Qatar set to spend $125bn on building boom
Government spend planned over six years as preparations begin for 2022
Qatar's government is planning a spend of $125bn on construction and energy projects over the next six years, according to a new report.
An economic review of the GCC countries by Saudi Arabian bank NCB states that the spend is part of its plan "to foster growth in the non-oil areas", which includes the preparations being made for the 2022 World Cup.
The Qatar Financial Center recently suggested that Qatar’s project pipeline can increase from its current level of $63bn to $108bn in the coming years, driven partly by increases in government spending, but also by efforts to reverse a recent decline in its oil production to 730,000 barrels of oil per day - 630,000 of which are exported.
A redevelopment of the country's three oil fields is expected to boost capacity over one million barrels per day.
The country recently set its annual budget for 2012-13, which included a 27.2% increase in its projected spending to $48.9bn.
Around $17bn of this, or 35% of the total, has been dedicated to public infrastructure projects, while $1.95bn is being spent on housing.
The government has also allocated $6bn to education and $3.8bn to housing.
"However, mirroring something of a regional trend, a significant proportion of this is going on public sector salaries which have increased by 46.8% YoY and now total more than $10bn," the report states.