Transport Continues To Drive Growth
The awarding of the final line of the Doha metro to be tendered and the commencement of construction on key highway projects further supports our view that Qatar's transport sector has entered into a period of significant growth. Investment in the transport sector is a key government priority as Qatar looks to ease congestion in Doha, facilitate the diversification of the economy and cater for the upcoming Fifa World Cup in 2022.
The USD4.4bn Gold line of Doha's metro has been awarded to the ALYSJ joint venture (JV), which is headed by Greek firm Aktor, with India's Larsen & Toubro, Turkey's Yapi Merkezi and STFA, and Qatar's Al Jaber Engineering. The development of Doha's metro network is the major factor underpinning our forecasts in for Qatar's rail transport sector; we expect strong growth from 2014 onwards, averaging 11.5% over our 10-year forecast period.
We note that due to Qatar's and the region's lack of existing rail infrastructure, there are huge opportunities for international firms to enter the market. Looking at selected companies for Doha's metro lines, the reliance on international firms for the development of Qatar's railway is apparent. Vinci, GS Engineering and Construction, Darwish Engineering, Impregilo, SK Engineering and Construction, Galfar Engineering and Contracting, Porr, the Saudi Binladin Group, HBK Contracting, Samsung C&T and OHL have all been brought in to develop the network. While the metro has now been fully awarded there are still plans to build tram routes in West Bay and Lusail, a high-speed line and dedicated freight railways - all part of Qatar's US$40bn rail development plan.
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|Transport Infrastructure Industry Value, QARbn (LHS) and Rail and Road Infrastructure Industry Real Growth, % Change y-o-y (RHS)|