Cement demand in Qatar to double in three years

Cement is major source of cost pressure on construction sector

NEWS, Materials, Arqaam Capital, Cement, Construction, World cup

Domestic cement demand in Qatar is forecast to double within the next three years.

In its report on Qatar’s cement sector, Dubai-based financial services firm Arqaam Capital revealed the country’s domestic construction expenditure will hit 6.9% of real GDP in 2014, compared to 6.5% in 2013.

According to the report, Qatar is expected to open up to QR182bn ($49bn) worth of construction projects this year, up 15% compared to 2013. The move follows the state’s plan to invest QR757bn ($207.9bn) on infrastructure developments in 2013-2018, largely linked to the 2022 World Cup.

Given that current projects under execution are worth $70bn, and reflect an average churn rate of 3-4 years, the expenditure implies a doubling in cement demand within the next three years.

And Arqaam expects cement demand growth to accelerate, delivering 9.4mtpa in consumption by FY 17.

The report said: “We expect production capacity and demand levels to reach equilibrium by FY18. Our forecasts are on the conservative side as Qatar’s Ministry of development and planning’s most recently published survey suggests demand for limestone is set to increase by 131% in 2014 and 127 percent in 2015, with demand for washed sand growing by 108% in 2014 and 106% in 2015.”

“QNCD remains Qatar’s largest cement producer with a production capacity of 4.4mtpa of cement (62% of market). We believe that the market’s second largest player, Al Khalij Cement (capacity of 1.8mtpa clinker, 2.7mta cement), has captured market share from QNCD in FY13.”

 

Most popular

Awards

CW Oman Awards 2020: Meet the winners
A round of the thirteen winning names at the Construction Week Oman Awards 2020 that

Conferences

Leaders UAE 2020: Building a sustainable, 'resilient' infra
AESG’s Phillipa Grant, Burohappold’s Farah Naz, and Samana's Imran Farooq on a sustainable built environment
CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this

Latest Issue

Construction Week - Issue 767
Sep 01, 2020