This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
The Covid-19 pandemic led to a slowdown in the architecture, engineering, and construction sectors, despite the government’s plans outlined in the Qatar National Vision 2030 and infrastructure development for the 2022 FIFA World Cup. Although still not at pre-COVID-19 levels, construction activity in Qatar has been resilient, as government spending has continued to finance projects. The construction sector has been one way to diversify the economy, pursue other opportunities, and expand from dependence on the oil and gas sector. As a result, funding toward construction projects have remained steady for much of 2021 and 2022.
Since being announced as hosts of the 2022 FIFA World Cup, the construction industry has become the largest non-minerals industry in Qatar, accounting for 15% of GDP. More than one million visitors will come to Qatar to attend the 2022 FIFA World Cup, so the country has been quickly and steadily building a network of new hotels for guests and developing a state-of-the-art transportation system/infrastructure to meet future tourists’ and expatriate needs. Qatar Rail opened its first metro line in May 2019 and then two additional lines with the entire network serving 37 stations. Several projects including hotels, transportation infrastructure, and stadiums that were delayed due to materials shortages and supply chain disruptions have finally been completed, just in time for the World Cup.
Construction Sector Prospects
The construction sector will shift in Qatar following the 2022 World Cup. A slowdown in projects is expected in the non-residential and transportation infrastructure sub-sectors. However, industry experts are expecting moderate growth as large-scale projects like the buildout for Qatar Energy’s North Field LNG Expansion project ramp up and last until 2026.
The Qatari government’s adoption of a law governing public-private partnerships (PPPs) was approved by the cabinet in April 2019 and signed by the Amir in May 2020. This PPP law is a positive signal for further opportunities to gain access to the country’s infrastructure sector, allowing a structure by which U.S. firms can access and develop public sector infrastructure development opportunities. This law lays the foundation to enhance and complement the development of additional new projects in Qatar, particularly those in support of the next phase of the National Vision 2030, including but not limited to the construction of schools, telecommunications projects, and hospitals. Qatar is set to award projects that utilize the PPP mechanism with an estimated combined value of $85 billion by 2030.
Sub-Sector Best Prospects
- Building materials
- Engineering and architectural services
- Construction and project management services
- Specialized contractors and service providers for education and healthcare facilities
Opportunities with Major Government Agencies and Quasi-Government Entities
- Ministry of Municipality
- Ministry of Environment and Climate Change
- Public Works Authority (Ashghal)
- Ministry of Transport
- Qatar Rail
- Hamad International Airport
- Qatar Ports Management Company (Mwani)
- Ministry of Communications and Information Technology (MCIT)
- Qatari Diar/Lusail Real Estate Development Company
- Private Engineering Office
- Qatar Foundation
- Qatar Energy (formerly Qatar Petroleum)
The public and private sectors rely heavily on international expertise in the areas of architectural, construction, and engineering services, creating significant opportunities in this sector for U.S. firms. U.S. firms are largely present in the design, project, and construction management/supervision services field.
Project |
Total Project Value (USD, Billions) |
Actual or Expected Completion Date |
Details |
---|---|---|---|
Lusail |
45.0 |
2022 |
Mixed-use development |
Major Expressway Program |
20.0 |
Ongoing |
Ashghal expressways |
Hamad International Airport Expansion – Terminal 2 |
15.5 |
2022 |
Hamad International Airport |
Local Roads |
14.6 |
2022 |
Ashghal roads and drainage |
Barwa Al Khor |
10.0 |
2025 |
Mixed-use development |
Sharq Crossing (Currently on hold) |
5.0 |
TBC |
Crossing for Doha Bay |
Resources
Contact the Commercial Section of the U.S. Embassy in Doha.