Qatar stood third among the Gulf Cooperation Council (GCC) countries in reporting improved sentiments in the construction industry, according to Pinsent Masons, a global law firm.
As much as 16% of respondents believe that Qatar will provide the strongest opportunities for growth in 2018, bringing its overall ranking to third place in the GCC region, Pinsent Masons said in its survey report.
Overall sentiment in the GCC’s construction sector has improved by approximately 7% to 39%, it found.
“There is more optimism about improved market conditions in the GCC construction sector than we saw in 2016, though there are ongoing challenges with lower energy prices. However, in Qatar we expect activity levels to improve in the lead up to FIFA World Cup 2022,” said Peter Blackmore, Head of Pinsent Masons Qatar.
While the survey indicates a slight rise in overall sentiment, the findings revealed that 20% of those surveyed across the GCC expect their order books to decline by more than 10% in the coming months compared to 16% two years earlier. Asked about contract conditions, 86 of businesses said they had become less favourable during 2017, representing a similar sentiment in 2016 which stood at 92%.
In addition, a significant number of companies (86%) said payment periods were longer in 2017 compared to the same time last year. Finally, 67% of respondents stated they were involved in more disputes during 2017 than had been expected before the year started against 59% in 2015. “Whilst analysts predict a slight economic revival across many GCC markets during 2018, the survey results are indicative of what has been a challenging time for the construction sector — which has grappled with the impact of lower oil prices and ongoing geopolitical tensions,” Sachin Kerur, Head of Middle East Pinsent Masons, said.
In terms of sector types, about 60% of respondents believe power (including renewables) will offer the most opportunities during 2018. Meanwhile, sentiment towards the real estate sector improved with 32% of respondents expecting growth from this sector in 2018, compared to 25% in 2016.
With public private partnerships (PPPs) increasingly being used as a means of attracting more inward investment — especially in Qatar which is planning to implement a new law governing the use of PPPs — the survey revealed that more than one-third (40%) of respondents across the GCC are currently involved or expect to be involved in PPP projects during the next 12 months, up slightly from 32% for 2016.
Business / Business
Qatar 3rd in GCC in reporting improved sentiments in construction industry, says Pinsent Masons
Kerur: Challenging time.
