Qatar Infrastructure Sector Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | > 7.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Qatar Infrastructure Sector Market Analysis
The Qatar Infrastructure Sector Market is expected to register a CAGR of greater than 7% during the forecast period.
The infrastructure sector in Qatar is estimated to record a CAGR of greater than 7% during the forecast period.
- Construction is rising in Qatar, with the government intending to spend more than USD 200 billion as part of a significant infrastructure-building program. It is the state's fastest-growing industry. Under the auspices of Qatar National Vision 2030 (QNV 2030), the sector may continue to dominate economic diversification efforts due to large-scale transportation projects and the rapid growth of tourism, education, and real estate builds. The 2022 FIFA World Cup has set a mid-term deadline for several high-profile projects.
- In the aftermath of such tremendous development, the industry is facing difficulties. In addition to growing labor, material, and transportation costs, the biggest challenges to steady long-term development are late payments, project delays, and cost overruns. However, the government is making an effort to resolve these problems. Next year, the world's largest exporter of liquefied natural gas plans to spend QAR 90 billion (USD 25 billion) on major projects, a 0.6% increase and the largest share of the overall budget.
- Despite the difficulties caused by the COVID-19 outbreak, Qatar is still committed to making sustainable investments in infrastructure, technology, education, and healthcare. Qatar has a strong line-up of infrastructure and hospitality projects for the future. While the Ministry of Finance, in partnership with the Public Works Authority (Ashghal), is working to implement a strategic plan by tying specified performance metrics for new projects, Qatar has selected new projects valued at QAR 54 billion (USD 14.83 billion) in the medium term.
Qatar Infrastructure Sector Market Trends
The Government's Focus on the Construction Industry Boosting the Market
Government funding will be critical in aiding the building sector's growth. New projects worth QAR 53.9 billion (USD 14.80 billion) were highlighted in Qatar's 2021 budget. These infrastructure projects are expected to be approved between 2021 and 2023. The government intends to diversify the economy and create infrastructure by reducing its reliance on the oil and gas sector. Qatar has established free zones to diversify its economy, attracting businesses worldwide.
The passage of new legislation governing public-private partnerships (PPPs) will likely encourage the private sector's investment in infrastructure, educational institutions, and healthcare initiatives, hence promoting industrial growth through the forecast period. Investments in transportation infrastructure projects may also support growth during the forecast period. State-run Qatar Railways plans to begin construction of a rail line linking Qatar and Saudi Arabia later this year.
While some of the projects may have long-term consequences, the government currently has several measures in place with immediate advantages. The Qatari government has selected many priority projects for the medium term, with QAR 54 billion (USD 15 billion). Qatar may continue to invest heavily in initiatives that benefit the local economy, according to the Minister of Finance, who also stated that 22 new projects worth QAR 9.8 billion (USD 2.69 billion) will be executed in 2023.
Real Estate Supporting the Construction Industry
The COVID-19 pandemic impacted Qatar's economy and finances, causing the housing market to remain sluggish. Despite lower demand, supply continues to grow, resulting in lower residential property prices. The overall housing stock was about 304,715 units in Q1 2021, with 1,700 apartments and villas being constructed. Including project handovers in Lusail (Fox Hills and Marina District), The Pearl, Al Dafna, Mirqab Al Jadeed, and Fereej Abdul Aziz, 1,650 units were delivered by The Pearl, Al Dafna, Mirqab Al Jadeed, and Fereej Abdul Aziz.
Residential construction contracts were awarded during the third quarter at Lusail Waterfront, Marina, and Fox Hills, with 450 units projected to be completed by the end of 2022. About 6,300 units were in the pipeline for the remaining quarters of 2021. The total number of properties sold increased by 2.8% in October 2021, while the value of real estate sold increased by 28% over the previous year. The Qatari market is predicted to gain 13,500 residential units by the end of 2022, in addition to the 580 residential units added in the fourth quarter of 2021. Among the most recent constructions are 15 mixed-use buildings in The Pearl, apartment and mixed-use buildings in Qetifan North, 1,700 villas in Furjan Wadi Lusail, Al Yussum townhouses, two in Yasmeen City Lusail, and the Milos apartment complex in Legtafiya.
Qatar Infrastructure Sector Industry Overview
The market is fragmented and expected to grow during the forecast period due to the rapid growth in infrastructure projects and other factors driving the market. The Qatari infrastructure sector has seen unusual stability and expansion for major and specialized enterprises. The nation has launched several large-scale infrastructure projects, welcoming foreign businesses to participate.
Some of the major players are Gulf Contracting Co., Aljaber Engineering LLC, Al Bidda Group, ALEC, and Arabian Construction Engineering Company.
Qatar Infrastructure Sector Market Leaders
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Gulf Contracting Co
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Aljaber Engineering LLC
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Al Bidda Group
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ALEC
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Arabian Construction Engineering Company
*Disclaimer: Major Players sorted in no particular order
Qatar Infrastructure Sector Market News
January, 2023: By the second quarter of 2023, the Omani Ministry of Culture, Sports, and Youth hopes to award the design, procurement, and construction contract for the Oman Cultural Complex (OCC) project, which is estimated to be built in Muscat, Al Seeb. The complex will be situated in completely manicured gardens with parking, water features, and an open cultural plaza, with a built-up area of around 73,000 sq. m.
December, 2022: The UAE company ALEC Engineering and Contracting (ALEC) plans to acquire Target Engineering Construction Company. The combined revenue of ALEC and Target Engineering, both subsidiaries of the Investment Corporation of Dubai (ICD), will be close to USD 2 billion. Using Target Engineering's substantial assets, which include an 11,000-person workforce, more than 30 marine vessels, and 52,000 sq. m of API/ASME-certified fabrication facilities, ALEC may be able increase its resources through the joint venture.
Qatar Infrastructure Sector Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Current Market Scenario
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Value Chain/Supply Chain Analysis
4.6 Impact of COVID -19 on the Market
5. MARKET SEGMENTATION
5.1 By Infrastructure segment
5.1.1 Social Infrastructure
5.1.2 Transportation Infrastructure
5.1.3 Extraction Infrastructure
5.1.4 Manufacturing Infrastructure
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Al Jaber Engineering Co.
6.2.2 Gulf Housing & Construction Co.
6.2.3 Al Bidda Group
6.2.4 ALEC
6.2.5 Arabian Construction Engineering Company
6.2.6 Urbacon Trading & Contracting W.L.L
6.2.7 Redco Construction - Almana
6.2.8 Qatari Diar Vinci Construction (QDVC) QSC
6.2.9 United Construction Est. W.L.L
6.2.10 Qatar Construction Technique W.L.L.*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
Qatar Infrastructure Sector Industry Segmentation
The essential resources that make it possible for a nation, community, or organization to run smoothly include transportation, communications, power sources, and buildings. Hard infrastructure includes technical components like cabling and networking hardware, which plays a crucial role in sustaining corporate operations.
The market is segmented by the infrastructure segment (social infrastructure, transportation infrastructure, extraction infrastructure, and manufacturing infrastructure).
The report offers the market sizes and forecasts in value (USD) for all the above segments. The report also covers the impact of COVID-19 on the market.
| By Infrastructure segment | |
| Social Infrastructure | |
| Transportation Infrastructure | |
| Extraction Infrastructure | |
| Manufacturing Infrastructure |
Qatar Infrastructure Sector Market Research FAQs
What is the current Qatar Infrastructure Sector Market size?
The Qatar Infrastructure Sector Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in Qatar Infrastructure Sector Market?
Gulf Contracting Co, Aljaber Engineering LLC, Al Bidda Group, ALEC and Arabian Construction Engineering Company are the major companies operating in the Qatar Infrastructure Sector Market.
What years does this Qatar Infrastructure Sector Market cover?
The report covers the Qatar Infrastructure Sector Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Qatar Infrastructure Sector Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Qatar Infrastructure Sector Industry Report
Statistics for the 2023 Qatar Infrastructure Sector market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Qatar Infrastructure Sector analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Qatar Infrastructure Sector Market Report Snapshots
