Qatar's construction equipment rental market is projected to cross the $1.9-billion mark over the next five year, thanks to the surging expatriate population and the growing construction activities along with increasing government expenditure, according to a report.
Another key factor is the high purchasing cost of construction equipment due to which construction companies prefer procuring equipment on rent, said the report by TechSci Research, a global management consulting firm.
The upcoming mega sports events, such as Fifa World Cup 2022 as well IAAF World Athletics Championship 2019, too are playing a key role in boosting demand for construction equipment, stated TechSci Research in its report, "Qatar Construction Equipment Rental Market By Equipment Type, Competition Forecast & Opportunities, 2016 – 2022."
Further, increase in Qatar's GDP from $44.54 billion in 2005 to $164.64 Billion in 2015, over the last decade, has resulted in infrastructure developments in the country.
In 2016, cranes dominated Qatar construction equipment rental market and for the next five years too it is expected to spearhead the market, owing to its use across residential/commercial setups, especially, for high rise building construction in the country.
Moreover, residential sector created the highest demand for diesel generators in 2016. 250 – 750 KVA category held the largest share in diesel generators rental market.
All these factors are expected to stimulate construction activities in the country, thereby, propelling Qatar construction equipment rental market, it added.
"Fifa World Cup 2022 is anticipated to push construction equipment rental market in Qatar over the coming years," remarked Karan Chechi, the research director with TechSci Research, a research-based global management consulting firm.
In addition, major development plan "National Vision 2030" officially launched by the government in October 2008, with an aim to transform the nation into a developed country, has various goals set including expansion of the country's infrastructure," he noted.
"Consequently, the government has undertaken various projects related to new international airport, new cities, schools, hospitals and electric substations in the country, which are expected to drive the market through 2022," he added.
Construction equipment are being used in large number of construction projects that are in the pipeline, such as Qatar Rail Project, Hamad Port.
In addition, to accommodate visitors during the sports events, new hotels are being built across the country, which is boosting demand for earthmoving equipment in the country, said the TechSci report.
As a result of increasing construction activities, the construction equipment rental market in Qatar is forecast to witness growth through 2022.
Doha is the dominating region in construction equipment rental market where huge number of large-scale projects are being undertaken, followed by Al Rayyan and Umm Salal, which are also fuelling growth in the country's construction equipment rental market, it added.