Qatar construction growth set to slow to 5% in 2009

Qatar's construction industry is forecast to grow by five percent in 2009, driven by major infrastructure projects that have continued despite the impact of the global economic slowdown.

The sector is seen being worth $5.2bn by the end of the year but in its latest Q4 report, Business Monitor International said it has revised its growth prediction downwards as the Gulf state continues to be hit by project delays and over supply of residential units.

But the report still saw Qatar as being "one of the best prospects for growth in the infrastructure sector in the Middle East in 2009".

"Despite a further downward revision to our forecasts for the country in 2009, we are still optimistic for the sector’s potential, and thus expect it to achieve one of the highest growth rates in the region," the BMI report added.

The residential and commercial construction sectors, however, were unlikely to experience the same growth, BMI said.

The report said house prices in Qatar, which had fallen by 30 percent in the six months to May, have led to an over supply and delays on new projects.

"This drag on overall construction value is one of the reasons behind the downward revision of our growth forecasts for 2009," the report added.

It said data from the Qatar Statistics Authority for the first quarter of 2009 showed a quarter-on-quarter slowdown in growth in the industry.

Over the last quarter there has been continued development in the country’s flagship infrastructure projects including a contract signed for the New Doha International Airport.

In the utilities sector, Al Habtoor Leighton was awarded a $206m contract for the construction of water stations and a pipeline.

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