard and improve nationwide awareness.
Deloitte GCC Powers of Construction Report highlights the case of Qatar, whereby Qatar was the third most active GCC construction market in 2012, with $10.4 billion worth of contracts awarded. Transport infrastructure dominated Qatar’s construction sector, with four of the five biggest contracts awarded for major transport projects.
“With significant investment in major infrastructure programs increasing over the coming years across the GCC, contractors, consultants and clients alike need to rethink the way they engage each other if they are to truly realize the benefits each can bring to the process,” said Cynthia Corby, audit partner and leader of the Construction Industry for the Middle East.