Oil and gas windfall to power real estate boom in Qatar

The country has focused on the real estate sector in a bid to make it an alternative to the oil and natural gas sectors, opening the door to foreign investments with the ambition to diversify its economic base from dependence on oil and gas.

Despite the property growth in Qatar, there is still a demand for diverse investment, as most of the current projects are targeting the high income groups, and the market is short of mega projects that cater to the needs of medium and low income groups, locals and residents.

Eng. Salwa Malhas, Senior Vice President - Business Development at Al Mazaya Holding, regional leading property developer, said: 'The Qatari market has great potential, and is in urgent need for various projects. These vary from residential to commercial and tourism developments, as the country is witnessing a wave of international investor inflow into the country and substantial investment into the tourist infrastructure that are occurring mainly on the shorelines'.

She added: 'We will establish a real estate company with a capital of QR 500 million, in alliance with other investors. This entry has supported by feasibility studies that demonstrated the significance and importance of real estate investment in Qatar. Our joint book runners, Global Investment House and Qatar Investment House have finalized the IPO. Al Mazaya will commence its activities as an investment and business manager for the recently established company. '

Malhas noted that 'Al Mazaya- Qatar' had been established with 49% for GCC, and 51% for Qatar. The Kuwaiti contribution allocated the 49%, with 39% for Global, and 10% for Al Mazaya Holding. Eng Khaled Esbaitah was named as a board member for Al Mazaya Qatar, as he is the Managing Director and CEO of Al Mazaya Holding, and Mr Omar Al Koka, Global representative, as a board member as well. As for the Qatari input, the contribution of private and organizational firms was substantial. Malhas said that the board of directors meetings will be held soon to draw the strategic groundwork for the company performance.

Malhas affirmed that Al Mazaya has started exploring opportunities in Qatar to launch a series of mega projects that meet the needs of the Qatari market.

The Qatar Government is allocating some QR 23 billion for infrastructure purposes, and plans to invest more than $130bn to develop and renovate its wide range of infrastructure developments in the next five years.

With the level of money being pumped into the nation's growth, investment into the property sectors has grown exponentially with multi-billion dollar projects appearing onto scene such as the Lusail and the Pearl-Qatar among others. Other companies have sought funding which has led to more banks being established to capture a chunk from the construction and property boom in Qatar.

Qatar is the world's largest exporter of liquefied natural gas, and GCC fastest growing country with a growth rate of 9.9%. Qatar recycles its surplus petrodollar to develop its infrastructure and improve its tourism and services sectors. Currently Qatar is facing a shortage in residential units and inflationary pressures, which the government is trying to contain.