Qatar to award $85bn worth of projects in coming years

DOHA: Qatar is set to award an estimated $85bn worth of planned projects in the coming years.

Of these planned, but unawarded projects, about $9.1bn worth projects are under study, $31.7bn of projects are at some stage of tendering while $44bn of projects are in designing stage.

About $12.1bn of projects are planned or under way in the oil and gas project market. Upstream projects account for the biggest share of oil and gas projects in Qatar, about 55 percent. Upstream and downstream together account for more than 90 percent of the oil and gas projects market in Qatar with a combined value of $20bn share by value, leading market and business intelligence platform MEED revealed yesterday.

The biggest oil and gas projects planned or under way in Qatar are: $6.4bn Bul Hanine Field Redevelopment Project: (Phase I); $2bn North Field Gas Development; $700m Barzan Gas Development – Offshore (Phase 2).

According to MEED, Qatar’s 10 biggest construction clients together have about $55.1bn worth of projects in execution. Qatari Diar is the biggest project client in Qatar by value of projects in execution, with about $18.5bn of projects under construction.

Barwa Real Estate Company is Qatar’s second biggest construction client with about $10.9bn worth of projects under construction. Msheireb Properties is third biggest with about $5.7bn of projects in execution. Qatari Diar’s biggest project is the $17bn mixed-use Lusail Development.

In the Power and Water sector, about $31.9bn of power and water project contracts were awarded in Qatar from January 1, 2008 up to May 31, 2018. Since 2008, the annual value of power and water project contract awards in Qatar has typically been in the range of $1bn-$3bn a year. This is punctured in 2008 and 2015 by two spikes in awards values. The market peaked in 2008 with $8.4bn of awards including: Ras Girtas Power & Water Project; Qatar Transmission Phase VIII. Ras Laffan Common Cooling Water System Power and water project contract awards have slowed in 2018, with only $195m of awards from January to May.

With huge gas reserves and considerable oil wealth, Qatar has enormous potential to generate abundant project opportunities, particularly in the natural gas sector as it is the top exporter of liquefied natural gas globally.Over the coming two years, Qatar’s economy is expected to benefit from the improvement in oil prices and projects required to host the FIFA 2022.

Qatar has so far weathered the impact of the blockade by establishing new trade routes and by drawing on its abundant reserves of capital.

Qatar’s broad resilience to the boycott, is due to its large net asset position, high per capita income, hydrocarbon reserves and relatively low fiscal and external break-even oil prices, which provide a significant shock absorption capacity, MEED noted.

Source: The Peninsula Newspaper