Qatar building costs set to rise 18%

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Despite the call from Qatari contractors to take down the price of raw materials, construction costs in the country will increase up to 18 percent by 2017, according to the Tender Price Index for Qatar by MEED Cost Indices.

The rise in costs will put a strain on Qatar’s supply chain and will ultimately have an impact on the value of contract awards from 2013 onwards, reaching a peak of US$40bn in 2017.

Shortages and drastic price increases are the main concerns of construction industry contractors working to deliver the infrastructure for the FIFA 2022 World Cup in Doha.

According to the World Bank in January 2013, raw materials increased by 1.1 percent and metals rose sharply by 4.1 percent. The World Bank Commodity Prices and Price Forecast in Nominal US dollars report, released on January 15, sees the price of copper per meter going down from US$7,800 in 2013 to US$6,960 in 2017, before hitting US$6,800 in 2025. Aluminum will increase in its price per meter from US$2,200 in 2013 to US$2,575 in 2017, reaching up to US$2,900 in 2025, according to the World Bank forecast.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

1
Qatar's labour requirements

Qatar's labour requirements

Qatar’s Supreme committee has published worker welfare standards...

2
$40bn housing deal may signal Gulf investment push into Egypt

$40bn housing deal may signal Gulf investment push into Egypt

Egypt's economy is recovering only slowly from the turmoil that...

Most Discussed
  • 6
    UK politician sacked over burka binbag jibe

    The whole point is that women should dictate what they want to wear and not men. That should be the underlying motive. If a woman WANTS to wear a burqa... more

    Wednesday, 27 August 2014 1:16 PM - mick
  • 5
    UAE teens among the highest for obesity rates

    There are loads of fatties in Dubai. They don't offend me personally. Unlike other countries where taxes support the health system, here, each person has... more

    Wednesday, 27 August 2014 4:04 PM - nice
  • 5
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy