Are You On The Bench?


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Insights into the Qatar Construction Market and Opportunities for Real Estate Developers

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Are You On The Bench?

  1. 1. Are you on the bench?Insight into the Qatarconstruction market andopportunities for realestate developers
  2. 2. Are you on the bench? | 2Qatar is positioning itself as a regionalsporting hubThrough a number of programs, such as the Qatar2022 FIFA World Cup (Q2022 program), Qatar isinvesting heavily into becoming a commercial hubin the Middle East over the next few years:• Selected to host the 2022 FIFA World Cup. As part ofdeveloping the infrastructure and stadiums for hostingthe FIFA World Cup in 2022 the program will alsofocus on a number of initiatives for developing theprivate sector.• Men’s Handball World Championships 2015.• Match Racing International Regatta April 2013.• Hosted football’s Asian Cup - January 2012.• Asia Football Cup of Nations – January 2011.• IAAF World Indoor Championships - Doha 2010.• World Clubs Handball Championship - 2010• Is an annual fixture on the MotoGP calendar.• Hosts an annual World Powerboat Championshiprace.• The Qatar ExxonMobil open and Sony EricssonChampionships are regular fixtures on the ATPand WTP calendar respectively.• The Qatar masters has been a part of the PGAschedule since 1998.• Hosted the 2006 Asian Games.Government vision and supportQatar has been focusing on attracting more touristsand visitors. The government’s strategy over the lastfew years has been to promote sustainable tourismby improving transport infrastructure and developingattractions, such as the Museum of Islamic Art andthe Cultural Village.Projects such as the Qatar-Bahrain causeway will helpdrive regional tourist arrivals in Qatar.Programs such as Q2022, with a vision of a successfuldelivery of a historic FIFA World Cup, and Qatar NationalVision 2030, are also focusing on leaving a legacy forQatar in terms of football, infrastructure and economicdevelopment.InfrastructureIn anticipation of the FIFA World Cup in 2022, Qatarplans to invest over USD140 billion over the next fiveyears in transport infrastructure to transform Qatar.Investments in constructing a new airport, roads and ametro system have been planned as part of supportingan anticipated influx of visitors for the World Cup aswell as leaving a sustainable legacy for Qatar.Demand for accommodationA significant demand for affordable properties,especially in the run-up to the 2022 FIFA World Cup, isanticipated. Currently supply of housing is scarce andwith an increase in population forecasted in Doha overthe coming years, construction of affordable residenceswill increase.Affordable accommodation that is currently on themarket has performed well, particularly during theeconomic recession.Golden Tulip, Hilton Worldwide and the StarwoodGroup are actively considering investments in thissub-sector in Qatar.Qatar is planning to invest overUSD200 billion in the next 10years in construction projectssignaling immense opportunitiesfor real estate developers
  3. 3. Are you on the bench? | 3Demand for hotels and commercial developmentsQatar Tourism Authority plans to invest about USD20billion on tourism infrastructure as the number of touristarrivals grows at a rate of 15.9% compounded annually,to reach 3.7million by 2022.Demand for hotel accommodation is also anticipated toincrease as more visitors are expected to visit Qatar inthe run-up to the FIFA World Cup 2022, when the peakin the number of visitors will be experienced.With millions of visitors and football fans anticipated in2022, Qatar has planned for the development of severalhotels in the next few years. The expected influx ofvisitors also creates the opportunity for the developmentof commercial units, such as various shopping mallsaround Qatar.Pipeline of projectsIn anticipation of the FIFA World Cup in 2022 in Qatar,there are numerous projects planned and under way toensure that the country has the right infrastructure andcompetition venues to support an influx of visitors andfootball fans. Projects are currently focused on housing,hotels (estimated: 90,000 rooms), 12 stadiums, a newport, roads, metro and rail system, malls and variousother mixed asset developments, to accommodate anestimated 400,000 fans.The top 20 projects by value in Qatar include1:1) Lusail City2) Qatar Integrated Rail Project3) Hamad International Airport4) Local Roads and Drainage Scheme5) Barzan Gas Development6) Barwa City Development7) Doha, Lusail and Dukhan Highways8) Education City9) Ras Laffan Complex10) New Doha Port11) Pearl-Qatar12) Ras Laffan Olefins Project13) Msheireb14) Transmission Project15) World Cup stadiums16) Inner Doha Re-sewerage Implementation Strategy17) Al-Waab City18) Doha Festival City19) Al-Jawhara City20) Barwa al-BarahaAn estimated of USD168bn (87%) of remaining work forthe projects listed above is anticipated to be awardedover the next few years.1Lusail Real Estate Development Co. is expected toaward USD3bn worth of contracts over the next yearfor infrastructure and roads as part of developingthe new Lusail city2. The project is expected to becompleted by 2019 just before the Qatar 2022World Cup.Additionally, new contracts up to USD3.3bn areexpected to be awarded as part of Doha’s NewPort project by the end of 20133.Environmental sustainabilityEnvironmental sustainability has become a key itemin the government’s agenda and one of the key goalsfor the Q2022 program is to improve environmentalsustainability, not only considering the event but alsofor the country. The program will deliver a newenvironmental sustainability standard and improvenationwide awareness.New contracts up to USD3.3bnare expected to be awarded by endof 20133
  4. 4. Are you on the bench? | 4The implementation of a global sustainabilityAssessment System, which is currently under way, willrequire corresponding bodies responsible for thedevelopment of major projects and developers toadhere to defined policies and standards4. Adherenceto sustainability standards and demonstration ofthese capabilities by developers is expected to bea determining factor during the procurement andaward process.Key success factorsIt is evident that through Qatar’s investment ininfrastructure in anticipation of the Qatar 2022 WorldCup, and also as part of realizing Qatar’s NationalVision, there will be immense opportunities fordevelopers in the region and beyond.Successful bidders will have to take into consideration anumber of factors such as alignment with Qatar’s 2022program strategic objectives, adherence to sustainabilityand health and safety standards, innovation, quality andwith an overall focus on the legacy theme, which isembedded in the strategy for delivering the Qatar 2022World Cup.Key contactsJesdev SaggarMiddle EastInfrastructure & CapitalProjects leaderTel +971 50 882 0924jsaggar@deloitte.comManfield MandigoraMiddle EastInfrastructure & CapitalProjects Assistant DirectorTel +974 3316 1099mmandigora@deloitte.comPanos StavropoulosMiddle EastInfrastructure & CapitalProjects Assistant ManagerTel +971 55 629 2735pstavropoulos@deloitte.comEndnotes1’s National Vision offersimmense opportunities fordevelopers in the region and beyond
  5. 5. About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limitedby guarantee, and its network of member firms, each of which is a legally separate and independententity. Please see for a detailed description of the legal structure of DeloitteTouche Tohmatsu Limited and its member firms.Deloitte provides audit, tax, consulting, and financial advisory services to public and private clientsspanning multiple industries. With a globally connected network of member firms in more than 150countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering theinsights they need to address their most complex business challenges. Deloitte has in the region of200,000 professionals, all committed to becoming the standard of excellence.Deloittes professionals are unified by a collaborative culture that fosters integrity, outstanding valueto markets and clients, commitment to each other, and strength from cultural diversity. They enjoy anenvironment of continuous learning, challenging experiences, and enriching career opportunities.Deloittes professionals are dedicated to strengthening corporate responsibility, building public trust,and making a positive impact in their communities.About Deloitte & Touche (M.E.)Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is thefirst Arab professional services firm established in the Middle East region with uninterrupted presencefor over 87 years. Deloitte is among the region’s leading professional services firms, providing audit,tax, consulting, and financial advisory services through 26 offices in 15 countries with over 2,500partners, directors and staff. Deloitte has been annually classified as a Tier 1 Tax advisor in the GCCregion since 2010 by the International Tax Review World Tax Rankings.© Deloitte & Touche (M.E.). All rights reserved Member of Deloitte Touche Tohmatsu Limited