BMI View: The hosting of the FIFA World Cup 2022 is driving significant investment in to the construction industry as Qatar develops major stadiums, improves on its existing transport network to facilitate movement across the country, and increases overall hotel capacity. The government ' s efforts to diversify its economy away from the hydrocarbons sector is also spurring industry growth, as it directs attention towards the development of knowledge-based sectors .
Forecast & Latest Updates
We are maintaining our forecasts for 13.9% real growth in 2016 and annual average growth of 11.9% in real terms over the next five years up to 2020. Over our full 10-year forecast period we project industry expansion of 10.2% in real terms. Nominal industry value is set to rise from an estimated USD14bn in 2015 to USD50.2bn in 2025.
The non-residential sector will record the highest growth, spurred by the development of stadiums and hotels as the country readies itself to host the FIFA World Cup 2022. While allegations of workers' abuse related to this preparation persist, our Operational Risk team regards the claims as mostly damaging to the country's reputation, and therefore anticipates little risk to the planned construction around the major sporting event.
While the budget balance is forecasted to go into the red in 2016, our Country Risk team expect it to recover in 2017, with infrastructure development and the government's efforts to diversify the economy shielding it from the subdued commodities outlook.
|f=BMI forecast. Source: BMI|
|Construction industry value, QARbn||59.56||68.37||77.63||88.50||103.98||122.70||141.10||152.39||166.11||182.72|
|Construction Industry Value, Real Growth, % y-o-y||13.85||11.30||10.04||10.50||14.00||14.50||11.50||4.50||5.50||6.50|
|Construction Industry Value, % of GDP||8.0||8.3||8.6||9.1||9.8||10.6||11.2||11.3||11.4||11.7|
Qatar is ranked first out of 14 markets in our Infrastructure Risk/Reward Index for the Middle East & North Africa, with a score of 73.5 well above the regional average of 53.6.
A stable business environment and low political risk boost Qatar's profile in the region.
A shortage of skilled labour and inflated costs for buildings materials are among the largest concerns for firms operating in the market.
|Geography||Risk/Reward Index||Rewards||Industry Rewards||Country Rewards||Risks||Industry Risks||Country Risks|
The Qatar Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Qatar Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Qatari infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Qatar to test other views - a key input for successful budgetary and planning in the Qatari infrastructure market.
- Target business opportunities and risks in the Qatari infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Qatar.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.