BMI View: We continue to forecast the strongest construction industry real growth in the GCC for Qatar, with average annual real growth up to 2022 at 10.4%. The 2022 FIFA W orld C up is a catalyst for growth, but Qatar's need to diversify its economy will mean the majority of major infrastructure projects would be needed , even with the event. The industry is navigating capacity constraints seemingly well, although we still belie ve wage and material price pressures will be a drag .
Qatar is the fastest growing construction and infrastructure market in the GCC and remains one of our favourite construction markets, buoyed by huge government investment, a stable business environment and growing consumer demand. BMI's Country Risk team believes Qatari economic activity will continue to expand at a strong pace throughout 2015, driven primarily by growth in the non-oil sector and therefore the dramatic fall in oil prices we have seen over recent quarters will have little impact on growth. Robust private consumption, on the back of a fast-growing population, large government spending commitments, and continued progress on infrastructure projects will lead the residential and non-residential sector, in particular, to outperform over the long term.
Key Trends And Developments
Oil prices are a minimal downside risk to our forecast, given Qatar is the least exposed out of the six GCC economies to the drop in oil prices, and we do not expect government spending or consumer confidence to be impacted over coming quarters. Qatar's fiscal breakeven price is estimated to be around USD58 per barrel (bbl), and although BMI forecasts USD59/bbl in 2015, the long-term nature of the country's liquefied natural gas (LNG) contracts will delay the impact of lower hydrocarbon prices on government revenue.
In November 2014 the announcement that the 2015/16 budget will see a 16% increase in infrastructure spending to USD24bn, supporting our view that despite lower oil...
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.