Powered by the government’s aggressive economic reform initiatives, coupled with other major policy decisions to boost the local economy, Qatar’s construction/real estate sector is poised to witness a robust growth until 2019.
In addition, a number of actions and bold decisions on the part of the government, including the opening up the economy to foreign markets and investors and building global partnerships for economic diversification and sustainable development will further strengthen and embolden the investor’s confidence in the Qatari economy in general and real estate market in particular.
These policy decisions on the part of government are going to work as catalyst for urban and real estate prosperity and the development of the construction industry in Qatar, which has helped in the past few years to build a compound annual growth rate of 15 percent during the period from 2012 to 2017, noted SAK Holding Group’s Market Watch Bureau in its monthly report released yesterday.
The report also noted that this growth is expected to continue in the construction market in Qatar at an annual rate that will reach a compound of up to 7 percent by 2019.
Experts from the local real estate and constructing sector also echoed similar optimism about robust growth in these sectors.
“The progress in the construction sector is moving forward very smoothly. This includes the real estate projects as well as the big ticket projects related to 2022 Fifa World Cup and also those projects which are in line with the Qatar National Vision 2030. The contractors are meeting the deadlines, specifications & standards, and deadlines,” Ahmad Jassim Al Jolo, Chairman of Qatar Society of Engineers told The Peninsula yesterday.
Providing a detailed overview of the construction and real estate market, Al Jolo added: “There is no shortage of any construction materials in the country. Construction on all big or small projects— be its roads, tunnels, drainage system, bridges, tunnels, hotels, malls, logistic parks, megaprojects like Doha Metro, stadiums, and other commercial and residential projects— is going ahead without any difficulties.”
He noted that as part of the government’s firm commitment there was also a massive budgetary allocation for the development and modernization of social sector, which is witnessing the construction of a number of new schools, hospitals, clinics and poly-clinics across the country. This is also working as an additional driving force for the growth of the construction and real estate sector.
According to the SAK Holding report, the total volume of projects implemented by the country, which aims to diversify the economy and prepare for the 2022 World Cup, is more than QR728bn, equivalent to 121 percent of Qatar’s GDP in 2017.
The report highlighted the steadiness of the real estate sector and its ability to face current obstacles, one of which are geopolitical challenges represented by the unjust siege imposed by neighboring countries against Qatar in early June last year.
The report said that indicators monitored by market watch bureau on the progress of construction works, major projects implemented by the government in different regions of Qatar are still pushing all components, and categories of the real estate sector towards further growth, expected to achieve a 7 percent increase every year up 2019, according to specialised international institutions.
While in the past years, it has accumulated a compound annual growth rate of 15 percent between 2012 and 2017.
The report also said that the government performance created a comprehensive shift in the composition of the economy.
It launched a number of initiatives to boost the economy, open up to foreign markets, and build global partnerships, as a direct expression of the vision of Qatar’s prudent leadership that enhanced the fortitude of the economy supported by a sound monetary policy that enabled Qatar to protect the value of the Riyal.
“The above factors corroborate government’s expectations that states that the economy will grow by 2 to 3 percent during 2018; the non-oil sector is expected to achieve good growth rates during 2018,” noted the SAK report.
“These growth indicators are very significant in view of the current conditions afflicting the country, which is a good indicator that will protect the development process in the country and enable it to continue and allow the government to spend on its projects.”
The report also noted that Qatar has maintained its regional and international status as a country with a strong economy that provides an attractive investment environment protected by laws and legislation that stimulate and promote investments open to the world.