Dubai contractors get ready to score big with Qatar World Cup

Shares of construction companies in the region have been rising significantly ever since Qatar won the bid to host the 2022 Fifa World Cup.

Arabtec’s shares went up by 9.14 per cent during the day and closed at Dh2.03.

Another major contractor Drake & Scull climbed by 6.47 per cent by the same time.

Earlier on Sunday Orascom Construction Industries’ shares climbed 3.2 per cent, the biggest increase since May 26 on speculation the company may be awarded contracts in Qatar. On Monday’s Orascom’s shares rose marginally by 0.25 per cent.

Zeina Tabari, Chief Corporate Affairs Officer of Drake & Scull International (DSI) said, “We have always maintained a confidence in Qatar’s economy and recognised the potential in what the country has to offer, which was reflected in our acquisition in April this year of Drake & Scull International Qatar (DSQ), a prominent local MEP company that has been active in Qatar since 2006.”

According to her the Qatar 2022 World Cup is likely to not only have a positive impact on the GCC, but also on the Middle East as a whole. “We have actively been pursuing business in Qatar, Saudi Arabia and North Africa over the last few years, and we are pleased that our regional expansion strategy is being realised”, she said.
 
Qatar’s successful bid to hold the 2022 FIFA World Cup has come as a golden opportunity for the recession hit contractors in the Gulf Co-operation Council (GCC), industry experts said.

According to UAE based Ventures Middle East, there will be a new rush of international contractors into Qatar.

“The trend earlier was for new entrants to establish their presence in the UAE market as the first point of entry into the region’s market. We might see a change in this trend. Qatar could now become the entry point,” said Mibu John of Ventures.

Several major contractors operating in the UAE already have some sort of presence in Qatar, and are planning to increase their strength in an effort to reap the benefits of the projected construction boom.

According to Ventures, the value of ongoing projects in Qatar is as follows:
 
Oil and gas - $62.6billion 
Pipeline - $4.487bn
Industrial sector $6.758bn
Building - $106.044bn
Power and water - $17.913bn
Marine - $10.432bn
Infrastructure - $44.239bn

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