Qatar: Third fastest growing construction market in the world
Qatar will be among the top five fastest-growing construction markets globally over the next five years, according to BMI Research.
The Gulf country ranks third in the list which is topped by Myanmar with Ethiopia second and Pakistan and the Philippines in fourth and fifth respectively.
All five will record double-digit growth as their respective governments work to tackle significant infrastructure needs, BMI Research said in its outlook for the global construction industry.
The rapid expansion these markets will enjoy will be attractive to firms looking for new avenues of growth, offsetting the generally higher-than-average operational risk, the report says.
Qatar’s growth outperformance over the next five years will be driven primarily by substantial public investment into its transport and commercial construction building sectors as the market prepares to host the FIFA 2022 World Cup.
The government aims to spend QAR 198.4bn ($54.37bn) in 2017 and generate some QAR 170.1bn in revenue, opening a fiscal deficit of QAR 28.3bn that will be covered by issuing debt in the international financial markets.
Of this, 21 percent has been allocated to the transport sector, as the anticipated influx of visitors places strain on the existing network; and 47 percent for projects related to the hosting of the major sporting event, including stadia and ancillary infrastructure.
Opportunities stemming from the event will ensure Qatar remains fertile ground for international investors, with an acceleration of tender announcements and contract opportunities expected in the run up to 2022.
BMI Research is forecasting industry expansion in Qatar of 12.1 percent in real terms between 2017 and 2021