DOHA: The unjust blockade imposed by Arab quartet against Qatar over a year ago in early June 2017 worked as catalyst to improve market competitiveness, both in terms of price and quality of goods, especially construction materials, noted a senior official of the local Public Works Authority (Ashghal).
With the opening of the market and new sources of supplies outside the GCC region, the competitive market environment has not only proved beneficial for the customers but also for the suppliers.
There is a feeling of increased reliability, sustainability and supply security among all the stakeholders.
“I believe that the blockade has worked in favour of the Sate of Qatar not against us, as it has opened up new channels and new markets. Actually some of the products now have reduced prices than before. And a lot of products are now available in more varieties at a wide-range of prices,” Jamal Sharida Al Kaabi (pictured), Manager at Ashghal’s Planning and Quality Department, told The Peninsula.
Al Kaabi added: “More varieties of goods across all industries, including the construction sector, are not only providing more accessibility but also better quality at more affordable prices, which we never experienced before.”
He noted that the earlier approach of following GCC specifications for goods and services were constrains which effectively controlled the demand and supply in the market internationally because of the limited number of suppliers. But when it went out of that scale it became more open and was no longer dictated by the GCC specifications and standards.
After the siege, Qatar started creating its own specifications and standards for products and materials to be used in various industries by looking at different sources and internal specifications, which created a healthier competition.
Asked if there was any adverse impact of the sudden supply interruptions on any of Ashghal projects after to the siege, he said that some movement was created but that never affected any of the projects as Qatar always maintained a huge buffer stock of primary materials and other essential goods.
“Initially it created a little worry about when are we going to resume supplies to replenish the depleting stocks, but the action taken by the leadership and the government was very fast in developing other approach and sourcing from alternative destinations,” added Al Kaabi.
“The most challenging part was related to the logistics sector, but with the opening of the world-class Hamad Port and direct shipping lines with the alternative trading partners, all the obstacles and apprehensions were addressed.”
With the alternative planning and effective strategy, Qatar has proved it, not locally but internationally, that the country has successfully emerged from the impact of the siege with more reliable trading partners and sustainable supplies.
Al Kaabi extended his gratitude to all the countries such as Turkey, India, Pakistan, Oman, Kuwait and others who played big role in helping Qatar in finding other sources and developing the logistics to bring key materials.
“We at Ashghal are aware of about the annual requirements of cement, steel, gabbros, washed sands and other materials that find use in the construction industry. We have dedicated resources and people who conduct studies and forecast on requirements. And we, accordingly, alert the market about it, including the quality, quantity and other specifications,” he said.
Commenting about the possible escalation in the cost of projects due to supply concerns, he reiterated that there is no shortage in supplies so there is not questin of cost escalation.
“We at Ashghal, went out to check the quarries, pre-qualified them to ensure that all qualities and specification standards are met. In coordination with other government authorities and organisations, we have also capped prices with certain suppliers to ensure there is no cost escalation with our contractors,” said Al Kaabi.
He also noted that there is a special committee at the Ministry of Economy and Commerce, which is in charge of monitoring the market, including the prices and qualities of primary materials.
