OVERCOMING the challenges posed by the COVID-19 outbreak, Qatar’s construction sector has witnessed a strong bounce back in 2021.
The building permits issuances have risen sharply during the last quarter of 2021, demonstrating solid recovery in the construction sector. As many as 9,500 building permits were issued during last year.
The number of building permits issuance increased by around 15 percent in the fourth quarter compared to the third quarter. During the fourth quarter of last year, which includes October, November and December, 2,159 building permits were issued com-pared to 1,894 building permits issued in the third quarter, according to the data released by the Planning and Statistics Authority (PSA).
Building permits data assumes significance for measuring the economic expansion in an economy.
The number of building permits issuance in the country is one of the important indicators of economic activity as it signals expansion or contraction in the con-struction sector.
Industry watchers keep a close tab on the trend in building permits as any increase in the issuance points to recovery in the construction sector.
Apart from helping in building a robust infra-structure, the construction sector has also emerged as the biggest job creator in Qatar.
The growth momentum of Qatar’s construction sector is likely to continue in the medium term.
Qatar’s construction market is expected to reach a value of $76.98bn by 2026, according to a report by Mordor Intelligence- market intelligence and advisory firm.
The construction market is expected to witness a compound annual growth rate of 10.54 percent over the period of 2021-2026.
The construction market of Qatar was valued at $42bn in 2017. Qatar experienced rapid development in all its industries, due to the huge revenues generated by the country’s oil and gas exports.
Qatar’s infrastructure, construction and real estate industries have been no different, benefiting from the increased demand across all the segments, from residential and office spaces to public transport and hydrocarbon developments.
Construction sector’s continuous growth is supported by the economic expansion in the country and the accel-eration of projects related to the FIFA World Cup 2022.
The current year is expected to be good period for the construction sector as Qatar’s economy is expected to witness a sharp recovery in 2022.
FIFA World Cup Qatar and other mega-events lined up in the coming months will drive the economic growth in the country which will also benefit construction sector
