Qatar leads GCC infrastructure projects

Doha, Qatar

Business Monitor International has reported that Qatar is on course to lead the Middle East Gulf region in terms of infrastructure projects for the next four years, despite a massive 22 percent drop in construction jobs last year.

Taking this into account, the report stated that by 2014, Qatar would have outperformed all other GCC countries. Over the past three years, Qatar has seen massive growth that was hampered by a drop in construction last year with the sector's value falling to $7 billion. However, despite that, it is still one of the most prosperous markets in the Middle East.

The Q3 Infrastructure Report stated that "despite these figures, BMI is still optimistic that Qatar will outperform other countries in the region - in the short term, the low base effects from 2009 will drive high growth in 2010 (forecast at 17 percent year-on-year).

"Over the next five years, growth is expected to average 9.9 percent between 2010 and 2014."

Large-scale projects

Business Monitor International also added that its belief in Qatar stemmed from government investment plans that would see 36.9 percent of the 2010/2011 fiscal budget ($11.9 billion) allocated to major capital projects.

Major infrastructure projects would include the $9 billion New Doha International Airport, the $7 billion New Doha Port project, the $13 billion Qatar-Bahrain Causeway, the $17 billion development of a national rail network, as well as a handful of power and water plants.

"The country's comfortable fiscal position will enable it to continue to allocate large sums to the infrastructure sector," the report said.

"Strong project finance and infrastructure business environment ratings means the country will continue to attract private investors to its infrastructure sector." The BMI noted that it was the government's support for infrastructure projects that was almost solely responsible for Qatar's growth in the sector.

Relevant articles:

GCC projects value above $1.3tn | Musheireb project on schedule for 2012 | Qatar Bahrain Causeway in doubt

Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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