Financial crisis consequent to the unforeseen pandemic situation put the world on the back foot. Business sectors encountered heavy setbacks and losses. Inflicting human lives, the pandemic led to a downturn in the markets. Real estate space was one of the most affected fields due to COVID-19.
Qatar's construction market felt the heat and was on the verge of going down, the government soon interfered and implemented constructive measures. The timely actions were effective in reviving the real estate sector, especially the construction industry. With a CAGR (Compound Annual Growth Rate) of around 10.54%, the total value of the construction market in Qatar is evaluated to reach approx. 77 billion USD by 2026.
The forecast added momentum to the Qatar construction sector. Augmenting the growth prospects were the policies by the government that would act in favour of supply chains, finance, labor, and employment.
Key Trends in the Construction Sector
We have been seeing persistent growth in the Qatar construction sector for years. The pandemic could dent the upward trend for some time, still, the market was quick to recover. Certain key areas deliver a trendy atmosphere for the construction market.
The business conditions prevent any entity from attaining a monopoly, thus promoting healthy competition. Several renowned brands, which also have an international presence, have multi-billion investments in the Qatar construction market. One of the most prominent development factors, the competitive landscape augments growth.
FIFA World Cup 2022
The Football world cup is a mega event that transcends boundaries. Bringing boundless fame, reputation, and visibility, the extravaganza is the best arena for Qatar to promote its prominence. The Qatar government has allocated more than 100 billion USD to set up the infrastructure for the gala.
Construction of Stadiums
Construction and renovation of stadiums that had begun in 2016 are still continuing at full pace. The stadiums would be the venue for several national and international events after the FIFA world cup 2022. Many other facilities are also planned and are nearing completion, associated with the stadium complex. Hospitals, shopping malls, and recreation centers are being constructed close to the stadiums.
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Qatar National Vision – 2030
Qatar National Vision – 2030 is envisaging a comprehensively developed nation with a strong infrastructure and thriving business sectors. By promoting business sectors including the construction sector, the country will have a nourished economy that will be able to stand strong even without the dedication from the oil and gas sector.
Reasons for the Ongoing Growth in the Qatar Construction Market – What Do We Forecast?
Several factors have led to a combined effect on the growth of the Qatari construction field. Some of the key decisions generated optimistic appeal and received more investments than before.
Constant Investment from the Qatar Government
A strong factor that made the construction sector more promising and sturdy was the continued investment from the government. Even though the scenario caused a kind of commotion, the government didn't back down from any project. It maintained the same investment as before and strengthened the confidence of entities.
Diversification of Investment
It is a known fact that investment in a single field will not help reap the best results. Rather, it can impact the growth if any unfortunate incident occurs. The government diversified the investments focusing on non-oil business sectors.
Target to Reduce the Dependence on Oil Sector
Qatar is planning to grow the construction, manufacturing, and industrial sector abundantly by the year 2030. Thus reducing the dependence on the petroleum sector. Qatar National Vision 2030 is the predominant factor that increased the prominence of the Qatar construction market.
Increased Construction Activities
The country is witnessing construction activities as never before, especially due to the Football World Cup planned in 2022. Construction of stadiums, new hospitals, shopping malls, entertainment centers, and other facilities have been in progress in full momentum. This energy has permeated to other sectors as well.
Contracts for many other development projects have been signed between some of the top entities from the construction field. This includes construction projects at Al Wakra, Al Rakhiya, and other areas. The foresighted construction projects will have a reservoir and other auxiliary facilities at Al Rakhiya, which is scheduled to be completed by the fourth quarter of 2023.
Hyundai E&C would be constructing a set of medical facilities and multi-speciality nursing hospitals. Both the projects would be completed by June 2022 and would be commissioned soon after.
These features point towards a bright future for the Qatar construction market. We forecast unparalleled growth supported by supportive government policies. The positive trend in the construction sector makes it the best time to invest in the Qatar construction market.
Many international players have already commenced investments in the real estate and construction fields. The Qatar government’s policies have been helpful in creating an environment conducive to businesses.
Reach out to us for queries and support concerning the construction industry in Qatar. Electra is the leading trading and contracting company in Qatar which offers the finest quality services and products for network, engineering and interior designing.
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