No white elephants here

So now the hard work really begins. Whether or not the majority of Qataris actually believed their country could win the World Cup, the reality is that Doha’s landscape is going to change immeasurably over the course of the next twelve years as an estimated $57bn is pumped into infrastructure. Contrary to global opinion, the vast majority of that infrastructure spend is not going to be on ‘white elephant’ stadia — with only about $4bn earmarked for stadium construction and refurbishment — but it will go towards building possibly the most up-to-date mass transit and tourism developments anywhere in the Gulf. Whereas Qatar, like its neighbours, has had to put several key projects on hold, the World Cup win means that those projects will now be shifted back to the top of the national agenda.

What the successful bid actually means, therefore, is that Qatar has provided itself with the perfect excuse to outdo, and in some cases overtake, all of its regional peers, boosting economic productivity significantly in the process. In fact, the actual month-long event itself could well be seen as simply the cherry on the cake — a celebration of Qatar’s emergence onto the world stage, as the country meets its Vision 2030 deadline eight years ahead of time. Next week — and right on cue — Qatar will hold a second major national celebration, this time marking the country’s liquefied natural gas production target of 77 million tonnes per annum, by far the world’s largest. These are heady days in Doha.

“There was always significant government spend planned for Qatar over the next ten to fifteen years,” says Al Habtoor Leighton Group Qatar executive general manager Tony Saadie, just one of the many regional contractors eyeing the new work available in the country. “The World Cup will now ensure that the expenditure will be accelerated and will not be extended, and there will also be increased expenditure in the building sectors for projects such as hotels, which prior to the World Cup win were not previously forecast as being greatly required.”

However, it’s unclear how much of that pipeline of new work will be available for local companies, especially given the specialised nature of much the deals on offer. Needless to say, the region’s biggest construction outfits are already poised to swoop on the lucrative new deals available, and listed firms like Arabtec and Drake & Scull International (DSI) have already seen early share gains in local indices.

“Companies with no GCC experience will no doubt win some contracts; however, they will have to go through the learning curve of operating within a new environment which may not result in the best service for Qatar, or for the profitability and reputation of those companies,” says Wael Allan, regional managing director for Hyder Consulting, which has already worked on several key Gulf projects, including the Burj Khalifa.

Arabtec Construction, the GCC’s biggest contractor, has high hopes for Qatar, given its established business in the country. Like other firms, it is also considering whether to increase the number of ‘boots on the ground’ in Qatar, and says it will do this as and when it is required.

“We would consider it extremely advantageous to be already established there, to know the market, to have subcontractors who already know us and to be known as a contractor who can deliver quality projects on time,” says Thomas Barry, the firm’s CEO. “We would expect to be in a position to win a higher share of such a market as we have the correct experience both in stadiums, hotels, residential and retail projects and the like — we are optimistic about our chances.”

For Dubai-based contractor DSI, district cooling could become the sector of choice. The company has just picked up a major district cooling award in Doha, and chief corporate affairs officer Zeina Tabari says that DSI will win more similar deals there, especially if cooling work is needed for the stadiums. Tabari says that those non-Qatari firms that have niche offerings in specific sectors could do well.

“It depends on how easy the regulations become — in Qatar and Saudi Arabia, it’s very difficult for companies to come in, as it’s mainly regional and local firms,” she adds. “On the other hand, in Qatar, not a lot of companies have that expertise, particularly on the MEP [mechanical, electrical and plumbing] and infrastructure side. There is going to be a lot of supply in terms of work, and I’m not sure that there are enough companies in the market to cope with that demand.”