Qatar’s USD30b projects not affected by oil prices plunge

13 Jan 2015

(MENAFN) According to MEED Projects, the region’s leading online projects tracker, Qatar’s planned spending of USD30 billion on their infrastructure projects is not forecasted to be affected by the global plunge in oil prices, Times of Oman reported.

These projects include Ashghal’s expressway and local roads and drainage programs as well as significant investment in real estate and transport projects such as Lusail and the new port project, in addition to the USD5 billion-plus Al Karaana petrochemical complex, the USD2 billion-plus rolling stock and systems contract on the Doha Metro, and 5 main multi-billion-dollar packages on the mega water reservoirs main packages.

“Despite falling oil prices, Qatar has the project pipeline, the political impetus, and the financial reserves to continue project spending as it prepares to host the FIFA 2022 World Cup. With around $30 billion worth of projects, 2014 witnessed a 25 per cent increase in project spending as compare to the year 2013, and there will continue to be an upward trend in project activity,” Direcor of Analysis at MEED Projects said.

The spending on these projects will be supported by the fact that Qatar continues to be the fastest-growing economy in the Gulf Cooperation Council (GCC) in the years to 2020, with expectations that the country’s economy will expand by 7.7 per cent in 2015.