(ATR) Qatar is spending more than $200 billion in construction projects ahead of the 2022 World Cup, according to a Deloitte report.
Architectural rendering of the 86,000-capacity Lusail City stadium (Getty Images)
Of this spend, more than $140 billion will be pumped into modernizing the transport infrastructure over the next five years.
Deloitte says that investment projects are currently focused on housing, hotels (estimated: 90,000 rooms), 12 stadiums, a new port, roads, metro and rail system, malls and various other mixed asset developments, to accommodate an estimated 400,000 fans.
Qatar Tourism Authority plans to invest about $20 billion on tourism infrastructure as the number of tourist arrivals grows at a compound rate of 15.9 percent annually and is forecast to reach 3.7 million by 2022.
“Having been selected to host the FIFA World Cup in 2022 brought forth the opportunity for Qatar to position itself as a regional sporting hub. Qatar National Vision 2013 and programs such as Q2022 are focusing on leaving a legacy for Qatar in terms of football, infrastructure and economic development,” Deloitte said.
Deloitte listed the top 20 projects under development in the gas-rich Gulf nation.
It’s topped by Lusail City. The $45 billion development, set to accommodate 400,000 residents, is scheduled to be completed by 2019.
The World Cup opener and final will be held at a new 86,000-seat stadium in Lusail City, which would be less than 20km from downtown Doha. According to early architectural designs, the vast continuous stand at one end has been likened to Liverpool’s iconic Kop.
Lusail Real Estate Development Co. is expected to award $3 billion worth of contracts over the next year for infrastructure and roads as part of developing the new city.
In terms of value, the spend on the 12 World Cup stadia is ranked 15th in the list.
Qatar 2022 organisers have said they will keep within the $4 billion budget earmarked to develop the host stadia.
Nine are being built from scratch and three existing venues renovated and expanded. All will be air-conditioned to combat the effects of the desert nation's fierce summer heat on players and fans.
Deloitte’s report is entitled ‘Insight into the Qatar construction market and opportunities for real estate developers’. The company, which provides audit, financial and consulting services, says it is evident that “immense opportunities exist for developers in the region and beyond, due in part to the infrastructure requirements of the FIFA World Cup 2022, and also as part of realizing Qatar’s national vision.
Jesdev Saggar, managing director, infrastructure & capital projects at Deloitte Corporate Finance, said: “With the world focused on Qatar’s every move, it is imperative that the local industry prepares itself for the plethora of international organizations that are ready to descend on Doha.
“Preparing for the competition is as important to everyone on the built environment, as it will be when the games start.”
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Written by Mark Bisson
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