Qatar 2022: Dig deep

When Frost & Sullivan analysts recently declared that potential opportunities in Qatar were “throwing themselves” at companies with the ability and know how to utilise them for success, there was not one dissenting voice to be heard.

Speak to anyone in the construction industry about Qatar, and you receive a string of superlatives about not only the looming potential of the vast infrastructure projects on offer, but their vast potential for success and quality. Quite simply, it is the place to be. And the proof is very much reflected in the pudding.

The volume of Qatar’s spending on infrastructure is expected to top $150bn over the next five years. The Qatari government has reportedly allocated some 40% of its budget between now and 2016 to infrastructure projects.

Included in that vast quota is $11bn on the New Doha International airport, $5.5bn on the New Doha deepwater seaport project and $1bn for a transport corridor in the natural-gas rich emirate’s capital, Doha. Indeed, Qatar will spend a mammoth $20bn on road infrastructure projects.

The country successfully bid to host the 2022 FIFA World Cup and will build nine new stadia for the event and renovate three. It has been estimated that some $220bn will be spent in Qatar’s build-up to football’s most prestigious tournament.

Qatar’s National Vision 2030, which aims to transform the country from a hydrocarbon-based economy to a knowledge-based economy, includes programmes for education, health, science and sport, all of which must be connected by multimodal transport infrastructure.

“Qatar is just at the start of one of its most significant decades,” Frost & Sullivan analyst and researcher Vishnu Shankar told CW. “At a time when most countries are coming to terms with post-recession effects amidst political uprising in large parts of the Middle East, Qatar is one of the few countries that is clearly following its vision path for 2030,” added Shankar, who is based in the Middle East.

And the construction industry, in particular, is one market which presents “enormous” opportunities for growth that could be tapped. Though the construction industry at present accounts for a meagre 5% of Qatar’s GDP (which is the highest in the world per capita), it has the highest percentage growth and, especially with various large-scale projects to be completed for the 2022 World Cup, has been earmarked as a “boom in the making.”

The major advantage, according to Frost & Sullivan, is that these projects are all heavily backed by the government and have “a very, very good” chance of completion. “Qatar is, and will be, a significant driver of the overall emerging Middle East economy in the next decade,” said Shankar.

Of the current top five infrastructure projects underway in Qatar, Parsons won the consultancy bid for the third and fourth biggest – the Doha Expressway Package 13 – Al Muntazah Street Extension and the Doha Expressway Package 7 – Salwa Road Phase Two. The combined value of the two expressway projects is more than $1bn.

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“The Doha Expressway is very important for Qatar,” Nizar Salhi, VP at Parsons in Qatar, told CW. “Along with some other main freeway corridors planned in Qatar, the Doha Expressway will provide free flow movement corridors for vehicles in the East/West, as well as the North/South direction throughout Doha and some of the growing suburbs.

“This is a very high-profile job for Parsons, as it is the first urban highway in Qatar designed to international standards. The project won the IRF (International Road Federation) first-place award in the design category in 2004.”

Salhi said the major infrastructure project will bring massive benefits to the growing number of citizens of Qatar. “Once complete, the project will ensure shorter commutes, which translate into economic benefits to the residents of Qatar.” Salhi noted: “This is one of the most challenging projects I have been involved with personally. It is very satisfying to be involved in a project from the beginning, to see it going through the various stages and then finally to see it operational. The opportunities at hand in Qatar are rare to come by anywhere else in the world. The commitment of the government, combined with the wealth Qatar has, and the plans in place to transform this country with its 2030 Vision, are tremendous.”

The expressway is one project Salhi sees as benefiting the liquid-natural-gas rich country greatly, among plenty more. “First and foremost, they [the big infrastructure projects] will enhance the style of living for the population of Qatar in every way,” he commented. “They will ensure a more comfortable way of living and more facilities for everyone. Moreover, these projects will allow young local Qataris to gain valuable practical experience in the various aspects of planning and execution; this will give them the skills base to lead the country after the 2022 World Cup.”

However, while many across the globe see the award of the world’s most prestigious football tournament as the most important and main factor in pushing through Qatar’s infrastructure builds, Salhi sees a far more nuanced and developed approach.

“The FIFA World Cup has had, of course, an impact,” he said. “However, my opinion is that Qatar would have pushed through 70% to 80% of its overall planned programmes even if 2022 had not been awarded to them.” That is an opinion similarly echoed by Atkins chief executive in the Middle East, Richard Barrett. After being awarded a three-year contract by the country’s Ministry of Municipality and Urban Planning, Atkins is to set up a Central Planning Office (CPO) in Doha to co-ordinate the major multi-billion dollar road, rail, metro and other major transport and infrastructure projects which will play a crucial role in helping to achieve Qatar’s National Vision 2030 for world-class infrastructure development. “The World Cup has a great impetus in accelerating programmes, but our plan is the 2030 programme,” said Barrett. “They made it very clear that the CPO was to ensure that 2030 was getting delivered.”

Last year, the huge potential for growth and opportunity saw Frost & Sullivan label Qatar a “boom in the making” – something Salhi sees as an apt phrase.“Yes, all signs indicate that,” agreed Salhi. “New awards and the new vision of the Public Works Authority for the next five to ten years are all good signs.”

Ask Barrett about the word ‘boom’ in relation to Qatar, and he sees something different though – something far more. “What I do not like about the word boom is I think it suggests that this is going to be done in an uncertain way. It is not just throwing money around, but putting the right infrastructure in place.

“The leadership is one of the most mature I have ever encountered in any place that I have worked in Europe, the UK or in the Middle East. The senior leaders are right up there, and are perhaps the strongest I have ever come across.

“The various projects over the next five to seven years are going to be transformational,” predicted Barrett. “I am extremely excited about these projects; they rank as some of the top projects we have covered. We are excited about them, and excited about being a part of the 2030 Vision and helping to develop a world-class city.”

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As one of the wealthiest nations on earth, Qatar may be rich when it comes to the old greenbacks.

However, Barrett is exceptionally keen to stress that is not the only area where green is gold. “Even though Qatar is a rich country, it is important that the money is spent wisely and in a fashion that befits the nature and development of the projects,” he said.

“Environmental concerns and issues are not just being paid lip service – and that is something we are trying to assist with. The whole environment in Doha has improved. The city is going to develop into one of the best in the world, and what we are doing is in support of the 2030 Vision.”

Keith Clarke, Atkins Middle East chairman and former chief executive, is another major enthusiast of the level of expertise and ambition being shown by Qatar and those responsible for the essential decision-making processes.

“The quality of government and support in Qatar is really good; it is world-class. You can almost call it ‘New’ Qatar in that it has ‘new’ aspirations. Ashghal has been very creative in ensuring everyone shares the same values for the 2030 Vision.

“We are working with high-quality public officials, and that is not always the case around the world. To see cohesive co-operation between government officials, to see them working together, is relatively rare and fantastic. That is not true of most governments in the West, but it is world-class in Qatar. The level of maturity [with these projects] is very impressive.”

That is an opinion shared by Salhi. “Our successful experiences on similar projects all over the GCC and across the rest of the world has shown our clients our in-depth knowledge of how to manage and execute projects of this magnitude. The key is our strong commitment and dedication to the state of Qatar – this commitment started in 2000, and is getting stronger by the day.”

Many have opined whether Qatar can put its money where its mouth is. Ask Barrett if he is confident Qatar can deliver, and the answer you receive is a resounding ‘yes’. “Am I confident they can deliver?” mused Barrett.

“Oh, I am confident they can deliver. It is certainly a bright light in a world where there are certain troubles.”