Oil plunge unlikely to hit sector
DOHA: The construction boom is likely to continue in coming years in Qatar despite recent plunge in crude oil prices. According to experts, around $180bn will be invested in various infrastructure projects in Qatar. These projects will create significant demand for other related material such as cement, iron steel and other related materials in coming years.
“There is a significant growth in construction sector. Qatar is investing $160-$180bn in infrastructure and oil and gas sector. There are some landmark projects that have started and needs to be finished like Lusail Project, Doha Metro Project, stadiums for 2022 FIFA World Cup, Msheireb Downtown Doha Project, new port and others. These mega projects will create demand for other related materials,” said Michael Kenyon, Managing Director, Global Construction Practice, Navigant- US headquartered global consultancy firm. “The future is good for Qatar’s construction sector. There is a considerable growth for Qatar’s construction sector leading up to 2022,” said Kenyon on the sidelines of ‘Intercem’ conference yesterday.
In a bid to create world class infrastructure, Qatar government has announced many mega projects rail and road transport, hotel and tourism, urban development, power and water infrastructure and social infrastructure sector.
Oil prices have already plummeted sharply from their 2014 peak due to fall in demand because of slowdown of the global economy.
“All the mega projects will require large quantities of construction materials and cement will be one of the crucial materials. The demand for cement is expected to remain firm due to infrastructure projects related to FIFA World Cup,” said a senior official of Qatar based cement manufacturing company.
Qatar has come a long a way in term of consumption of cement. According to industry sources, the demand for cement a decade ago was just 2,000 tonnes per day (TPD). Now the demand is around 12,000 TPD-15,000 TPD mainly driven by ongoing infrastructure projects across the country.
‘Qatar’s cement industry leading in the region’
DOHA: H E Dr Mohammed bin Saleh Al Sada, Minister of Energy and Industry, said yesterday that Qatar is leading cement industry in this region because of the mega projects which is under progress in preparation for the 2022 FIFA World Cup.
Speaking at cement industry seminar ‘Intercem’ he said, Gulf region is witnessing unprecedented prosperity in areas of infrastructure projects especially due to two important events — FIFA World Cup 2022 and Expo 2020 — hosted by Qatar and UAE.
He said Gulf countries are going to invest $210bn for these two events where $120bn is allocated for infrastructure projects including transportation, road constructions and bridges.
The rapid growth construction sector is leading to the high demand for cement in international market.
The minister said the construction sector in the GCC will show growth by 5.3 percent until 2020 compared to 2.2 percent in the developed countries.
He further said that cement is the second most consumed commodity in the world after water, that is why its manufacturing is causing high Carbon Dioxide emission in the world. This has prompted big countries to use green cement to protect environment.
Intercem Conference saw participation of around 350 delegates from 40 countries.
Addressing the gathering, Salem bin Batti Al Naimi, Chairman, Qatar National Cement Company said the company has plan to raise the production of cement from 16,000 tonnes per day to 21,000 tonnes per day in 2015. The price is stable at QR13 per bag in local market.
Currently cement is not imported and only klinker is being imported from outside