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  • Qatar set to see building materials demand rise

    A BMI report says that building materials demand is set to rise in Qatar on a strong project pipeline.

    As the FIFA 2022 World Cup deadline draws closer, the demand for building materials in Qatar’s construction sector will continue to accelerate, a new report has shown.

    BMI Research said in a report: “The government policy will serve to help mitigate bottlenecks with regard to matching growing demand with an adequate supply of building materials,” Gulf Times reported.

    The approaching FIFA 2022 World Cup is anticipated to drive annualised average real growth of 12% and increasing amounts of aggregate building materials will be required to “fuel rapid expansion” in Qatar’s construction sector.

    BMI added: “We expect that prudent government policy under the auspices of state-owned Qatar Primary Materials Company (QPMC) will help to facilitate building material supplies to the private sector, allowing the government to successfully implement its ambitious infrastructure build out.”

    Qatar’s investment plan will spur well-diversified growth across the country’s infrastructure sector, with transport and commercial construction projects set to be major beneficiaries.

    According to the Fitch Group company, the country’s construction boom will in turn sustain demand for primary construction materials.

    Qatar’s public works authority Ashghal forecasts that projects in the pipeline will require a growing total of 495mn tonnes of limestone and 126mn tonnes of gabbro out to 2022.

    The demand for primary materials including cement, bitumen, aggregated and washed sand has likewise “expanded markedly” over the last few years in Qatar, a development BMI expects to see strengthen in the coming years.

    Already one of the highest per capita consumers of building materials, BMI forecasts that Qatar’s cement demand will grow by 4% on an annualised basis out to 2022.

    In this regard, concerns such as state-owned Qatar National Cement Company (QNCC), which controls 70% of the Qatari cement market, are preparing to ramp up capacity to meet growing materials demand. QNCC will raise production from 4.4mn tonnes to 5.63mn tonnes per year, the report said.

    Of note, BMI highlighted the growing non-residential and non-residential building space in Qatar — where it projects an annualised average growth of 15% out to 20 22 — as a major driver of cement demand.

    On the other hand, after 2017 when the growth in the road sector slows, the demand for materials such as bitumen is likely to shrink.

    BMI anticipates that several government enterprises presently in place will prevent any major shocks to Qatar’s construction supply chain in the coming years, helping temper materials inflation within rapidly intensifying cost pressures.

    “Given the hard deadline of the FIFA 2022 World Cup, delays to major projects stemming from the unavailability of building materials will prove untenable, making the smooth functioning of Qatar’s construction market a top government priority,” BMI said.

    Courtesy Construction Week



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