Expert: Qatar construction sector to peak H1 2017
Qatar's new 2017 budget has been received positively with sustained spending on vital sectors including health, education, infrastructure and transport
Qatar’s new budget for 2017 has been received favourably by construction companies and experts alike.
The 2017 budget has outlined sustained spending in vital sectors including health, education, infrastructure and transport, Qatar Tribune reported.
Infrastructure, health and education will take the lion’s share of the new budget, accounting for almost half of all expenditures at QR87 billion ($24bn).
Included in this is building projects for the FIFA World Cup 2022.
Country director of Oxford Business Group, Izabela Kruk said: “Our recent GCC CEO survey indicated that business sentiment across the region remains broadly positive, despite the current challenging economic climate.
“Qatar, in particular, has continued to perform well across the economic sectors” and added that the country's ambitious project pipeline and key events, led by the FIFA 2022 World Cup, will aid in diversification away from reliance on oil and gas.
CEG International CEO Mohamed Abd Alaziz told Qatar Tribune that he expected the construction sector to peak in the first half of 2017.
"Most companies are upbeat about the ongoing works at the new Hamad Port, the redevelopment of HMC's Medical City, the Doha Metro project and the construction of at least eight stadiums for the World Cup,” he said.
He outlined how the projects had been planned and even budgeted some time ago and it would “be unlikely to see them slow down or put on hold under any circumstances”.
He added: “We are fortunate enough to be diversified in our practice and will be able to continue being involved in such projects.”
Abd Alaziz said that a month ago, the Supreme Committee (SC) for delivery and legacy announced the main contractors of two stadiums, while adding that the names of the contractors of other stadiums would be announced soon.
He said that in 2016 the government accomplished many projects, including roads and sewage systems and pointed out that there were additional works to be undertaken this year on the national infrastructure improvement for expressways, roads and intersections reconfiguration, as well as a sewage-drainage network update.
Abd Alaziz added: “Also, Qatar Rail managed to finish most of the tunnels of Doha Metro and I expect that the contractors for building stations will be selected by the second half of 2017.”
Raid Raaft CEO of Kahraman for Construction, drew attention to the opening of the Qatar-owned Bulk Materials Handling System (BMHS) at Masaeed Port, which he said will help meet the rising demand for primary materials by key construction and infrastructure projects.
He added: “It also will pave the way for private sector companies meeting their obligations on time.”
He pointed out that since Q4 2016, as the private sector became more confident in investing in health care and education, the construction sector had begun to gain momentum.