DOHA: Qatar’s construction industry will have to deal with soaring construction costs as the country gears up for the staging of its biggest event yet, the 2022 FIFA World Cup, a press statement said yesterday.
According to the Tender Price Index for Qatar, prepared by MEED Cost Indices, construction costs in 2017 will be 18 per cent higher than current price levels.
The rise in costs will put a strain on Qatar’s supply chain and will ultimately have an impact on the value of contract awards from 2013 onwards, reaching a peak of $40bn in 2017.
Projects industry stakeholders not just in Qatar but across the region and beyond will be given a comprehensive overview of the country’s infrastructure developments at the forthcoming Qatar Projects 2013, held under the patronage of H E Dr Mohammed bin Saleh Al Sada, Minister of Energy and Industry and Chairman and Managing Director of Qatar Petroleum, who will also deliver a keynote speech at the opening on February 18.
Supported by Qatar Petroleum, Qatar Chamber and the Public Works Authority (Ashghal), the conference will take place at the Grand Hyatt Hotel in Doha from February 17-20.
“Qatar Projects presents an unrivalled 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,” said Edmund O’ Sullivan, Chairman, Meed Events, organisers of Qatar Projects 2013.
Challenges in the supply and demand chain for construction materials will be thoroughly discussed in Qatar Projects 2013, with recommendations and solutions presented by experts in the field. Emil Rademayer, General Manager, Meed Cost Indices, will lead the panel discussion on Discussing the Effects of Inflationary Pressure and Impacts on the Project Market.
According to Meed’s special report on Qatar, the organisation charged with ensuring steady supplies of basic materials for the construction industry is Qatar Primary Materials Company (QPMC), which has already secured imports by signing supply contracts with quarries in the UAE and Oman. The report further stated that with supplies secured and a port capable of handling and processing them, Qatar should be able to ensure that the contractors working to deliver the infrastructure for the 2022 World Cup do not experience shortages or drastic price increases.