Qatari Diar and VINCI Construction Grands Projets in ground-breaking joint venture deal to raise contracting benchmarks

Qatari Diar, the name behind Lusail, Qatar's largest domestic real estate project, will sign a memorandum of understanding with VCGP to set up a major contracting player with local, regional and international ambitions.

Qatari Diar will hold a 51% stake in the joint venture with VCGP retaining the remaining 49%.

"This joint venture will support development in Qatar and establish high benchmarks for the construction industry. The focus will initially be on Qatar, but we plan to leverage the calibre of quality delivery to secure international tenders," said Nasser Hassan Al-Ansari, Chief Executive Officer, Qatari Diar.

"VINCI Construction Grands Projets was selected as our partner of choice because of its breadth of experience, knowledge of the Middle East, and its solid international reputation as being a reliable specialist in design-build project delivery. The alignment of both companies also underlines our mutual commitment to sustainable development."

VINCI Construction is a French based company formed out of the merger between Campenon Bernard and Dumez, in response to global demand for infrastructure and large-scale facilities.

"VINCI Construction Grands Projets sees the immense growth in Qatar and the wider region and is keen to be part of its development," said Pierre Berger, Chief Executive Officer and Chairman, VCGP. "This joint venture is a direct response to huge contracting demand and reflects the desire of both partners to raise construction standards within Qatar and beyond."

With the contracting industry forecasting the Qatar construction boom to continue for the next 15 years with $3.22 billion earmarked for public projects for the fiscal year 2005-06, the joint venture partners are now developing a long-term business plan which will see the new company emerge as a major regional and international player.

"The business plan will outline capitalisation, company branding and clear objectives for the future of this new construction player which we are confident will fast establish a reputable name on the local, regional and international contracting scene," added Al-Ansari.