Local contractors eye investments in Qatar
ISTANBUL - Anadolu Agency
A skyscraper under construction (L) is pictured next to Movenpick Hotel in Doha. Qatar had said it will boost infrastructure, stadium and hotel projects ahead of World 2022 Cup, which offer opportunties for Turkish contractors as well. REUTERS photoTurkish contractors could win construction projects worth $25 billion to $30 billion in Qatar over the next decade as part of infrastructure investments that the gas-rich country is considering ahead of the 2022 World Cup, a sector representative has said.
“Considering Qatar’s share among Turkish contractors’ business volume has been around 5 percent for the past 40 years, according to an optimistic scenario, it is possible to estimate that Turkish contractors will undertake a total of $25 billion to $30 billion worth of business in the Qatari market,” Emin Sazak, president of the Turkish Contractors Association, told Anadolu Agency Aug. 10.
Qatar has already been an important market for Turkish contractors who are looking to expand their overseas presence, as evidenced by Qatar’s 5.2 percent share among the project undertaken by Turkish contractors between 1972 and 2012, Sazak said. In 2012, the total value of Turkish contractors’ projects approached $1 billion, Sazak said.
Qatar’s infrastructure investment spending ahead of the FIFA World Cup in 2022, estimated by leading professional services group Deloitte to reach around $200 billion, has opened up new opportunities for other Turkish businesspeople as well. The Qatari government has already invited Turkish contractors to participate in the construction of a number of infrastructure, stadium and hotel projects planned for the giant international event.
However, capacity is only one factor, Sazak said. Political and economic relations with the Middle East country, as well as bidding conditions and competition, may prove harder to predict.
“Foreseeing how the development of these factors in the next decade is more difficult in the Middle East than in any other part of the world,” he said. Turkey’s foreign building and contracting sector saw an increase of 70 percent in the first half of 2013, with projects amounting to $11.6 billion, according to figures provided by Sazak. The amount of projects was realized $27.2 billion in 2012. With the addition of South Sudan this year, the industry now serves 101 countries.
Turkmenistan has been the top sector for Turkish contractors this year, with the total value of 28 projects undertaken within the first six months of the year totaling $4.8 billion.