Study reports Qatar most expensive country to build in Middle East
Friday, 31 August 2012 09:23
The high volume of construction projects underway in Qatar in preparation for the 2022 FIFA World Cup has contributed to making it the most expensive country in which to build in the Middle East, according to the 2012 International Construction Costs Report
The report by global built asset consultancy EC Harris also revealed that construction costs in the Asia-Pacific region, North America and parts of the Middle East were on the rise and closing in on prices in Western and Northern Europe.
The annual study, which benchmarks building costs in 53 countries across the globe, found that the volume of construction activity taking place in Qatar to prepare for the 2022 FIFA World Cup and to deliver the country's National Vision, had caused the country to jump three places in the overall rankings, rising from 16th position in 2011 to the 13th most expensive country in which to build in the 2012 version of the report.
According to the report one of the primary reasons for this is the focus on large scale infrastructure projects with the Qatari government reported to have allocated 40 per cent of its overall budget between now and 2016 to improving both transportation networks and social infrastructure across the country.
The UAE rose one place to 17th this year as the construction sector begins to improve following a string of government announcements particularly around major social infrastructure programmes.
Commercial projects in Dubai are also beginning to show signs of recovery with developments placed on hold during 2009 currently being reviewed, while in Abu Dhabi, firms are also looking to fill the currently under-supplied retail market.