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Qatar’s construction market is poised to grow at a compound annual growth rate (CAGR) of 9.5% from 2023 to 2030 on the back of high government spending on infrastructure and building projects.
By 2030, the market is projected to reach $123.1 billion, more than double last year’s $53.3 billion, according to a new report by Verified Market Research.
The growth will be driven by increased construction activity in various sectors, including commercial, residential, industrial, infrastructure (transportation construction), as well as energy and utility.
The report also noted that the government has been able to fund many projects directly rather than rely on public-private partnerships due to its huge reserves and budget surpluses.
“Qatar is also spending extensively on infrastructure and building projects, with $220 billion planned for the road network, stadiums and facilities, as well as several big projects in the planning or construction stages, including hotels, leisure and recreation,” the report said.
“The administration has also pledged to improve health and education services, as well as to grow the tourist industry, which offers up a plethora of building options.”
Government spending
In its 2021 budget, the Qatari government identified new projects valued at QAR 53.9 billion ($14.8 billion). The projects were to be awarded between 2021 and 2023.
In a separate report published on ResearchAndMarkets.com, Qatar’s construction market is projected to register a CAGR of more than 10% between 2022 and 2027. It said that government spending will play a crucial role in boosting the growth of the sector.
“The government aims to develop infrastructure and diversify the economy by moving away from its dependence on the oil and gas sector. In efforts to diversify the economy, Qatar has opened economic free zones that are attracting companies from across the world,” the report said.
The endorsement of new laws regulating public-private partnerships is also expected to attract private sector investment in developing infrastructure, educational institutes and healthcare projects in the Gulf state.
The growth will also be supported by investments in transportation infrastructure projects.
“In addition to building stadiums specifically to host World Cup matches, Qatar has been investing and continues to invest in modernising its infrastructure. The goal is to become more of a transport hub for a significant part of the world.”
(Reporting by Cleofe Maceda; editing by Seban Scaria)
