Foreign direct investment under Qatar National Vision (QNV) 2030, the government’s strategic development roadmap, has been driving the growth of Qatar’s construction market.
The framework aims to transform Qatar into a self-sustaining, diversified economy that is no longer heavily reliant on oil. This entails many infrastructure projects that will help elevate the standard of living of its citizens, and for this reason, the outlook on the construction industry in Qatar remains positive.
One of the projects related to QNV 2030 is the construction of the FIFA World Cup tournament stadiums. As the first Arab country to host football’s largest event, the project became inviting for foreign investors who planned to invest in infrastructures such as hotels, ports, airports, highway networks, hospitals, and more in time for the tournament.
The plan for the growth of Qatar’s construction market goes beyond this year. New developments have attracted millions of dollars in investments and by improving the ease of doing business in Qatar, many more companies are going to elevate the market in the coming years. What are the current trends in Qatar’s construction industry? What are the steps companies must take if they plan on starting a construction business in the country?
QNV 2030 and the Construction Boom
One of the pillars of QNV 2030 is economic diversification, which includes building a world-class infrastructure backbone for the country. This started with public projects in leading sectors such as transportation, healthcare, and education. The costliest project, the 2022 FIFA World Cup stadiums, had construction costs that amounted to $10 billion.
Other projects include the Qatar Integrated Rail, a $40 billion urban metro, high-speed passenger railway, freight line system, and the New Port Project, a $7.4 billion mega port designed for food security facilities and warehouses. The expansion of the Hamad International Airport is also included, with a budget of $15.5 billion.
Gas developments are also included in the QNV 2030 projects. These include the Barzan Gas Development, with a budget of $10.3 billion to increase gas supply to the local market, and the North Field Expansion, intended to increase the liquefied natural gas (LNG) supply of Qatar through the $35 billion project.
Opportunities for Contractors
In 2021, Qatar’s construction market grew by 1.7%, after falling by 3.8% in 2020. A recent report expects the industry to grow by 2.3% this year, and average 3.6% growth from 2023 to 2026, still through investments from QNV 2030.
The Qatari government has ratified a new law that regulates public-private partnerships (PPP), which is expected to drive more foreign direct investments to the country. Based on recent construction trends in Qatar, infrastructure development, transport and healthcare projects, and the building of schools will continue to support the industry’s growth.
There are many opportunities for foreign contractors to expand in Qatar, especially in the development areas that are key to achieving QNV 2030. Lower costs of building materials are also highly encouraging for contractors that want to expand in the country.
As Qatar positions itself to become an advanced country by 2030, many foreign investors will not want to miss out on riding the tide of the construction industry’s expansion in the country.
