Cement shortage expected to hit Qatar construction industry
Demand to rise to 10 million tonnes per annum
RELATED ARTICLES: Oman’s Raysut Cement PBT gains 33% | Construction materials rise in cost | KSA’s Eastern Cement plans $22mn mill Qatar’s cement industry is expected to face a ‘serious shortage’ in the near future owing to a lack of capacity additions in the country, challenging their ability to fulfil the rising demand of 10 million tonnes per annum (mtpa). Solid infrastructure spending by the government is increasing the demand for cement in the country, with the average demand between 2013 and 2015 expected at 5.5mtpa, exceeding the government estimate of 3.5-4mtpa. With work on mega-projects such as Mshereib’s Downtown Doha and the FIFA World Cup 2022 slated to begin soon, this demand is expected to reach 10mtpa. “Given the rapid rise in cement demand, Qatari companies are still not ready to gear up capacity to meet the same. With no other major capacity addition announcements, we feel Qatar will face a major cement shortage scenario going forward,” said Global Investment House in its latest report. Total expenditure during 2013-14 has been set at $57.8bn, up 18% from that in the previous year. Qatar is expected to spend $140-150bn on infrastructure over the next decade as per recent BMI reports, of which $40bn is dedicated for railways, $15.5bn for airports, $20bn for roads and almost $4bn for stadia. Qatar Rail’s construction cost is pegged at $35bn with initial phases to be completed by 2020.
