Contracts galore in run up to 2022 Wednesday, 04 May 2011 06:19

The State of Qatar is forging ahead. Defending stability and promoting growth, Qatar is invigorating the infrastructure sector like never before. Qatar’s economy is living up to the promises the country has offered investors. The state is predicted to be the second fastest growing country in the world.

After achieving a 16 percent growth rate in 2010, one of the highest internationally, the Qatari economy is expected to achieve a 20 percent increase in 2011 according to the International Monetary Fund. Qatar’s huge natural gas reserves have fueled the country’s development and put it on the world map.

The Prime Minister and Foreign Minister H E Sheikh Hamad bin Jassem bin Jabor Al Thani said that economic expectations for the coming years are optimistic and supported by an ambitious spending plan nearing $170bn to be assigned for the existing projects and the projects planned for the coming 10 years to expand and modernise the infrastructure sector on par with the most advanced worldwide.

These projects involve all transport facilities including the new Doha International Airport whose first phase will be completed at the beginning of 2012 with 30 million passenger capacity. Also, recently the new $5bn Doha Port project contract was awarded. Qatar Railways Company and Qatari Diar also signed a 5-year contract with Parsons International and Aecom to manage the construction of the new Lusail Light Rail Transit system. Qatar provides an excellent business climate to embrace investments. The favourable business environment, besides the flexible investment laws made Qatar a favoured investment destination.

Keeping the ambitious strategic development goals outlined in Qatar’s National Vision 2030 in mind, Qatar plans to spend about $100bn on various infrastructure and development projects. The state recently unleashed the largest budget in its history projecting a 30 percent increase in revenues. The government earmarked QR140bn for public expenditures, presumably ahead of hosting the World Cup in 2022.

Qatar’s construction industry is projected to drive in more than $22bn in new contract awards by 2012 and showing an increase from the $20.21bn worth of contracts awarded in 2010, according to Research and Markets, the leading source for international market research and market data.

The predicted surge in new construction project contracts reflect Qatar’s emergence as a premier business and investment destination for the Middle East region. In line with this, ProMedia, a subsidiary of Omnix International, is looking to capitalise on this expected growth and create a stronger market presence in Qatar’s construction design market by showcasing its latest line of world class, state-of-the-art Building Information Modeling design solutions at Project Qatar.

According to a recent country report from leading business intelligence research media group MEED, Qatar has dedicated over 40 percent of its budget towards infrastructure expansion projects with expenditures also going to the private sector for the creation of more job opportunities. The move translates to over $66bn worth of infrastructure projects that are either in the planning stage or is already under way in Qatar at present.

Development in Qatar is also attributed to the country’s massive oil and gas reserves, which has acted as a catalyst in attracting key opportunities among its most important industries. Hosting the FIFA World Cup 2022 will allow Qatar to develop partnerships and opportunities with global investors and companies involved with construction, property and infrastructure development. Preparations for the highly anticipated international sporting event will cover all sectors of the country’s economy and is expected to involve around $100bn worth of projects over the next four years.