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Local companies sour as Ashghal projects go to foreign firms

Published: 23 Aug 2013 - 03:10 am | Last Updated: 30 Jan 2022 - 05:33 pm

DOHA: Qatari business leaders are crying foul over the alleged reluctance of Public Works Authority (Ashghal) to award its top-ticket development projects to local companies. 

Despite several rounds of talks with Ashghal and its  repeated promises that local contracting companies would get a fare share of Qatar’s multi-billion-dollar development projects, most projects are going to foreign companies, they complain.

In the run-up to the 2022 World Cup, various government agencies have lined up projects worth billions of riyals. Promises were given to local companies that they will be major participants in these projects. Only the Doha Port has kept its promise, said a leading local businessman.

“We held several rounds of discussions with Ashghal. We had great faith in their promises. But we are disappointed. Ashghal has given just 1 percent of total contracts to local companies so far,” said Nasser Al Mir, Chairman of construction committee at Qatar Chamber, according to  Al Arab.

Denying contracts to local companies means that their role is denied in national development. 

By successfully completing several signature projects, Qatari companies have proved their expertise and fund management in the construction sector, he added.

Works like tunnelling is among a few areas where Qatari companies lack expertise. This can be done in partnership with foreign companies, said Khalid bin Thaman Al Kuwari, a leading businessman in the construction sector.

Ashghal is the key agency involved in Qatar’s strategic long-term development projects. 

It has lined up projects worth $30bn for the next five to seven years. Projects worth $2.4bn are underway. Tenders would soon be floated for another $11bn projects.

Ashghal is also in the process of launching 216 road and 120 building projects. Unfortunately, a major chunk of these projects is going to foreign companies, said another Qatari contractor. 

Ahmed Jolo, Chairman, Qatar Engineering Association, said  Qatar would soon re-launch a large number of development projects, which have been shelved for long due to various reasons. 

Qatar’s real estate sector would also witness huge activities in the coming months, he added.

The Peninsula