Qatar plans to invest $ 140 bn in transport infrastructure

Updated 12 July 2013
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Qatar plans to invest $ 140 bn in transport infrastructure

A recent Deloitte report entitled ‘Insight into the Qatar construction market and opportunities for real estate developers’ examines the construction market in Qatar and assesses opportunities for real estate developers in the country. 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.
The Deloitte report looks into the government’s strategy of promoting sustainable tourism with the purpose of attracting more tourists and visitors. Projects such as the Qatar-Bahrain causeway is an example of this strategy, as it will help drive regional tourist arrivals in Qatar.
In terms of infrastructure, the Deloitte report examines Qatar’s plans to invest over $ 140 billion in transport infrastructure in anticipation of the FIFA World Cup 2022. Plans to construct new roads and a metro system have been put forth in order to support the anticipated influx of football visitors in addition to the airport expansion, which is already under way.
Deloitte experts expect this influx to also bring with it an increased demand for accommodation, with numerous worldwide chain hotels actively considering investments in the country. In fact, Qatar Tourism Authority plans to invest about $ 20 billion on tourism infrastructure as the number of tourist arrivals grows at a rate of 15.9 percent compounded annually, to reach 3.7 million by 2022. This growth also creates opportunities for the development of commercial units, such as various shopping malls around Qatar.
Environmental sustainability has become a key item in the government’s agenda. One of the key goals for the Q2022 program is to improve environmental sustainability, not only limited to the event but also for the entire country. The Deloitte report suggests that the program may deliver a new environmental sustainability standard and improve nationwide awareness.
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 and capital projects at Deloitte.
Corporate Finance Ltd. commented: "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."
These findings are in line with the "GCC powers of construction: Meeting the challenges of delivering mega projects" report issued by Deloitte during May 2013. The fourth publication in its series and the only one of its kind among the financial services industry in the Middle East.
The GCC Powers of Construction report highlights that the ingredients for capital projects could not be better in the GCC region as the I&CP (infrastructure and capital projects) market is growing rapidly with governments announcing projects across the Middle East region, utilizing trillions of petro-dollars over the coming years.

According to this Deloitte report, clients’ increasing need for transparency, predictability and sustainability of what they spend provides contractors with an opportunity to reflect on how they can meet this by better operational performance, improved procurement, schedule management and cost reporting.
The report highlights the case of Qatar, whereby Qatar was the third most active GCC construction market in 2012, with $ 10.4 billion worth of contracts awarded. Transport infrastructure dominated Qatar’s construction sector, with four of the five biggest contracts awarded for major transport projects. Hosting the FIFA 2022 World Cup should yield considerable contracts across the construction and infrastructure sectors.
"With significant investment in major infrastructure programs increasing over the coming years across the GCC, contractors, consultants and clients alike need to rethink the way they engage each other if they are to truly realize the benefits each can bring to the process," said Cynthia Corby, audit partner and leader of the construction industry for the Middle East.
As to Qatar, Deloitte suggests that successful bidders will have to take into consideration a number of factors such as alignment with Qatar’s 2022 program strategic objectives, adherence to sustainability and health and safety standards, innovation, quality and with an overall focus on the legacy theme, which is embedded in the strategy for delivering the Qatar 2022 World Cup. 


EU to respond to any US auto tariff move: report

Updated 23 June 2018
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EU to respond to any US auto tariff move: report

  • Trump threatened to impose 20 percent tariff
  • Shares in carmakers slip on trade war fears

PARIS: The European Union will respond to any US move to raise tariffs on cars made in the bloc, a senior European Commission official said, the latest comments in an escalating trade row.
US President Donald Trump on Friday threatened to impose a 20 percent tariff on all imports of EU-assembled cars, a month after his administration launched an investigation into whether auto imports posed a national security threat.
“If they decide to raise their import tariffs, we’ll have no choice, again, but to react,” EU Commission Vice President Jyrki Katainen told French newspaper Le Monde.
“We don’t want to fight (over trade) in public via Twitter. We should end the escalation,” he said in the comments published on Saturday.
The European Autos Stocks Index fell on Friday after Trump’s tariff threat. Shares US carmakers Ford Motor Co. and General Motors Co. also dropped.
“If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the US Build them here!” Trump tweeted.
The US Commerce Department has a deadline of February 2019 to investigate whether imports of automobiles and auto parts pose a risk to US national security.
US Commerce Secretary Wilbur Ross said on Thursday the department aimed to wrap up the probe by late July or August. The Commerce Department plans to hold two days of public comments in July on its investigation of auto imports.
Trump has repeatedly singled out German auto imports to the United States for criticism.
Trump told carmakers at a meeting in the White House on May 11 that he was planning to impose tariffs of 20 or 25 percent on some imported vehicles and sharply criticized Germany’s automotive trade surplus with the United States.
The United States currently imposes a 2.5 percent tariff on imported passenger cars from the EU and a 25 percent tariff on imported pickup trucks. The EU imposes a 10 percent tariff on imported US cars.
The tariff proposal has drawn sharp condemnation from Republican lawmakers and business groups. A group representing major US and foreign automakers has said it is “confident that vehicle imports do not pose a national security risk.”
The US Chamber of Commerce said US auto production had doubled over the past decade, and said tariffs “would deal a staggering blow to the very industry it purports to protect and would threaten to ignite a global trade war.”
German automakers Volkswagen AG, Daimler AG and BMW AG build vehicles at plants in the United States. BMW is one of South Carolina’s largest employers, with more than 9,000 workers in the state.
The United States in 2017 accounted for about 15 percent of worldwide Mercedes-Benz and BMW brand sales. It accounts for 5 percent of Volkswagen’s VW brand sales and 12 percent of its Audi brand sales.