DOHA: Qatari businessmen and contracting companies are demanding for laws to compel their foreign counterparts, entering into the country, to source 30 percent of building materials locally, as local builders are facing severe competition from them (international companies).
A number of Qatari businessmen while talking to The Peninsula and also with a local Arabic daily told that the construction companies are facing a lot of challenge and stiff competition from international companies with huge capital, long experience and advanced technologies.
They advocate that local companies cannot compete with their foreign counterparts unless they get support from the establishment and a level playing field is created for them.
Rashid Hashil Al Saeedi, a Qatari businessman, said: “Many Qatari companies have full capacity and capability to compete with international companies. And they can further develop their capacity as per the market requirement. But not all are equally competent. It is very important for the local companies to be given opportunity to develop and prosper.”
He added: “Foreign companies not only repatriate resources but also leave the country once the project is complete. While in contrary, with local companies, they re-invest the profit in the country and it is also easier to hold them accountable if something goes wrong with the project.”
However, he agrees to have a law in the country that require foreign companies to buy raw materials from the domestic market, which will not only encourage local companies but help the common people, government and all the other stakeholders.
Citing the example of neighbouring Saudi Arabia, where foreign construction companies are required to buy at least 20 percent of the building material locally, Qatari companies are also similar laws here.
“Currently Qatari companies have a good market share, and are handling about 30 percent of the projects. But they are facing severe competition. If the obstacles and challenges of local companies are addressed timely, the market share can reach up to 70 percent”, Ahmed Al Khalaf, a prominent Qatari businessman was quoted as saying by a local Arabic daily.
He added that this can be achieved by working individually with some support from the government or by creating joint ventures between local and freeing companies.
He said: “Presently the local market has the capacity to supply only 25-30 percent of raw materials. Keeping in view the growing demand of building materials in the country in future, the current volume of supply must be increased substantially to meet demand.
Al Khalaf also noted that in terms of project management, experience of international companies represent between 10-20 percent, and about 90 percent of the work can be undertaken by local companies on schedule.
He added: “Qatari companies have great potential and talent that can play a big role in the development of the country.
He also highlighted the problem of housing workers, keeping building materials and equipments. “A lot of companies are still forced to leave their equipment at the headquarters of the projects due to the non-existence of an alternative.”
They demanded that the construction companies to be allocated more space for housing workers and also be provided trained labours that can help these companies to cope with the rising competition.
Another businessman, Nasser Al Haider, highlighting similar concerns, said: “The coming period will witness a lot of infrastructure related projects which will require more building material, workers and equipments. So, local companies should be provided with more support and opportunities as they are not able to compete with international companies.”
He also suggested the government to create condition that can facilitate more mergers and joint ventures between local and foreign companies to make the former more competitive.
The Peninsula
