Qatar’s construction sector anticipates growth of 3.6%

The Qatari construction sector is expected to grow by 3.6 percent in real terms in 2023, following an estimated annual growth of 4.7 percent in 2022, states analysts at the Research and Markets.

However, growth this year will be aided by the development of energy, utility, and transportation projects as the publisher estimates that oil and gas projects amounting to at least QR38.2bn ($10.5bn) will commence this year.

Additionally, the country’s plan to increase Liquefied Natural Gas (LNG) production capacity from 77 million tonnes per year last year to 126 million tonnes per year by 2027, combined with the North Field expansion, with a recently signed partnership deal between Qatar Energy and TotalEnergies for the first and largest phase of construction for almost QR109.2bn ($30bn), will contribute to the construction market’s output in the medium to long term.

The research entity states that “In the short to medium term, constraints may arise due to global supply chain issues, a weakening of export markets amid inflationary pressures in major countries, and monetary policy tightening.”

During the remaining forecasted period, the industry is anticipated to grow at an annual average rate of 3.8 percent between 2024 and 2027, supported by investment in the industrial, renewable energy, housing, and oil and gas sectors.

“Qatar Energy signed agreements with Qatar QSC and its subsidiary, Qatar Fertilizer, to construct a blue ammonia plant capable of producing up to 1.2 million tonnes of ammonia per year, with construction beginning in 2023 and ending in 2026, the report noted.

On the other hand, Qatar Energy and Chevron Phillips Chemical inked a partnership deal of a final investment decision (FID) earlier this year aiming to invest a total of QR21.8bn ($6bn) in the industry of the integrated olefins and polyethylene complex, which is expected to be completed by 2026.

Research and Markets mentioned that the sector will regain some growth momentum from 2025, supported by investments in the transport, renewable energy, housing, and oil and gas sectors.

In May 2023, Qatar’s Public Works Authority (Ashghal) announced a plan to invest QR4.1bn ($1.1bn) on 22 building projects. Of the total, 10 projects, with an estimated value of over QR3bn ($824.2m), are under implementation.

Among the important developments include the construction of the Hamad General Hospital, the establishment of the Madinat Khalifa Health Centre, and the rehabilitation of the veterinary laboratory building of the Ministry of Municipality.

The report said that “Qatar’s plan to increase Liquefied Natural Gas (LNG) production capacity from 77 million tons per year in 2022 to 126 million tons per year by 2027, combined with investments as part of the North Field expansion project, will also boost the industry’s growth over the forecast period.”

QatarEnergy also awarded a QR2bn ($5660m) contract to the Spanish engineering firm Técnicas Reunidas for carrying out Engineering, Procurement, and Construction (EPC) work related to the North Field South Project (NFS) in August 2023.

Source: The Peninsula