Qatar Construction 2021 – New Trends, Opportunities, and Challenges for Construction as Qatar looks beyond 2022 – MEED Insights

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The Qatar construction market has proved itself to be highly adaptable and resilient in the face of considerable financial and logistical challenges over the past five years from the COVID-19 pandemic, lower energy prices, and the GCC diplomatic dispute, each of which has affected national finances and industry supply chains. Unlike most other construction markets in the Middle East and North Africa (MENA) region, Qatar performed consistently in 2020, with about $10.5 billion of construction and transport project contract awards.

What are the market dynamics in the Qatar construction market?

As the country prepares to host football’s Fifa World Cup in 2022, Qatar’s construction market has faced two key challenges over the past five years. These are the economic headwinds of lower energy prices, as well as restrictions on trade with Saudi Arabia, the UAE, Bahrain, and Egypt. When the trade restrictions began in June 2017, there were concerns that construction activity would grind to a halt as it would be cut off from its existing supply chain. Ultimately, these concerns were short-lived, and construction, as well as the economy in general, managed to establish new supplies from markets that remained open to trade. The market is currently dominated by local contractors that have grown with the market and benefitted from the recent absence of regional competition from the UAE and Saudi Arabia, and to a lesser extent Egypt and Bahrain.

As the market completes projects ahead of the World Cup 2022, there are concerns about what will keep the construction industry busy beyond 2022. While there is still a drop-off in activity expected during and immediately after the event, there is growing visibility on what the longer-term projects will be.

What are the key sectors in the construction market in Qatar?

The key sectors in the Qatar construction market are construction and transport.

Construction

The potential awards in the construction sector in Qatar is very strong, with projects worth just under $50 billion in the planning phase. Of these, more than 85% of projects are in design, more than 4% are under study and the rest are in various stages of bidding according to data from MEED Projects. During 2021-22, the largest projects due for award include the Airport City in Doha, North Field Production Sustainability: Phase 2, and National Centre for Cancer Care and Research.

Transport

Doha has a strong pipeline of future transport projects. About 50% of the transport projects in the pipeline are in the design phase. The biggest transport project due to be awarded in Qatar during 2021-22 is Hamad International Airport Expansion: Concourse D and E. The project is currently in the design phase and is expected to be awarded during the last quarter of 2022.

The construction sector in Qatar can be further subdivided into real estate, tourism, healthcare, and education. The transport sector comprises roads, rails, airports, and ports.

Qatar construction market, by sector

Qatar construction market, by sector

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Who are the major players in the Qatar construction market?

The major players in Qatari construction market sector are Lusail Real Estate Development Co., United Development Co., Energy City Development Company, Qatar Free Zones Authority, and Msheireb Properties.

Urbacon Trading & Contracting leads Qatar’s construction market in 2021 followed by Redco Construction – Almana. Local contractors dominate the rest of the top 10. The major local firms that are in the top 10 include HBK, Harinsa Contracting, Generic Engineering Technologies, Hassanesco, Al Bandary Engineering and Construction Development Company.

Qatar Public Works Authority (Ashghal), Hamad International Airport Steering Committee (HIA), New Port Project Steering Committee (NPP), Lusail Real Estate Development Co. and Qatar Ministry of Defence are the leading clients in the transport sector of Qatar. QD – SBG Construction continues to be the leading transport sector contractor followed by Boom Construction Company, UrbaCon Trading & Contracting, Advanced Construction Technologies, and Bin Omran Group.

Qatar construction market, by key clients

Qatar construction market, by key clients

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Qatar construction market, by key contractors

Qatar construction market, by key contractors

To know more about key contractors, download a free report sample

Market report scope

Segmentation by sector Construction and Transport
Key construction sector clients Lusail Real Estate Development Co., United Development Co., Energy City Development Company, Qatar Free Zones Authority, and Msheireb Properties
Key construction sector contractors Urbacon Trading & Contracting, Redco Construction – Almana, HBK, Harinsa Contracting, Generic Engineering Technologies, Hassanesco, and Al Bandary Engineering and Construction Development Company
Key transport sector clients Qatar Public Works Authority (Ashghal), Hamad International Airport Steering Committee (HIA), New Port Project Steering Committee (NPP), Lusail Real Estate Development Co., and Qatar Ministry of Defence
Key transport sector contractors QD – SBG Construction, Boom Construction Company, UrbaCon Trading & Contracting, Advanced Construction Technologies, and Bin Omran Group

Scope

  • This report is aimed at helping companies create strategies for targeting and growing the market. It uses almost exclusively data from MEED Projects, the region’s leading online projects tracking service. With 15,000 active projects tracked and more than 35,000 in total in the database, MEED Projects makes it possible to quantify current, historical and future trends in the projects market in the region. I am certain that this report can help you achieve success in Qatar.

Reasons to Buy

  • Opportunities and challenges in Qatar’s projects market
  • Analysis of the pipeline of planned projects and contract awards
  • Key policies and drivers shaping the outlook for projects in Qatar
  • Political and economic background
  • The barriers and challenges that may arise
  • Sector-by-sector breakdown of future project plans
  • Key drivers of projects in each sector
  • Qatar’s most valuable key projects and major project sponsors

Table of Contents

Table of Contents

1. Executive summary

2. Market overview

2.1 Doha gears policy to maximise World Cup 2022 benefit

2.2 Crossroads for construction as focus shifts to next generation of projects

2.3 Contract awards

2.4 Qatar construction market shows resilience in 2020

2.5 Impact of Covid-19

2.6 Key trends

2.7 Major megaprojects under execution or planned in Qatar

2.8 Vision 2030

3. Project trends and pipeline

3.1 Construction

3.2 Transport

4. World Cup 2022 progress report

4.1 Overview

4.2 Status of World Cup 2022 related projects

5. Construction cash flow

5.1 Qatar construction cash flow

5.2 Qatar projects activity monitor

5.3 Qatar construction market sustainability

6. Finance

6.1 2021 budget

6.2 Qatar government finances

6.3 Qatar banking sector

6.4 Qatar banks exposure to the construction sector

7. Sector analysis

7.1 Construction

7.2 Transport

8. Leading clients and contractors

8.1 Construction

8.2 Transport

Table

List of Tables

Table 1: Qatar major construction and transport contract awards in 2020

Table 2: Largest megaprojects planned or underway in Qatar

Table 3: Qatar, construction projects awarded in 2021 ($m)*

Table 4: Qatar top pipeline construction project contract awards ($m), 2021-22

Table 5: Qatar, transport projects awarded in 2021 ($m)*

Table 6: Qatar top pipeline transport project contract awards ($m), 2021-22

Table 7: FIFA World Cup 2022 related projects underway

Table 8: Credit to the construction and real estate sectors in Qatar

Table 9: Select major contracts under execution at Lusail City

Table 10: Contracts due for award at Lusail City

Table 11: Major contracts under execution at the Pearl-Qatar

Table 12: Major real estate projects expected to be awarded in 2021

Table 13: Major tourism projects underway in Qatar

Table 14: 2033 Hospital services gap analysis

Table 15: Capital programme estimates (QRm)

Table 16: Planned hospital projects under Qatar Healthcare Facilities Masterplan 2013-33

Table 17: Major hospital projects planned and underway ($m)

Table 18: Major unawarded education projects

Table 19: Major unawarded packages on the Expressway Programme

Table 20: Local roads and drainage programme

Table 21: Major unawarded road projects

Table 22: Qatar Passenger & Freight Rail

Table 23: Status of various phases of the Doha Metro Project

Table 24: Hamad International Airport Expansion

Table 25: Hamad Port main contracts

Table 26: Other major port projects

Figures

List of Figures

Figure 1: Qatar construction and transport contract awards, 2011−2021* ($m)

Figure 2: Qatar construction and transport awards 2011-2020 by subsector (%)

Figure 3: Qatar construction contract awards by sector ($m), 2011-2021*

Figure 4: Qatar construction contracts in pipeline by status (%)

Figure 5: Qatar construction contracts in pipeline by segment (%)

Figure 6: Qatar transport contract awards by sector ($m), 2011−2021*

Figure 7: Qatar transport contracts in pipeline by status (%)

Figure 8: Qatar transport contracts in pipeline by segment (%)

Figure 9: Qatar construction & transport cash flow, 2013−2020 ($bn)

Figure 10: Qatar construction & transport project activity monitor, 2011−2020 ($bn)

Figure 11: Qatar construction & transport market sustainability assessment

Figure 12: Lusail land-use masterplan

Figure 13: Leading clients in real estate sector by value of work under execution ($m)

Figure 14: Leading contractors in real estate sector by value of work under execution ($m)

Figure 15: Road projects by status ($m)

Figure 16: Leading clients in roads sector by value of work under execution ($m)

Figure 17: Leading contractors in roads sector by value of work under execution ($m)

Figure 18: The proposed QIRP delivery schedule

Figure 19: Doha Metro map

Figure 20: Lusail LRT network

Figure 21: Leading clients in aviation sector by value of work under execution ($m)

Figure 22: Leading contractors in aviation sector by value of work under execution ($m)

Figure 23: Hamad Port

Figure 24: Leading clients in ports sector by value of work under execution ($m)

Figure 25: Leading contractors in ports sector by value of work under execution ($m)

Figure 26: Leading clients in construction sector by value of work under execution ($m)

Figure 27: Leading contractors in construction sector by value of work under execution ($m)

Figure 28: Leading clients in transport sector by value of work under execution ($m)

Figure 29: Leading contractors in transport sector by value of work under execution ($m)

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