Qatar Country Manager at Turner & Townsend David Smith
Doha, Qatar: Rising investments in the tech sector will reinforce construction businesses across the country, stated an official.
Speaking to The Peninsula in an interview, Qatar Country Manager at Turner & Townsend David Smith said: “There’s still much room for improvement, especially as interest and investment in smart cities grow, in line with the state’s Smart Qatar initiative. Construction businesses will need to adapt to the opportunities and challenges which come with this trend, such as the increased emphasis on data and analytics, and the integration of technology into building design.”
However, the market continues to witness several challenges. The official underlined that “High demand paired with skilled labor shortages are keeping costs up and lead times long, with clients continuing to compete for resources. This is exacerbated by strong competition for supply in the wider region, notably with the Kingdom of Saudi Arabia’s ‘gigaprojects’. When it comes to materials, it’s crucial that clients’ procurement strategies factor in early orders for items likely to be impacted.”
Smith noted that investment in digital tools will help to mitigate risks by boosting efficiency including integrated design platforms like building information modeling (BIM), and systems that monitor the benchmark cost and time data.
“The reality is that digitalisation has to be seen as an investment – a cost which will generate a financial and operational return in the long run. Tools such as BIM, AI, and cloud-based solutions can have truly impressive impacts on performance and efficiency. Digitalisation simply has to be a priority if we’re to create more productive, interconnected, and sustainable urban environments,” he said.
QNV 2030 seeks to diversify the national economy with industries including construction playing a significant role. The official remarked that Qatar is becoming a “destination of choice” for tourism and culture with an enhanced transportation network and transition to green energy sources.
The researcher also highlighted that transport and liquefied natural gas (LNG) are some of the key focal pipelines in the market.
In the transport sector, the government’s Transportation Master 2050 initiative aims to expand road networks by over 700km and to develop public transit routes by more than 500km. Qatar Rail is expected to expand the Doha Metro program over the next two years, and Hamad Airport will increase its facilities to accommodate 70 million passengers per year. Meanwhile, Qatar’s LNG production is set to increase the North Field’s capacity by 64 percent with the support of the ongoing expansion of Hamad Port.
Smith noted “FIFA 2022 grew local expertise in our construction sector significantly, but increasing activity throughout the region, particularly in the Kingdom of Saudi Arabia, is driving competition for labor and risking market capacity as talent flows out of Qatar. There will be opportunities to attract talent back through high-profile events in the future, such as the 2027 FIBA Basketball World Cup.”
“However, to ensure our supply chains’ capacity in the short and long term, we have to do more to build skills locally and retain international talent outside of these exciting sporting venue programs,” he added.
