Construction
From The Report: Qatar 2012
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With the construction industry expecting several changes in both the short and long term, contractors and developers are anticipating a steady increase in projects in late 2012 and into 2013. While the past two years have been difficult for the sector, with excessive competition driving down prices and limiting the availability of work, underlying growth factors remain strong. Although the excitement surrounding the 2022 World Cup has brought few tangible benefits to contractors yet, the capital is expected to see a number of expansion projects that should catalyse other developments. This chapter examines how sustainable building practices are at the centre of the government’s National Development Strategy 2011-16, with environmental production a key priority.

The chapter also includes an interview with Ebrahim Al Sulaiti, CEO of United Development Company.

Articles from this Chapter

Overview

Competition time: With a slew of developments in the planning stage, contractors are continuing to enter the market
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With the construction industry in Qatar expecting several big changes in both the short and long term, contractors and developers are anticipating a steady increase in projects in the second half of 2012 and into 2013. It has been more than a year since the country was awarded the rights to host the FIFA World Cup in 2022, but the market has remained subdued. There has been little in the way of substantial new contracts so far, yet Qatar’s resilience to the global economic crisis, supplemented…

Analysis

Rising costs: Despite increasing prices, projects continue to attract interest
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The construction boom being fuelled by a number of massive infrastructure and real estate projects across the GCC region is driving up the cost of construction and exposing several bottlenecks in regional supply chains. Qatar is particularly vulnerable to these costs as it seeks to develop billions of dollars worth of projects in time for the FIFA 2022 World Cup. RISING COSTS: The rates of bitumen products, cement and steel have climbed significantly in the last few years, but building materials…

Interview

OBG talks to Ebrahim Al Sulaiti, CEO, United Development Company
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Interview: Ebrahim Al Sulaiti What efforts are being made to minimise the environmental impact of the construction industry? EBRAHIM AL SULAITI: There are a number of government-approved environmental policies and procedures, concerning items such as waste and liquid management, recycling and green cleaning, as well as a ban on the use of non-degradable plastic bags. Recycling infrastructure is also encouraged in new developments. The value of greenery and “green” architectural features in…

Analysis

Preparing the ground: Materials prices remain a key issue, with a major uptick in development expected in the medium term
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The slow construction market may have frustrated contractors, but it has provided plenty of opportunities for developers – both public and private – to build at a discount. Construction costs have come down considerably from the peak of 2008, when basic material prices were significantly distorted by an overheating market. However, while such prices have remained largely flat for the past year, there is concern a sudden spike in building activity, driven by preparations for the 2022 FIFA…

Analysis

Green for go: The private sector looks on with interest as the government focuses on sustainability
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Building green has been part of the GCC market for some time. In the pre-financial-crisis days, before 2008, when buildings in the UAE were appearing rapidly, many developers highlighted their environmentally friendly credentials. However, in a period of such rapid growth, there was a concern that green talk was simply ephemera. BEHAVIOUR CHANGE: A lack of awareness and inefficient use of resources at the household level is a major hurdle in Qatar’s drive to shift to a greener development…

Analysis

On the up: The sector’s contribution to the economy looks set to expand in the coming years
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While it has been a tough 24 months for many construction firms in Qatar, the sector remains a key pillar of the national economy. The industry is one of the largest non-hydrocarbons sectors, and will likely increase in importance in the next decade. A SAFE HAVEN: The GCC, generally speaking, has become a safe haven for international construction firms looking to protect their margins in a hostile global environment. It has a diverse range of contracts on offer and the region is steadily…

Analysis

A model of success: New report recommends the government partner with private firms on infrastructure development
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With Qatar about to embark on a multibillion-dollar infrastructure spending programme, debates over how this should be funded and managed are beginning to emerge. While the government undoubtedly has the capital and will to build to its own programme and specifications, there are increasingly vocal calls for it to look at other possibilities. Chief among these is the public-private partnership (PPP) model. REPORT FINDINGS: In February 2012 Markab Advisory and Qatar Financial Centre Authority…

Analysis

By the book: Labour regulations are being tightened as international focus intensifies
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The award of the 2022 FIFA World Cup has put Qatar in the international spotlight. Greater international exposure has created pressure to abide by international norms and best practices. Nowhere is this more evident than in the field of labour regulations. Several trade unions, including the Building and Wood Workers International, have been in talks with FIFA to ensure that contractors involved in preparations for the event in 2022 adhere to international labour laws. COMMITMENT: The organisers…

Analysis

Partnership building: Moves to attract the global private sector
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Although there is still another decade before the World Cup kicks off in Doha in 2022, the country is rapidly implementing a massive investment programme that seeks to transform Qatar into a global centre for sports and business. While the bulk of these construction projects will be financed with public resources, Qatar’s approach looks to leverage the active participation of private multinational companies. This is in line with explicit goals of the National Development Strategy 2011-16 to…

Analysis

Investing in infrastructure: Building a foundation for growth
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The construction sector is increasingly being driven by investments in core infrastructure to support future growth in the country. The World Economic Forum’s Global Competitiveness Report 2011-2012 indicates that inadequate infrastructure is the fourth most problematic factor for doing business in the country. The government has acknowledged these gaps and is committed to investing heavily in improving transport links, water supply and sustainable energy projects in a bid to enable new businesses,…