Qatar Projects 2011 - 2022

Qatar ProjectsA presentation by MEED

Qatar facts

• Cash-rich Qatar has a gross domestic product (GDP) of some $130bn

• The population is small at 1.6 million; expatriates, mostly male, far outnumber Qataris

• It has been ruled by the Al-Thani family since the mid-1800s. In 1995 Crown Prince Hamad bin Khalifa al-Thani deposed his father to become emir

• Qatar has the third largest gas reserves in the world after Iran and Russia, despite its 11,600 square kilometres; in 2008, proven gas reserves were 25.37 trillion cubic metres

• In 2006 Qatar became the world’s largest exporter and trans-shipper of liquefied natural gas (LNG), overtaking Indonesia

Qatar gross domestic product

(QRm) 2009 2010e 2011f

Nominal oil and gas GDP

165,325 235,500 318,650

% change -23.1 42.4 35.3

Nominal non-oil and gas GDP

192,535 223,025 256,590

% change 2.4 15.8 15.0

Total nominal GDP 357,860 458,525 575,240

Nominal GDP % change -11.2 28.1 25.5

% real GDP growth 8.7 14.5 17.0

e=estimate; f=forecastSource: Qatar National Bank

Qatar economy

• The International Monetary Fund expects the economy to expand by 18.6 per cent in 2011

• The official budget surplus in 2010-11 is estimated at QR58.3bn, 12.1 per cent of GDP

• Rising energy prices and production is expected to result in surpluses reaching $130bn by 2015

• Sustaining gas export revenues will be essential if Doha is to avoid an excessive debt burden from the World Cup

• There is a risk that high inflation, as seen in 2006-08, will return. Planning and sensible scheduling is critical, as is an early start to building transport projects

• The sovereign wealth fund Qatar Investment Authority (QIA) holds assets that exceed $90bn

Qatar infrastructure

• Even before the World Cup was confirmed, Doha had a major infrastructure programme planned

• It included $35bn for a new rail network, $20bn on roads and $25bn on real estate

• Some $10bn was earmarked in 2010-11, including the New Doha International Airport and the New Doha Port

• Most projects formed part of the winning 2022 proposal, so are likely to be implemented in the next five years

• The Qatar-Bahrain landbridge was put on hold in June 2010 but will now get renewed attention

• Over the next five years, Qatar will invest more than $40bn on centrepiece projects-a $25bn rail network, a $11bn new airport and a $5.5bn new deepwater seaport

Qatar World Cup 2022

• The bid’s unique selling point is marrying 21st-century technology with financial largesse accrued from hydrocarbons

• The cost of building nine new World Cup 2022 stadiums and refurbishing three is comparatively small, at $3-4bn

• But the associated transportation and social infrastructure will put spending over $100bn in the next decade. More than 65,000 new hotel rooms are to be built

• There is still considerable work to be done in planning for 2017-2022

• A key milestone in the World Cup delivery programme is the establishment of a permanent agency in Q2 2011. One of its first tasks will be to appoint a project manager

Announced and unawarded projects, February 2011

Source: MEED Projects

Qatar oil, gas and industry

• Activity in the energy sector is likely to be subdued in the medium term after unprecedented investment in 2002-07

• The moratorium on developing the North Field means no new gas export projects are likely before 2015

• Following record investment in power, desalination and wastewater, Doha will only require new capacity in 2014-15

• New ethane allocations mean Qatar will be one of the few Gulf states to proceed with new petrochemical schemes in the medium term

• The under-construction Barzan gas development is expected to provide additional gas feedstock for steel and aluminium capacity

How MEED can help you

• Subscribe to MEED magazine and MEED.com for dedicated Qatar and World Cup coverage

• Subscribe to MEED Projects’ new Qatar Projects package to help you to win contracts in Qatar

• Buy MEED Insight’s off-the-shelf Qatar Projects Report 2011-22

• Attend MEED Events’ Qatar Transport event in Doha in June or Infrastructure Projects event in London in July

• If you are interesting in advertising around MEED’s Qatar coverage or sponsoring a MEED event, please contact us – [email protected] or [email protected]