Built to last • Chapter summary
Te real state and infrastructure sectors was marked most recently by a decision for all public construction to go through Ashghal, the public works authority, for implementation. In practice, this will see various ministries and other bodies working on concepts, designs, and schematics, with Ashgal handling the tender process.
Most of the efforts of the public sector are directed at delivering the Doha beautification program, which is tied intrinsically to 2022 FIFA World Cup preparatory works. Doha Metro, World Cup venues, museums, and cultural and leisure centers are just some of the most relevant projects connecting beautification with the World Cup and other upcoming events. Therefore, the Supreme Committee of Delivery and Legacy is one of the most active public players in this regard. In addition, there is an important process of renovation ongoing in terms of air traffic capacity and, especially, road capacity, an area that is occupying much of Ashghal’s efforts in the run up to the World Cup.
Furthermore, there is much hype around including aspects of Qatari cultural heritage and traditions in all new projects starting in the country. The public sector is the main supporter of this trend, though private contractors and designers are also enthusiastically embracing these concepts in their designs.
Regarding the 2022 FIFA World Cup, the private sector is especially involved in building new residential towers, compounds, villas, and, to an even greater extent, increasing hotel capacity. According to some hospitality sector players, Qatar still needs 40,000-50,000 more rooms to accommodate future leisure demand. If occupancy remains at 60-70% all-year round following the World Cup, the departure of football fans shouldn’t create an oversupply, and it is hoped that hosting the greatest show on Earth will create a long-lasting legacy of tourism across all budget ranges. Indeed, the World Cup has helped to spur the development of three- and four-star hotels at a pace similar to that of five-star offerings.
On the other hand, there is a higher risk of oversupply in the residential real estate segment, which is expected to be corrected as Qatar loosens restrictions on foreign property ownership.
Regarding infrastructure, as the projects for the 2022 FIFA World Cup such as the Doha Metro and the airport expansion are delivered, questions will emerge on the next “2022 FIFA World Cup” to spur Qatar’s construction sector. For now, Qatar seems to be well on track to continue to attract world-class events with the planned hosting of the 2030 Asian Games and a bid for the 2032 Olympic Games. Additionally, the massive gas North Field Expansion project continue to act as a dynamo for the construction business for years to come.