Report says that World Cup investments are helping diversify economy

Qatar is expected to buck the region’s downward growth trend, due to lower oil prices, and is likely to show an upward movement thanks to World Cup-related investments by the government.

BMI Research has published a report which says Qatar’s real gross domestic product (GDP) will grow from 2.7% in 2016 to 3.3% in 2017 and 3.7% in 2018, reported Gulf Times.

BMI stated that ‘preparation for 2022 FIFA World Cup will continue to support the Qatari economy through to 2022 and act as a catalyst for the government’s ambitious economic diversification objectives.’

BMI’s views followed the announcement by Qatar’s Finance Minister HE Ali Sherif Al Emadi that Qatar planned investments of up to QR46bn in major infrastructure projects next year.

“The total budget committed for the development of key strategic mega projects stands at QR374bn, with a further QR46bn set to be invested in 2017,” he had said.

The government-led infrastructure projects will spur growth in construction sector, with BMI predicting 16.6% growth in non-residential construction over 2017-22.

Major construction/rail infrastructure projects include Doha Metro’s Gold Line, estimated to cost $4.4bn and completed by 2019, Green Line, ($2.3bn, complete by 2018) and Red Line North ($2bn, complete by 2017).

Other constructions include the $16bn expansion of Hamad International Airport, $5.5bn Msheireb Downtown, $1.7bn Doha Festival City, $1.5bn Mall of Qatar and $0.8bn Al Bayt Stadium in Al Khor.