What impact will Qatar hosting / not hosting the FIFA 2022 World Cup have on the construction industry in Qatar?

1. Construction companies in Qatar 2014: Business as
usual...
At the time of writing this article the FIFA World Cup in Brazil is in full
swing and the issue of whether or not Qatar will host the 2022 edition of the
said event still has not been resolved - at least publicly. There has been a
welcomed respite for some since at the moment the football on the pitch is
dominating the headlines (it's been a very good tournament actually). The
situation currently is that there are those that think the World Cup will never
take place in Qatar. Then there is the European leagues scheduling
nightmare emanating from talk of the games going ahead in Qatar, but
moving the tournament dates away from some of the hottest months in the
country. It is very difficult to forecast what might happen from our point of
view because we do not know how things work internally with the FIFA
organisation. Although a very messy affair as things stand, QCR believe that
it is highly unlikely that the games will be taken away from Qatar.
None the less, the majority of infrastructure projects in Qatar were already
planned prior to said announcements. The award of the FIFA 2022 World
Cup to Qatar primarily put a scheduling date into the 2030 National Vision
timetable. Qatar also want to host the Olympics and many other major
international celebrations. That said, the decision to give the football event
to Qatar hit another level when sections of the British media (of which we
are part of), uncovered a myriad of 'damming emails' seemingly confirming
that Qatar had indeed 'bought' the World Cup. So here we had finally set
eyes upon the smoking gun and could seemingly answer questions of who,
why, when and what (amounts).
What might all this actually mean though in terms of the construction
projects in Qatar and for Qatar construction companies or for global
contractors that are seeking to work in the country? This Qatar Construction
Review commentary looks at the situation from a construction companies in
Qatar perspective. We are not for or against Qatar being awarded the event -
Qatar Construction Review seeks to analyse any given situation pertaining
to events surrounding the wider construction industry in the country.
Further, whatever projects are undertaken in the country, we would would
always like to see the best companies in Qatar delivering their solutions.
Yes, many projects would be cancelled if Qatar were to lose the games and
in a worst case scenario a few may even get abandoned. Yet this worst case
scenario - if FIFA could actually get to this point, would actually be a
blessing in disguise.
I have to say that a nervousness appeared to hit Qatar following World Cup
corruption allegations. Indeed many international contractors were also

2. seemingly hesitant waiting for the next twist and turn of the protracted saga.
However, we at Qatar Construction Review believe that the GCC is
currently experiencing some capacity constraints in delivering projects and
that these issues will become increasingly more acute. Market capacity is
falling behind levels of demand primarily because of financial constraints
and adequately skilled people. There are also delays in the client decision
making process that is leading to projects falling behind scheduled time
frames and raising costs. Indeed, we happen to think that if the 2022 FIFA
World Cup was taken away from Qatar, that there is a very strong argument
this would lead to greater efficiency in the management and execution of the
country's planned infrastructure projects.
What does this mean for construction companies already operating in the
country and those that want to enter the Qatar construction market? For the
companies already working in Qatar, very little changes with or without the
games. Even in the worse case scenario (for authorities in the country), vital
master contractors have already won tenders so are well known and have the
connections, some have completed projects and where they are currently
working on infrastructure mega projects within transportation, electricity
and water supply, Qatar's requirement for them will not change.
Government spending will be underwritten by the continued supply of LNG
and recent reports cite how Qatar's dominant position in it's production
globally is secured for several more years.
Some floating hotel projects may never see the light of day... but you can
bet that within 10 - 15 years, Qatar will have one of the most advanced
metro systems in the world: some projects are not going anywhere with or
without the World Cup. For the big international contractors it will be
business as usual because there will still be a demand for their expertise and
they will be called upon to deliver international project solutions. Add to
that the issues of over capacity and the market failing to keep pace with
demand... the worse case scenario could actually mean better management
and less pressure on the supply chain.
Whenever (and where ever) the dust finally settles with this saga... what it
means politically, or for the media, is completely different to what it means
for international construction companies in Qatar, where it will be business
as usual: construction companies looking for work overseas, going where
the demand takes them and highlighting their particular areas of expertise. It
is probably also worth mentioning that what we care about in the UK... all
too often is at odds with the rest of the world. Whatever the size of the
construction market in Qatar, www.qatarconstructionreview.com will
always have a vested interest in seeing the best project solutions globally,
reaching the Qatari market.

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