Infrastructure a priority ahead of the 2022 World Cup
The construction market has contracted over the past two years, with non-critical projects deferred or cancelled. This reflects slowing economic growth.
Disruption to supply chains in 2017 hindered both the economy and construction, but problems have eased with alternatives established and the opening of Hamad Port. Growth suffered, but forecasts suggest more promising growth in 2018.
With fewer projects coming through, tender prices and inflation within construction have eased. The infrastructure sector, however, has been at full speed for five years and should run steadily for the next five ahead of the 2022 World Cup.
The number of real estate projects, which have been relatively low, are expected to surge as the World Cup nears and emphasis switches to hotels and sports facilities. The government has also committed to large-scale investment in health and education.
|Market:||Staying the same|
|Cost escalation 2017–18:||0.1%|
|Cost escalation 2018–19:||1.0%|
|Location factor (USD):||52.6|
Over the next four years, the government’s focus will be on critical infrastructure projects. Some deferred projects may come back online and there will be pressure to complete transport projects on time.
Growing private sector activity will influence construction cost inflation, as hospitality and entertainment projects contest for resources ahead of 2022. The impact will depend on the government’s effectiveness at controlling market prices for key materials.
This content is part of the International construction market survey 2018