Qatar tops Mena infrastructure market

Qatar tops Mena infrastructure market despite blockade. Qatar remains the number one ranked infrastructure market in the Middle East and North Africa regional infrastructure RRI table.

 Robust outlook beckons Qatari construction industry, notwithstanding the economic blockade by the siege countries, according to BMI, a Fitch company.
“We have elected to maintain our robust growth outlook for the Qatari construction industry even as the diplomatic rift between Qatar and its Gulf neighbours continues,” BMI said in a report. Qatar remains the number one ranked infrastructure market in the Middle East and North Africa (Mena) regional infrastructure RRI (risk/reward index) table, it said. Finding that Qatar’s previous building material supply issues have seen the implementation of several measures to reduce future supply constraints, the report said, “We expect that in the short-term this will shield Qatar’s construction sector.”
Al Bayt Stadium

“Qatar offers strong construction industry growth, stable political system and an open business environment in which it is relatively easy to operate as an international construction company and as such continue to top our RRI table,” it said. Although BMI revised Qatar’s long and short-term political risk scores, it said this is “unlikely to impact” construction given that the private investors play only a marginal role in driving infrastructure growth.  BMI said Mena infrastructure markets have been largely stable over the last quarter; the GCC (Gulf Cooperation Council) remains best, “able to offer a balance of strong opportunities and low risk business environments.” Political risk has increased, but Qatar continues to top the RRI league tables both for Mena and globally, it highlighted.
“In all aspects of the index, the GCC markets are comparatively stronger than elsewhere in the region, generally offering more sizeable project opportunities thanks to healthier fiscal positions, in addition to more stable operating environments,” the report said. Mena ranks the third strongest region globally in its RRI, placing it in the middle of the pack behind North America and Western Europe and Asia, but head of Latin America, Central and Eastern Europe and Sub-Saharan Africa.
“Mena is notable for having markets in the top 10 of the index (UAE and Qatar), as well as the bottom 20 (Yemen and Libya),” it said.