Construction Sector Forecast To Keep Growing Post-2022

(MENAFN- The Peninsula) Deepak John | The Peninsula

Qatar's construction sector is growing rapidly and is nearing the end of a decade of building, as developing infrastructure directly and indirectly related to the FIFA World Cup 2022 has taken centre stage since 2011. 

The World Cup and other mega events lined up in the coming months will drive the economic growth in the country which will also benefit the construction sector, which is expected to expand in the coming years. 

While certain segments of the sector will see less activity following the World Cup, building will continue in projects that support Qatar National Vision 2030, said a recent report by Oxford Business Group (OBG). 

Furthermore, amid Qatar's ongoing diversification drive, the city of Lusail and the development of Qetaifan Island North will be large sources of construction activity over the medium term. 

In a 2021 report, Fitch Solutions forecast that the industry will expand by a compound average growth rate (CAGR) of 1.8 percent between 2023 and 2030, after growing by an estimated 4 percent in 2021, the report added.

The country witnessed issuance of 2,444 building permits during the first quarter of this year, reflecting a rise of around 13 percent compared to the fourth quarter of 2021. During the fourth quarter of last year, 2,159 building permits were issued according to the Planning and Statistics Authority (PSA).

The growing emphasis on sustainability in building is also shaping activity, as is the use of digital technologies in the planning, construction and operation of infrastructure as smart city concepts move to the fore. 

“Sustainability has moved to the forefront in terms of adherence to environmental, social and governance (ESG) standards. As evidenced by the FIFA World Cup 2022 stadia, the focus is moving beyond concerns such as energy-efficient cooling systems to a greater emphasis on infrastructure's social impact, and the need for contractors to be transparent and responsible in all of their activities,' the global research and advisory firm report stated. 

The OBG report noted that digital technologies are proving a key enabler of ESG adherence in the construction sector and were a primary focus of the 2021 Project Qatar event in line with smart city construction plans. 

Urban development planners in Qatar are actively working towards building the cities of the future, where environmental sustainability and residents' needs are put first. 

Tools such as AI and big data are helping contractors shrink their projects' environmental impact by gathering information that can lead to the use of reduced materials and more efficient inputs, while legacy planning can ensure infrastructure serves the needs of society well into the future.

Equipping buildings and other infrastructure such as traffic lights and street lamps with Internet-of-things solutions, meanwhile, alerts the appropriate authorities when an issue needs to be addressed to facilitate responsible public service delivery by the government.

As the country moves towards a knowledge-based and digitally enabled economy in pursuit of Qatar National Vision 2030, construction activities are set to become more intertwined with technology, it added.

There has been a focus on sustainability in the construction, renovation and after-use of the World Cup stadia since planning began. 

An April 2021 report by the Gulf Organisation for Research and Development, and Qatar's Supreme Committee for Delivery and Legacy evaluated progress on this front, specifically in terms of waste management at the stadia sites. 

The report covered moves in line with the Global Sustainability Assessment System (GSAS) to reduce waste; reuse and recycle materials; and segregate, weigh and dispose of all types of waste — from building materials to food. 

The Supreme Council mandated that all eight venues be eligible to receive Class-A certification under the GSAS Construction Management scheme.

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