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The growth momentum of Qatar’s construction sector is likely to continue in the medium term. Qatar’s construction market is expected to reach a value of $76.98bn by 2026, according to a report by Mordor Intelligence- market intelligence and advisory firm.
The construction market is expected to witness a compound annual growth rate of 10.54 percent over the period of 2021-2026. The construction market of Qatar was valued at $42bn in 2017.
“Construction activity in the country remains resilient, as government spending has continued on projects. The government’s aim to diversify the economy, emphasizing non-oil sectors, is expected to drive funding toward construction projects over the forecast period,” said the report.
Growth is expected to be driven by the country’s National Vision 2030 plan, under which the government aims to develop the manufacturing industry to diversify the economy away from its dependence on the oil and gas sector,” noted the report.
The construction sector will grow in tandem with Qatar’s economy. Global organisations have predicted strong growth rates for Qatar’s economy. According to the latest issue of the World Bank Gulf Economic Update, owing to a rebound in LNG demand and other factors, Qatar is expected to grow by 3 percent in 2021, 4.1 percent in 2022, and 4.5 percent in 2023.
Government spending will play a crucial role in boosting the growth of the construction sector. According to Qatar’s 2021 budget, new projects worth QR53.9bn have been identified. These infrastructure-related projects will be awarded from 2021 to 2023.
The government aims to develop the infrastructure to diversify the economy away from its dependence on the oil and gas sector. In efforts to diversify the economy, Qatar has opened economic free zones that are attracting companies from across the world.
The construction market in Qatar consists of many sub-sectors including Commercial Construction, Residential Construction, Industrial Construction, Infrastructure Construction and Energy and Utilities Construction.
Many construction service providers and facility management companies are in the race to enter the Qatari market in terms of services. Companies are partnering with developers to offer after-construction services. As towers, low-rise buildings, stadiums, and malls get built and are near completion, the country’s facility management market is expected to grow exponentially in the coming years.
Qatar experienced a rapid development in all its industries, due to the huge revenues generated by the country’s oil and gas exports. Qatar’s infrastructure, construction and real estate industries have been no different, benefiting from the increased demand across all the segments, from residential and office spaces to public transport and hydrocarbon developments.
Qatar’s considerable investment in infrastructure related to the 2022 FIFA World Cup initially drove significant growth in the construction sector.
