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MARKET OVERVIEW: QATAR
The Qatari government’s investment programme helped the mineral- rich state to enjoy another year of economic growth in 2009. But is the cou n try’s real estate industry still on track? Oliver Ephgrave investigates
While 2009 was a year of woe for many countries around the globe, Qatar experienced another period of economic growth. And the graph looks set to climb further in 2010, propelled by an increase in liquefied natural gas production and ongoing government-financed infrastructure projects. Indeed, a recent report by Business Monitor International predicted that Qatar will see real GDP growth of nearly 16 percent in 2010. Several other factors suggest that Qatar is in a healthier position than
many of its neighbours. Business Monitor declared it ‘one of the most attractive destinations’ in the Middle East for foreign investors, aided by the decision to cut the corporate tax rate to a flat 10 percent in 2010. Furthermore, it has the largest percentage of top earners in the region, with 12 percent taking home more than US$8,000 a month, according to the results of an annual survey by
Bayt.com and YouGov Siraj, released in March. The Middle East Marketbeat 2010 Q2 report by Cushman & Wakefield
states: ‘Government investment has played a crucial role in the transformation of the economy, driving a doubling in output over the past five years and helping to turn Qatar into one of the wealthiest countries in the world on a GDP per capita basis. ‘Despite falling revenues from the oil sector due to lower prices, the government has announced another expansionary budget for 2010, following on from measures launched in 2009.’ Yet the report adds a cautionary note: ‘It is also important to recognise
that the rates of expansion seen in recent years are unlikely to be sustainable over the longer term, given the role played by government spending. Nevertheless, in the short term, Qatar is set to see one of the best rates of growth in the region.’
MEGA PROJECT PORTFOLIO
Qatar’s ambitious development programme contains a number of multi-billion dollar mixed-use developments. One of the highest valued is United Development Company’s The Pearl-Qatar, a US$13.8 billion man-made island covering four million square metres. Certain components, such as the first phase of Porto Arabia, have already been launched. Other notable mega projects underway include Lusail, by Qatari Diar,
which will be one of the largest developments in the world, housing around 200,000 people on 35 square kilometers north of Doha with residential, office, shopping and entertainment space. The project will be completed in phases until 2015. Another standout development is Al Waab City, located 19 kilometres from Doha Corniche, which will contain an Oberoi hotel, as well 639 villas, apartments and 88,000 square metres of retail space. Construction on the US$3.2 billion, 1.25-million-square-metre complex is scheduled for completion in 2014. Local developer Barwa is one of the major players in the state,
with several projects including the US9.6 billion Urjan in the Al Khor district as well as Barwa Financial District and Barwa City, both in the capital Doha. Phase One of Barwa City is set to be completed in June 2011 and will house approximately 25,000 residents. In March it was reported that the developer was in discussions
with a government buyer regarding the sale of the US$2 billion project. However, this was later denied by the company which
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