Qatar’s successful bid to host the 2022 soccer World Cup will speed up its construction programme and boost property prices, with contractors expected to flock to the Gulf state to snap up projects worth billions of dollars, according to Trade Arabia News Service.
The world’s largest liquefied natural gas exporter will try to ease concerns about its lack of infrastructure by spending some USD$100 billion (NZD$130.4 billion) over the next five years, according to some estimates, as it rushes to prepare for soccer’s biggest tournament, the first to be held in the Arab world.
Global Investment House said in a report that infrastructure projects that have been slow to progress will resume speed. “Real estate prices are also likely to see movements in line with the venues with demand rising in certain areas more than others.”
Some projects in Qatar have stalled this year due to a property market slump. In August, Qatari developer Barwa Real Estate Co said it delayed its US$8.3 billion Al Khor project due to sluggish market conditions.
‘There will be a lot of infrastructure spending, with demand for cement and steel so Qatar National Cement, Industries Qatar will benefit in the long term plus real estate companies such as Barwa,’ said Shakeel Sarwar, head of asset management at Securities & Investment Co (SICO) in Bahrain.
The World Cup win would also likely speed up work on the $3 billion 40-kilometre Qatar-Bahrain Causeway, Sarwar added.
Over the next five years Qatar will build a $25 billion rail network, an $11 billion new airport and a $5.5 billion new deep water seaport.
The Gulf state will also spend billions more on 12 air-conditioned soccer stadiums, boosting its need for additional power capacity in a country where summer temperatures can soar to above 50 degrees Celsius. – More at Trade Arabia News
