Arabian Business reported that Qatar is seen leading the Gulf region in terms of infrastructure despite 22% contraction in its construction industry in 2009.
As per report, Qatar is on course to lead the region in terms of infrastructure projects in the short term despite a near 22% slump in its construction sector last year.
Business Monitor International said in its Q3 Infrastructure Report that it remained optimistic that Qatar would outperform other countries in the region to 2014.
Despite new data which revealed a big drop in its construction industry in 2009 after three years of rapid growth, BMI analysts said that Qatar was still one of its top markets in the Middle East. The Gulf state's construction sector value fell to just above USD 7 billion in 2009, a real contraction of 21.8%.
Analysts said 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. Over the next 5 years, growth is expected to average 9.9% between 2010 and 2014.
BMI said that its optimism was backed by government investment plans in which 36.9% of the 2010 to 2011 fiscal budget has been allocated for major capital projects with infrastructure set to account for the majority of this. The country’s comfortable fiscal position will enable it to continue to allocate large sums to the infrastructure sector.
BMI added that large infrastructure projects include the USD 9 billion New Doha International Airport, the USD 7 billion New Doha Port project, the USD 13 billion Qatar and Bahrain Causeway, the USD 17 billion development of a national rail network and a handful of power and water plants including the largest power and water plant in the region. It said that the positive attitude of construction industry players to the Qatar market was further reason for optimism.
Saudi Binladin Group set up JV with Qatari Diar Real Estate Investment Company in March to target Qatari construction projects, while the UAE’s Al Habtoor Leighton and Drake & Scull International have also been eyeing Qatar for growth.
BMI said that strong project finance and infrastructure business environment ratings means the country will continue to attract private investors to its infrastructure sector. Government support for infrastructure projects is probably the biggest fundamental driver of growth in the sector.
(Sourced from Arabian Business)
