Three quarters of firms forecast increasing capital spending, despite budget overruns
Nearly three quarters of businesses expect to increase their spending this year on mega infrastructure projects in the Middle East, according to a survey by professional services firm PricewaterhouseCoopers (PwC).
The '2012 Capital Projects and Infrastructure Survey' showed 72 percent of respondents forecasting increased spending, despite 64 percent experiencing budget overruns. Another 80 percent said their projects had faced delays in the past year.
“This is a positive indicator”, Chris Scudamore, PwC Partner based in Doha, who leads Doha Capital Projects and Infrastructure and worked on the survey, told Arabian Business Qatar. “The message is that they are investing in new different projects, not only on the ones they are working on right now."
The survey was completed by 61 respondents from a range of industry sectors, all with a key role in the delivery of major projects.
“There are budget and schedule challenges that need to be better managed across the region, but these challenges won’t stop countries from developing more projects,” said Scudamore.
He cited Hamad International Airport, which will be inaugurated on April 1 in Doha after repeated delays. “Those delays won’t stop Qatar from doing new projects, but the country will eventually develop a better way,” Scudamore said.