Qatar Transportation Infrastructure Construction Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Qatar Transportation Infrastructure Construction Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Qatari transportation infrastructure construction market is expected to register a CAGR of more than 6% during the forecast period.

The Qatari government has taken measures to curb the spread of COVID-19, and some of these may have an impact on the construction industry. These measures are going to affect labor, supply chains, and financing arrangements in the construction sector.

The country's construction industry is expected to benefit from investments in preparation for the 2022 FIFA World Cup and Qatar National Vision 2030. Under the National Vision 2030, the country will award an estimated USD 85 billion worth of planned projects in the coming years.

The FIFA World Cup 2022 is expected to add USD 20 billion to Qatar's economy, an estimate that is equivalent to about 11% of the country's GDP in 2019.

As one of the world's richest countries per capita, Qatar entered the COVID-19 pandemic from a position of relative strength. Backed by deep and accessible gas deposits, a positive fiscal balance, and a high credit rating, Qatar had invested more in boosting its transport infrastructure.

• To increase the transportation infrastructure activities, investments are being made to improve existing infrastructure, such as extending the roads and rails, planning new construction across the country, and improving damaged structures by repairing them.
• The rapid growth of continuing urbanization is a major driver of transportation infrastructure investment. As per the World Bank, in 2020, the world population reached 7.8 billion.
• New transportation infrastructure is required in developing countries to enable population transfer from rural to urban areas, and existing infrastructures in developed countries must be improved to improve resilience, improve the environment, and reduce maintenance costs.
• Companies could use new and emerging technology to improve public services such as mobility and well-being, interact more effectively with citizens, increase productivity, and solve environmental and sustainability issues.

The construction sector is one of the fastest-growing sectors in Qatar, with the government planning to spend over USD 200 billion as part of its infrastructure investment. Major transport projects, coupled with the rapid expansion of tourism, education, and real estate, are expected to dominate economic diversification efforts under the auspices of Qatar National Vision 2030, while the 2022 FIFA World Cup has set a mid-term deadline for a number of high-profile projects.

Qatar is investing heavily in developing infrastructure and construction projects, with USD 220+ billion invested in road networks, stadiums, facilities, and numerous major projects, including hotels, leisure, and recreation in the planning or construction phase.

Qatari Diar remains the largest project client in Qatar in terms of the value of projects in execution. Its USD 17 billion mixed-use Lusali City is still considered one of the largest projects in the country. Other major projects include the FIFA World Cup 2022 stadiums, extension of the New Doha port pro, extension of Hamad International Airport, expressways, and road drainage projects run by the Public Works Authority (Ashghal), and development of free zones, led by the newly established Free Zone Authority.

The Qatari construction market is fragmented, with many local players, including Redco Construction Al Mana, Medgulf Construction Company WLL, Bojamhoor Trading and Construction Co. WLL, Hamad bin Khalid (HBK) Contracting Company WLL, Harinsa Construction Company Qatar WLL, and Gulf Contracting Company as the major players.

• The demand for sustainability and technological advancements in the transport infrastructure market is increasing, and companies in the region are expected to adopt and remain competitive.
• Many construction service providers and facility management companies are in the race to enter the Qatari market in terms of services. Companies have partnered 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.

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