As Qatar prepares itself to host the 2022 FIFA World Cup mega event, newly published figures highlight that construction costs in the country will surge by up to 18 percent in 2017 from current levels.
Prepared by MEED Cost Indices, these figures were revealed under the Tender Price Index for Qatar. The increase in costs will put pressure on Qatar’s supply chain and subsequently affect the value of contract awards from 2013 onwards, reaching a peak of USD 40 billion in 2017. Under the Qatar National Development Strategy 2011–2016, Qatar is all set to undertake massive infrastructure development projects.
However, the report points out that Qatar Primary Materials Company (QPMC) has already secured imports by signing supply contracts with quarries in the UAE and Oman. The organization is in charge of ensuring uninterrupted supplies of basic materials for Qatar’s construction industry. With supplies secured, Qatar will be able to ensure that contractors do not face material shortages and infrastructure is developed in a timely manner for the 2022 World Cup.
All stakeholders in the construction industry will be provided a detailed overview of the country’s infrastructure developments at the upcoming Qatar Projects 2013. The conference, to be held at Grand Hyatt Hotel in Doha from February 17-20, is being sponsored by Qatar Petroleum, Qatar Chamber and the Public Works Authority (Ashghal).
Edmund O’ Sullivan, Chairman, Meed Events, organisers of Qatar Projects 2013, believes that, “Qatar Projects presents an unrivaled opportunity to understand the full spectrum of Qatar’s projects market and to leverage the insights gained to not only take full advantage of opportunities but also to effectively mitigate risks, such as a projected increase in construction costs and ultimately higher project values”. The event will also provide the stakeholders to discuss forthcoming challenges in the supply and demand chain for construction materials.