Image used for representation only
The construction industry in the country projects an increase of more than 2 percent at an Average Annual Growth Rate (AAGR) in the years ahead. The growth is a result of the expanding investments in the commercial, renewable energy, residential market, and mainly oil and gas sectors. A report by Global
Data, a leading in-house research group stated that “The Qatar construction market size was valued at $46.8bn in 2021” adding that it is expected to rise over 2 percent from 2023 to 2026.
The data provided in the report highlighted some of the key factors that boosted the growth of the market in Qatar. This includes industrial construction, infrastructure construction, energy and utility construction, and institutional construction. In the year 2021, the energy and utility construction sector posted the largest among the sectors strengthening the economy and enhancing international projects. However, in the upcoming years, the sector will be supported by the progressive projects witnessed in the country.
The report said that “Forecast-period growth in the energy and utilities sector will be aided by the development of solar projects with the aim of generating 20 percent of the total energy mix from renewable sources in 2023 and adding a road map of 2GW to 4GW of renewable by 2030. The increasing foreign oil majors’ participation in the expansion of LNG will support sector growth".
The infrastructure construction will positively impact by the upcoming foreign investments and the completion of transport infrastructures that were implemented last year in line with the FIFA World Cup Qatar 2022.
“The growth will be further supported by government plans to continue spending on infrastructure projects, with a focus on improving regional connectivity through the development of transportation infrastructure,” the data said.
The report outlined that the commercial sector is anticipated to increase rapidly and it is supported by Qatar National Tourism Sector Strategy 2030.
“As part of the Qatar National Vision 2030, the government expects to attract QR30bn ($8.2bn) in direct investments in logistics development projects, with the goal of transforming Qatar into a regional hub for investments and logistics services, increasing trade sector competitiveness, and encouraging the private sector participation,” it said.
As Qatar National Vision 2030 is assertive on boosting the residential sector with various housing projects in the country, a soaring demand is witnessed adding to the growth of the construction market. On the other hand, the Qatari regime’s new initiatives to strengthen and bolster the education industry will also enable the institutional construction to add value during the forecast period in addition to the revamping health and educational public works sectors.
Over the years, the industrial construction market also showed a significant improvement and is predicted to enlarge with invested confidence and surging global investments. The report added that “Investments will remain buoyant amid higher export revenues from petroleum gases and other gaseous hydrocarbons.”
According to Global Data, a lot of leading firms contributed to the industry paving the way for massive growth at AAGR, and is expected to rise gradually even after the projected period. It said: “The leading contractors in the Qatar construction market are Consolidated Contractors Co, McDermott International Inc, Construction Development Company LLC, and Gamuda Berhad among others. Consolidated Contractors Co has the highest project value in the Qatar construction market.”
“The leading consultants in the Qatar construction market are Arcadis NV, DP Architects Pte Ltd, AECOM, Chiyoda Corp, and Thales SA among others. Arcadis NV has the highest project value in the Qatar construction market,” it added.
