Qatar is Gulf's most expensive construction market
- Qatar: Tuesday, October 23 - 2012 at 14:38
- PRESS RELEASE
Qatar has become the most expensive construction market in the Gulf in terms of raw materials costs, says a new research report by business intelligence service MEED.
Faced with rapid growth in construction activity on the back of its programme to host the 2022 FIFA World Cup Qatar is seeing strong inflation in materials costs.
The average rate per tonne for rebar in Qatar is 32% higher than in the United Arab Emirates. The report also found that although the price for a 50 kilogram bag of cement is only 3.5% higher than in the UAE, the cost of concrete is 28.6% higher.
Emil Rademeyer, General Manager of MEED Cost Indices (MCI) explained that "A steady rise in the demand for rebar and the anticipation of an impending boom in construction spend is driving up the price significantly higher than in the UAE".
The report starts off by investigating the current macroeconomic outlook for the six GCC countries and put forward a 5 year construction cost forecast for each country. The 5 year outlook is followed by an investigation into the cost of materials, labour, fuel and equipment in Saudi Arabia and the United Arab Emirates and put forward a cost comparison for these two markets.
Using advanced modelling techniques developed proprietary by MEED, the report presents a model evaluating the supply and demand dynamics of cement in Saudi Arabia. The results indicate that the demand for cement will peak in 2015. Thus logistical challenges in the supply chain are the likely culprit fuelling speculative shortages.
Similarly, the report investigates the trading environment for rebar in Qatar. Both these are contentious issues with raw materials frequently driving headlines as a result of perceived supply imbalances.
The report is part of the new MEED Cost Indices platform which allows users to query cost data for materials, labour, fuel and equipment for most of the GCC countries. Data is sourced directly from contractors, owners and consultants making the MCI data base the most accurate and comprehensive source of construction costs in the Middle East.
The new released platform provide access to GCC construction cost data, tender price indices and 5 year forecast and also the latest global metal prices such as copper and steel.
Rademeyer added that "In addition to supply costs, MCI provide insightful analysis to the demand of resources across all the main industry sectors such as construction, industrial gas, oil, power, transport and water sectors across the GCC countries."
Richard Thompson, Editorial Director at MEED said "This is a breakthrough in bringing transparency to the Middle East construction market where companies can compare the cost of multiple resources across borders."
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