{"id":10884,"date":"2016-04-18T23:56:28","date_gmt":"2016-04-18T16:56:28","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=10884"},"modified":"2016-04-18T22:00:40","modified_gmt":"2016-04-18T15:00:40","slug":"new-construction-spending-in-qatar-plunges","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-construction-spending-in-qatar-plunges\/","title":{"rendered":"New construction spending in Qatar plunges"},"content":{"rendered":"


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\nThe value of new construction contracts awarded in Qatar during the first three months of this year fell to their lowest levels in more than five years as governments in the region cut back on infrastructure spending because of lower oil prices. According to figures from Meed, contracts awarded during the first quarter fell to US$830 million – a decline of 92 per cent year-on-year, and a 70 per cent drop on the previous quarter.
\nThe decline was blamed on delays to major investment decisions that were due to be made by Qatar’s government and a number of government-controlled clients. It represents further anecdotal evidence of a slowdown in the country’s construction sector. Last month, the Philippines’ department of labour and employment issued an update on the decline in oil prices, which stated that 60 Filipino workers had been laid off as a result of downsizing and cost-cutting measures at QDVC – a joint venture between state-owned real estate developer Qatari Diar and French contractor Vinci Construction.
\nQatar is expected to run a 46.5 billion riyals (Dh46.9bn) deficit this year, partly because it has maintained commitments to major continuing construction and infrastructure projects such as the new port, the metro systems and major new roads and utilities projects. Infrastructure expenditure is expected to reach 50.6bn riyals this year.Speaking at a Qatar Projects Conference last month, the chief executive of Doha Bank, R Seetharaman, said that there were challenges in financing major construction programmes, pointing out that there had been payment delays to contractors on projects even when consultants had approved completed work.
\n“This, in turn, affects payment to subcontractors and impacts project profitability,” said Mr Seetharaman.He said that Qatar and other GCC governments should look to develop infrastructure bond markets to finance projects. “GCC infrastructure bonds need to be issued with sovereign guarantees to stimulate project financing,” he said. “We also need to bring long-term investors such as pension, insurance and mutual funds in [to the] GCC project market.”
\nA survey conducted by the global law firm Pinsent Masons in December showed that the UAE and Qatar were to be the two bright spots in the GCC for the construction industry this year. The industry viewed Qatar as offering the strongest regional opportunity, with 33 per cent of respondents upbeat on the country versus 14 per cent last year. mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…New construction spending in Qatar plunges<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The value of new construction contracts awarded in Qatar during the first three months...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-10884","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-2Py","jetpack-related-posts":[{"id":13870,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/gcc-construction-sector-expected-to-recover-by-2018-meed-says\/","url_meta":{"origin":10884,"position":0},"title":"GCC construction sector expected to recover by 2018, Meed says","date":"May 21, 2016","format":false,"excerpt":"\r The GCC construction market is facing pressure from cuts in government spending, late payments, increased overseas competition, bureaucracy and staffing challenges, according to a report from Meed.Yet despite all that, the Dubai-based research house expects the sector to recover across the GCC by 2018. The recovery would be helped\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13952,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudi-arabia-construction-contract-awards-drop-by-51-per-cent-in-first-three-months\/","url_meta":{"origin":10884,"position":1},"title":"Saudi Arabia construction contract awards drop by 51 per cent in first three months","date":"May 22, 2016","format":false,"excerpt":"\r Saudi Arabia's construction market is in for a \"challenging year\" as lower oil prices continue to place restrictions on capital spending, according to a new report by National Commercial Bank (NCB).NCB's quarterly construction contracts index reports that just 27.9 billion Saudi riyals (Dh27.3bn) of new contract awards were made\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7816,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-construction-contract-awards-in-saudi-arabia-drop-25-in-final-quarter-of-2015\/","url_meta":{"origin":10884,"position":2},"title":"New construction contract awards in Saudi Arabia drop 25% in final quarter of 2015","date":"March 13, 2016","format":false,"excerpt":"\r \r The value of new construction contracts awarded in Saudi Arabia during the fourth quarter of 2015 slumped by 25 per cent on the previous quarter to 45.6 billion Saudi riyals (Dh44.6bn), according to new research by National Commercial Bank (NCB).Its Construction Contracts Award Index showed that 62 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1795,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/gcc-contract-awards-to-drop-by-15-in-2016\/","url_meta":{"origin":10884,"position":3},"title":"GCC contract awards to drop by 15% in 2016","date":"January 18, 2016","format":false,"excerpt":"\r \r The value of construction contracts due to be awarded this year is set to drop by 15 per cent as government spending plans in the GCC are reined in by low oil prices.According to Meed, the value of projects is set to decline to US$140 billion this year,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":46903,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/slower-market-leads-to-cheaper-building-costs-in-dubai-but-world-cup-pushes-up-doha-prices\/","url_meta":{"origin":10884,"position":4},"title":"Slower market leads to cheaper building costs in Dubai, but World Cup pushes up Doha prices","date":"March 7, 2017","format":false,"excerpt":"\r Dubai and Jeddah have become comparatively cheaper to build in over the past 12 months, but Fifa World Cup-related activity is continuing to inflate costs in Doha, according to a new study.The International Construction Costs 2017 report by Netherlands-based consultancy Arcadis stated yesterday that Doha has now become the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":29505,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/decline-in-abu-dhabi-rents-and-house-prices-to-continue\/","url_meta":{"origin":10884,"position":5},"title":"Decline in Abu Dhabi rents and house prices to continue","date":"October 11, 2016","format":false,"excerpt":"\r Rents and house prices in Abu Dhabi continue to fall as the low price of oil dampens demand in the capital.According to property broker Cavendish Maxwell, apartment rents in Abu Dhabi's five key investment areas all fell by between 0.8 and 2.5 per cent in the 12 weeks to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/10884"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=10884"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/10884\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=10884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=10884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=10884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}