Qatar Construction Sector

The Commercial Bank of Qatar (Q.S.C.) Qatar Construction Sector 1st Edition 2012 Inspired by Qatar, we believe ever ything is possible Foreword Dear Investor, Qatar continues to be a magnet for investment due to its impressive economic performance in the face of continued global economic uncertainty. On the back of a strong GDP growth of 19% in 2011, decelerating to a forecast 6% in 2012, Qatar’s GDP would reach USD 197bn. Qatar also boasts the highest per capita income growth in the world, expected to reach USD 112k by 2016. This has led to Qatar witnessing a construction boom since 2006 (ongoing construction related contracts have tripled in value). Qatar’s successful bid to host the 2022 FIFA World Cup led the Government to plan for high levels of investment in infrastructure and real estate development - approximately USD 225 bn between 2011 and 2016, of which USD 125 bn has been unveiled for construction and energy projects alone. Spending directly related to preparations for the 2022 World Cup will amount to an estimated USD 80 bn, encompassing commercial and infrastructure projects and therefore the construction boom in Qatar is expected to continue, albeit with different priorities and involving new players. This sector report highlights the changing pace of the Qatari economy and construction sector segments in comparison with other GCC countries and provides detailed information on current projects and expected investments. For each industry segment, we present a proprietary summary timeline of key projects. To take into account the challenges, especially the tender phase and ramp up of projects, but also the opportunities for additional growth to be generated thanks to the improved infrastructure and expertise based in Qatar, we have designed several scenarios of investment in infrastructure and real estate; these scenarios are based on our proprietary model taking into account the expected timeline, phasing and costs of most known major construction projects. In the final section of the report we provide summary profiles of certain local and international companies which are actively participating in transforming Qatar. 2012 is, for most players, a year of preparation to take on new projects with new partners, new financings and new clients. Investors in Qatar have therefore numerous opportunities to tap into the growth ahead, which creates new employment opportunities and continues to help position Qatar as a major economic force. Do not hesitate to call on Commercialbank for investment, strategic or financing solutions; we are inspired by Qatar, we believe everything is possible. We hope you will find our initial coverage of the construction sector of interest, in addition to Commercialbank Capital’s future research publications. Alex Carre de Malberg Global Head Commercialbank Capital Dr. Abdulaziz A Al-Ghorairi Senior Vice President & Chief Economist Commercialbank Capital . Constrained only by our imaginations. Everything is possible is our promise. who believed everything and anything is possible. Where there’s a way. we apply our creativity and capability to help our customers fulfil their goals.We are inspired by Qatar and the entrepreneurial ambition of our founders. we’ll find it. It is what we believe in and what drives everything the Bank does. We aim to grasp the opportunities our vibrant and dynamic economy offers to serve our community better. 1 Cement 10. 8.qa 4 7 9 12 12 12 15 18 20 23 26 28 30 30 31 32 33 34 35 35 36 36 37 40 40 41 44 44 47 47 52 52 55 56 58 59 86 87 . 4.2 Lagoona Mall 7. 9. 11.3 Lusail City 6. 5.5 Hotels & Tourism Social Infrastructure 8.3 Katara 7.2 Healthcare Energy and Utilities 9. 3. Executive Summary 1.) PO Box 3232.2 Solar Energy 9. Doha.Table of Contents 1.cbq.2 Steel 10.1 Challenges 3. 2.2 Msheireb 6.4 New Doha Port ICONIC PROJECTS 6. 7.1 Energy 9.1 Growth Drivers FIFA World Cup 2022: The Game Changer Challenges and Market size 3. 14.3 Aluminum Methodology and Assumptions Company Profiles Abbreviations Disclaimer The Commercial Bank of Qatar (Q. State of Qatar Telephone: +974 4449 0000 Facsimile: +974 4449 0070 www.1 Doha Festival City (DFC) 7.C.1 Education 8. 6.S. 10.1 Roads 5. 13.2 Railways 5.4 Cinemas 7.3 New Doha International Airport 5.1 The Pearl-Qatar 6.3 Utilities Building Materials 10.2 Construction Sector: Mapping market size under three scenarios Construction Sector Transportation 5.4 Seef Lusail Retail & Leisure 7. 12. 4 . Doha. and the Qatar Investment Authority (QIA) in the non-hydrocarbon sector. However. Executive Summary April 2012 Commercialbank Capital Economic Research Dr. Abdulaziz A Al-Ghorairi Senior Vice President and Chief Economist Direct Tel: +974 4420 2663 abdulaziz. with the first stadia venue to be built by 2015.gupta@cbq. Nicola Ritter.ConSTruCTIon SECTor rEporT . The government has also allowed 100% foreign ownership in some sectors. especially in the hydrocarbon sector.com. Investment Banking Direct Tel: +974 4420 2627 rajat. • Budget: The Qatar government has reportedly allocated a significant 40% of its budget between now and 2016 to infrastructure projects. the government re-invested wealth to acquire foreign assets. • Dual Government funding and PPP model: Government spending has increased. and USD 33 bn for developing Lusail City. including new rail and metro systems.qa Rajat Gupta. the . The wealth is re-invested through Qatar Petroleum in the hydrocarbon sector. while stadium construction for the World Cup is expected to cost just under USD 4 bn.alghorairi@cbq. The government initiated this strategy by focusing on its inherent strength. In addition. The country is set to spend up to USD 150 bn on infrastructure projects over the next five to six years in preparation for the World Cup. USD 48 bn will be spent to build air-conditioned stadia. The country’s economy was the most resilient in the GCC region during the global recession. the government is focusing on the non-hydrocarbon sector to push for post2012 growth. • Visionary leadership: The Emir of the country has been instrumental in transforming Qatar into a power house within the region. The government plans to spend USD 20 bn on roads. CFA Associate. and this is likely to improve liquidity in the form of Foreign Direct Investment (FDI). As this production-led growth peaks in 2012. including USD 11. In the initial years of growth.Emir-led government has ensured political stability within the country. The accumulation of wealth from the hydrocarbon sector has been re-invested in diversify its revenue base.com. According to National Development Strategy (NDS). the expected investment by the private sector is around USD 130 bn. Cheap lending as well as government’s initiatives will boost the confidence of the private sector. According to German legal and financial adviser Dr.CommErCIalBank CapITal .5 bn for a deepwater seaport. USD 77 bn on facilities for soccer fans and players from across the world. USD 5. • Diversifying strategy: the Qatar Government has put in place a well-planned strategy for long-term growth sustainability.1 bn for the setting up of a new international airport.qa Qatar’s construction sector prospects seem increasingly bright following its successful bid to stage the FIFA 2022 World cup. as also the adoption of the PPP (Public Private Partnership) model in Qatar. and USD 1 bn for a transport corridor in the capital. which will benefit the construction sector and the economy in the long term. • Qatar on fast track: Qatar has been one of the fastest growing economies in the world over the past few years (real GDP grew at a CAGR of 23% between 2003 and 2010).1. Qatar has also allocated USD 50 bn to upgrade its transport infrastructure. largely due to capacity expansion and government initiatives to spur the financial sector. the government has now started focusing on investing domestically to provide a boost to the non-hydrocarbon sector. Qatar’s political and economic developments are both leading the country strongly along the path to achieving its Vision 2030. despite unrest in the other parts of the Middle East. and increasing the export capacity of LNG. 6 bn Completion Date: Q2-12 Refer: Section 8.2 11 Sidra Medical and Research Center Project Value: USD 7.2 6 New Doha Int’l Airport (NDIA) Project Value: USD 11.5 3 Education City Project Value: USD 6.5 bn Completion Date: Q4-17 Refer: Section 6.3 7 New Doha Port (Phase I) Project Value: USD 7 bn Completion Date: Q1-16 Refer: Section 5.1 bn Completion Date: 2015 Refer: Section 5.4 2 Doha Festival City Project Value: USD 1.5 .7 bn Completion Date: Q4-14 Refer: Section 7.Exhibit 1: Key Projects Madinat ash Shamal 1 Doha Cultural Village (KATARA) Project Value: USD 82 mn Refer: Section 7.1 4 Lusail Mixed-Use Project Value: USD 33 bn Completion Date: 2018 Refer: Section 6.6 bn Commencement in Q4-11 Refer: Section 9.9 bn Completion Date: Q4-12 Refer: Section 8.1 9 Pearl GTL Project Value: USD 6.1 8 Qatar National Museum Project Value: USD 434 mn Completion Date: 2014 Refer: Section 7.ConSTruCTIon SECTor rEporT .1 5 Msheireb Project Value: USD 5.3 10 Pearl Qatar Project Value: USD 5 bn Completion Date: Q3-13 Refer: Section 6.3 Al Khuwayr 9 Ras Laffan Industrial City Al Khawr 2 4 11 3 10 1 Doha Qatar 5 8 6 7 Source: Commercialbank Capital Research CommErCIalBank CapITal . Doha International Airport Refer: Section 5. Education City Refer: Section 8.5 4. Sidra Medical Refer: Section 8.2 5. Msheireb Project Refer: Section 6.1 .ConSTruCTIon SECTor rEporT 1.3 6.CommErCIalBank CapITal .Exhibit 1.1: Key Projects in Doha Source: Commercialbank Capital Research 6 . Qatar Foundation Refer: Section 8 8.2 10. Lusail City Refer: Section 6. Lagoona Mall Refer: Section 7. Qatar National Convention Center Refer: Section 8 2.1 9.3 3. Museum of Islamic Art Refer: Section 7. The Pearl Qatar Refer: Section 6.2 7. the FIFA World Cup 2022. Qatar’s economy grew by 19% in 2011.6%. Qatar eyes 2020 Olympics In 2010. In August 2011. CommErCIalBank CapITal . higher than 17% growth in 2010. the central bank has lowered its interest rates to kick start lending to private sector. Well regulated and capitalized banking sector Recently. as the government will remain committed to ensuring that projects are completed on time to host the world biggest sporting event.6%. The government has also allocated USD 20 bn towards the development of the tourism sector. According to IMF. Diversification at full stream The government launched the National Development Strategy (NDS) to achieve the targets of Vision 2030. except for iconic projects. FIFA World Cup 2022 – The Game Changer The successful bid to host the FIFA World Cup 2022 has been a big achievement for Qatar. The strategy is to leverage the hydrocarbon sector revenues to build the non-hydrocarbon sector and a more sustainable economic base.ConSTruCTIon SECTor rEporT . real GDP growth rate is projected to be 7. the government of Qatar has completed the two year capitalization program. The construction sector has since witnessed a spate of new project announcements.1 Growth Drivers Robust macroeconomic environment Qatar has witnessed robust growth in GDP over the past few years.7 . We believe that winning the bid for World Cup 2022 will be the main driver for the construction sector. The sector has optimum capital ratios that will enable them to extend lending to the construction sector in general and private sector in particular. 1. In 2012. which is driven by significant increase in LNG export capacity. The country is now on the path of creating history as it has been accepted as an applicant city to host the Olympics and the Paralympics in 2020. Qatar won the bid to host the world’s largest sporting event. while non-hydrocarbon sector is expected to grow by 9.Exhibit 2: Segmentation of Construction Sector Construction Energy & Gas Utilities Transportation Buildings* Oil & Gas Roads Retail Solar Energy Railways Hospitality Utilities Airport Social Infrastructure Port Source: Commercialbank Capital Research * Residential and commercial buildings are not covered in this report. with real hydrocarbon GDP slowing down to 3%. 6 bn Completion Date: Q2-12 Msheireb Project Value: USD 5.4 bn Completion Date: Q3-16 Education City Project Value: USD 6.6 bn Commencement in Q4-11 Lagoona Mall Project Value: USD 348 mn Completion Date: 2011 Qatar National Museum Project Value: USD 434 mn Completion Date: 2014 Doha Dukhan Road Project Value: USD 1 bn Completion Date: Q4-14 2022 12 Stadiums Project Value: USD 4 bn Completion Date: 2020 New Doha Port (Phase I) Project Value: USD 7 bn Completion Date: Q1-16 Oil & Gas Energy Utilities Roads Railways Airport Port Cities Hospitality Education Healthcare Stadiums Entertainment Retail Source: Commercialbank Capital Research 8 .9 bn Completion Date: Q4-12 Lusail Mixed-Use Project Value: USD 33 bn Completion Date: 2018 Pearl Qatar Project Value: USD 5 bn Completion Date: Q3-13 2011 2013 Solar Power Complex Project Value: USD 1 bn Completion Date: Q3-18 2015 2018 Urjuan Mixed-Use Development Project Value: USD 10 bn Completion Date: Q3-14 Qatar National Railway System (Phase I) Project Value: USD 35 bn Completion Date: Q2-15 Water Recycling Plant Project Value: USD 5 bn Completion Date: Q2-14 Qatar Entertainment City Project Value: USD 3 bn Completion Date: 2015 Doha Festival City Project Value: USD 1.5 bn Completion Date: Q4-17 Sidra Medical Research Centre Project Value: USD 7.1 bn Completion Date: 2015 Pearl GTL Project Value: USD 6.ConSTruCTIon SECTor rEporT .7 bn Completion Date: Q4-14 New Doha International Airport Project Value: USD 11. Exhibit 3: Key projects timeline Barzan Gas Development Project Value: USD 9.CommErCIalBank CapITal . FIFA World Cup 2022: The Game Changer Qatar’s integral links with sporting activities in the recent past have resulted in the overall development of the country.9 . which will help in the planning and implementation for the 2022 event.a 2. In addition. its people and the region. The year 2010 can be marked as a year of extraordinary achievements for Qatar. According to reports that the FIFA World Cup in South Africa had added between 0. apart from winning the bid to host the largest football sporting event in the world. CommErCIalBank CapITal . Table Tennis Championship Qatar Athletics Diamond League Asian Clubs Basketball Championship World (9) Balls Billiard Championship Qatar 10th Int.7% contribution to employment figures. The dynamic vision of both. According to officials.2% to the country’s GDP (depending on which infrastructure projects one considers).000 jobs since 2006 . HH the Emir. Qatar has participated as well as organized several sporting events during the past few years. Endurance Race Grand Prix Men and Women Fencing Tournament AFC Cup of Nations Commercialbank Qatar Masters 2011 Sail the Gulf-2010 Exxon Mobil Open Tennis Championship 2011 Qatar Int. almost a third of Qatar’s current population. In January 2011. as it is one of the biggest sporting events in the world. the country reached a milestone in its LNG production capacity. The impact of Qatar winning its bid for the 2022 FIFA World Cup would be profound for the state. Qatar hosted the 2006 Doha Asian Games. Exhibit 4: List of major events organized by Qatar in the past two years Events Arab Boxing Championship For Men Qatar Int. In addition.2. We believe that the impact of the World Cup 2022 preparations will be much larger on the GDP of Qatar compared to other countries that have hosted the event in the past. We believe that both these developments transformed the country’s future growth trajectory. and overall had created in excess of 300. Open Bowling Championship International Grand Prix and Golden Shirt Cycling Championship 1st Int. this has resulted in successfully winning the bid to host World Cup 2022. Sheikh Hamad bin Khalifa Al-Thani and HH Sheikha Mozah bint Nasser AlMissned has resulted in economic developments that has transformed Qatar internationally.ConSTruCTIon SECTor rEporT . In 2010. Women Handball Championship World Clubs Handball Championship World Formula Sailing Championship Qatar Classic Squash Championship 2010 GCC 4th Women Table Tennis Championship Arab Wrestling Championship Commercialbank Qatar Moto GP Sport Boxing Endurance Fencing Football Golf Sailing Tennis Volleyball Athletics Basketball Billiard and Snooker Bowling Cycling Handball Handball Sailing Squash Table Tennis Wrestling Motorbike Frequency Yearly Yearly Yearly 4 years Yearly Yearly Yearly Yearly Yearly Yearly Yearly Yearly Yearly 2 Years 2 Years Yearly Yearly Yearly Yearly Yearly Year 2011 2011 2011 2011 2012 2011 2011 2011 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2012 Source: Qatar Tourism Authority Winning the bid for the World Cup 2022 has been an extraordinary achievement. the country hosted the Asian Football Confederation’s (AFC) Cup for the second time. Qatar is the first country in the Middle East to get this honor. which is laudable from all aspects. the FIFA World Cup is expected to draw around half a million visitors.5% and 2. including an international standard artificial grass indoor pitch. trainers and educators of different nationalities. including instructors. Aspetar was officially accredited by F-MARC as a FIFA Medical Centre of Excellence. squash. squash courts. rowing. there are approximately 200 student athletes. Aspire has a team of over 300. Worldwide. Aspire is known for its state-ofthe-art sports science. The Academy also has 20 classrooms for subjects ranging from English language to Physics and Biology.ConSTruCTIon SECTor rEporT . Currently. including a 200m athletics track.Aspire: Venue for Asian Games in 2006 Aspire Academy for Sports Excellence was founded in 2004 by HH Sheikh Jassim Bin Hamad Al Thani. two multi-purpose sport halls. tennis.000 sqm. It covers an area of approximately 290.CommErCIalBank CapITal . Aspetar provides a full range of services from injury prevention to injury management and performance improvement. a gymnastics hall. and produce graduates who would become Qatar’s most admired civic leaders.000 spectators. and fitness rooms. situated within the Aspire zone. In 2009. sailing. athletics. fencing. in grades 7 through 12. Aspire has an astonishing eight full-sized football fields. Aspire’s dormitory has 128 rooms and eight suites. who specialize in football. a bespoke goalkeeping training area. The iconic Aspire Dome has the capacity to host 10 different sporting events simultaneously in a climate-controlled arena. judo. which can house up to 255 students. to create a worldclass institution for educational sport that would develop athletes in Qatar. staffed by some of the world’s leading sports medicine practitioners and researchers. shooting and golf. Aspetar is the first specialized Orthopedic and Sports Medicine Hospital in the Gulf region. table tennis courts. making it the largest multi-purpose sports facility of its kind in the world. It provides high-quality medical treatment for sports-related injuries in a state-of-the-art facility. fencing strips. an Olympic-sized swimming and a diving pool. gymnastics. swimming. 10 . It can seat a total of 15. table tennis. Aspire has an enviable list of world-class sporting facilities. It has 13 sports venues and seven performance enhancement laboratories under the same roof. group matches.120 Value: USD 251 mn Matches planned: Group matches Location: Al-Khor Capacity: 45. round of 16 and quarter-finals.Qatar’s World Cup stadiums 0 2 km 30 1.250 Value: USD 662 mn Matches planned: Opening match. Madinat al-Shamal Al-Khuwayr Ras Laffan Al-Khor 3 Al-Jamaliyah 12 Umm Salal 1 QATAR han Lusail 6 Doha Al-Rayyan 5 Umm Bab 4 Al-Wakrah Mesaieed Abu Samrah Source: MEED CommErCIalBank CapITal .350 Value: USD 287 mn Matches planned: Group matches and round of 16 Location: Doha Capacity: 43.740 Value: USD 135 mn Matches planned: Group matches 10. Education City Stadium 8.950 Value: USD 202 mn Matches planned: Group matches. Qatar University Stadium Location: Doha Capacity: 44.120 Value: USD 286 mn Matches planned: Group matches and round of 16 Location: Al-Rayyan Capacity: 44. semi-final and final Location: Al-Shamal Capacity: 45. Shamal Stadium 3.11 . round of 16 and quarter-final 9. Al-Rayyan Stadium 6.740 Value: USD 135 mn Matches planned: Group matches 7. Khalifa International Stadium 12. Doha Port Stadium Location: Al-Wakrah Capacity: 45. round of 16. quarter-final. quarterfinals and semi-finals Location: UmmSalal Capacity: 45. Lusail Iconic Stadium 2.ConSTruCTIon SECTor rEporT .520 Value: USD 300 mn Matches planned: Group matches and round of 16 Location: Al-Rayyan Capacity: 44. Al-Khor Stadium Location: Al-Daayen Capacity: 86.330 Value: USD 251 mn Matches planned: Group matches and round of 16 Location: Al-Rayyan Capacity: 68.120 Value: USD 251 mn Matches planned: Group matches. Umm Salal Stadium Location: Al-Khor Capacity: 45. and round of 16. Sports City Stadium 11.330 Value: USD 251 mn Matches planned: Group matches and round of 16 4. Al-Wakrah Stadium 5. Al-Gharafa Stadium Location: Al-Rayyan Capacity: 45.030 Value: USD 71 mn Matches planned: Group matches. 12 . Shortage of raw materials The construction sector is likely to witness shortages in raw materials between 2013 and 2017. This has resulted in the influx of tourists. The transportation sector is the biggest beneficiary of the massive investment by the government. These projects require people who have “applied similar principles to creating efficient. as the credit environment becomes tighter and more difficult in such scenarios. hydrocarbon prices will decline. the scale and magnitude of the projects for the World Cup 2022 will be a whole new experience for both the companies. while the second phase is from 2018 to 2020. The news of Qatar hosting the FIFA World Cup 2022 has further brightened the outlook of the sector. We have assumed USD 225 bn investment as our base for total investment.ConSTruCTIon SECTor rEporT . the sector will have to bridge the gap during this period by mutual agreements with the companies in Saudi Arabia and the UAE. 3. Within the construction sector. as the period is expected to be the peak for the sector. Shortage of schools for children and the lack of a well-publicized clampdown on alcohol in Doha are some of the other problems that are currently being resolved. if not all the projects will be completed by the end of the projected period. Therefore. We believe the government of Qatar will continue to step in with support to ensure projects are completed on time in case private sector participation deteriorates.3.2 Construction Sector: Mapping market size under three scenarios The indicators for the construction sector outlook look solid. Based on our assumptions. The global slowdown will impact private sector participation. the first phase will be from 2013 to 2017. the country is witnessing massive investments in shopping malls to address the shortages in the retail space. The additional investments have been assumed in two phases. Despite the bright outlook. high tech systems in other countries like Germany. we have assumed additional investments in the construction sector as a percentage of the GDP. The tourism authority of Qatar has done a commendable job over the past few years by organizing and participating in conferences and exhibitions. The rapid increase in population. retail and hotel and tourism sectors. In addition. however. as it plays a vital role in the infrastructural development of the country. as well as for Qatar.1 Challenges The prospects of Qatar’s construction sector are bright. Global slowdown Qatar is not completely immune to the global environment. which is provided by the NDS. Ireland and Australia”. we remain buoyant on the transportation. Qatar is likely to face certain challenges as it prepares for the FIFA World Cup 2022. We have forecasted the Qatar construction sector market size until 2020. as well as inflow of tourists. having a direct impact on Qatar’s GDP. The companies operating in the construction sector have learned from their previous experience (the Asian Games). As a result. will boost the retail sector. thereby boosting the hotel sector. cost effective.CommErCIalBank CapITal . as we believe that the majority. uncertainty around the global economies will have a limited impact on Qatar in general. as much of the investment is backed by government or semi-government entities. The government will ensure that the shortages in raw materials do not lead to unexpected rise in prices. underpinned by significant investment by the government over the next decade. Both of these factors will lead to delays in execution of the projects. Challenges and Market size 3. Shortage of skilled/unskilled labor The shortage of both technical staff and labor will continue to one of the biggest challenges for the sector. All these factors will collectively lead to ample opportunities for construction activity in Qatar. The government will continue to remain under pressure to complete the projects on time to meet the deadlines and guidelines set by the FIFA authorities. therefore. and the construction sector in particular. resulting in lower growth. The rapid increase in population over the past few years has resulted in increasing demand for infrastructural development in Qatar. The improvement in the transportation network will also be essential as the country prepares for the FIFA World Cup 2022. we arrive at a market size of USD 270 bn. we have assumed a percentage of the GDP that will be re-invested in construction to further upgrade the infrastructure sector. we arrive at a market size of USD 315 bn. Based on this assumption. Exhibit 5: Spending patterns based on different scenarios – forecast (USD bn) 350 315 284 300 250 249 188 200 191 138 100 50 185 170 150 270 NDS: USD 225 bn 34 2012 2015 Base Case 2018 Worst Case 2020 Best Case Source: NDS and Commercialbank Capital Research CommErCIalBank CapITal . Base Case In this case.ConSTruCTIon SECTor rEporT . Initially. we have made two assumptions. This methodology was adopted to build three scenarios in our analysis to arrive at a market size. Based on this assumption. Worst Case In this case.13 . the first from 2013 to 2017 and second from 2018 to 2020. In each scenario. 3. First. we have assumed a lower percentage of GDP that will be invested over and above the planned investment by the government. We have assumed additional investments between 2013 and 2017 based on the announced investments of USD 225 bn by NDS. However. Finally. This constant rate as a percentage of GDP has been differentiated based on two phases.The following is a brief summary of the methodology adopted to arrive at the market size: 1. Based on this assumption. contribution from first two points remains the same while contribution from third point varies for three different scenarios: Best Case In this case. we have added the contributions from three approaches as described above. we have assumed a higher percentage of GDP that will be invested over and above the planned investment by the government. we have assumed that there will no additional investment and secondly we have assumed that around 15% of the planned projects will be cancelled going forward. we decided to take data from one source due to inconsistency from various sources. In order to arrive at the total market size. The value of each project was divided in quarters based on the completion date to arrive at the actual value invested in a particular year until 2020. The forecast for GDP is taken from IMF until 2016. This data was further classification as per the construction sector. 2. the list of projects ongoing and planned was compiled from various relevant sources. we arrive at a market size of USD 191 bn. The direct spending on building stadiums will be 4% of the total planned investment.000. the new airport was scheduled to open in 2008. It is currently prequalifying consultants for the preliminary metro designs. The new terminal is being built by the Sky Oryx consortium of Japan’s Taisei Corporation and Turkey’s TAV. Completion of the first phase is expected in 2014. It is now planned for an opening in December 2012. When construction started in 2004. Qatar has committed to spending USD 65 bn to build infrastructure to host the 2022 World Cup.ConSTruCTIon SECTor rEporT . Beijing based China Harbour won contract to execute the onshore excavation works. STADIUMS As of now. As part of the bid process. The terminal extension is being built by a joint venture of Belgium’s Six Construct and the local Midmac Contracting.Major Projects AIRPORT New Doha International Airport (NDIA) will be able to handle 24 mn passengers per year and will have 42 contact gates. south of Doha and will replace the existing Doha Port downtown on the city’s Corniche. The first phase involves building the Red line.CommErCIalBank CapITal . Qatar committed to providing 12 stadiums. Source: MEED 14 . The metro will consist of four lines running more than 300 km across the city. six of which will be dedicated to the Airbus A380 superjumbo. The new port will support industrial development to the south of Doha. PORT New Doha Port is to be built at Mesaieed. each with a minimum capacity of 45. It will renovate three stadiums and will construct nine new stadiums. RAIL Doha Metro is the first section of Qatar’s USD 25 bn rail plan to be developed and will be a crucial part of Doha’s infrastructure when complete. Firms have been prequalified for the contract to dredge the port’s approach channel. Stadiums will be equipped with cooling systems using clean renewable energy resources to achieve the first completely carbon-neutral World Cup. Germany’s Deutsche Bahn was appointed to develop Qatar’s national railway network. which will run from Doha city to new Doha International airport. In 2009. Preparing for the World Cup 2022 will drive spending on sports and transport infrastructure.9 14.8% 9.0% 10.5% a year over the next decade.0 15. respectively. In Qatar. Construction Sector Qatar has two main focuses in the next decade.0 11% 11. The value of such projects in Qatar and Saudi Arabia was insignificant compared to the total size of the market. unlike its regional peers. this interest group complements national and regional efforts to utilize our current and future green infrastructure. With Qatar slated to host a ‘zero carbon’ World Cup in 2022. healthcare and cultural projects. which has imposed a time frame for completing the projects.6 15.0 17.ConSTruCTIon SECTor rEporT . Qatar’s construction sector witnessed unprecedented growth between 2005 and 2008.2 21% 25. According to a study by Oxford Economics and Global Construction Perspectives.7 bn in 2005 to QAR 27. Qatar won the right to host the 2022 World Cup. The infrastructure that the country will build over the next decade will also result in meeting the objectives of the national development plan. including Dubai. Sector productivity increased from QAR 8. while the National Vision 2030 will focus on social infrastructure. Qatar Green Building Council (QGBC) has set up a group to foster green infrastructure as a national resource. Qatar is utilizing Leadership in Energy and Environmental Design (LEED) and the Qatar Sustainability Assessment System (QSAS) to this end.” Exhibit 6: Construction sector as a % of non-hydrocarbon GDP in Qatar 30. This initiative demonstrates the value of green infrastructure investment and reiterates the benefits and need for sustainable investment in this field.0 19% 24. and the second is implementing its National Vision 2030. Dr. commented: “In line with the environment pillar in Qatar’s National Development Strategy 2011-2016.4. This group also wants to encourage the appreciation of Qatar’s natural systems and their role in the landscape architecture profession. such as education. Chairman of the Research and Innovation Committee at QGBC. the construction market contracted in 2009 and 2010 on the back of the global crisis. Qatar’s ambitions and investment plans are different compared to other GCC countries.0 9% 7% 0 5% 2007 2008 Building and Construction 2009 2010 9M-11 As % of non-hydrocarbon GDP Source: Central Bank CommErCIalBank CapITal .7% to 2020. which aims to diversify away from a reliance on hydrocarbons.1 17% QAR bn 20. growing at a CAGR of 46%. first is staging the largest sporting event. The sector has not witnessed any major cancellations or projects on hold.15 .4% 10. compared with growth in European countries averaging just 1. Bahrain and Kuwait. Following this.3 bn at the end of October 2011. the projects put on hold were around 4% of the total market. the Qatari construction market is expected to grow by an average of 12. A number of projects are targeting LEED Gold or Platinum status.4% 15% 13% 13.0 27.1% 5.5 bn in 2008. Alex Amato.5 25. The total value of projects put on hold or cancelled stood at USD 460. compared to 59% and 24% in UAE and Kuwait. 0 55.2 0 Oct-05 Source: MEED Projects 16 .7 bn at the end of October 2011.4 10. Saudi Arabia has emerged as the largest market for planned or underway projects in the GCC. As of Oct-2011.000 750 500 250 0 Bahrain Kuwait Oman 2008 2009 Qatar 2010 Saudi Arabia UAE 2011 Source: MEED. Within transportation.0 116.5 167.6 254. as Kuwait witnessed a growth of around 43% despite all the cancellations/on hold projects. Furthermore. Qatar has been in the limelight for various reasons from acquiring international assets to hosting the biggest sporting event in the world. This indicates that the world’s leading supplier in the hydrocarbon sector has been capitalizing on its core sector to meet the rising global demand in the oil and gas sector.0 20.0 630.0 Bahrain Kuwait Oman Qatar Saudi Arabia UAE USD bn 111. The total number of planned and underway projects in Qatar stood at USD 214 bn at end of Oct-2011.2 bn accounting for 19% of all the projects under execution in the country.4 214.9 605. commercial and residential construction projects accounted for 21% of the total projects under execution.Exhibit 7: GCC - Projects planned or underway (2008 – 2011) 1.0 202. while UAE became the second largest market because of cancelled or on-hold projects.0 5.CommErCIalBank CapITal . The value of projects has grown at a CAGR of 40% during 2005 and 2011. The value of the projects under execution stands at USD 59. the total value of projects under execution in Qatar’s energy sector stood at USD 11.8 204.3 Oct-08 Oct-09 214.784. Note: Oct end for each year The total number of projects that were planned or underway in the GCC stood at USD 1.8 bn with the transportation sector accounting for around 30% of the projects under execution. The growth in projects value during the period is the second largest in the GCC.3 28.ConSTruCTIon SECTor rEporT Oct-06 Source: MEED Projects Oct-07 Oct-10 Oct-11 .9 25.3 15.0 145. Exhibit 8: GCC - Projects planned or underway till Oct-11 (USD bn) Exhibit 9: Projects planned or underway in Qatar 30. airport and roads have been the main contributors as they are witnessing a substantial revamp or new additions in facilities.250 USD bn 1. 864 Residential 33.7% Transport 11.280 Gas 26. which contains stadium and other sports facilities.7% Others Stadiums 0.3% was allocated towards the residential and commercial sub-sector.119 Oil 3. Transportation and building projects account for more than 50% of the projects under execution.927 Industrial 2. while the building sector is transforming the country by building some iconic projects over the next decade.690 Healthcare 4.7% Marine 12.1% Source: Commercialbank Capital Research CommErCIalBank CapITal . The biggest driver and the game changer for Qatar has been its winning bid to host the football World Cup 2022. These sectors are essential for the infrastructure development of the country.9% Chemical 6. As seen in Exhibit 11.5% Public 1. the country hosted the Asian Football Confederation Cup for the second time.3% Commercial 14.9% Cultural 2.7 bn.334 Power 16.7% was in industrial and 12. while 10.0% 9.0% Hospitality 4. 48.8% Education 4.0% Construction 47.5% Telecom 0. the total spending in the construction sector stood at USD 47. The country is building several start-of-art projects that will transform the country.ConSTruCTIon SECTor rEporT .Exhibit 10: Projects under execution (Oct-11) 2.7% Energy 30.6% Utilities 18. In the construction sector.2% Mixed Use 9. Exhibit 11: Sector wise spending Processing 52.6% Social 21.2% Building Retail 1. The 15th Asian Games were held in the country in 2006 and the preparation for the games resulted in a great deal of construction activity.570 Water 7.7% 12.1% Transmission 12.2% Storage 4.7% Transportation Source: MEED Projects Sporting events in Qatar have also been one of the main drivers of the construction sector.17 . The transportation sector is focusing on modernizing its existing network.2% Industrial 10.1% in ports.629 Retail 2.7% Tourism 2. including the building of a Sports City. In January 2011. accounting for 39% of the total spending.9% Production 30. Exhibit 12: Expected increase in capital spending 10.882 Origin Japan Saudi Arabia Athens Based South Korea China Local/France Local South Korea Local Local .0 2009 Power & Water 2010 2011 Petrochemical 2012 Oil & Gas Production 2013 Construction 2014 Infrastructure Source: Commercialbank Capital Research Exhibit 13: Qatar’s top 10 contractors 2011 Company JGC Corporation Saudi Binladin Consolidated Contractors Company Hyundai Heavy Industries China Harbour Engineering QDVC (Qatari Diar/Vinci Construction) Qcon Hyundai Engineering & Construction Qatar Building Company Al-Bader Construction & Steel Works Total Source: MEED Projects 18 . when most of the projects are expected to kick start.ConSTruCTIon SECTor rEporT Awards (USD mn) 1.0 4.150 965 889 880 535 510 434 419 400 7. The majority of the growth is expected in 2013 and 2014.CommErCIalBank CapITal .The Exhibit 12 focuses on the expected spending over the next four years.0 8.0 Capital spending is expected to increase by 48% between 2011 and 2014 6.700 1. The capital spending is expected to grow by about 48% between 2011 and 2014.0 2.0 0. 1 Client Qatar Railways Company (QRail) Status Planned NDIA Steering Committee Completion due in 2012 Source: MEED Projects The total revised investment in the GCC transportation sector is USD 298 bn compared to an original budget of USD 281 bn. Both the countries have announced significant investment plans. Transportation The transportation sector has been at the forefront of public spending plans in the GCC region in general and Qatar in particular.8 3. Given the size of projects awarded or in the pipeline.1 8 USD bn 88.1 bn in Qatar.1 9. Exhibit 14: Landmark projects in transportation sector Projects Qatar National Railway System Cost (USD bn) 35. The GCC countries are focusing on upgrading and developing rail networks within countries and also to connect the region. UAE has awarded about USD 11 bn worth of projects and USD 6. Exhibit 15: Value of projects announced in transportation sector (USD bn) Exhibit 16: Value of projects awarded in transportation sector 15.19 .5 1. In Qatar.0 New Doha International airport (NDIA) . Saudi Arabia has awarded about USD 28. The regional contractors are mostly from Kuwait and the UAE as activity within their respective the respective countries have remained subdued.3 54.0 10.5. The GCC governments are also making significant investments in upgrading their airports to meet the rising demand of both passengers as well as freight services.7 2. We believe that Qatar and Saudi Arabia will continue to remain the most dominant markets within the GCC region.6 Bahrain Kuwait Oman Qatar Saudi Arabia UAE 6 5 4.6 25.1 3.8 81.1 2 0 Oman 2009 Source: MEED Projects 9. During the past three years. the modernization of the transportation sector in Qatar is essential for successful hosting of the world’s biggest event.1 9 Qatar 2010 Saudi Arabia UAE 2011 Source: MEED Projects CommErCIalBank CapITal .3 bn worth of projects.4 bn in the GCC. In addition. The total investment in rail projects is USD 95 bn in the region.2 Bahrain 4.1 0.1 3 2.8 1.0 Kuwait 1.7 10 32. The total planned investment in airports is USD 41.ConSTruCTIon SECTor rEporT . especially in rail projects.5 0. The government is significantly focused on developing the country’s road network especially through main highways to ease traffic congestion.8 1. We believe that the improvement of the roads network will continue to be an ongoing investment for the government as the growth momentum continues in the region.4 4.3 0.(Phase I) 11.3 0. many regional and international contractors are expanding operations in Qatar and Saudi Arabia. the transportation sector is pacing development and expected growth in the country. The Qatari market looks more promising as the government is expected to accelerate the execution of planned projects to ensure timely completion as it prepares for the FIFA World Cup 2022. The investment in Qatar’s roads sector is set to continue. of which USD 17. Sinohydro Corporation Qatari Diar and Binladin Group . The other big contract that was awarded related to the two road contracts in January.000.0 Q4-14 Q3-12 Q4-13 Q4-14 Qatari Diar and Binladin Group Eversendai Corp.0 233.1 11. Strong economic growth in the past few years have led to a rapid increase in population. Oman and Bahrain have USD 27 bn worth of projects planned or underway. The preparation for the World Cup 2022 will also speed up the process of the construction of roads to ensure decreases in traffic congestion. worth an estimated USD 0. Qatar was the most active roads market in 2011.0 152.5. Ashghal awarded USD 2. The major upgrades in roads infrastructure were undertaken even before the country won the bid to host the FIFA World Cup 2022. In the GCC.7 17.0 85.7 Bahrain Kuwait Oman Qatar Saudi Arabia UAE 37.CommErCIalBank CapITal .1 Roads The total planned or projects underway in the GCC countries are valued at about USD 128 bn. Saudi Arabia is the second largest market with USD 38 bn worth of projects either planned or underway. Development of roads network is also essential for the overall infrastructure development of the country.8 12. Doha. to a joint venture of Consolidated Contractors Company and the Teyseer Contracting Company for the 12th package of the Doha Expressway. Kuwait. The biggest of these was the USD 1 bn construction package awarded to the joint venture of the Saudi Binladin Group and the local Qatari Diar for work on the Dukhan highway.52 bn. Exhibit 17: Planned/underway projects in roads (USD bn) 2.3 bn worth of contracts during the year 2011. and minimize the environmental impact of its transportation network.0 Completion Date Q1-14 Q2-13 Q1-14 EPC Contractors CCC and Teyseer Contracting Bin Omran CCC and Teyseer Contracting 1.0 150. with Ashghal planning to build 136 km of new roads by 2014.9 45. thus resulting in significant congestion in the capital city of Qatar. an increase in regional accessibility.0 45. Collectively. We believe that the execution of these projects will be important to reduce over congestion in the GCC. The country has allocated USD 20 bn over the next five years to upgrade its road network.8 Source: MEED Projects Exhibit 18: Roads project awarded in 2011 (USD mn) Projects Doha Dukhan Highway: Central Section Peripheral Roads to Barwa City Doha Expressway: Phase XII: F Ring Road Doha Dukhan: Al-Mail Roundabout to BaniHajer Roundabout Nakhilat Shipyard: Phase 4A Doha Expressway: Package 6 Doha Dukhan: Eastern Section Source: MEED Projects 20 .ConSTruCTIon SECTor rEporT Contract Value 275.9 bn is planned or underway. The UAE leads the market with USD 46 bn worth of projects planned or underway. while Qatar accounts for USD 18 bn worth of projects. providing plenty of opportunities to local and international contractors and material suppliers. and the largest proposed project. The government’s USD 20 bn plan also includes investments in improving its sewage networks. Three major road projects that which are underway further substantiate the five-year plan to upgrade the road network of the country. has been valued at a significant USD 687 mn. currently under construction is valued at USD 2 bn. PS23.21 . the Dukhan Highway also under construction has been valued at USD 275 mn. Doha North will witness projects such as Lusail. The improvement in sewerage networks at the Doha North Project is important as it is likely to witness increase in flows.5 bn at the end of 2020. CommErCIalBank CapITal . Timeline: Road projects Peripheral Roads to Barwa City Project Value: USD 152 mn Completion Date: Q2-13 Doha Expressway: Package 6 Project Value: USD 85 mn Completion Date: Q4-13 2012 Nakilat Shipyard: Phase 4A Project Value: USD 45 mn Completion Date: Q3-12 2013 2014 2015 2017 Doha Dukhan Highway: Central Section Project Value: USD 275 mn Completion Date: Q1-14 Doha Expressway: Phase XII: F Ring Road Project Value: USD 233 mn Completion Date: Q1-14 Doha Dukhan: Al-Mail to Bani Hajer Project Value: USD 1 bn Completion Date: Q4-14 Doha Dukhan: Eastern Section Project Value: USD 150 mn Completion Date: Q4-14 Ashghal has awarded USD 120 mn project to HBK Contracting. as well as alleviate some of the pressure placed on the existing Doha West Sewerage Treatment Works (STW). According to our estimates.8 bn worth of projects over the next two years. Series 8 Trunk Sewer. The Doha Expressway. well ahead of the -World Cup 2022. PS15. which is currently being tendered. the total size of the road and bridges market in Qatar will be USD 26.Qatar is likely to witness the announcement of USD 7. civil and structural works at the existing pumping stations PS3/1. PS31 and PS44. We believe that new projects will be announced in line with the rising population as well as the trend to own cars in the region resulting in further upgrades in the country’s roads infrastructure.ConSTruCTIon SECTor rEporT . PS8/1. The Doha North Sewerage Treatment and Associated Works project is a USD 2.2 bn four-part expansion. PS8/6. Qatar is expected to finish its planned roads network by the end of 2016. USD 362 mn worth of projects has been awarded so far in 2011 for improving sewage networks around the city. The project comprises of mechanical and electrical refurbishment work with related drainage works. West Bay area. the Lusail Highway. the Pearl and Gharaffa. This was to have included: Phase I (2008-11) • Upgrading the Al-Rayyan road from the BaniHajar roundabout to Souq Waqif • The F-ring arterial road • The east-west corridor and New Doha International Airport road • The F3 Salwa road freeway. stage III • The F5 central Freeway.CommErCIalBank CapITal . stage I (Lusail expressway) • The F1 freeway to Al-Shamal Phase II (2012-16) • The F6 Doha Bay Freeway • The F2 Khalifa Street/Majlis al-Tawoon • The E8 Al-Khor expressway (Lusail North to Lusail South) • The F21 Al-Waab freeway • The Salwa road freeway. stage II • The E12 Western industrial expressway Phase III (2017-21) • The E2 D-ring extension to New Doha International airport • The A12 E-ring extension to the airport • The E10 Al-Wukair expressway • The E10Al-Waab expressway. stage III • The Al-Saad arterial road • The F61 Al-Wahda freeway • The F2 Dukhan freeway (Al-Shamal road to orbital freeway) • The F6 east-west corridor (from the Orbital freeway to New Doha port) • The F4 Orbital freeway/E9 Lusail tangential • The F5 Central freeway. stage I • The F5 central freeway. stage II Phase IV (2021-26) • Phase 4 consists of a pumping station for Treated Sewer Effluent (TSE3) .The Public Works Authority (ASHGHAL): The leader in Roads and Sewage developments has undertaken QAR 100 bn worth infrastructure projects in five years.ConSTruCTIon SECTor rEporT Roads The master plan programme called for a four phase programme to be implemented by Ashghal. Proposed Road Network in Greater Doha Expressways Artorial Roads Source: Ashghal website 22 . 0 15 10 30% 20% 7.0 5 0 40% 18.0 17.2 Railways The GCC region has a planned investment of USD 96 bn in the rail sector. The total investment in the rail sector in Qatar accounted for 53% of the total planned investment in the transportation sector.9 20% 18% 12% 3. Exhibit 19: Planned projects in railways 35.0 10% 0% Bahrain Kuwait Oman Value of Projects Qatar Saudi Arabia UAE % of Transportation sector Source: MEED CommErCIalBank CapITal . with a total investment of USD 35 bn. Qatar is the largest market for the railways sector in the GCC.0 35 70% 64% 30 50% 60% 52% 50% 25 20 15.23 .5.ConSTruCTIon SECTor rEporT . The rail networks have garnered a significant 32% share of the total transportation sector. which was earlier been assigned to Qatar Railways Development Co (QRDC).Qatar Integrated Rail Project: Automated People Mover in West Bay QRDC .Qatar Integrated Rail Project: Doha Metro: Blue Line QRDC .Qatar Integrated Rail Project: Doha Metro: Lusail Light Rail Network QRDC . The contract covers civil engineering works in seven underground stations.Qatar Integrated Rail Project: Doha Metro: Red Line QDREIC .9 bn USD 10. Recently.ConSTruCTIon SECTor rEporT .CommErCIalBank CapITal . Exhibit 21: Details of Qatar rail project Projects NDIA . will not be adequate to host the FIFA World Cup 2022.Qatar Integrated Rail Project QRDC .0 bn Expected Completion Date 2017 2015 2015 2015 2025 2020 2016 2014 2014 Coverage GCC nations North-South within Qatar Connects All Emirates in the UAE Dubai Bahrain Key Cities in Abu Dhabi Kuwait City From Jeddah to Riyadh in KSA From Mecca to Medina in KSA Source: Frost and Sullivan. Chaired by the Prime Minister. increasing taxis and buses will put additional pressure on new roads and create congestion.000 Q3 2012 1.4 mn contract with Qatari Diar Vinci Construction (QDVC) for the new phase of works on the Lusail Light Rail Transit system. which is currently operated by Mowasalat in the form of taxis and buses.000 Q2 2012 1.200 Q2 2012 2. the organization that was responsible for developing the rail network has been restructured with the objective of expediting the process. 24 . therefore.158 Q2 2012 1.QRail has started inviting expressions of interest from local and international companies to bid for design and construction contracts for the Doha Metro project. the construction of a viaduct over the motorway between Doha and the northern part of the country and preliminary works on an LRT depot and maintenance workshop.0 bn USD 7.Doha International Airport: Passenger Rail Station Box QRDC . Commercialbank Capital Research Qatar is the largest market for the railways sector in the GCC. In addition.0 bn USD 7. will be responsible for coordination of the entire project. A Railways Steering Committee has been established. a rail network within the country will be the most viable option for Qatar. Exhibit 20: Ongoing or planned railway projects in GCC Projects GCC Railway Network Qatar National Railway System UAE National Railway Project Dubai Metro Bahrain Rail Masterplan Abu Dhabi Metro Kuwait City Rapid Transit Saudi Land Bridge Haramain High-Speed Railway Value USD 30. with a planned investment of USD 25 bn. QRail will now look after the rail network project.0 bn USD 25.0 bn USD 7.Qatar Integrated Rail Project: Doha Metro: Green and Yellow Line QRDC . QRail has signed a USD 535. The objective of Qatar’s massive investment plan is to ensure that it can accommodate the movement of thousands of tourists during the tournament.675 Q2 2012 2. a 51:49 joint venture between Qatari Diar and DB International (formed in 2009). The public transport.9 bn USD 7.New Doha Airport to New Doha Port Railway Award Date Value (USD mn) Q1 2010 120 Q2 2012 20.000 Q4 2014 200 Source: MEED Projects Recently.0 bn USD 10.6 bn USD 7. ConSTruCTIon SECTor rEporT . Doha Metro. PMC bids invited for West Bay people-mover 2013 Testing and commissioning of Red Coast Line to start 2016 Testing and commissioning of freight railway to start by 2016 2017 2026 Entire rail programme will be completed PMC bids invited for Lusail LRT Aecom-Parsons wins PMC for Lusail LRT Civil works tender due for West Bay.211m Elevated: 108. Green line: will be from the industrial areas in the south through central Doha to Education City. Gold line: will operate from east-west route linking NDIA and the airport city with the industrial areas in the west of Doha.225m At Grade: 44. Golden Historic line.327m Total length: 212.170m At Grade: 44.952m Elevated: 56. Red Coastal line.449m Phase2 Underground: 50.25 . which is part of the country’s plan to spend USD 35 bn on rail infrastructure. running from NDIA to West Bay and on to The Pearl and Lusail.Qatar plans to build a rail network.327m Total length: 212. Red line: is the first line to be developed and will operate from the NDIA to the West Bay area in central Doha.763m Doha Metro map Timeline: Railways GCC Railway Network Project Value: USD 30 bn Completion Date: 2017 Civil works award due for West Bay by September 2012 2011 Consultants prequalify for metro. Green Education line and Blue City line. a 350 km rail network will have four lines.181m Phase3 Underground: 60. Construction due to start on Red Coast PMC award due for West Bay CommErCIalBank CapITal .580m At Grade: 44. Blue line: will follow the coast road.327m Total length: 129.274m Elevated: 79. Qatar Integrated Rail Project Phase1 Underground: 28. 4 mn on completion of the first phase. Tunnel and Detention Ponds Works NDIA – Concourse C NDIA – Aircraft Maintenance Hangar NDIA – Reclamation and Dredging Total Source: MEED Projects 26 . significantly higher compared to global traffic. Currently.000 tons of cargo a year. This figure is expected to grow to 2 mn tonnes (mt) at the end of second phase. putting additional pressure on airport authorities. the airport is handling 14.The total value of projects planned or underway in the GCC is USD 42 bn. In the GCC. In line with these developments.520 planes from the Middle East carriers by 2030.3 Source: MEED Projects The government plans to invest USD 11. The country is also gearing itself to maintain pace with a steady increase in passenger traffic to and to traffic to-and-from Doha.ConSTruCTIon SECTor rEporT Value (USD mn) 3. making it one of the largest cargo terminals in the world.CommErCIalBank CapITal . A recent Boeing forecast indicates that it expects orders of 2. Qatar Airways is also planning to develop its air cargo business. Qatar’s current airport is facing increasing congestion and will be replaced by a new airport with significantly larger cargo and passenger facilities.1 11.7 7. thereby making it an important transportation hub for the people and materials.2 Bahrain Kuwait Oman Qatar Saudi Arabia UAE 7. Exhibit 22: Projects awarded (USD bn) 4.3 New Doha International Airport The aviation sector in the GCC has undergone a major transformation during the past decade.000 932 778 670 425 7.2 2.000 sqm airport terminal.9 mn passengers a year. the capacity will double to 50 mn passengers per year.1 bn for NDIA which includes two runways and a 140.5. At the completion of first phase in March 2012. The NDIA is also developing its air cargo terminal with an initial handling capacity of 1. the airport will be able to handle 24 mn passengers and 750. Exhibit 23: Airport contracts awarded (2004 – 2010) Projects NDIA – Infrastructure Packages NDIA – Passenger Terminal Complex NDIA – Airfield Paving. Qatar has an aggressive aviation sector expansion plan to emerge as an aviation hub in the region. On completion of the second phase in 2015. According to the International Air Transport Association (IATA).9 8. In addition.355 Project status Execution Execution Execution Execution Execution Execution Award date 2007 2007 2005 2009 2006 2005 . Passenger traffic in the GCC has grown at a CAGR of around 10% between 2002 and 2010.550 1. the Middle East is one of the fastest growing markets in the world with expected annual growth of about around 9% till 2014. Qatar Airway’s rising fleet size has also been leading to an increase in transit passengers. the fleet size has increased from four aircrafts to 97 aircrafts in 2011.000 tn 2014 2015 2016 2018 New Doha International Airport (Phase II) Total Project Value: USD 11. This figure is expected to reach 110 by the end of 2013. The company is rapidly expanding its destinations.1 bn Completion Date: 2015 Passenger Capacity: 50 mn Cargo Capacity: 2 mn tn Qatar Airways Qatar Airways is a group of companies with diverse interests from core passenger and cargo transportation and airport to alcohol distribution. which represents over 90 % of the world’s air transport. Since the re-launch of Qatar Airways in 1997. In December 2011. Qatar Airways is among the best and the fastest growing airlines in the region winning the award for the Best Airline in the Middle East and Africa at the 2011 Business Traveler Asia Pacific Awards for the second year in a row.New Doha International Airport The government of Qatar began upgrading the NDIA even before winning bid to host the FIFA World Cup 2022 following increase in the number of tourists thanks to initiatives undertaken by the tourism authority of Qatar. The company has entered into a multi-billion dollar deal with Airbus to supply 80 aircrafts. The company is expected to add 20 new destinations by the end of 2013. sports and hospitality. During this period. Qatar Airways Cargo. Timeline: Airport projects 2012 New Doha International Airport (Phase I) Total Project Value: USD 11. This further substantiates Qatar Airways image in the industry and its commitment to being one of the best airlines in the region. In 2011. the Qatar Distribution Company (the only licensed retail distributor of alcohol in Qatar) and Doha International Airport.27 . as well as flight frequency. the CEO of Qatar Airways was unanimously nominated to serve on the board of governors of the International Air Transport Association. it has expanded and/or started new flights to various destinations. Qatar Duty Free. the company has been growing at 30% per year. The group comprises Qatar Airlines.1 bn Completion Date: 2012 Passenger Capacity: 24 mn Cargo Capacity: 750. Qatar is preparing for the upcoming expected rise in demand as Qatar Airways further enhances its fleet size to move up the international ranking. CommErCIalBank CapITal .ConSTruCTIon SECTor rEporT . This will help the airline post an increase in its current flying destinations. making Qatar a hub for major connections across the globe. the company bought a 35% stake at the Luxembourgbased cargo carrier Cargolux. the Government of Qatar plans to expand and develop its port infrastructure. this phenomenon is likely to change over the next few years as the country makes significant investments to diversify its economy away from the hydrocarbon sector.CommErCIalBank CapITal . as most of the production is exported to the emerging markets. The main objective of the new port is to replace the existing port.3 bn Space City in the Al-Khor area. Qatar’s ports are dominated by LNG exports. which is struggling to keep up with growing demand owing to the limited land at its disposal. the country has three main ports: Port of Doha (Qatar’s main commercial seaport). However. which has resulted in accumulated surpluses. and Port of Mesaieed (Qatar’s main oil export terminal and the main point of entry for aggregates and other building materials). In order to meet the heightened traffic of goods and supplies generated by the country’s economic boom and rising population.4 8.1 15.ConSTruCTIon SECTor rEporT Bahrain Kuwait Oman Qatar Saudi Arabia UAE .8 2. Qatar Space City is a plan of the Government of Qatar to establish a USD 3. The country can aspire for such goals as it has the required funding thanks to rising hydrocarbon prices in recent years. In September 2011.6 Source: MEED Projects 28 . However.8 2. along with a science museum and other tourist attractions. while the future expansion plans aim to address the expected rise in demand from the massive development program undertaken by the government.In March 2011. Port of Ras Laffan (the world’s largest LNG exporting facility). which is in line with its objective to develop its air freight business. Qatar Airway’s announced a strategic partnership with Qatar Telecom (Qtel) for the migration of its primary IT infrastructure to the Qtel data centre. The project will include establishment of a university in cooperation with the US National Aeronautics and Space Administration (NASA).4 New Doha Port The GCC ports sector is mostly dominated by the oil and gas sector.7 2. covering an area of 40. this is set to change in the coming years as the region continues to make significant investments to diversify its economic base. The current planned investments in the sea port sector are aimed at addressing the additional capacity of LNG. Currently.000 sqm. The new proposed port in Qatar is likely to transform the country into the new trading hub of the region. The planned project is expected to be implemented in several phases under the supervision of an official body that would be appointed with the General Authority of Civil Aviation. which is in line with the country Vision 2030. Exhibit 24: Planned projects in sea ports ($ bn) 0. 5. The concept of the space city project is based on the American Space Museum. 2 bn. in a four-and-half year deal. Qatar received bids from about nine consortiums for the major contract of the New Doha Port.An artist impression of the USD 5.3 mn m3* 2 mn teu Year of Completion 2016 NA 2014 Source: Commercialbank Capital Research. Note: *Cubic meter In April 2010. We believe that Qatar will have to expedite its process of bidding and awarding and thereafter execution in order to keep pace with its regional peers.ConSTruCTIon SECTor rEporT . Timeline: Port projects New Doha Port (Phase II) Total Project Value: USD 7 bn Start Date: 2020 Capacity: NA 2016 New Doha Port (Phase I) Total Project Value: USD 7 bn Completion Date: 2016 Capacity: 6 mn TEU (20-foot equivalent units) 2020 2025 2030 New Doha Port (Phase III) Total Project Value: USD 7 bn Start Date: 2030 Capacity: NA CommErCIalBank CapITal . and is likely to be awarded soon.5 bn deepwater seaport near Qatar’s industrial city of Mesaieed Exhibit 25: Port capacity Port Name New Doha Port Port of Ras Laffan Port of Mesaieed Capacity 6 mn teu 6.29 . The second contract has received bids. In March 2011. the steering committee signed its first contract with the China Harbor Engineering Company (CHEC) for of QAR 3. with it 40 km of reclaimed coastline and 20 km of pristine beaches. It is also Qatar’s first international luxury residential development that offers international investors freehold title ownership. Qatar United Development Company (UDC) is the project developer overseeing the project’s entire infrastructure and construction of municipal buildings.000 sqm. There are three retail areas which have their own themes. 30 . as well as a family destination with schools and community facilities. It will be a boutique beachfront resort with 47 luxury villas and spa suites located at Porto Arabia. It is located 20 km from Doha’s international airport and 350 meters offshore from Doha’s prestigious West Bay District. with an area of 600. Dar Al-Handasah (Shair and Partners) is a project manager. covering 400 hectares (4 mn sqm) of reclaimed land.000 sqm. high rise towers. The Pearl-Qatar. while the Qanat Quartier will be the cultural destination with its impressive design. The idea behind Pearl Qatar is to attract as many people as possible from Qatar and the region. One of them is the Porto Arabia covering 200. penthouses and Mediterranean villas. town homes. including fashion. three 5-star hotels. It will have high-end shops and fine-dining restaurants from countries such as Spain. and consists of 385 retail shops. The Pearl will house about 40. Nikki Beach Resort & Spa is a Miami-based resort chain set to open in July 2012. jewellery and fine dining. The first investors took up residency in 2009. allowing people to enjoy parks and art galleries.CommErCIalBank CapITal . and the entire project is expected to be completed by 2013. an international yachting hub with three marinas and 700 boats. as well as from other parts of the world. is set to provide cinemas and supermarkets among others. It is designed by the award winning Singapore based ECO ID Architects with interior design by Gatserelia Design. 2 mn sqf of international retail.ConSTruCTIon SECTor rEporT . Italy and the United States. The Medina Centrale. restaurants and entertainment hubs. The Pearl.1 The Pearl-Qatar The Pearl-Qatar is a Riviera style manmade island developed in an exclusive environment in Doha. is among the main tourist attractions of Qatar. It is one of the largest real estate developments in the GCC.6.000 residents and includes luxury apartments. Iconic Projects 6. 6. Msheireb Exhibit 26: Details of Msheireb development Projects Msheireb Properties .217 sqm. Kahraba Quarter (residence and mix use). Phase 2. The project will house 226 buildings to provide homes to 27.Mandarin Oriental Hotel Msheireb Development: Infrastructure Works: Phase I Msheireb: District Cooling Plants Msheireb: Phase 1a Msheireb: Phase 1b Msheireb: Phase 2. office apartments and shops.2 Msheireb Msheireb is an iconic project aimed at displaying innovative development and rediscovering local heritage and culture. hotels. a primary school and a mosque. It will have parks and open spaces spread over approximately 122. offices. a shopping street. 3 and 4 Budget Value (USD mn) 80 142 50 428 500 4.637 residents. Heritage Quarter.31 . central luxury hotel and serviced apartments. The project will have three types of hotels namely Lifestyle hotel. 3 and 4 will consist of retail malls. One of other distinctive features of the project is that it is expected to have underground metro stations to provide links to other parts of country. townhouses. The project will be completed in five phases with the first phase due for completion by 2012.ConSTruCTIon SECTor rEporT . Nakheel Quarter (HQ gateway). The first phase will consist of a multi-use Cultural Forum. Luxury hotel and Business hotel and a theatre auditorium with a 500 to 700 seating capacity.072 Project Status EPC Bid Execution Execution Execution Execution Design Source: MEED CommErCIalBank CapITal . Retail Quarter. The project is divided into six main character zones namely Diwan Quarter. 000 residents. the entire Lusail City will be connected to an extensive natural gas pipeline network. Barwa Real Estate Company Diyar al-Kuwait Real Estate Company ADIH. The infrastructure of Lusail city is divided into two phase which was further subdivided into construction zones. entertainment.8 bn Design EPC bid Design PMC awarded USD 1. It will also have a full array of community needs such as schools.5 bn USD 800 mn USD 1. cultural facilities and shopping centers. Majid al-Futtaim Group USD 662 mn Design Qatar Olympic Committee . The city will have 25. Lusail City will have residential. approximately 15 km north of the city center of Doha. There are 16 major CP which are under different stages of development. Lusail City Freehold ownership of Lusail City properties is available to all Qatari and GCC nationals. sports. Lusail City will be located on the east coast of Qatar. mosque.CommErCIalBank CapITal .ConSTruCTIon SECTor rEporT Total value Status Client NA USD 350 mn USD 350 mn USD 1. commercial and two marinas.000 visitors to the city. known as construction package (CP). An estimated 170. while foreigners can acquire property on a 99-year lease basis.000 residential units which will accommodate approximately 200. Similarly. The estimated cost of the development is USD 33 bn.5 bn Design On Hold On hold Arcapita. medical facilities. which will be executed in phases over the next 10 years.3 Lusail City Lusail City is a modern yet traditional and environmentally friendly city. The entire infrastructure at this stage is planned to be completed by the end of 2013.6.8 bn EPC bid Public Works Authority (Ashghal) Ashghal Ashghal Qatar Railways Development Company (QRDC) QRDC USD 3.000 are anticipated to work at the different districts and expected to attract further 80. Exhibit 27: Lusail City construction projects Projects Transport Al-Khor Highway Lusail Expressway – Phase one Lusail Expressway – Phase two Lusail light-railway transit (LRT) Lusail LRT rolling stock contract Real Estate Al-Sidra Golf Residential Development Lusail mixed-used development Lusail Entertainment City Sports Lusail Iconic Stadium Source: MEED Projects 32 . Executive Director of Engineering and Real Estate at Masraf Al Rayan. a project under development by Seef Lusail Real Estate Development Company “SEEF”. One of the hotels will be a fully integrated resort and spa providing guests with a unique leisure experience. a distinctive 21st century iconic city which celebrates the special cultural and geographical heritage of Qatar and the Gulf Region DP Architects is a leading architectural practice in Asia with over 1200 staff and 12 offices worldwide. the Address at Dubai Marina. Issa Mohammed Al Kaladari. Dilmunia Health City in Bahrain and The Eighth Gate in Damascus.3 km waterfront promenade that will include multiple world class attractions that will cater to various age groups and families. has appointed DP Architects as master planners for the project. SEEF.000 sqm multi-use development located at the waterfront of Lusail. Doha Festival City. in order to have a lively and active waterfront all year long. The developer. Seef Lusail will further add to Qatar’s appeal as an international destination that rivals major global destinations. business and luxury leisure segments. CEO of Lusail City was appointed as Chairman of SEEF. Discussions and negotiations are underway with global hotels brands that will bring new concepts and ideas to Qatar. The firm was founded with a deep concern for the built environment and the need to create architecture of excellence that enriches the human experience and spirit. “SEEF” conducted a number of studies on waterfront destinations worldwide in an effort to create an innovative design with a strong emphasis on creating themes throughout Seef Lusail that reflect and compliment Qatar’s traditions and values. Seef Lusail will feature an interactive 2.33 .ConSTruCTIon SECTor rEporT . is a joint venture between Masraf Al Rayan and Qatari Diar that will take on the full development of Seef Lusail. CommErCIalBank CapITal .Seef Lusail 6. Seef Lusail is a 600. It has been operating in the Gulf region since 2005 and their key projects in the region include The Dubai Mall. has been appointed as the CEO of SEEF.4 Seef Lusail Seef Lusail. The hotels in Seef Lusail will cater to the family. The design will take into consideration the climate in Qatar. The developer. Khalid Ahmad Fakhroo. The sector has benefitted from the rising purchasing power of its residents in recent years. increasing influence of western culture. The contribution to GDP has increased from 4. the retail sector in the GCC is contributing to the overall growth in the non-hydrocarbon sector. the total projects planned or underway for shopping malls in the region is USD 11.234 Bahrain Kuwait Oman Qatar Saudi Arabia UAE 521 Source: Alpen Capital Doha Festival City The emergence of trade.5% in 2010. Changing consumer behavior and lifestyle. rising disposable income have led to phenomenal growth in the retail sector. The region has emerged as one of the most attractive destinations for retailers across the globe. Shopping malls and organized retail stores have gained prominence in the region as they are regarded as one stop entertainment shop for residents and tourists alike.7. resulting in shopping malls and complexes. Qatar’s retail sector has evolved over the past few years on the back of rapid growth in population.4% in 2006 to reach 5. Qatar’s rapid economic growth has led to one of the highest GDP per capita in the world.CommErCIalBank CapITal . Retail & Leisure The GCC retail sector has undergone a paradigm shift over the past decade on the back of a robust macroeconomic environment. As a result. The retail sector growth in Qatar has mirrored the economic growth in the country. Therefore. Exhibit 28: Gross leasable area (GLA) in 2010 (sqm 000’s) 639 311 571 4. 34 . Shopping malls have become an important part of everyday life as they constitute a good source of entertainment for both residents and tourists in the country.045 4. This has led to a shift from unorganized to organized shopping. We believe that Qatar has the potential to attract a bigger share as it prepares for the World Cup 2022 and the government thrust towards becoming a touristic hub in the region.ConSTruCTIon SECTor rEporT .1 bn. restaurants and hotels sector as the fourth largest contributor to GDP in 2010 reflects the strong and growing performance of Qatar’s retail industry in recent years. Around USD 2 bn worth of projects is to be awarded in the year 2012 and 2013.35 . BASREC shareholders include Al-Futtaim Real Estate Services. the retail space remained scarce in the country. which will include the retail section. The total planned and projects underway in shopping mall are USD 3.Exhibit 29: Retail future supply 2012 – 2015 Project Gulf Mall Ezdan Mall Doha Festival City Northgate Mall Mirqab Mall Marina Mall Barwa Commercial Avenue Mall Barwa Al Doha GLA (sqm) Completion Date Project Value 80. Toys R Us. CommErCIalBank CapITal .5 mn sqm of GLA.600 55. The prices of sub-letting can vary between QAR 100 to QAR 150 per sqm depending on the location.000 56. Qatar’s total retail stock was about 630. Both these projects will more than double Qatar’s current GLA upon completion.000 sqm (GLA) of new organized retail space by the end of 2012. The Barwa Commercial Avenue is under construction. which is being developed by Al Futtaim will be completed by 2014.1 bn.000 sqm of fine dining which will be home to 20 restaurants with outdoor patios.000 2012 USD 100 mn 40.000 sqm of retail shopping.000 2012 USD 50 mn 240.847 sqm plot with a GLA of around 260.2 Lagoona Mall Lagoona Mall is a 127.000 2013 USD 327 mn 36. shopping malls and commercial centers have entered the market during the past couple of years. which will yield 1 mn sqm of built up area. namely Water Concourse.000 2014 USD 1. featuring 5.000 2015 2012 2015 USD 275 mn USD 1. The project is owned and developed by Bawabat Al Shamal Real Estate Company (BASREC). Qatar Islamic Bank (QIB) and private Qatari companies. Fifty One East. Lagoona is developed by Dar Investment & Development and is leased and managed by Darwish Holding for an initial period of 30 years. DFC will be built on a 433. it also provides parking for over 2.000 2013 USD 200 mn 60. DFC will be the home to IKEA. is likely to be completed by the fourth quarter of 2012. Marks & Spencer and Inter-sport. The first phase of the project. The completion of 433.847 sqm (GLA) of Doha Festival City complex.000 sqm two level lifestyle shopping centre with 53.4 bn. The main contractor was Al Seal Contracting & Trading Co and Hill International (project Management) MZ & Partners (Design and Supervision) are the consultant. Similarly. The retail section will have four distinct interior zones. This has resulted in speculative demand. The total number of projects awarded during the year 2011 is USD 523 mn. Qatar will add 626. The shopping center comprises 170 retail stores. Based on planned developments.65 bn 100. Garden Promenade. The remaining sections of the DFC are expected to be completed by the end of fourth quarter of 2014. The mall is the home to luxurious multi brand store. 7. The first phase of the project will yield around 0. DFC will consist of mall and entertainment complex. which has prompted sub-letting at enormously high prices. 7. entertainment and leisure. Sheikh Hamad Bin Jassim Al Jaboor Al Thani Qatar Foundation Barwa Real Estate Company Barwa Al Doha (Developer) Source: DTZ Research and MEED Projects Although. The store covers an area of 13. built at an estimated cost of QAR 1. One of Lagoona’s unique features is a 20.000 vehicles.000 sqm. thus doubling the existing retail capacity. Rainforest Boardwalk and Fashion Galleria. hospitality and offices and automotive showrooms.000 sqm European piazza. an increase of around 30% compared to 2009.000 sqm which is the biggest in the Middle East region.000 sqm (GLA) at the end of 2010.1 Doha Festival City (DFC) DFC will be the largest mall in Qatar with a mixed use of shopping.ConSTruCTIon SECTor rEporT . There are around 10 new malls being planned in Qatar. The first phase is about 60% complete and the rest is to be completed by the end of 2012.E. Surprisingly this phenomenon has become highly common in Doha.100 mn USD 824 mn Developer Business Trading Company Ezdan Real Estate Company Bawabat al-Shamal Real Estate Equinox H. which is located around 15 km north of downtown Doha on Al Shamal Road. KATARA . Doha Tribeca Film Festival.ConSTruCTIon SECTor rEporT Abu Dhabi Dubai Kuwait Qatar . and a multi-purpose halland Roman-style amphi theatre which is the largest in the Middle East.3 Katara Katara is the Cultural Village of Qatar.e.7.Cultural Village 7.CommErCIalBank CapITal . Katara has held various performances since its opening in October 2010 which includes Qatar Philharmonic Orchestra. Katara hosts international. marinas. art galleries. regional and local festivals. Q media and Qatar Cinema and Film Distribution Company plans to invest more than QAR 1 bn in the next three years to open more than 50 state-of-the-art multiplex facilities. Photography Exhibitions (i. Exhibit 30: Cinema screens in the region 17 13 38 14 Source: Various 36 . It covers an area of 1 mn sqm and is located between Doha’s West Bay and the pearl. It also has traditional cafes/restaurants. mosques and playing field for children. workshops. handicrafts souq. It is the largest and the most multidimensional cultural project of Qatar. Doharama) and Cultural Performance during AFC Asian Cup Jan 2011. museums. Q media announced a deal to acquire 60% stake in Qatar Cinema and Film Distribution Company for nearly QAR 2 bn. The approximate cost of the project is USD 82 mn.4 Cinemas Recently. where cutting edge activities of all fields show the cultural diversity of the world in one single traditionally Qatari place. libraries. an opera house. performances and exhibitions at its prestigious venues such as theatres. Our Time. World Cinema Foundation has signed a three-year cultural partnership with DFI to restore and preserve international films of cultural significance. QTA has done a commendable job in organizing and participating in conferences and exhibitions over the years.9 mn during the same period of previous year. Doha has hosted international film festivals . These assumptions are on the back of significant planned investments in the sector and in line with the government’s thrust to become a major tourist destination.4% per annum by 2021 from QAR 3.7 bn Completion Date: Q4-14 GLA: 260.4 mn in the third quarter of 2011 to QAR 101. Aspire Zone Foundation (AZF) opened the first women cinema in Qatar capital. In terms of revenues. CommErCIalBank CapITal . The total number of cinemas in Qatar stood at 38 compared to around 30 in Dubai and Abu Dhabi.000 sqm Mirqab Mall Project Value: USD 200 mn Completion Date: 2013 GLA: 36.7% of total GDP in 2011. According to the World Travel and Tourism Council (WTTC). Qatar has one of the fastest growing tourism sectors in the world.000 sqm Barwa Commercial Avenue Mall Project Value: USD 1.605 sqm Ezdan Mall Project Value: USD 50 mn Completion Date: 2012 GLA: 40.8 bn or 0. Qatar has also launched Doha Film Institute (DFI) to build a strong film industry in Qatar along with strong links to the international film community. the revenue increased to QAR 385. Qatar has the maximum number of cinemas. Doha.ConSTruCTIon SECTor rEporT . All the films for this cinema are provided by Qatar Cinema and Film Distribution Company.000 sqm 2015 7. Qatar is moving in the right direction to become the main attraction and hosting big events in the coming years.000 sqm Barwa Al Doha Mall Project Value: USD 824 mn Completion Date: 2014 GLA: 271.5 Hotels & Tourism Qatar Tourism Authority (QTA) plays an important role in promoting Qatar as an evolving tourist destination. The company organizes and supervises the development of the tourism industry in Qatar. We remain optimistic on the prospects of the entertainment and believe that it will gradually emerge as one of the top entertainment hubs in the GCC.000 sqm 2011 2012 2013 2014 Gulf Mall Project Value: USD 100 mn Completion Date: 2012 GLA: 80. 4 star hotel revenues increased to QAR 182. The contribution of the travel and tourism sector to GDP is expected to rise 6. The increase in the number of business travelers due to the conferences and exhibitions is improving the hotel occupancy rates in Qatar.000 sqm Lagoona Mall Project Value: USD 348 mn Completion Date: 2011 GLA: 127.100 mn Completion Date: Q2-12 NLA: 56.600 sqm Doha Festival City Project Value: USD 1.Tribeca Film Festival Doha and Al Jazeera Documentary Film Festival in the past.In the GCC. which has transformed Qatar into a business destination within the region. In terms of 5 star hotels. Timeline: Retail projects Northgate Mall Project Value: USD 327 mn Completion Date: 2013 GLA: 100.000 sqm Marina Mall Project Value: USD 275 mn Completion Date: 2014 GLA: 57.37 .6 mn in the third quarter of 2011 compared to QAR 304.6 mn of the previous year. 000 new rooms will come on stream each year through 2022. It will comprise of 336 guest rooms and suites. the total number of hotels is expected to reach 240 by end of 2022. Currently. of Hotels 200 150 100 50 51 58 2008 2009 66 0 2010 2022F Source: Zawya Qatar Museums Authority (QMA) has awarded a contract worth USD 434 mn to a South Korean construction firm Hyundai Engineering & Construction to build the National Museum of Qatar designed by the French architect Jean Nouvel over an area of 46. about 90% of future supply will provide four and five star accommodation. Qatar’s 38 . The construction of the museum is expected to be completed by 2014.St. a world-class Remede Spa. Regis Doha. The total planned and underway projects are USD 2. According to QTA. Around 5.ConSTruCTIon SECTor rEporT . According to the latest figures from QTA. Qatar had around 66 hotels.6 bn worth of projects has been awarded. Regis Hotel. indicating strong domestic and regional interest in the sector. USD 1.500 will be come on stream by the end of this year. Doha The revenues from 4 and 5 star hotels witnessed an increase during the period. The report indicated that the occupancy rates have increased by around 4% in the third quarter compared to the same period of the previous year.850 sqm Grand Ballroom with a capacity of accommodating 1.4 bn.000 hotel rooms and additional 5.000 sqm in Doha. the tourism sector in Qatar is witnessing a steady growth. According to QTA. As of now. According to hotelier Middle East. Exhibit 31: Qatar growth in hotels (forecast till 2022) 240 250 No. St. The hotel is strategically located near the Katara Cultural Village and Doha Exhibition Centre.CommErCIalBank CapITal . Regis Hotels & Resorts is making a landmark entry into the Middle East with The St.000. there are 10.200 guests. Qatar has 17 five star and 13 four-star hotels at the end of January 2011. This is a substantial increase in the number of hotels in the next ten years. By the end of 2013. The hotel is part of Al Gassar Resort and is expected to open on 28 February 2012. especially Saudi Arabia as it accounts for around 60% of the total tourist within the region. a cornucopia of signature restaurants. and a 1. In total. the total hotel rooms will reach 30. This increase was due to the 24% increase in visitors from the GCC region. ConSTruCTIon SECTor rEporT .39 . The park is designed by Pei Partnership Architects of New York.000 sqm with no entrance fees for visitors. The plans for building a new Museum of Photography designed by Santiago Calatrava are in progress.1 bn Completion Date: Q4-14 Capacity: 300 rooms Four Seasons Hotels and Resorts Project Value: USD 150 mn Completion Date: Q2-14 Capacity: 350 rooms CommErCIalBank CapITal . which opened in December 2008. film screenings. which opened last December. Regis Hotel and Residential Tower Project Value: USD 415 mn Completion Date: Q1-12 Capacity: 320 rooms Doha Regent Hotel Project Value: USD 100 mn Completion Date: Q3-12 2015 Planet Hollywood Hotel Entertainment City Project Value: USD 0. paddle boats.National Museum will be an add-on to the Museum of Islamic Art in Doha designed by IM Pei. as well as the Arab Museum of Modern Art in Doha. New National Museum of Qatar The QMA has also announced to open a “Museum of Islamic Art” (MIA) park built upon an area of around 280. they will also provide various facilities like music evenings. In addition. Timeline: Hospitality projects 2011 2012 2013 2014 New Doha Hilton Hotel Project Value: USD 60 mn Completion Date: Q1-12 Capacity: 320 rooms Qatar National Museum Project Value: USD 434 mn Completion Date: Q2-14 Capacity: 220 seats Crowne Plaza Doha: The Business Park Project Value: USD 165 mn Completion Date: Q1-12 Capacity: 265 rooms Mandarin Oriental Hotel Project Value: USD 80 mn Completion Date: Q1-14 Capacity: 160 rooms St. sports events and art workshops. According to a recent study by Qatar’s permanent Population Committee. it is important in attracting expatriates to work and live in Qatar.CommErCIalBank CapITal . Supreme Education Council (SEC).1 Education Education City The education sector has undergone major transformation over the past two decades. namely Education Institute to develop curriculum and professional training for teachers and staff. The strong growth in student enrolment has led to reform of Qatar’s primary and secondary schools. Qatar leads the GCC in terms of education reforms as it ranks among the top five nations globally in terms of quality of primary education. Currently.000 students under the new system provided by the SEC. Evaluation Institute to assess and monitor the performance of schools and the Higher Education Institute to help outstanding students. 40 . the main challenge would be the exorbitant prices of land. These are indirect ways of creating demand. The country has made major investments in improving the quality of its education system. however.ConSTruCTIon SECTor rEporT .8.5% annually. 8. In addition. which will support the country’s National Vision 2030 of reaching their target population by the end of 2030. which may be unfavorable when compared to the existing schools. This would be lead to higher pricing structure for new schools. The government established the regulatory body. The SEC comprises of three institutes. there are 165 independent schools serving around 80. Social Infrastructure Social infrastructure development becomes important in the midst of economic development. Investments in social infrastructure such as hospitals and education is on the rise as providing adequate education for the growing young population is the backbone of economic diversification. Both the healthcare and education is part of the government’s human development programme. the number of students is rising by around 4. We believe that there are opportunities for the primary and secondary schools due to the rising demand. which is important for the overall development of the country. This new multi-disciplinary university will combine the learning. Six American universities have opened branches in the Education City. the government has allocated QAR 8.2 Healthcare The government thrust on improving its healthcare system.8 bn (USD 2. makes in one of the largest spenders on healthcare in the GCC region. the government will continue its investment program to further improve its education system. which is around QAR 300 mn higher compared to the previous year. in order to align with the Qatar’s National Vision 2030 and its ambition of becoming a regional centre for medical research. Qatar University continues to remain the main attraction for local students. teaching and research being carried out at the branch campuses of the universities and other academic centers at the Education City.41 . The university offers 60 degrees from seven different colleges.2 bn. The government intends to bring in modern educational curriculum. Total projects awarded during the year 2011 reached USD 1. In the country’s 2011/12 budget. Hamad bin Khalifa University is an initiative of Qatar Foundation for Education. One of the key elements of human development of Qatar National Vision 2030 is health of the population. the government allocated around 10% of the total annual budget toward healthcare and related activities. This is in line with the government’s Vision 2030. which will benefit the development of local population. Qatar has a total of 9 hospitals and 22 primary healthcare centers. In addition. On an average. Going forward. The strategy has 35 projects in plan over the next six years which will improve the overall healthcare services and fulfill the needs of world class healthcare system.4 bn) to the healthcare sector. Exhibit 32: Universities in Qatar University / College Qatar University Virginia Commonwealth University Northwestern University Weill Cornell Medical College Georgetown University Texas A&M University Carnegie Mellon University HEC Paris University College London Stenden University University of Calgary College of the North Atlantic Country of Origin Qatar USA USA USA USA USA USA Europe Europe Netherlands Canada Canada Source: Commercialbank Capital Research One of the most significant changes in the education sector was the establishment of Education City by the Qatar Foundation. Due to the modernization and its world class facilities. The rapid increase in population during the past five years has resulted in serious shortages for healthcare system in Qatar. while it is expected that USD 620 mn worth of projects will be awarded during the fourth quarter of 2011. Science and Community Development (QF) in honor of His Highness the Emir. Qatar has introduced its National Health Strategy (NHS) 2011-16. the main driver for Qatari people to enroll in the public university is to secure high paying public sector jobs.ConSTruCTIon SECTor rEporT . HH Sheikh Hamad Bin Khalifa Al-Thani. Apart from these international universities. The university also underwent series of reform between 2003 and 2007. We believe that the total investment is likely to surpass the USD 6 bn as the development in Qatar will induce more primary and secondary schools and western universities to meet the rising demand in Qatar. it has attracted both universities and students from around the region. CommErCIalBank CapITal . The total projects planned or underway in Qatar is USD 6. 8.6 bn. It will be the first hospital in Qatar to have a fully integrated clinical information system as well as the first academic medical center in the region based on the North American model. The three essential missions behind the initiative are patient care. The institutions have their campus in Qatar providing healthcare/ medical education and nursing training programmes. including 658 onebedroom and 507 two-bedroom apartments.340 Beds Qatar spends around USD 137 mn per annum to send patients outside the country for treatment as it lacks quality healthcare. infertility. institutions and colleges like University of Calagry Qatar and the Weill Cornell Medical College. and diseases specific to women. the government is planning to spend USD 8 bn on hospital construction projects by the end of 2016.1 bn Completion Date: Q2-13 Capacity: 1.165 residential units. The new hospitals will add 5. The aim is to become the leading centre for the development of medical science in the Middle East. It is owned and funded via a USD 7. Sidra Medical and Research Centre will provide employment to around 5.5 bn Completion Date: Q1-11 Capacity: 280 beds 2013 2014 2015 Hamad Medical City Project Value: USD 1. Sidra Village: Mazaya Qatar Real Estate Development Company has awarded a $130m contract to China’s Sinohydro to deliver the Sidra Village project in 20 months. The government has taken several initiatives to improve the quality and services of the healthcare system in Qatar.9 bn Completion Date: Q4-12 Capacity: 380 Beds 2011 2012 Al Wakrah Hospital Project Value: USD 0. The centre will also have parking facility for approximately 2. medical education and biomedical research.CommErCIalBank CapITal .000 people including doctors. USD 1. In order to address this issue. Sidra Village comprises 1. biomedical researchers. administrators and support staff. It will also include research in the field of pregnancy health. the health needs of children. Sidra Medical and Research Centre is one of several initiatives taken by HH Sheikha Mozah bint Nasser AlMissned. 42 . The government has formed partnerships with various foreign universities. Sidra Medical and Research Center will be located in Education City.5 bn Sidra Medical and Research Centre. New Sidra Medical and Research Centre The medical center will work closely with Weill Cornell Medical College in Qatar and Hamad Medical Corporation in regard to all three missions. raising the standard of health care throughout the country and providing valuable opportunities for training the medical students and clinician.000 beds to the current capacity. Timeline: Healthcare projects Sidra Medical City (Phase I) Project Value: USD 7. and USD 500 mn Al Wakhra Hospital.000 vehicles and a residence for 350 nurses. One of the most ambitious projects in the healthcare sector is the USD 2. The country’s public works ministry has approved plans to build eight new hospitals by 2016. technical staff. genetic abnormalities. One of the main challenges is attracting skilled professionals to achieve quality healthcare system in the country.ConSTruCTIon SECTor rEporT .5 bn Hamad Medical City.9 bn endowment from Qatar Foundation. nurses. 000 (including structured parking). is the Design Architect and creator of the actual design of Sidra. a world class team has been assembled that includes the following entities: Qatar Petroleum serves as the Client Representative on behalf of Qatar Foundation. the Executive Architect.43 . 2. and 53 high-risk/ICU obstetric beds. Phase I consists of 380 beds. A $ 2. serving as the link between Qatar Foundation. Led by Engineer Saad Al Muhanadi.ConSTruCTIon SECTor rEporT . Qatar Foundation’s Capital Projects Department is overseeing all elements of the design and construction of Sidra Medical and Research Center. a US architectural firm. QF Vice President for Capital Projects.Total building area (sqf): Approx. and all other parties. Approx.520.000 (hospital and clinic). Phase II is planned to expand hospital capacity to approximately 550 beds and double the sizes of the Outpatient Clinic and research facilities. KEO International is the Program /Construction Manager. Legend Site map: Sidra Medical and Research Center 1 Entry Road 2 Exit Road 3 Hospital Turnaround 4 Arrival Boulevard 5 Hospital Arrival Plaza 6 Sunken Garden 7 Ramps To Underground Parking 8 Sculpture Garden 9 Fire Lane 10 Healing Gardens Inside Atrium 11 Mosque Garden 12 Mosque Promenade 13 Gazebo & Stair Tower 14 Bus Stop 15 Historic House 16 Waterfall 17 Clinic Drop-Off 18 Clinic Gardens 19 Medical School Connector 20 North Clinic Drop-Off 21 VIP Entrance 22 Morgue Waiting Area 23 Ambulance Entrance 24 Emergency Drop-Off 25 OB / GYN Drop-Off 26 Helipad 27 Water Feature CommErCIalBank CapITal . 3.3 billion construction contract has been awarded to an international consortium including OHL and Contrack.600. Kurt Salmon Associates is conducting the medical planning and space programming. Qatar Petroleum. Pelli Clarke Pelli. not including labor and delivery rooms. 9. Energy and Utilities 9.1 Energy The gradual recovery in the global economies during the start of 2011 has resulted in steady flow of investments in the hydrocarbons sector in GCC region. This recovery reassured the region to increase in its production capacity to meet the growing demand. Energy sector plays an important role in the GCC region as it is main source of revenue. The original planned investment in oil and gas sector within the GCC was around USD 420 bn till 2020. However, the revised planned budget was 4% lower compared to the original planned investments. The revised planned investment in the GCC is around USD 401 bn (refer exhibit 33). The drop in value is due to Kuwait, which has revised its budget downwards by around 30%. Saudi Arabia, on the other hand, has increased its planned investment by around 10% to USD 134.6 bn. The change in revised investment plans can be attributed to the petrochemical sector, where the Saudi Arabia is considering massive investments over the next decade. Qatar accounts for only 10% of the total planned investments in the oil and gas sector in the GCC. In the GCC, the amount of contracts awarded is about USD 156.4 bn, which is around 40% of the revised planned investment in the oil and gas sector (refer to Exhibit 34). UAE and Saudi Arabia are by far the largest markets for the oil and gas in the region. UAE has awarded USD 70.2 bn worth of projects, while Saudi Arabia has awarded USD 58.2 bn. Saudi Arabia, the world’s largest producer of oil, has announced massive investments during the next five years as it wants to capitalize on the rising oil prices. UAE, on the other hand, believes that focusing and investing in the oil and gas sector would be the most appropriate to boost the overall economy, especially after the sharp correction in the real estate sector on the back of global recession. Exhibit 33: Value of planned investments in oil and gas projects (USD bn) 140 Exhibit 34: Contracts awarded in oil and gas projects 131.7 0.6 134.6 120 12.7 3.4 11.2 USD bn 100 80 64.1 60 70.2 37.1 40 24.9 20 0 8.9 Bahrain Oman Qatar Kuwait UAE Saudi Arabia Source: MEED Projects Source: MEED Projects Exhibit 35: Natural gas reserves (Tncf) Russia 1,680 Iran 1,046 Qatar 896 Saudi Arabia 275 U.S. 273 Source: Oil and Gas journal 2011 44 - CommErCIalBank CapITal - ConSTruCTIon SECTor rEporT 58.3 Bahrain Kuwait Oman Qatar Saudi Arabia UAE The hydrocarbon sector is the main contributor to the robust growth witnessed during the past few years. In terms of gas reserves, Qatar is the third-largest in the world behind Russia and Iran. It is the world’s largest global supplier of LNG and will become the world’s largest exporter of Gas-to-Liquids (GTL). The government will continue investing further to enhance its capacity to meet the rising demand in the gas sector. However, investments are likely to be much lower compared to past levels. Since 2006, Qatar has invested around USD 40 bn in the oil and gas sector. In Exhibit 36, majority of this was invested during the year 2006 and 2007 in order to achieve the desired capacity as mentioned above. In the year 2011, total amount of projects awarded in the energy sector was USD 2.9 bn, which is around 25% of the total projects awarded during the year. Exhibit 36: Oil and gas projects awarded in Qatar 25 21.5 20 USD bn 15 11.0 10 5 0.4 3.1 2008 2009 7.9 2.9 2010 2011* 0 2006 2007 Source: Oil and Gas Directory ME-2011 till date Qatar started operation of mega train-7 (capacity 7.8 mtpa) in July 2009 and had brought another five plants on-stream (46.8 mtpa) till Feb 2011. Qatar transportation company has 52 LNG vessel out of which 9 conventional vessels (145,000 – 154,000 m3), 31Q-Flex vessels (210,000 – 216,000 m3), 14 Q-max Vessels (263,000 – 266,000 m3). In 2011, Qatar achieved its target capacity of 77 mtpa for LNG. The government’s investment in the energy sector is through Qatar Petroleum (QP), which is the only state owned petroleum company in Qatar. The company operates all oil and gas activities primarily including exploration, production, refining, transport, and storage. It is also involved in sale of crude oil, NGL, LNG, GTL, refined products, petrochemicals and fertilizers. QP accounts for about 50% of the country’s total crude oil output. Qatar petroleum has allocated USD 30.7 bn (2010-2014) for project in crude oil, natural gas, GTL and petrochemicals. However, the budget has been declining in gas sector as the expansion is nearing its completion. Gas-to-liquids (GTL) projects have received significant attention in Qatar over the past several years. The government had originally set a target of developing 400,000 bpd (64,000 m3/d) of GTL capacity by 2012. The biggest GTL project in Qatar is Pearl GTL. In February 2007, the same week that Exxon Mobil decided to cancel its GTL plans, Shell held a ground breaking ceremony for its Pearl GTL project. The Pearl plant is 51% owned by Qatar Petroleum, though Shell will act as the operator of the project with a 49% stake. ORYX GTL is a synthetic fuel plant based in Ras Laffan Industrial City, Qatar, which is a JV between by Qatar Petroleum (51%) and Sasol (49%). The capacity of Oryx GTL is 34,000 bpd of oil. The facility is expected to use 1.6 bn cubic feet or 45 mn cubic meters per day (m3/d) of natural gas feedstock to produce 3.1mbd (499,000 cmd) of GTL products as well as 120,000 bpd (19,000 cmd) of associated condensate and LPG. Initially, the estimated cost of the project was USD 4 bn, which increased to between USD 12 and USD 18 bn. The Pearl GTL is the first integrated GTL operation in the world, which will have upstream natural gas production integrated with the onshore conversion plant. By 2012, Qatar is likely to have 177,000 barrels per day (28,100 cmd) of GTL capacity from Oryx GTL and Pearl GTL. CommErCIalBank CapITal - ConSTruCTIon SECTor rEporT - 45 Timeline: Energy projects QEWC / KAHRAMAA – Ras Laffan IWPP Expansion Project Value: USD 3.0 bn Completion Date: Q3-14 Capacity: 4,200 MW 2013 2014 Ras Laffan Polysilicon Plant Project Value: USD 1.0 bn Completion Date: Q2-13 2015 2016 KAHRAMAA - Facility D IWPP Project Value: USD 2.0 bn Completion Date: Q4-15 Capacity: 2,000 MW 2018 KAHRAMAA Solar Power Complex Project Value: USD 1.0 bn Completion Date: Q3-18 Timeline: Oil and gas projects QP - Al Shaheen Refinery (On Hold) Project Value: USD 11 bn Completion Date: Q4-14 2013 Barzan Gas Development Onshore (Phase I) Project Value: USD 1.7 bn Completion Date: Q4-13 2015 Ras Laffan Olefins Complex Project Value: USD 6.4 bn Completion Date: Q2-16 2016 Qatargas - Jetty Boil Off Gas Recovery Project Value: USD 1.0 bn Completion Date: Q1-15 Barzan Gas Development Project Value: USD 10 bn Completion Date: Q4-21 2017 Barzan Gas Development Onshore (Phase II) Project Value: USD 2 bn Completion Date: Q4-17 Oryx - Gas to Liquids Plant (GTL) Phase II Project Value: USD 1.5 bn Completion Date: Q4-17 Shell - Petrochemical Complex Project Value: USD 2.0 bn Completion Date: Q4-17 Govt of Qatar/Govt of Kuwait Petrochemical Complex Project Value: USD 2.0 bn Completion Date: Q4-17 46 - Commercialbank capital - Construction Sector report 2021 Bahrain and Qatar (for Phase 1) with Oman joining the alliance for Phase 2.5 mn artificial clouds that can be positioned over any of the stadiums in Qatar and can be maneuvered with a remote control from the ground to keep the passing sun off the field.330 2. the UAE.2 Solar Energy Winning the bid for FIFA World Cup 2022 has given a further fillip to the solar energy sector in Qatar. and necks. the USD 0. As of now.3 Utilities The GCC region is undergoing transformational changes in the utility sector due to rapid growth in population.466 1.081 377 2011 12. Qatar is expected to invest about USD 1 bn on alternative energy.676 1. Qatar plans to build 9 new solar powered open-air stadiums designed by German Architects Albert Speer and Partner GmbH (AS&P). Similarly. The Grid’s existing members are Saudi Arabia. In addition to the existing investment in the sector.4 bn project which was formally initiated in April 2011. backs.500 tons per annum and has been designed with future expansion in mind. 9. The plant will produce well over 3. and if permissible. In addition. The ideas and concepts conceived from solar power are likely to ensure cooling and power control within the stadiums. The governments of the GCC countries with the exception of Kuwait have embarked on a plan to restructure and privatize the sector. and renovate 3 existing stadiums.ConSTruCTIon SECTor rEporT . while the UAE 900 MW and Qatar 750 MW to and/or from the grid. As a result.654 12.481 1.059 Source: MEED CommErCIalBank CapITal .564 9. Cool air will be pumped at spectators’ ankles.197 519 2. Members are expected to maintain a minimum reserve ratio level and negotiations for power trading (which is to commence next year) have already begun. the retractable roof can provide additional shade.47 . scientists and engineers at Qatar University have also developed a solar powered gas-filled cloud that will shade spectators and athletes from the roaring sun.200 MW. Prototype: Qatar Solar Power Stadium Electricity to cool these stadiums will be generated with photovoltaic panels (PV) and solar thermal collectors installed on the stadiums’ roofs and sides. Exhibit 37: GCC desalination capacity (000 m3/d) Country Saudi Arabia UAE Qatar Bahrain Kuwait Oman 2006 7.617 2.183 3.410 5.977 4. One of the other major developments in the power sector was the establishment of Power Grid Authority known as the GCC Interconnection Authority.7 bn. Saudi Arabia can give and receive 1. major investments can be expected in the near term as the country prepares itself for the World Cup 2022. commercial and industrial growth in the region.730 1. the country has awarded projects worth USD 0. The authority will be responsible for overlooking and monitoring of the GCC Power grid. All six countries have joined in the second phase of the USD 1.030 1. Qatar Science and Technology will develop a plant at Ras Laffan Industrial City. The solar energy will play an important role in successfully hosting the World Cup 2022 as the world will focus on Qatar’s to see if is able to deliver the cooling standards promised during the bidding stage. It is estimated that the grid would save USD 5 bn in energy costs for member countries.9. which is very essential for the successful hosting of the event. which will be one of the first operational polysilicon plants in the region.140 2016 17. Kuwait. 3 bn worth of projects.9 bn.8 bn. Saudi Arabia is the largest market with planned investment of USD 16. the total value of planned investment in Saudi Arabia is USD 96.CommErCIalBank CapITal .1 0. Kuwait awarded USD 2.4 2. accounting for around 59% of the total value. while the remaining is likely to be awarded in the coming years.2 bn worth of projects has been awarded.ConSTruCTIon SECTor rEporT Bahrain Kuwait Oman Qatar Saudi Arabia UAE .7 bn worth of projects. Qatar is the third largest market in the GCC with planned investment of USD 6. Exhibit 38: Planned investment in power and water 100 97 97 USD bn 80 60 55 58 40 27 29 20 14 7 18 17 14 7 0 Bahrain Kuwait Oman Qatar Saudi Arabia UAE Sum of Revised Budget Sum of Original Budget Source: MEED Projects The total planned investment in the water sector is USD 42. the total value of projects awarded in utility was USD 18.8 bn. UAE is second largest market with a total investment of USD 57.4 bn.The total revised value of investment in the power and water sector in the GCC is USD 221. Exhibit 39: Projects awarded in 2011 (USD bn) 2.5 bn compared with USD 216. largest market within the GCC.3 bn in the GCC (refer to Exhibit 39). UAE has planned investment of USD 8. Out of this.9 bn. while USD 5.8 0.9 bn.5 Source: MEED Projects 48 . The country has awarded around USD 8.9 10.5 bn planned initially. USD 10.9 bn.8 bn worth of projects was awarded in Saudi Arabia.7 1. According to Exhibit 38.1 bn in the UAE. Qatar has a total planned investment of USD 16. while USD 2. In 2011 so far. 7 1. Qatar holds 60% of the plant which is divided between QEWC (45%) and Qatar Petroleum (15%) and rest 40% is being held by Ras Qatar Energy Company. However.49 . In 3Q 11.730 MW of electricity and 286. out of which USD 3.2 0. The drive to increase private-sector involvement in the country stepped up in 2000. the power sector plants are owned and operated by QEWC. development of policies and procedures for the management and supervision of the water and electricity sectors in Qatar. which is fully owned by the Qatari government. In 2011. Qatar as well as the other GCC nations faces the problem of high consumption of electricity compared to the global averages. Qatar commissioned the USD 3. It is a 25 year contract between Ras Qatar and QEWC. QEWC has continued to expand its production capacity through fully and jointly owned plants. In 2011.6 0.0 bn.9 bn Ras Girtas power plant.4 USD bn 1.8 1. Qatar is well placed in terms of meeting the rising demand in the near future.9 0. Total value of projects awarded was USD 3. Exhibit 40: Value of investment in power sector 1. Qatar is planning to privatize the transmission and distribution segment.5 1.ConSTruCTIon SECTor rEporT . Electricity and water is free of cost to the nationals. representing more than 60% and 70% of Qatar’s total power and water production capacities. which is expected to be one of the major power generation plants in the country located in Ras Laffan Industrial City. The value of projects awarded accounted for around 6% of the total value of projects awarded in Qatar.0 2006 2009 2010 2011 Source: MEED Projects CommErCIalBank CapITal .In the GCC. The power-generation segment of QEWC’s business is privatized. One of the main factors could be the subsidies provided by the government of Qatar on the cost of power and water in the country. according to which Ras Qatar will supply its production to QEWC which in turn will use it to supply to the local network or externally in the context of the GCC Electricity Link-up System. Kahramaa is the Qatari utilities regulator responsible for transmission and distribution of electricity and water. The government is investing in the power sector but in phases to ensure that the there is no excess capacity. three projects were awarded with a total value of USD 422 mn. which accounts for around 13% of total population. with the formation of Qatar General Electricity and Water Corporation (QEWC).578 MW and water-desalination capacity of 265 million imperial gallons per day (MIGD). respectively. In Qatar. The company is also responsible for meeting the consumption needs of Qatar.3 0. There were a total of 19 projects awarded in the power sector compared to 338 projects in Qatar. which would increase the transparency and efficiency within the sector. In the past 20 years.7 bn since 2008. it sells its products through long-term power and water purchase Agreements (PWPAs) to Kahramaa.404 m3/d of desalinated water. Qatar is among the top countries in GCC in promoting Public Private Partnerships (PPPs) in energy and utilities sector. the company reached electricity generation capacity of 5.1 bn was awarded in 2008 and 2009. The plant is expected to produce 2.4 0. The total planned investment in power sector is around USD 9.2 0. Treated wastewater contribution to the water supply is expected to rise from 0. As a result. Ensuring that more and more water in the country is re-used. 2. it is more than 99% reliant on desalination to meet its domestic demand.5 m-wide pipeline linking the Ras Laffan desalination facility in the country’s north and the Ras Abu Fonts plant in the south. The expected investment in power sector is around USD 5 bn in the next decade. In Qatar. undertaking a USD 2. The first. especially Sharjah and Kuwait as they are experiencing shortages. The desalination capacity in the region is expected to increase by 24% from current levels to reach 325 MIGD by the end of 2012.6 0. Qatar has minimal groundwater reserves with an average rainfall of about 75 millimeters a year. The average per capita consumption is estimated at 310 liters per person per day. The Public Works Authority (PWA) is responsible for the waste water and drainage projects in the country.000 meter cube holding capacity to service the West Bay and Airport area in Doha. The 1. the government of Qatar has formed a joint venture with Singapore’s Darco Water Technologies to build a USD 5 bn wastewater recycling plant for serving the small towns and villages of Qatar. Qatar has already completed the first phase of this project with the remaining two phases set to conclude this year.2 0.6 0.0 0.9 bn gallon facility will include a network of reservoirs connected by a 183 km.065 bn cubic meters per year by 2015. Construction activity (preparation for World cup 2022) and the agricultural sector accounted for more than 70% of water demand in Qatar. In 2011. Therefore.9 bn.75 bn reservoir project capable of holding seven days’ worth of fresh water as a backup for desalinated water supply.The total investment in the power sector during 2010 and 2011 (so far) has remained subdued especially as the major capacity is expected to come online in 2011.0 2007 2008 2009 2010 2011 Source: MEED Projects The Kahramaa has invested in water storage construction activity. Power sector investments will continue to remain subdued as Qatar is well placed in terms of meeting the demand requirements.3 bn for two main pilot projects. will add 0. which has been revised upwards from USD 5.2 1. 50 .6 1. This process may be facilitated by the completion of the GCC Interconnection Power Grid.4 0. Exhibit 41: Investment in Qatar water sector 1. Total value of projects awarded was USD 3. a water production technology independent of power expected to be operational by 2012.8 0. The expected investment in water sector is around USD 3 bn in the next decade.ConSTruCTIon SECTor rEporT .05 bn cubic meters per year in 2011 to 0.8 bn since 2008.4 0. The total planned investment in water sector is around USD 6. The second is for a reservoir with 8.2 bn.CommErCIalBank CapITal . three projects were awarded with a total value of USD 362 mn. Kahramaa has allocated USD 4.4 1.1 0. more than 75% of the water requirement is dependent on the supply of desalinated water.05 mn m3/d capacity to the system.5 1.2 USD bn 1. the excess capacity is likely to sold to other members of the GCC through Kahramaa. Construction Sector report .5 bn Completion Date: Q2-12 Commercialbank capital .0 bn Completion Date: Q1-12 Qatar Transmission Phase IX: Substation Package Project Value: USD 0. Timeline: Utilities projects QEWC / KAHRAMAA RasLaffan IWPP Expansion Project Value: USD 3.8 bn Completion Date: Q4-12 2013 2014 2015 2016 KAHRAMAA .5 bn Completion Date: Q1-12 Doha and Rayyan Sewerage Project Value: USD 0.0 bn Completion Date: Q4-15 Capacity: 60 mmgpd KAHRAMAA .0 bn Completion Date: Q3-14 Capacity: 235 mmgpd 2012 Qatar Transmission Phase VIII Project Value: USD 2.Water Security Mega Reservoirs Project Value: USD 2.Facility D IWPP Project Value: USD 2.8 bn Completion Date: Q3-12 Qatar Transmission Phase IX Project Value: USD 2.0 bn Completion Date: Q4-15 Doha North Wastewater Treatment Plant Project Value: USD 1.51 . 0 9. which is the highest in the region.8 1.10.3 18. During 2006 and 2010.0% to 50. cement production grew at a CAGR of 17.8% 1.850 2.8 mt (refer to Exhibit 43). Building Materials 10.1 Cement The cement industry has undergone significant expansion during the past few years on the back of massive investments in the construction sector.0 5. In 2005.6% MT 2.040 1.4% 500 0 2006 2007 2008 World Production 2009 1.8% 1.0 36.2 5. The UAE registered a CAGR growth of 16.0 MT 27.500 3.0 16.0 2.300 3.000 2.500 2.6% from 11 mt in 2006 to 20. The cement sector is the biggest beneficiary of the construction spending in general and the real estate sector in particular. Exhibit 42: World cement production 3.2% 2.3 mt in 2010 (refer to Exhibit 43).500 1.2% 1.8 45.0% 3.0 50.0 0 0.000 3.9% 1.810 2. the region produced 48 mt of cement which further increased to 85 mt in 2010.6% 2.ConSTruCTIon SECTor rEporT Saudi Arabia 2010 UAE Qatar .0 2.000 2.5 Bahrain Kuwait 4.1 Oman 2009 Source: USGS and Commercialbank Capital Research 52 . This healthy growth in production was on the back of massive public spending in the construction sector.0 20. Since then the country has witnessed the highest number of projects on hold or cancelled due to the overall liquidity crisis.8% 1.3 4. which was led by the global recession. The country’s strong growth in production was driven by massive investment in construction during 2003 to 2008.0% 2010 GCC Production as % of World Source: USGS and Commercialbank Capital Research The two major cement producers in the region are Saudi Arabia and UAE.610 2. Saudi Arabia is the largest producer of cement in the GCC.0 40. The demand for cement in the GCC countries has given an entry option to new players in the region.CommErCIalBank CapITal . especially the real estate sector. Exhibit 43: Cement production in the GCC 54. 2% in 2010. we do not expect any volatility in the cement price and believe that it will continue to remain stable at current levels.8 0. Qatar National Cement Company (43% owned by Government of Qatar) was the only cement company in Qatar up until 2010.Qatar is the third largest cement market in the GCC in terms of both consumption and production capacity. However. especially in the UAE.2 6.3 4. Qatar’s current production capacity stands at 6. which enjoyed the monopoly in the market. Currently. We believe that this is likely to increase further as the companies gear to meet the rising demand in the next five years.6 5.53 .8 4.2 2. the companies are planning to further expand their production to prepare for the massive investment in construction sector. the cement production in Qatar was below the consumption and the excess demand was accommodated by importing from Saudi Arabia.6 0.0 2007 2008 2009 2010 Current Source: USGS and Commercialbank Capital Research The production of cement has increased over the years as the companies gear up for the ongoing construction activity.4 5. namely Al Khalij and Al Jaber Cement Industries. Qatar National Cement Company (QNCC) is the largest cement producer with a production capacity of 4.93 mtpa to 5.4 mt and a market share of around 70%. Al Khalij and Al Jaber have a market share of 24% and 5% respectively in the domestic market. Historically. But since 2010. Going forward. QNCC also announced that it is going to increase it cement capacity by 0. Cement prices have been volatile in the GCC.9% in 2007 to 6.ConSTruCTIon SECTor rEporT .36 mtpa in the coming years. Qatar’s contribution to GCC production has increased from 4.2 mt. Majority of the construction will come from infrastructure and real estate sector.4 2. two new companies entered the cement market due to capitalize on the construction activity.2 MT 4. where cement sector is the direct beneficiary.0 3.5 3. CommErCIalBank CapITal . Exhibit 44: Qatar cement production 6. the cement price in Qatar has been cement as it is controlled by the government.5 1. 0 8.5 5.ConSTruCTIon SECTor rEporT . Exhibit 45: Qatar cement consumption forecast 16.5 2011 2012 4.3 14. 54 . The outlook on cement sector in Qatar is positive on the massive investment in the construction sector backed by strong macroeconomic fundamentals.0 15. we have forecasted the cement consumption in Qatar.2 12.CommErCIalBank CapITal . ConstructionWeek Based on that assumption. majority of the projects that are under construction or planned will be completed by the end of 2015.2 MT 12.0 2013 2014 2015 Source: Commercialbank Capital Research. Going forward.The current production capacity of cement in Qatar is enough to absorb the demand. Qatari cement companies are unlikely to match this demand.0 0. we believe that cement consumption will grow at a CAGR of around 12% from 2011 to 2015 (refer to Exhibit 45). We believe that the consumption will be at its peak in the years 2013 and 2014. which means that the excess demand will be imported from Saudi Arabia and UAE.0 5. In our view. 4% 0.6% 0.0% of the estimated demand as these countries continue to invest in its infrastructure and petrochemical sector to sustain economic growth.0 mt.417 1.000 4.232 1.1%.329 1.000 2. world steel production grew at a CAGR of 2.2% 0 2006 2007 2008 World 2009 2010 Sep -11 0. which constitute 60.2 Steel The global steel industry has witnessed a boom and bust cycle in past few years.347 1.500 1.959 4.0% GCC as % of World Source: World Steel Association Exhibit 47: GCC steel production (‘000 MT) 6.10.5% 0. The contribution of GCC to the world has remained same for the past four years (refer to Exhibit 46).690 3.015 1. Steel consumption across the GCC region has increased underpinned by significant investment in the construction sector.ConSTruCTIon SECTor rEporT .000 0 5.5% 0.4% 300 0.0% 1. indicating that the region’s capacity expansion is line with global standards. In past five years. while the GCC grew by 9% in 2010. In the GCC.8% 900 600 0.200 1.GCC countries will continue to remain a major consumer of steel products.5% 0.4% 0.448 1.136 0.247 1.5% 0. Exhibit 46: GCC steel production (‘000 MT) 1. CommErCIalBank CapITal . Saudi Arabia’s Hadeed is the world’s 40th largest producer of steel with a production of around 5.970 1.55 . there are 18 steel companies.503 90 90 90 Qatar Saudi Arabia 2009 2010 UAE Sep -11 Source: World Steel Association Saudi Arabia is the largest market in not only GCC but the MENA region. engaged in production of raw steel and finished steel products. has emerged as one of the biggest players in MENA region with an annual production capacity of 2 mt per year. The plant is expected to start operations from first quarter of 2013.147 27.000 tons of aluminum annually.1 mt per annum through a plant adjacent to its existing plant in Mesaieed. making it one of the biggest markets for aluminum products in the region. Currently.CommErCIalBank CapITal .200 1.75 1. Currently. It is the second largest steel producer in the GCC.5% 400 15% 0 2007 2008 2009 Qatar 2010 Sep -11 10% Qatar % of GCC Source: World Steel Association Qatar Steel. after Saudi Arabia Hadeed.2 0. China.58 1. the region’s production could reach 9 mn metric tons or 13% of global supply by the year 2020.72 2. Qatar Steel plans to enter new markets such as Egypt.3 Aluminum Exhibit 49: GCC aluminum smelters Country Bahrain Qatar Saudi Arabia Saudi Arabia UAE Company Alba Qatalum Maaden (Phase I) Maaden (Phase II) Emal Current Capacity (mt) Future Capacity (mt) Completion Year 0. The company has decided to expand its steel making capacity by 1. and Indonesia).4 2016 0.7 2013 0.ConSTruCTIon SECTor rEporT .406 27.In the GCC. the GCC building and construction industry consumes up to 400.600 1. 56 . Saudi Arabia and UAE as shown in Exhibit 48). Exhibit 48: Steel production in Qatar (‘000 MT) 1.970 2.87 1. the GCC produces 7% of the world’s global production of aluminum (refer to Exhibit 50). Qatar is witnessing the fastest growth in steel production during the past four years.2% 22. which is a wholly owned subsidiary of Industr ies Qatar (70% owned by the Government of Qatar).448 1.503 1.4 2014 0.8% 1.1% 30% 25% 23. while it grew by 5. Yemen and the Far East (Korea.8% 800 35% 20% 19. Qatar is increasing its production capacity to meet the rising demand underpinned by the planned investments in the next decade. The steel production capacity in Qatar grew at a CAGR of 15%. The addition of new smelters and expansions in the pipeline.000 1.5 2014 Source: Gulf Aluminum Council The GCC aluminum sector has become a major non-oil industry sector and contributor to economic growth. 10.9% in the GCC (UAE. 000 tons per year. Emirate Aluminum (EMAL) is a 50-50 JV between DUBAL and Mubadala Development Company.1% 4. The company’s current production capacity is 750. Qatalum’s complex facilities include a carbon plant. Qatar accounts for about 15% of the total production in the GCC. Commissioning of EMAL Phase 1 began in December 2009 and was completed by December 2010. which means that GCC will continue to import to meet the excess demand on the back of massive investment plans in the construction sector.0% 6.0% 0 2006 2007 World Production 2008 2009 2010 0.0% 18.0% GCC % of World GCC Source: USGS The total production of aluminum is likely to increase by 8.0% 5.Exhibit 50: Aluminum production in GCC (‘000 MT) 36. The company is planning to increase the production capacity and export to all countries as company does not have a specific quota. the fastest in the GCC region.ConSTruCTIon SECTor rEporT . EMAL is a greenfield smelter development at Al Taweelah.000 38.9% 33.864 6. as well as a captive power plant. Abu Dhabi.000 5.000 3.000 1.856 45.000 tons per annum by the end of 2010. The plant has a production capacity of 585. The demand for aluminum products in the construction sector is expected to increase at a CAGR of 9%. Qatar is expected to grow at a CAGR of 12% between 2010 and 2014. which will take the total production to 4. DUBAL is currently ranked as the 7th largest global producer in the industry with a current production capacity of 980. Dubai Aluminum Company Limited (DUBAL) is one of the largest industrial companies in the UAE.000 8.044 36.2 mt.752 39.57 .584 7. The company was established by Investment Corporation of Dubai in 1975. located in Jebel Ali. The company has USD 4. We remain optimistic on Qatar Aluminum sector and believe that it will continue to witness strong demand on the back of massive investment plans in Qatar as it prepares for the World Cup 2022.6% 4.000 mt per year.4% annually till 2014. Qatar Aluminum (Qatalum) is a 50-50 joint venture between Qatar Petroleum and the Norwegian company Hydro Aluminum.5 bn expansion plans.0% 6. port and storage facilities. CommErCIalBank CapITal .0% 27.3 mt per year.0% 40.0% 2. which will almost double its capacity to 1.0% 9.7% 4. The first is between 2013 and 2017 and the second is between 2018 and 2020 • Worse case: Slowdown to impact the overall projects planned We have assumed a 15% drop in planned investments by the government due to the adverse effect of global slowdown No additional investments as a % of GDP • Best case: Optimistic based on new sporting events No projects cancellation or on hold is assumed during the projection period We have assumed additional investments as a % of GDP in two growth stages. the base of USD 225 bn remains the same while following assumptions are made for each scenario: • Base case: The optimum Scenario No projects cancellation or on hold is assumed during the projection period • We have assumed additional investments as a % of GDP in two growth stages. We decided to take data from one source due to the inconsistency from various sources. The first growth stage would be from 2013 to 2017. For example. commercial. which has been referred as the source throughout the report • Since GDP estimates by IMF were available till 2016. Therefore.ConSTruCTIon SECTor rEporT . hotel and tourism based on description of each project under this category - We have analyzed the start and end date for each project and calculated the remaining days left on each project. Worst and Best case scenarios. we have created three scenarios. The number of days was divided by 90 to arrive at the remaining quarters left on each project - The project value was appropriated based on project life. while the second growth stage would be 2018 to 2020 Total Construction size = planned/underway projects + planned by NDS + additional investments as a % of GDP Scenario Assumption In order to arrive at the total market size. The first is between 2013 and 2017 and the second is between 2018 and 2020 Data Limitations • Data discrepancies were witnessed for various projects. we have taken the data from what we perceived as the most reliable source. 2010 USD 100 mn and allocation for 2011 will be USD 75 mn • Step 4: We have taken the existing projects in the above format. if a USD 200 mn project started in Q3-09 and is set for completion in Q3-11. • Step 3: Project data was further analyzed and categorized as follows: The data was re-classified based on the sectors that are being discussed and analyzed in this report. which are Base. thereafter a 5% growth in GDP is assumed till 2020.11. The allocation was done on per quarter basis. we have added the contributions from three approaches as described above. USD 25 mn is allocated per quarter. • Step 6: In each scenario. the list of projects ongoing and planned was compiled from various relevant sources. we have taken a conservative growth rate of 5% per year until 2020. 58 . The forecasted GDP is taken from IMF until 2016. 2009 project value would be USD 25 mn. In each scenario.CommErCIalBank CapITal . The residential project data was also re-classified in to residential. • Step 5: Based on this assumption. we have assumed a % of GDP based two growth stages. Methodology and Assumptions Methodology • Step 1: Economic indicators was sourced from Qatar Statistics Authority and IMF (Forecast) • Step 2: Initially. This methodology was adopted to build three scenarios in our analysis to arrive at a market size. We have added future investments to the existing projects based on the USD 225 bn announced by NDS. 71 Qatar Electricity and Water Company 72 Qatar Investor Group 73 Qatar National Cement Company 74 Private Companies 75 Al-Bader Construction Steel Works Al Jaber Engineering 75 Ashghal 76 Bechtel 76 China Harbour Engineering Company 77 Consolidated Construction Company 77 Habtoor Leighton 78 MIDMAC Contracting Company. 68 Hyundai Heavy Engineering 69 JGC Corporation 70 Mazaya Qatar Real Estate Development Co. Mobility 82 Qatar Steel Company 83 Rabban Readymix 83 Saudi Binladin Group 84 Six Construct Qatar Ltd. 84 TAV 84 . 78 Msheireb Properties 79 Qatar Building Company 79 Qatar Diar Real Estate Investment Company 80 Qatari Diar Vinci Construction Company 80 Qatari Engineering and Construction Company 81 Qatar Foundation 81 Qatar Investment and Project Development Holding Company 82 Q.C.S.The Commercial Bank of Qatar (Q.) Construction Sector Report Company Profiles Public Companies Arabtec Holding Company 60 Atkins WS PLC 61 Barwa Real Estate Company 62 Chiyoda 63 Drake & Skull International 64 Ezdan Real Estate Company 65 Galfar Engineering 66 Hochtief 67 Hyundai Engineering and Construction Co. Equipment & Electricals 60 . 4% Contact 94% * Plant. the company now operates in Abu Dhabi.495.459. Qatar.Arabtec Holding PJSC Reuters/Bloomberg code: Company Overview Arabtec Holding is one of the major construction companies in the GCC region.5 bn in Doha.3 -34.5 0.Chairman / MD mr. Recent Developments • The joint venture of Arabtec and Raheja Ltd was awarded a project of AED 750 mn to construct three mixed use projects in New Delhi and Gurgaon.6 8.721.2 3. As a result. riad kamal – Board member and management.Du/arTC DB Y-O-Y CAGR (%) (%) (2008-10) Key Ratios 3.255. Strategic partnerships are playing a key role in Arabtec’s global expansion strategy.0% 23. Holding Co.728.0 -4.3 737.7 2.7 9.117. • The company awarded project of Al Waab City for AED 2.1 757.3 1.9 659.0 300 3 200 2 100 1 0 0 Jan-09 Feb-10 Price AED Mar-11 Volume mn Segmental Revenues in 2010 Precast 1% * PE&P 1% Drainage & Scanff. The company was primarily focused on the Dubai market. Russia.5 Foreign Ownership (%) limit allowed (%) Current Exposure 49.9 5. Precast and Concrete production. Ibrahim Belselah – Chairman Management mr.1 -63.4 -13.1 0.0 567.9 2008 2009 2010 9M-11 9.4 634. CEo Company Financials Particulars arTC.8/0.6 19. Arabtec has partnered with Nasser Bin Khaled Al-Thani & Sons Holding Company for the development of Al Waab City Business Description • Arabtec operates in four business segments namely Building construction.5 -43.5 7.4 0 0 0 NA NM 0.421.ConSTruCTIon SECTor rEporT .0 -23.1 588.179.5 2.9 na Price Performance 4 11.7 9.3 0.110.0 3.4 p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 580.0 61.7 5. It was established in 1975 in the UAE.2 -11.680.7 -3.2 21. 5% Other Investor 35% Public 55% Chairman / V.1 3.0 956.0% Shareholding Pattern Riad Burhan 5% Const.2 0.664. Drainage and Electromechanical corks and Marine construction.4 1. AED mn unless otherwise mentioned Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (AED) Book Value Per Share (AED) Dividend Per Share (AED) Market Data Cmp (aED) Shares outstanding (mn) market cap (aED mn) market cap (uSD mn) 52-week range H/l (aED) 1.6 1.7 8.1 3.CommErCIalBank CapITal .9 1. but the recession led to cancellations and delays.0 13.3 7. Jordan. • In June 2011. and has 17 operational subsidiaries as of now. the company signs a deal to build Qatar Trade Centre in Doha.8 12.1 -25.542.4 0.1 8.338.1 5.102.9 3. Saudi Arabia and Syria. which resulted in a change in its strategy.9 5.8 1. In Qatar.1 16.8 -9.0 23.0 1.0 1.0 2.6 1.463. it reported a net profit growth of 19% in the same period. Similarly.36 20. 759 104. It works for national and local governments. bridges and highways. Business Description • The company’s area of expertise lies in infrastructure such as buildings.3 53 842. metro and other major infrastructure schemes that will underpin Doha’s 2030 vision.7 24.9 Price Performance 1000 3 750 2 500 1 250 0 0 Jan-09 Jan-10 Price GBP 7.2 0. It also helps in cost and risk planning.1 26.1 78.4 2.3 0.4 1.1 6.2 NA 12. and was established in 1938 by Sir William Atkins in London. road. • Atkins registered a 27% revenue growth in first half of 2012. • In November 2011.4 1564.7 112.67 -165. Atkins announced a five-year contract worth circa GBP 65 mn to help transform the roads and drainage systems in the Qatari capital.7 0.251. and is worth about USD 108 mn.4 -0.1 NA 5.6 -84.6 Jan-11 Feb-12 Volume mn Segmental Revenues in 2011 Energy 6% UK 58% North America 17% Middle East 9% Asia Pacific & Europe 10% CommErCIalBank CapITal . Middle East.8 pEG (x) GBP mn unless otherwise mentioned Particulars na na Shareholding Pattern Recent Developments • In January 2012.1 -0. transport and utilities (including energy and water).1 260. Asia Pacific and Europe and Energy. The new body will coordinate current and planned./aTk ln Market Data Cmp (GBp) Shares outstanding (mn) market cap (GBp mn) market cap (uSD mn) 52-week range H/l (GBp) Foreign Ownership (%) limit allowed (%) Current Exposure Company Financials Black Rock Inc 10% Schroders pic 10% Newton Investment 6% Others 74% Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (GBP) Book Value Per Share (GBP) Dividend Per Share (GBP) Chairman / V.5 17.ConSTruCTIon SECTor rEporT .700.1 1387. It provides services to companies in more than 20 different sectors.7 69. The contract will run for three years.9 8. It has five segments: United Kingdom.6 9.6 -165. The company has over 300 offices around the world and employee strength of 17.61 .0 1. It also designs physical structures such as office towers. A team of 100 consultants from Atkins will join the new government body. Qatar’s Municipality and Urban Planning Ministry appointed Atkins to help establish and run its Central Planning Office (CPO). with an option to extend to seven years.1 0.9 11.9 1049.7 Y-O-Y CAGR(%) (%) (2009-11) 2009 2010 2011 6M-12 1487.8 16. schools.7 NA NA 7.5 138 -60.7 NA 76.7 831/480.7 0. aTkWl.3 0.2 828. Doha. North America.Chairman / MD allan E Cook – Chairman Management peter michael Williams – mD uwe krueger – CEo Key Ratios p/E (x) p/BV (x) Dividend Yield (%) 9.4 3.0 NA 11.9 7.7 0.3 997.7 -43.3 121.3 -13. and other industrial clients. • Atkins designs intellectual capital such as management systems and business processes.3 0.8 0.0 -7.9 NA 7.5 11.Atkins WS PLC Reuters/Bloomberg code: Company Overview Atkins is one of the world’s leading engineering and design consultancies. feasibility studies and logistics.7 NA 0.9 875.4 795. 2 1. • USD 658.2 2.9 17. mohammed abd al aziz Saad al Saad – V. as per which.179.3 30.6 389.317. BrES Qa/BrES QD Market Data Cmp (Qar) Shares outstanding (mn) market cap (Qar mn) market cap (uSD mn) 52-week range H/l (Qar) 29.5 na na Price Performance QAR mn unless otherwise mentioned Particulars Shareholding Pattern 2009 2010 9M-11 Revenue 1.2 Net Operating Margin (%) 24. Barwa Commercial Avenue.439. is a leading real estate and investment company in Qatar with the aim of contributing towards the development of the country in tandem with the Qatari government’s development plan. International. Chairman / V. Infrastructural Services and Financial Services.1% Recent Developments • In November 2011. as debt and obligations soared.1 66.5 mn (USD 22.6 2.2/27.5 Cash & Cash Equivalents 538. The company is headquartered in Doha.0 -66.6 ROA (%) 1.0 NA NA 62 . 2012. the Qatar Vision 2030.2 65. Chairman Company Financials 2008 Qatari Diar 45% Public 55% Management abdulla abdulaziz al Subaie – Board member and GCEo Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 13.346. Barwa Village.0 2.Barwa Real Estate Company Reuters/Bloomberg code: Company Overview Founded in November 2005.569. North Africa and other GCC and European countries.7 39.1 Total Assets 24. advertising and brokerage services Foreign Ownership (%) limit allowed (%) Current Exposure 25.1 11.8 73.5 -278.3 13. Barwa City.654.1 Shareholder’s Equity 4.6 39.9 mn Barwa Al Sadd project is over 99% completed and is expected to be ready for handover during Q2.4 20.5 5. Barwa signed a lease agreement with Chinese company Dragon Mart to open a market for Chinese products in Barwa’s Commercial Avenue project.Chairman / MD Hitmi ali khalifa al Hitmi – Chairman mr.2 37. Barwa Al Sadd.8 24. • Barwa contracted with Qatar National Broadband Company to build a nationwide high-speed fiber broadband network.9 19.3 EPS (QAR) 1.9 29. and has a presence in Qatar.6 NM NM 60 8 6 40 4 20 2 0 0 Jan-09 Jan-10 Price QAR Jan-11 Feb-12 Volume mn Segmental Revenues in 2010 Investing Activities 2% Real Estate 98% .0 Total Debt 12.3 13.892. • In October 2011. project financing.3 15. Masaken Al Sailiyah and Musaimeer • The company has over 40 investments in five segments – Real Estate Qatar.2 Business Description • Barwa is engaged in investing.5 2.564.1 390.1 13.6 2.8 74.9 4.476. Business Services. developing and managing domestic as well as international real estate projects • Barwa’s flagship projects include Barwa Financial District.9 ROE (%) 8.9 -9. Barwa Real Estate Co.0 2.3 -35.763.772.200.1 13.2 1.982.2 -72.8 1928.2 Book Value Per Share (QAR) 16.7 11645.050.363.7 28.983.9 1. • Barwa is engaged in hotel ownership and management. the UK. banking.0 28.1 34. saw third-quarter net profit fall 71% to QAR 80.0 12.CommErCIalBank CapITal .6 7.3 3. advisory.ConSTruCTIon SECTor rEporT Y-O-Y CAGR (%) (%) (2008-10) 0.9 Dividend Per Share (QAR) 0.100. the latter will install Fiber-toHome (FTTH) network at Barwa projects through a network of underground telecom ducts and lease it to operators to offer retail telecom services.1 mn).4 65.1 2705.5 2.0% 5. Barwa Real Estate Company (Barwa).1 3.806. refineries and other industrial plant projects.3 Book Value Per Share (JPY) 561.5 7.7 ROA (%) 1.747. Yoichi kanno – Executive Vice president Company Financials Management mr.891.5 59. chemical and petrochemical. Japan.0 10.9 30.0 Cash & Cash Equivalents 38.0 43.0 339256.0 10.438.3 1.0 Total Assets 357. The company has had its presence in Qatar since 1982.T/ 6366Jp Market Data Cmp (JpY) 787.396 mn.0 149.7 6.0 Total Debt 10.0 Shareholder’s Equity 145. pharmaceuticals.392. with a paid up capital of yen 43.3 0.0 312.0 Shares outstanding (mn) 259.4 30.7 2.0 247.578.5 3. Business Description • Chiyoda primarily provides services in the field of engineering. 33% Master Trust Bank 5% Others 62% Recent Developments • In September 2010.2 614.1 market cap (JpY mn) 201.2 3.0 159.6 599. Chairman / Vice Chairman / MD mr.758.9 2.0 52-week range H/l (JpY) 1036.3 9. The company is headquartered in Yokohama.0 NA Y-O-Y CAGR (%) (%) (2009-11) -6.3 bn and expected to be completed by Q2-13. Chiyoda awarded an EPC contract Helium Extraction Unit Facilities for RasGas Trains 6/7 and Helium 2 Project Utilities. • The JV of Chiyoda and Technip has won EPC for the RasGas III-Onshore Package for QAR 4.Chiyoda Reuters/Bloomberg code: Company Overview Chiyoda Corporation is an integrated contractor company established in 1948.8 0.0 353.3 na 1. Chiyoda formed a joint venture with Technip for the development of RasGas III-Onshore Package.0/566. environmental conservation and general industries.082. Takashi kubota – president and CEo JPY mn unless otherwise mentioned Particulars 2009 2010 2011 9M-12 Revenue 446.6 0.2 ROE (%) 5.63 .0 10.626.2 -25.4 -6.0 172.8174.0 Net Operating Margin (%) 1.3 5. It is also involved in painting and insulation works as well as operation.0 32. maintenance and engineering consultancy services.233.0 33.4 2.0 155.3 NM 21.5 -0. The company has built various plants and executed numerous projects in over 40 countries in different sectors.8 33.6 EPS (JPY) 25.0 Foreign Ownership (%) limit allowed (%) Current Exposure na na Shareholding Pattern Mitsubishi Co.0 27.039.ConSTruCTIon SECTor rEporT .3 2.1 9.2 market cap (uSD mn) 2.491. 6366.917. particularly for Gas Value Chain Projects.985.002.6 3.195.9 Dividend Per Share (JPY) 7. procurement and construction for gas processing.1% Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 24.1 573.0 Price Performance 1200 1000 800 600 400 200 Jan-09 18 15 12 9 6 3 0 Mar-10 Price JPY May-11 Volume mn Segmental Revenues in 2010 Others 6% Engineering 94% CommErCIalBank CapITal .253. including petroleum and natural gas.3 4.627.6 11.058.0 5.6 -0.855.5 11.816. 1 6.3 0. plumbing. air-conditioning and sanitation work.CommErCIalBank CapITal .5 NA 0. rail.1 29.8 81.3 1.720.3 6.6 4.8 14.515.0% 8.4 2. The company has horizontal as well as vertical integration.870. DSI – Libya.6 162.4 663. healthcare.5 5.8 789.0 0 Mar-09 May-10 Price AED 64 . DSI established Drake and Scull Water and Power and developed telecommunication infrastructure while under horizontal integration.7 4. the company acquired the International Centre for Contracting Co.211. khaldoun rashid Tabari – CEo and Vice Chairman Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 10.1 0. Under its vertical integration.1 11. such as electrical.ConSTruCTIon SECTor rEporT Jul-11 Volume mn Segmental Revenues in 2010 Civil Works 22% MEP 54% IWP 24% .425.400.8 2. MEP and W&P projects in Oman.5 200 0.8 2. (ICC) For SAR 128 mn in Saudi Arabia.4 9.5 600 1. Saudi Arabia.2 5. DSI – Thailand and Drake and Scull Contracting. UAE. namely Mechanical.3 732.541. majedSaif al Ghurair – Chairman Management mr.0 400 0.2 6.160.0% Shareholding Pattern KRT2 9% KRT3 9% Kahldon Rashid 8% HSBC 6% Public 67% Chairman / V.7 na na Company Financials Price Performance AED mn unless otherwise mentioned Particulars Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (AED) Book Value Per Share (AED) Dividend Per Share (AED) 2008 2009 2010 9M-11 Y-O-Y CAGR (%) (%) (2008-10) 1.5 NA NA 1.4 1.230. DSI – Jordan. education.2/0. Business Description • DSI is primarily engaged in contracting work related to the construction industry.5 bn at the end of second half of 2011.2 8.5 108.586.Chairman / MD mr.1 1.3 185.449. the company established Drake and Scull for Electrical Contracting Kuwait.4 bn and its backlog stood at AED 7.8 7.0 24. • The company recently won a MEP contract for AED 170 mn for Danat Al Emarat (Women and Children’s Hospital) as well infrastructure contract for the construction of a sewerage project for AED 75 mn.Drake & Scull International PJSC Reuters/Bloomberg code: Company Overview Drake & Scull International (DSI) is a leading construction company in the GCC region and was established in 1966 in Abu Dhabi. Egypt.7 Foreign Ownership (%) limit allowed (%) Current Exposure 49. Kuwait. Electrical and Plumbing (MEP).3 29.3 3.8 69.9 73.6 2. • The company operates in three major business segments.2 621. DSI operates in sectors including aviation.9 2. hospitality and district cooling.0 0.1 1. DSI was listed on the Dubai Financial Market in 2009.1 83.3 705.2 -7.4 1.3 2.4 0.678.8 0.6 2. Asia and Europe for a combined value of AED 3.0 NA NM NM 1. • In June 2011.4 1.7 NA 9. Water and Power solutions and Civil Contracting. • In April 2011.8 310.9 0.7 1.854.3 12.9 261. DSC won a MEP contract for a private residential facility for AED 100 mn in Qatar.8 9. DSI Du/ DSI uH Market Data Cmp (aED) Shares outstanding (mn) market cap (aED mn) market cap (uSD mn) week range H/l (aED) 0.177. Recent Developments • DSI has secured a series of Civil.4 468. 20% Hotels 12% Contracting 68% CommErCIalBank CapITal .8 10.3 Foreign Ownership (%) limit allowed (%) Current Exposure 22.3 10. it was transformed into a limited liability company.853.8 16. Ezdan Mall 2 and Ezdan International School • Ezdan Trading and Contracting Company contracts for buildings.0 2.6 23.5 59.1 2.000 sqm.2/21.4 102.042.4 0. • In April 2011.414.0 44. • In March 2011.5 11. Hesham al-Sahtari – mD Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 400.1 14. The company operates directly and through its subsidiaries – Ezdan Trading and Contracting Company. subject to the procurement of land.4 22.1 2.1 na na Price Performance 50 40 400 300 30 20 10 0 Jan-09 200 100 0 Feb-10 Price QAR Mar-11 Volume mn Segmental Revenues in 2010 Investment Pro. Sheikh Thani Bin abdulla Bin Thani al Thani – Chairman Management Eng. suites and restaurants.3 -81. The company’s primary focus is on shopping malls and residential properties.8 27. Ezdan Hotel and Suites and Ezdan Real Estate Investment – in Qatar.0 0.8 105. The company also announced plans to construct the tallest tower worldwide.487.5 4.924.6 437.6 4.604.256.5 210.5 0.5 37.4 32. electricity work and maintenance. E. trading building materials.0 0.6 3. Ezdan’s real estate investments were transferred to a new entity – Iskan Real Estate Company (renamed as Ezdan Real Estate Company).5 863.4 0.2 467. One at Al Sailiyyah and other at Al Mesaimeer. Ezdan Hotel and Suites Company offers management services for hotels.65 . Business Description • Ezdan contributes to infrastructure development in Qatar by complying with Islamic Shariah guidelines.9 121. Ezdan was listed on the Qatar Stock Exchange in 2008.402.5 366.2 74. • Ezdan’s key projects include Ezdan Mall 1. road paving.1 6.ConSTruCTIon SECTor rEporT .6 27. In 2006.4 0.531.4 Y-O-Y CAGR (%) (%) (2008-10) 33.4 64. Recent Developments • In June 2011. Ezdan sold two labor lodgings for QAR 516 mn.Chairman / MD H. • The company is primarily involved in real estate property investment. Ezdan announced the commencement of construction of its first commercial center.5 31. subsequently.6 164.Qa/ErES QD Market Data Cmp (Qar) Shares outstanding (mn) market cap (Qar mn) market cap (uSD mn) week range H/l (Qar) 22.0% Shareholding Pattern Public 23% Al-Tadawul Holding 77% Chairman / V.5 25.652.5 45.273.0 ErES.6 0. development and management.1 27.1 0.6 0. while Ezdan Real Estate Investment is involved in real estate development.921.4 4.0 NA NM 0. Ezdan offers real estate brokerage and business consulting services.060.7 35.284.5% 0. Also.Ezdan Real Estate Company Reuters/Bloomberg code: Company Overview Doha-based Ezdan Real Estate Company (Ezdan) was established in 1960 as Thani Bin Abdulla Housing Group.0 2.3 472. Company Financials QAR mn unless otherwise mentioned Particulars Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (QAR) Book Value Per Share (QAR) Dividend Per Share (QAR) 2008 2009 2010 9M-11 379.4 0. Ezdan Mall 1 in Al Gharafa. Ezdan was in the process of selling a local real estate portfolio to a Malaysian investment fund for a consideration of QAR 1 bn.2 31.4 1.0 114.2 6.1 30.0 674.4 47.7 0.6 51.8 6. on an area of nearly 66. 0 4.ConSTruCTIon SECTor rEporT GECS.01 0.2 1.3 4. residential and commercial buildings. Ras Al Hadd Airport.3 0. mohamed ali .6 6.7 31.Chairman Management Dr p.8 7.5 mn.9 0.7 118.6 1.3 Foreign Ownership (%) limit allowed (%) Current Exposure 70.0 371.9 1.0% 24. • Galfar recently awarded projects. The company also provides electrical.0 3.8 1.1 1.8 0. through a subsidiary.3 na na Price Performance 0.om Market Data Cmp (omr) Shares outstanding (mn) market cap (omr mn) market cap (uSD mn) 52 week range H/l (omr) 0.0 19. Galfar has had successful partnerships with international design and construction firms like Petrofac.7 85.8 -10. Snamprogetti.0 0. Build.5 320. procurement and construction services for oil and gas sector.2 mn. • In March 2010.4 4 0.2 0. Galfar Engineering has won two healthcare contracts with a combined value of SAR 50.0 3.Vice Chairman and managing Director Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 19.3 -35.3 368. for the execution of large scaled projects.01 NA NA -18.7 4.0 137.02 0. • In June 2011.1 1.3 0.5 1.8 -3.7 3. an expansion project for the Petroleum Development Oman. the Design. Bechtel.7 98.3 0.1 10.8 8 0.Galfar Engineering Reuters/Bloomberg code: Company Overview Galfar Engineering & Contracting SAOG (Galfar) is Oman’s largest construction company established in 1972.mSm/GECS.1 84. including the Development of Salalah International Airport. Company Financials OMR mn unless otherwise mentioned Particulars Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (OMR) Book Value Per Share (OMR) Dividend Per Share (OMR) 2008 2009 2010 9M-11 Y-O-Y CAGR (%) (%) (2008-10) 363. and leases construction equipment.2 0. environmental.0% Shareholding Pattern Salim Hamad 18% Al Siraj Invest.7 2.3 0.9 66 .6 6 0.7 239.2 2 0.6/0. India and Libya and has associates in Qatar and Abu Dhabi.3 82.6 410.4 420.5 367. Operation and Maintenance of the New Darsait Sewage Treatment Plant.CommErCIalBank CapITal . Galfar also has operations in Kuwait. the company successfully brought on line the Marmul.7 0.1 107.3 -4.2 1. • In 2010. mechanical and civil contracting for infrastructure.0 2. Daewoo etc.4 85.4 391.3 3. 13% Aimmar United 12% Others 18% Public 40% Chairman / V.5 0.Chairman / MD Sheikh Dr.0 1. Business Description • Galfar Engineering provides engineering. Salim Said Hamad al Fannah al-araimi . the company won a contract to build a pipeline that will link the refinery complex of Oman Oil Refineries and Petrochemical Industries (Oman Oil RPI) with the methanol scheme of Oman Methanol Company (OMC).2 7.3 7.0 123. It was listed on the Muscat Securities Market (MSM) in 2007.0 Jan-09 0 Jan-10 Price OMR Jan-11 Jan-12 Volume mn Segmental Revenues in 2010 Construction 99% .0 0.7 116. Recent Developments • Galfar awarded the contract for construction of bridge from the Ministry of Regional Municipalities and Water Resources which has a budgeted value of OMR 1.34 330.3 -49. Business Description • The Group offer services in the fields of development.451.9 7.8 4.1 0.166.986.3 73.7 mn includes two projects .0 NA Y-O-Y CAGR (%) (%) (2008-10) 10.2 3.1 2.3 -0. • The company in which the Hochtief subsidiary Leighton has a 45% share won new contracts in Qatar and Oman for a combined total of EUR 432.1 12.5 Price Performance 80 5 4 3 60 40 2 20 0 Jan-09 1 0 Jan-10 Price EUR -138.769. Hochtief Facility Management and Hochtief Global Trade.3 34.2 -1.4 1.5 Net Operating Margin (%) 0.264.Chairman / MD manfred Wennemer – Chairman Management Dr.0 12.8 12.4 -5.ConSTruCTIon SECTor rEporT .9 17. construction.8 11. The major shareholders are the Spanish Group ACS with 50.3 Jan-11 Jan-12 Volume mn Segmental Revenues in 2010 Services 3% Americas 29% Asia Pacific 55% Europe 11% Real Estate 2% CommErCIalBank CapITal .5 22.6 2.703.787.Hochtief Reuters/Bloomberg code: Company Overview HOCHTIEF is one of the leading international providers of construction-related services.058.9 NM 19. The company has been listed on the Dow Jones Sustainability Index since 2006.926.6 2. a subsidiary of Qatari Diar.756.4 11.DE/HoT Gr Market Data Cmp (Eur) Shares outstanding (mn) market cap (Eur mn) market cap (uSD mn) 52 week range H/l (Eur) Foreign Ownership (%) limit allowed (%) Current Exposure 38.5 14.826.2 3.222.1 -0.9 Total Assets 12. Qatar Bahrain Causeway.5 n/a n/a Shareholding Pattern Public 37% ACS 53% Qatar Holfing Leuxembourg 62% Chairman / V.2 3.4 9.0 46. Hochtief Construction formed a joint venture with Lusail Real Estate Development Company.556.953.1 4.1 15. Frank Stieler .6 Shareholder’s Equity 2.3 na 4.6 4.3 20.5 3.2 Total Debt 2.9 Dividend Per Share (EUR) 1. The Group has had a presence in Qatar since 2006 and has established five subsidiaries namely as Hochtief ViCon.4 EPS (EUR) 2.3 Cash & Cash Equivalents 1. water supply.9/19.1 18.0 1.600.346.6 30. Company Financials EUR mn unless otherwise mentioned Particulars 2008 2009 2010 9M-11 Revenue 18. Hochtief Construction. real estate and facilities. Jur.502.5 76.7 1.3 2.3 15.8 2.5 2.9 40.7 3.5 2.6 2.16% and Qatar Holding LLC with more than 10%.8 3. • The JV of Qatari Diar and Hochtief Construction won the contract for development of Lusail City.9 4.8 Book Value Per Share (EUR) 27.a shopping mall with office space and a highway • The company is providing service to a number of project in Qatar such that Barwa Commercial Avenue. Recent Developments • In April 2010. Streif Baulogistik.6 3.1 20.064. concessions and operation covering the entire life cycle of infrastructure projects.264.159.843.1 HoTG.4 ROA (%) 1.67 .8 ROE (%) 7.4 1. Dubai TowerDoha etc.108.CEo Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 33. 025.278.5 1.551. • In 2011.9 na Price Performance 20 100.5% Others 72. terminals and storage tanks.4 5. Korea’s largest conglomerate which was broken up under government orders. Chairman / V.0 2010 2011 10.545.143.3 19. and industrial electricity • In addition. The company is based in Seoul.kS/000720 kS Market Data Cmp (krW ‘000) Shares outstanding (mn) market cap (krW bn) market cap (uSD mn) 52 week range H/l (krW 000) 81.5 4.2 NA 4.555.6 NA 1. fertilizer and chemical plants.0 26.7% Woori Bank 7. multipurpose water gate facilities.047.0 600. The estimated cost of project is USD 434 mn.6 0.091. Company awarded the project for construction of Hamad Medical City.059.9 8.4 42.900.809.110.928.6 14. and integrated steel works.413.0 27.699.286.3 5.6 2.992.0 9. and nuclear power plants.9/49.Vice president p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 18. the company won contract to build a national museum at Qatar. Business Description • HECC engages in the construction of hydrocarbon processing plants.096.0 NA Y-O-Y CAGR (%) (%) (2008-10) 1. • In Dec 2010.6 NA 955.800.CommErCIalBank CapITal .Chairman / MD kin Jang Su – Corporate Director & Board member Company Financials Key Ratios KWR mn unless otherwise mentioned Particulars Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (KWR) Book Value Per Share (KWR) Dividend Per Share (KWR) 2008 2009 7.104.8 500.5 8.2 6.8 NA 16.366. as well as other power projects consisting of transmission.3 Management Son Hyo-Won.000 20.271.6 Foreign Ownership (%) limit allowed (%) Current Exposure n/a n/a Shareholding Pattern Korea Finance Company 11.0 10.120. oil refineries and oil field developments.0 NA NA NA NA NA NA NA 17.579.763. it engages in the real estate leasing operations.7 18. substation.344. 000720.0 3.5 15.167. and industrial plants.4 5.9 111.1 10.579.6 4. including LNG receiving terminals and supply pipelines.4 NA 700.0 NA 5.7 698.1% Korea Exchange Bank 8.281.Hyundai Engineering and Construction Company Reuters/Bloomberg code: Company Overview Hyundai Engineering and Construction Company (HECC) was the former parent of Hyundai Group established in 1947.4 2.6 NA 3. oil and gas pipelines. • The company is also involved in the construction of power and desalination plants. and liquefied natural gas (LNG) liquefaction plants.4 9.000 0 5 0 Jan-09 Jan-10 Price KRW Jan-11 Jan-12 Volume mn Segmental Revenues in 2010 Nuclear 2% Plant 24% Power 21% Civil 21% Building 32% 68 .9 -14.304.529. petrochemical plants.6 92.557.000 15 10 40.7% Recent Developments • HECC completes the GTL unit in Qatar which has a capacity of 1.004.093.6 1.000 60. such as gas processing plants and gas field developments.1 NA 6.000 80.0 8098.8 8.4 3.6 972. South Korea.6 bn cubic feet a day of converting natural gas into sulfur-free liquid fuel.7 10.ConSTruCTIon SECTor rEporT .0 NA 31.893.657. Hyundai Heavy Industries co. ltd. Reuters/Bloomberg code: Company Overview Hyundai Heavy Industries Co. Ltd. (HHI) is the world largest shipbuilding company established in 1972. The company is primarily engaged in heavy industries sector. It is a subsidiary of Hyundai Heavy Industries Group. HHI operates through its affiliates named as Hyundai Samho Heavy Industries, Hyundai Mipo Dockyard, Hyundai Venture Investment, and Hyundai Futures.HHI primarily operates in Korea and has operations across the globe. The company is headquartered at Ulsan, South Korea. Business Description • HHI’s shipbuilding division (15% global market share) builds containerships, tankers, bulk/petrochemical carriers, drill ships, and speciality vessels • HHI also offers offshore construction and exploration services, and has expanded into robotic systems and large industrial pumps and presses. • HHI makes diesel engines and engine parts for industrial and marine applications • Other HHI offerings include electric systems (circuit breakers, switchgear, transformers) and construction equipment (excavators, forklifts, and loaders). Recent Developments • In 2011, HHI awarded the contract to execute the offshore part of Barzan Gas Project in Qatar for USD 900 mn. Company Financials KRW mn unless otherwise mentioned Particulars 2008 2009 2010 2011 Revenue 19,957,080.9 21,142,196.7 22,405,181.3 25,019,600.0 Total Assets 25,280,400.9 24,872,583.5 28,888,131.1 29,920,500.0 Shareholder’s Equity 5,595,219.5 9,808,401.2 13,819,032.5 14,719,300.0 Total Debt 3,314.6 889,556.5 3,447,283.7 3,962,700.0 Cash & Cash Equivalents 667,492.2 632,578.2 624,479.5 N/A Net Operating Margin (%) 11.1 10.5 15.4 N/A ROE (%) 40.7 27.9 31.8 N/A ROA (%) 10.7 8.6 14.0 N/A EPS (KRW) 37,340.0 35,705.0 61,807.0 N/A Book Value Per Share (KRW) 93,357.2 161,798.2 225,475.4 N/A Dividend Per Share (KRW) 5,000.0 3,500.0 7,000.0 N/A Y-O-Y CAGR (%) (%) (2008-10) 11.7 3.6 6.5 15.0 N/A N/A N/A N/A 6.0 6.9 57.2 NM -3.3 14.3 28.7 55.4 009540.kS/009540 kS Market Data Cmp(krW ‘000) 325.0 Shares outstanding (mn) 76.0 market cap (krW bn) 24,700.0 market cap (uSD mn) 21,933.6 52 week range H/l (krW ‘000) 554.0/235.5 Foreign Ownership (%) limit allowed (%) Current Exposure n/a n/a Shareholding Pattern Mong-Joon Chung 10.8% Hyundai Mipo 8.0% KCC 6.7% Others 74.5% Chairman / V.Chairman / MD min Gye-Sik– Chairman Management oi-Hyun kim– CEo Jai-Seon lee – president & CEo Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 6.8 1.5 2.2 1.5 Price Performance 600,000 500,000 400,000 300,000 200,000 100,000 0 Jan-09 4 3 2 1 0 Jan-10 Price KWR Jan-11 Jan-12 Volume mn Segmental Revenues in 2010 Others 1% Shipbuilding 35% Offshore & Eng. 15% Industrial Plants & Eng. 12% Engine & Machinery 13% Electro System 14% Constrauction Equipment 10% CommErCIalBank CapITal - ConSTruCTIon SECTor rEporT - 69 JGC Corporation Reuters/Bloomberg code: Company Overview JGC Corporation (JGC) established in 1928 and has developed into a globally recognized world leading engineering contractor. Currently the company has a place in one of four largest specialists in LNG projects. The company has the accumulated experience gained from over 20,000 projects performed in approximately 70 countries. JGC maintains a global network of satellite engineering centers to assure successful project execution anywhere in the world. Business Description • The company major activities includes Consulting, planning, basic and detailed design, materials and equipment procurement, construction, commissioning, operation and maintenance services for various plant and facilities • Investment in oil and gas field development projects and utility business • Technology development services Recent Developments • In 2011, The Company awarded EPC contract to build the gas processing facility for the Barzan Onshore Project in Qatar. • In 2011, The Company acquired 40% participating interest in Shale gas project from Nexen Inc. Company Financials JPY mn unless otherwise mentioned Particulars Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (JPY) 123.2 Book Value Per Share (JPY) Dividend Per Share (JPY) 2009 2010 2011 9M-12 450,911.0 480,279.0 224,488.0 24,176.0 117,781.0 11.5 14.6 6.7 124.8 188.2% 885.6 30.0 414,257.0 430,176.0 246,140.0 23,678.0 83,308.0 10.1 11.5 6.0 107.3 -10.1% 972.5 21.0 447,222.0 468,502.0 264,483.0 21,640.0 131,894.0 14.2 10.0 5.7 100.8 389,361.0 501,118.0 280,535.0 8,637.0 172,780.0 12.0 11.1 6.2 1,045.4 30.0 1,109.1 NA Y-O-Y CAGR (%) (%) (2009-11) -36.2% 9.2% 11.5% -59.1% 47.5% - 11.5% NM -0.4% -1.2% 8.5% -5.4% 5.8% - 8.6% 0.0 1963.T/1963 Jp Market Data Cmp (JpY) Shares outstanding (mn) market cap (JpY mn) market cap (uSD mn) 52 week range H/l (JpY) 2,508.0/1,460.0 2,189 259.1 567.1 7.1 Foreign Ownership (%) limit allowed (%) Current Exposure n/a n/a Shareholding Pattern Japan Trustee 9% Master Trust Bank of Japan 8% JGC Trading 5% Others 79% Chairman / V.Chairman / MD Yoshihiro Shigehisa– Chairman Emeritus keisuke Takeuchi - Chairman& CEo Management koichi kawana– president and Coo Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 16.1 2.0 na 1.9 Price Performance 15 3000 10 2000 5 1000 0 Jan-09 0 Jan-10 Price JPY Jan-11 Jan-12 Volume mn Segmental Revenues in 2010 Catalyst and fine product8% Others 3% Engineering 89% 70 - CommErCIalBank CapITal - ConSTruCTIon SECTor rEporT Mazaya Qatar Real Estate Development Reuters/Bloomberg code: Company Overview Mazaya Qatar Real Estate Development (Mazaya Qatar) develops, sells/purchases, rents and manages real estate properties in Qatar. The company was established in 2008 and was listed on the Qatar Exchange in October 2010. Mazaya Qatar undertakes real estate investment and development in accordance with the provisions of the Islamic law in the Middle East. Business Description Mazaya Qatar develops residential, commercial and industrial projects. The company’s service and operations include: • Real estate development • Project management and consultancy • Property valuation • Strategic partnership • Real estate brokerage • Master developments • Assets and facility management • Marketing management and consultancy • Real estate portfolio and fund management • Real estate market research Mazaya Qatar has also been involved in projects covering architecture, professional building and engineering. Its flagship projects include: Housing Complex for Qatar National Convention Centre’s employees, Sidra Residential Compound (Sidra Medical and Research Center), and Marina Mall Shopping Center. Recent Developments • In June 2011, the company announced that it has joined the list of founding members of the Qatar Green Buildings Council. • In October 2011, the company received the ‘Best Real Estate Investment Strategy’ award at the 2011 Arabian Business Achievement Awards in Qatar Company Financials QAR mn unless otherwise mentioned Particulars 2008 2009 2010 2011 Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (QAR) Book Value Per Share (QAR) Dividend Per Share (QAR) NA NA NA NA 36.4 527.8 515.6 29.5 1,181.7 1030.3 138.0 20.1 1101.4 1077.9 0.0 Y-O-Y CAGR (%) (%) (2009-11) -31.9 -6.8 4.6 -100.0 -25.7 44.5 NM -100.0 NA 241.2 678.2 332.1 -51.0 17.3 NA NA NA NA 67.3 7.1 6.9 0.3 50.9 2.9 2.5 0.2 -29.8 4.6 4.3 0.5 206.3 25.7 NA NA 10.3 10.8 4.9 NA NA NA NA NA NA NA mrDS.Qa/mrDS QD Market Data Cmp (Qar) Shares outstanding (mn) market cap (Qar mn) market cap (uSD mn) 52 week range H/l (Qar) 7.7 100.0 782.0 214.8 10.5/7.4 Foreign Ownership (%) limit allowed (%) Current Exposure 24.9% 23.3% Shareholding Pattern Others 27% Qatar Foundation 21% Qatar Investment 17% Al Mazaya Holding CO. 5% Public 30% Chairman / V.Chairman / MD rashid Fahadal naimi – Chairman Management SerajSalehal Baker – CEo Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) na 0.8 na na Price Performance 12 11 10 9 8 7 5 4 3 2 1 0 Oct-10 Price QAR Apr-11 Oct-11 Volume mn Segmental Revenues in 2010 Others Income 17% Rental Income 2% Financing Activities 81% CommErCIalBank CapITal - ConSTruCTIon SECTor rEporT - 71 Company Financials 2008 Market Data Cmp (Qar) 141. Business Description • QEWC is primarily engaged in the production of electricity and water.9 3.894. QEWC posted a 10% drop in third quarter net profit to QAR 328.9 12. • In August 2011.0 5.6 34.1 35. the company’s contribution to total power generation and water desalination capacity in Qatar is expected to increase to more than 60% and 70%. the company signed an agreement with Oman Power and Water Procurement Company to start the construction of the Sur Independent Power Project in Oman.5 100 50 0 Jan-09 Feb-10 Price QAR -9.3 Total Assets 13.180.5 5.3 Shares outstanding (mn) 100.6 10.9 200 1 150 0.123.0% Shareholding Pattern Govt.6 45. respectively.0 22.587. QEWC was assigned a rating of A1 by Moody’s.416.650.8 14.3 0.730 MW).9 40. while the remaining is held by institutions and private individuals. QEWC’s operations are limited to Qatar.4 3.Qatar Electricity and Water Company Reuters/Bloomberg code: Company Overview Doha-based Qatar Electricity and Water Company (QEWC) is an electricity and water company. Recent Developments • In October 2011.2 38. • Following the completion of ongoing projects.209.185.6 EPS (QAR) 7.ConSTruCTIon SECTor rEporT Y-O-Y CAGR (%) (%) (2008-10) 53.CommErCIalBank CapITal .2 mn (USD 90.8 27.4 21816. The Qatari government owns a 43% stake in the company.9/116.9 Shareholder’s Equity 1.8 23.4 35.9 2.307. however.6 20. Once completed.614.2 22.2 52-week range H/l (Qar) 154.0 market cap (Qar mn) 14.000 MW.7 14.6 31.0 44.7 8.307.3 4.272.0 Book Value Per Share (QAR) 13. Established in 1990.9 37. • QEWC has consistently increased its production capacity over the past two decades by establishing new plants and enhancing output of existing projects.9 37.717.7 3.054.5 13.9 2.007 MW) and Ras Girtas (2.589.289.6 42.1 Cash & Cash Equivalents 1.3 48. the project would have a total capacity of 2.8 6.074.1 4. The company’s projects include major ventures such as Mesaieed A Power Station (2.Qa/QEWS QD 2009 2010 9M-11 Revenue 2.5 31.048. • In July 2011. abdullah bin Hamad al-attiyah – Chairman Management mr.0 72 .5 11. Fahad Hamad al-mohannadi – General manager mr. abdul Sattar al-rasheed – CEo Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 10.8 ROA (%) 6.2 3.8 Price Performance QAR mn unless otherwise mentioned Particular QEWC.8 Dividend Per Share (QAR) 4.5 Mar-11 Volume mn Segmental Revenues in 2010 Lease Income 15% Electricity 53% Water 32% .938.0 2.0 6.0 15.8 ROE (%) 30. of Qatar 43% QP 11% QNB 6% QIC 1% Public 39% Chairman / V. 13.1 mn) compared with QAR 364.430.6 18.1.1 Total Debt 8.6 9.0 6.2 2.9 69.229. Currently.0 Foreign Ownership (%) limit allowed (%) Current Exposure 25.6 3.8 mn posted in the year earlier period.Chairman / MD mr. the company intends to extend its footprint in other regional markets. the company owns and manages power generation plants and water desalination stations to provide electricity and water in the State of Qatar.0 market cap (uSD mn) 3.0% 0.6 73. The company’s power plants and desalination stations have the capability to meet the country’s requirement for electricity and water.6 Net Operating Margin (%) 33.6 6. 0 18.S. importing/exporting cement.6 12.73 .0 3.000 metric tons (production is based on modern rotary kiln technology that adopts nature friendly environment protection strategies).Qa/kHCD QD Market Data Cmp (Qar) Shares outstanding (mn) market cap (Qar mn) market cap (uSD mn) 52 week range H/l (Qar) 15. sulphate resistance cement. The company’s product portfolio includes ordinary portland cement.7 519.6 22.6 5.3 0.9 15. • In May 2011. Al-Khalij operates through its affiliate Qatari Investors Group that owns 19 entities (as of June 30.4 1410. The company is also involved in building factories. Business Description • Al-Khalij’s industrial and investment operations are managed through its affiliate Qatari Investors Group. Quality and Conformity Department. is primarily engaged in the production and sale of cement.0 2.2 20.7 10.3 3.0 NM kHCD.3 0.1 170.3 -12.2 124.3 1.6 0.852.4 2.1 1935. Sh.6 2.489.0 0.5 708. The company reports revenues under two operating segments: cement (accounted for 82.Chairman / MD HE abdulla nasser al-misnad – Chairman and mD H. Under its Green Field Cement Project.1 3.2 -149.8 874.2 26.9 2.6 10.8 3. electrical and electronic security equipment.6 115. the company has diversified its business into various new sectors across the Gulf.).3% 6.3 1.9 158.9 1.5 507.7 -12.9 -83..3% of total revenues in 1H 2011) and contract and service income (17.C.3 na Price Performance 25 6 20 4 15 2 10 0 Jan-09 Jan-10 Price ‘QAR Jan-11 Jan-12 Vol mn Segmental Revenues in 2010 Contract & Service 23% Cement 77% CommErCIalBank CapITal . obtained a conformity certificate with specified requirements of the Qatar Construction Specification from the Ministry of Environment.9/13.8 2. 2011).4 -30.8 194.4% Shareholding Pattern Others 23% Public 77% Chairman / V.ConSTruCTIon SECTor rEporT .8 1. Incorporated in May 2006.5 0.674.Qatar Investor Group Reuters/Bloomberg code: Company Overview Qatar Investor Group formerly known as Gulf Holding Company (Q.1%).0 0.7 0.5 15.4 0. the company obtained a conformity certificate for technical requirements in the fields of construction and building products manufacturer/ supplier.3 1928.3 679.E. Company Financials QAR mn unless otherwise mentioned Particulars Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (QAR) Book Value Per Share (QAR) Dividend Per Share (QAR) 2008 2009 2010 2011 Y-O-Y CAGR (%) (%) (2009-11) 11.7 150.2 0.5 0.1 3.2 3056.8 2. and installing and maintaining solutions for mechanical.1 7. portland slag cement and building material.3 0.0 1.667.8 5.8 986. Recent Developments • Al-Khalij Cement Co.4 -20.0 Foreign Ownership (%) limit allowed (%) Current Exposure 23.9 14. investing in shares and real estate. Al-Khalij Holding’s subsidiary. Hamad Bin Faisal al-Thani – Vice Chairman Management HE abdulla nasser al-misnad – Chairman and mD Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 23.889. the company has a clinkerisation unit that has a guaranteed daily capacity of 5.9 3.2 571. In 2003. Sulaiman khalid al mana – Vice Chairman Management mohammad ali al Sulaity – General manager Key Ratios p/E (x) p/BV (x) Dividend Yield (%) pEG (x) 13.6 Price Performance 150 250 200 150 100 100 50 0 50 0 Jan-09 Jan-10 Price QAR Jan-11 Jan-12 Volume mn Segmental Revenues in 2010 Cement 100% .519.9 -9. respectively.2 0.5 39. Company Financials QAR mn unless otherwise mentioned Particulars Revenue Total Assets Shareholder’s Equity Total Debt Cash & Cash Equivalents Net Operating Margin (%) ROE (%) ROA (%) EPS (QAR) Book Value Per Share (QAR) Dividend Per Share (QAR) 2008 2009 2010 2011 Y-O-Y CAGR (%) (%) (2009-11) 1. QNCC purchased a washed sand plant and is periodically upgraded / expanded.9 18.2% 2.6 54.5 41. the company has ramped up three additional cement plants in Qatar.4 -19.5 8.0 4.000 tpa. Through the years. Qatar National Cement Company (QNCC) is a Qatar-based public shareholding company operating in the construction materials sector.1 5499.090.3 1.7 324.853.2 1.Qatar National Cement Company Reuters/Bloomberg code: Company Overview Established in 1965.7 -42.0 2.607.CommErCIalBank CapITal .Qa/QnCD QD Market Data Cmp (Qar) Shares outstanding (mn) market cap (Qar mn) market cap (uSD mn) 52-week range H/l (Qar) 112.4 1.2 7. the company began production of: • Sulphate resistant cement • Calcined and hydrated lime and • Washed sand Business Description • In 1969.0 1483. of Qatar 43% Public 57% Chairman / V.0 47.9 489.8 9.9 74 . In 1978 and 1985.1 116.0/95. with the same capacities each.4 15.1 989.2 44.0 10.5 42.526.6 17.2 2.5 4.642.6 2618.3 99.7 23.8 2315.7 19. QNCC has setup manufacturing units at Umm Bab and Mekenis in Qatar.4 20.5 22. The plant would specialize in producing calcium carbonate for usage in water treatment operations and have a production capacity of 250 tons per day.5 Foreign Ownership (%) limit allowed (%) Current Exposure 14.6 8.9 0.5 874.3 118. respectively. The second and third lines.1 1.8 2.1 -4. QNCC commenced commercial cement operations from the first production line based on Semi Dry Process with a capacity of 100.8 254.8 2.6 155.0 49.1% Shareholding Pattern Govt.1 4. the company diversified into Calcined Lime and Hydrated Lime. Subsequently.Chairman / MD Salem Bin Butti al-naimi – Chairman and mD mr.3 25.2 16.0 163.2 2.5 5.1 2.4 7.922.ConSTruCTIon SECTor rEporT QanC.413.3 9.5 1.0 9. • QNCC signed an agreement with Stream Industrial Engineering Company to construct a calcium carbonate plant on turn-key basis.2 9. Headquartered in Doha.5 6.9 17. The company was established to produce ordinary Portland cement in the country.5 33. were set-up and commercialized in 1974 and 1976.3 3. Recent Developments • The company commenced trial operations at its QAR 22 mn calcium carbonate plant based in Umm Bab.159. The Ras Girtas power station at Ras Laffan would be one of the supporting stations for the plant.2 -49.9 5. QNCC signed an agreement with Kahramaa to purchase calcium carbonate for 25 years. 3 bn and will be completed by March 2013. Board of Directors mohammed Sultan alJaber – Chairman Hisham Hadid – Director Jaber Sultan alJaber – Director Management osama Hadid – managing Director amr nadim – Executive manager. mechanical. Seddiqi al Emadi – Chairman Management peter Ward . The estimated cost of project is QAR 53 mn. Logistic Village Qatar Key Personnel The company awarded the contract for Design Supply & Erection of three warehouses including civil. Board of Directors ahmed E. Engineering CommErCIalBank CapITal . Construction alex Calfat – Executive manager. structural & finishing works. The company’s primary activities are Civil and electromechanical contracting for industrial.General manager AlJaber Engineering (JEC) Company Description AlJaber Engineering (JEC) is a leading general contractor established in 1995 in Qatar. petrochemical. engineering and business consultancy services and construction machinery and equipment. Projects Project Name Description Al Shaqab Academy The company got the contract for Design. Petrochemical and Industrial.2 mn and it will be completed by January 2014. and electrical and HVAC works. commercial and industrial requirements and also experts in steel construction business particularly in pre-engineered building. The project cost is USD 1. Projects Project Name Description Key Personnel Barwa Financial District It is a joint venture project with Bouygues and Midmac Contracting situated in Doha’s new business district in West Bay with approximately built up area of 700. The budgeted cost of QAR 114 mn. The project cost is USD 53. JEC has executed several large-scale turnkey projects in different sectors including Highways.. infrastructure and building projects etc. Roads and Infrastructure.ConSTruCTIon SECTor rEporT . oil and gas. The Company provides construction services for residential.000 sqm. Established in 1997.75 .Al-Bader Construction Steel Works Company Description Al-Bader forms an integral part of the Al Aafaq Group of Companies. Supply and Installation of Standing Seam Roof System and Ceiling Soffit in the Academy. Power Generation. Public Works Authority The project includes refurbishment and upgrading (Ashghal) works for various foul and storm water pumping stations including civil. Oil and Gas. Sewage Treatment Plants and Pumping Stations. Al-Bader Construction & Steel Works is a Civil Engineering Contractor and supplier of fabricated structural steel. Projects Project Name Description New Doha International Bechtel is the leading consultant and advisor for the Airport (NDIA). Ashghal-Hamad Medical City The project will cover an area of 450. Al Asiri Interchange.000 aircrafts per year. Doha International airport. 76 . residential buildings. The company’s primary activities include engineering. HBK and West Abu Hamour areas enhancing the local urban environment. The EPC will be awarded in Q1-13 and expected to be completed in Q2-20. asset affairs khaled mohammed al Emadi –Quality. The Emiri Decree focused on quality and perfection of projects as per international specifications and standards. and recreational facilities.000 people in Ain Khalid. Musaimeer. There has been a rapid increase in construction projects in the last few years. The budgeted value of project is USD 500 mn and will be completed in Q2-2012. Infrastructure affairs mohammad ali Darwish – Director.1 issued by HH the Emir Sheikh Hamad Bin Khalifa Al-Thani to supervise all infrastructures related projects as well as public amenities in the State. Qatar include construction of a 345 km long railway line and associated facilities.3 bn. such as the Olympics Village. The estimated budget for project is USD 1. and Dukhan Expressway 53 interchanges and 12 intersections. construction and project management company.Ashghal Company Description Ashghal was established in 2004 on the basis of the Emiri Decree No. Gharafa Interchange.6 bn. QRDC - Qatar Integrated The company is the PMC bidder. The company also won EPC and PMC contract. The extension of the facility in Doha will manage the flow from approx. mining and metals. petrochemical. educations center. a National Health Authority office building.CommErCIalBank CapITal . 500. Key Personnel Management nasser ali abdullah mawlawi – president and General manager Saad ahmad al-misnad – Director.000 projects in 140 countries since its inception. The airport will have capacity of 50 mn passengers. 2 mt of cargo and 320. Construction will start in Q2/2012 and is expected to complete in Q4/2015. Ashghal – Doha.9 bn revenue in 2010 and had an order book of USD 21. Building affairs Jamal Shareeda al kaabi –acting manager. Safety and Environment manager abdulhamid ali radwani – acting manager. Lusail The project will construct a 450 km long highway. The estimated cost of the project is USD 11 bn and is expected to be complete in Q1-15. infrastructure. procurement and construction for oil and gas. The company earned USD 27.000 sqm and will comprise three hospital. The estimated budget for the project is USD 200 mn and it is expected to be completed by Q2/2013. power and utilities projects and engineering consultancy services. Drainage and road Design Zayed mansour al khayarin – CEo Bechtel Company Description Bechtel is an engineering. Qatar project. The estimated cost of the project is USD 20.000 mn. The company has executed 23. buildings. Projects Project Name Description Ashghal-Doha and Rayyan Sewerage ASHGHAL plans to expand the sewerage system in Doha.ConSTruCTIon SECTor rEporT Key Personnel Board of Directors riley Bechtel – Chairman and CEo adrian Zaccaria – Vice Chairman andy Greig – Director Steve Bechtel – Director Bill Dudley – Director Scott ogilvie – Director peter Dawson – Director John mcDonald – Director mike adams – Director michael Balley – Director Jack Futcher – Director . The project will Rail Project. Salwa International highway. road and bridge construction. and private clients. Caribbean. FKI Logistex. Dredging and Reclamation. operations Suheil H. Europe. marine engineering. It specializes in providing EPC solutions such as project development.etc. Al jJaber Trasport. start up. The company provides services in five core areas named as survey and design. The operations of the company are spread across several countries in the Middle East. CHEC Headquarters are located in Beijing. Airports. The (CCC) provides services for oil and gas. Asia. The company is headquartered in Athens.8 bn and will complete in Q4-12. khoury – Director. Projects Project Name Description NDIA - Doha International Airport The new airport will have capacity of 50 mn passengers. (CHEC) is a world-renowned international contractor that is a subsidiary of China Communications Construction Company Ltd (CCCC). national oil companies.ConSTruCTIon SECTor rEporT . Complete Plant.CHEC is focused on basic infrastructure construction. 2 mt of cargo and 320.China Harbour Engineering Company Ltd.The estimated value of project is USD 1. pipelines. CAT International. Bechtel co. The EPC contract is awarded to CCC along with several contractors including JEC. government ministries. Arabian Benmco contracting co.000 aircraft landings and takeoffs each year. and roads.77 . Key Personnel Board of Directors Said T. Executive Vice president Samer S. Africa. Railways. Projects Project Name Description New Doha Port The company awarded the project of New Doha Port have a budgeted value of USD 879 mn and expected to complete in Q-23. and operation and maintenance. Gulf Contracting co.9 bn and expected to complete in Q1-12. QP - Ras Laffan Port Expansion . building and civil engineering segment.000 ships. khoury – Chairman and president Tawfic S. and port machinery manufacturing. Sabbagh – Director. In addition CCC offers services to industries. It will be three times the size of the existing airport in Doha and will cover an area in excess of 22 square km. Key Personnel Board of Directors Sun Ziyu– Chairman Wang Jiayin – Board of member Sun Guoqiang – Board of member Zong Yuanyuan – Board of member Zhu lixiang – Board of member Management mo Wenhe – president Wang Jiayin – Vice president Wang Bo – Vice president and Chief Economist lin Yichong – Vice president Consolidated Construction Company Company Description Consolidated Contractors Company (CCC) was established in 1952 and is ranked as the largest contractor in the Middle East. and other works. Road and Bridge. Executive Vice president. CCM. such as Marine Engineering. Group Human resources mahmoud Zeibak – advisor & Board Director mohammed Seoudi – advisor & Board Director CommErCIalBank CapITal . Company Description China Harbour Engineering Company Ltd. The budgted cost of project is USD 2. dredging and reclamation. South and Central America. and petrochemical segment. khoury – Director. Greece.Berths and Port Infrastructure The company won an EPC contract for the project along with other contractors. marine segment. China and has 40 overseas branches. The first phase will give the port a capacity of two million 20-foot equivalent units (containers) per year for 2014. The project will expand capcity to facilitate export of about 77 mn tons of LNG and will have capacity of 5. interior and landscape design services. 100 room hotel. The estimated cost of project is USD 275 mn and expected to complete in Q3-13. a pump house. al-kubaisi – Board manager raghib H. mining. oil and gas. water and petrochemical projects. Projects Project Name Description Duhail and Umm Qarn Reservoirs The Duhail Water Station project covers construction of six concrete reservoirs. 78 .The company major activity includes civil and electromechanical contracting for buildings.The company operated as a wholly owned subsidiary of Qatar Investment and Project Development Company as QIPCO acquired major stock in 2005. production of asphalt and concrete blocks. road works and installation of a 15. Leighton Holdings holds 45% stake. The company major activity includes civil contracting for buildings and infrastructure projects. Doha City Centre Expansion The project includes the construction of five towers with a direct link to the existing Doha City Centre.5% and Riad Toufic 27. landscaping and installation of 700 meter water distribution pipeline. Al Habtoor Group 27. Rail. Qatar and Bahrain. leasing of construction equipment.5% in the Group. kublawi – Director Management mohammed ali mohammed – managing Director khamis al-kubaisi ragheb H kublawi – General manager . W. Projects Project Name Description Qatar Foundation Headquarter The project will cover an area of about 29000 sqm which consist a 14-story building and three-four story study center.HE Sheikh Hamad Bin abdullah Bin khalifa al-Thani mohamed ali m. electromechanical.9 km water distribution pipeline.000 sqm. The budgeted value of the project is USD 325 mn. road works. Habtoor Leighton operates through three separate business units: United Arab Emirates. The estimated cost of project is USD 687 mn and expected to complete in Q2-13.L. and real estate property management. Al Habtoor Leighton established Al Habtoor GETTCO Qatar. and New Markets and each business unit comprise a number of divisions. In 2009. NDIASC - Expansion of The project include construction of a five-storey NDIA - Phase 3 passenger terminal consist of gross floor area of 127. Building Dale Burtenshaw – General manager Infrastructure MIDMAC Company Description MIDMAC Contracting Co. The Umm Qarn Water Station project includes the construction of three concrete reservoirs.k. Building. a pump house. The project is divided into three phases and has a total builtup area of around 330. a holding company with subsidiaries in civil contracting. engineering consultancy and offshore contracting for the oil and gas sector.Habtoor Leighton Company Description The Habtoor Leighton Group (HLG) is one of the leading diversified international contractors in the MENA region and was formed in 2007 following the merger of Al Habtoor Engineering with Gulf Leighton.L. two-track people moving system and a commercial area etc. (MIDMAC) is one of the largest Qatari contracting organizations established in 1975. Key Personnel Board of Directors raid T. Sadik – Chairman laurie Voyer – CEo & managing Director mohammed al Habtoor – Director Hamish Tyrwhitt – Director Tony Saadie – Executive General manager Suheil al rayes – General manager. electromechanical and plumbing services.000 sqm. The company has an annual turnover approximately USD 350 mn. associated buildings. associated buildings.ConSTruCTIon SECTor rEporT Key Personnel Board of Directors Chairman .CommErCIalBank CapITal . manufacture of reinforced steel bars. Oil and Gas and Mining. infrastructure. HLG focus on five major sectors namely Infrastructure. 13. The construction project will be awarded in Q3-12 and expected to complete in Q2-15. The company is working with some of the world’s leading master planners.79 . Shipping centre. distribution. The estimated cost of the project is USD 58 mn and expected to complete in Q1-2015.ConSTruCTIon SECTor rEporT . The company major activities includes civil contracting for infrastructure. Wadi sail. Education centre. Oil and gas producers centre etc.Msheireb Properties Company Description Msheireb Properties is a subsidiary of Qatar Foundation for Education. al mohannadi – CEo C S Chandrasekaran – CFo John rose – Development Director mohammed masoud al-marri – projects Director Key Personnel Qatar Building Company Company Description Qatar Building Company was founded in 1971 as a general civil engineering and building contractor. Board of Directors HH Sheikha moza bint nasser – Chairperson HE abdullha al-kubaisi – Vice Chairperson rashid al-naimi – Director Saad al muhannadi – Director norman lyle – non .637 residents. The estimated value of project is USD 5. The estimated cost of project is USD 270 mn. Board of Director mohammed Tayyeb Hashim mustafawi – Chairman abdulhamid mohammed Tayyeb Hashim mustafawi – Vice Chairman abdulhakim mohammed Tayyeb Hashim mustafawi – Director khaled mohammed Tayyeb Hashim mustafawi – Director adel mohammed Tayyeb Hashim mustafawi – Director ahmad mohammed Tayyeb Hashim mustafawi – Director Management ali mohammed Tayyeb Hashim mustafawi – managing Director CommErCIalBank CapITal . The company has a capacity of 400 cubic meter of concrete per hour and 800 tonnes of asphalts pavements per hour. building sand heavy industries. The budgeted cost of the project is USD 200 mn and expected to complete in Q4-2013. Projects Project Name Description Msheireb Properties .000 sqm consist of 226 buildings. architects.5 km long road which is the part of Package 6 Doha expressway. Jaidah tower etc. The project will provide home to 27. Projects Project Name Description GFH - Energy City Qatar- Phase 1 The company awarded the EPC contract for Energy City which includes the construction of ECQ headquarters. Management Issa m. Science and Community Development. manufacture of precast pipes and pipelines installation. Msheireb primarily activities include Real estate property investment. manufacture of asphalt and concrete products. TIME Qatar. and construction of new villas and towers (18 storey). Msheireb Properties is a supporter of Qatar Foundation’s objectives and ideals which will create leading edge urban living concepts that build on traditional Arabian architecture and design and contribute to the social and cultural heritage of Doha. engineers and designers to create and regenerate cities to serve the immediate needs of communities and in the future. Key Personnel Primary Routes Project: The company awarded EPC contract for the Doha Expressway: construction of 3. development and management and management of hotels. cultural and entertainment areas. which will be an independent project management company. Mshereib properties and Turner International Middle East formed a joint venture.5 bn and expected to complete in Q4-16. retail. leasing and maintenance of heavy construction equipment’s and spare parts.Executive Director Msheireb Properties - Old Doha Facelift The project will include demolition of old structure in area like Al Bida. The company was set up in April 2007 and it was formerly known as Doha Land.700 parking lots. Infrastructure & installation works.Musheireb The project will spread over 750. The project include residential. France named as Qatari Diar Vinci Construction to develop schemes. marine and electromechanical contracting. design and construction management. management and brokerage services. a real estate company established in 2005. Qatari Diar also enters into a joint venture with Vinci. initial public offerings and underwriting and offer advertising. 80 . conventional and Islamic direct investment in various sectors including real estate. Sheraton The contract includes design construction of an underground two level car park have a capacity of 1. a causeway linking Qatar with Bahrain. Parsons Brinckerhoff International. engineering consultancy and landscaping services. beaches and recreational areas. including Qatar’s national rail network and the Friendship Bridge. The bidders for the PMC are Bechtel Corporation. parks. The value of poject USD 45 bn and expected to complete in Q4-15. The estimated cost of project is USD 335 mn and expected to complete in Q3-13. ownership and management of hotels and resorts. Doha North Sewerage Treatment and Associated Works PS 70 and Pumping Main CP 682/2 QDVC won EPC contract in the joint venture with Vinci Construction Grand Projects (40%) and Entrepose (30%). is a wholly owned subsidiary of Qatar investment Authority. The pumping station will have a capacity of 900.CommErCIalBank CapITal . The project’s estimated cost is USD 21 bn and is expected to be completed in Q2-20. spaces. Key Personnel Board of Directors HE Youssef Hussein kamal – Chairperson HE khaled mohammad abdullah al attiyah – Vice Chairperson rashid al-naimi – Director Saad al mohannadi – Director norman lyle – non – Executive Director Management mohammed ali al-Hedfa – CEo Ghanem Bin Saad al-Saad – managing Director Waleed Bangash – CFo Qatari Diar Vinci Construction Company Description Qatari Diar Vinci Construction (QDVC) is a joint venture with 51% held by Qatari Diar Real Estate Investment Company (QDRIC) and 49% by Vinci Construction Grands Projects established in 2007 in France.Underground System (LRT) construction project in Lusail City which Stations (8 nos. Qatari Diar major activities include Real estate property investment. The main objective is contracting and construction work along with any associated services related to large selected design and build projects. The company primary activities include civil contracting for infrastructure. a 66 kv sub-station for Kahramaa. Fluor Corporation. investment banking services.ConSTruCTIon SECTor rEporT Key Personnel Board of Directors Youssef ahmad al Hammadi – Chairperson Serge moulene – Vice Chairperson raoul Dessaigne – Director alain Bonnot – Director Ghanim Hassan al-Ibrahim – Director Hassan al Derham – Director Management Yanick Garillon – CEo Thibaut peniguet – CFo Hamad al-Bishri – Deputy CEo Stephan Van Dyk – Human resources Director Claude michas – Head of procurement and logistics . two 11 kv sub stations and a tunnel. Projects Project Name Description Qatari Diar Real Estate Investment Company (QDREIC) - Lusail Development Lusail Devalopment is a megaproject divided into thirteen district. buildings and heavy projects.The estimated cost of project is USD 500 mn and expected to complete in Q2-12.Qatari Diar Real Estate Investment Co. The budgeted value of the project is USD 725 mn and expected to complete in Q3-14. Projects Project Name Description Lusail Light Rail The company won EPC contract for Light Rail Transit Network. development.986 cars.000 (m3/d).) will cover civil engineering work in eight underground stations. QRDC - Qatar Integrated Rail Project QDREIC (51%) formed a joint venture with Deutsche Bahn (49%) namely Qatar Railway Development Company to develop the railway system in Qatar. Company Description Qatari Diar Real Estate Investment Company (QDREIC). It is also involved in some of the state’s largest infrastructure schemes. petrochemicals. Board of Directors HH Sheikh ahmad Bin Jabor Bin mohammed al Thani– Chairman Management mazen abu nabaa – managing Director rafique ahmed – DGm operations Hossam abdelmajeed – DGm projects Haitham Elsaka – manager. Qcon operates through its three divisions: • Industrial Projects • Maintenance Services • Mechanical Fabrication Projects Project Name Description Key Personnel Qatargas .Aerospace City Qatar Foundation is planning to construct an Aerospace City in Al Khor which will cover an area of 40. a recovery project Gas Recovery to recover and collect boil off gas at each port berth. The project will include expertise from NASA.6 bn and it is estimated to complete in Q2-12. ICT and water. The Park is a free zone for technology-based companies involved in aircraft operations. The estimated cost of the project is USD 6. Fertilizer and Power industries. Petrochemical. Qatar Foundation . the company was established in 1975. pre-commissioning. Formally known as MECON. scientific research and community development through joint ventures and partnerships. The Qatar Foundation developed the Qatar National Convention Center to provide space for exhibition. and will also include a research facility keen to satellite and space sciences. Key Personnel Board of Directors HH Sheikha mozah bint nasser al-missned – Chairperson Saif ali al-Hajari – Vice Chairperson HH Sheikh Dr. The Foundation also established.Jetty Boil-off The company awarded the Qatar gas. The company major activities includes EPC Projects. The estimated cost of project is USD 3. The budgeted value of the project is USD 1. which is enough natural gas to power more than 40000 home.000 mn and expected to complete in Q4-13. academic or corporate fields. Hamad Bin nasser al-Thani – Director HE abdullah Hussain al kubaisi – Director Dr. Medium and Heavy Steel Fabrication. maintenance & logistics Qatar Foundation Company Description The Qatar Foundation is a privately owned organization that invests in the country’s education. This project will recover the equivalent of some 0.6 mn tonnes a year of LNG. Science & Community Development will cover an area of 45 hectares.Qatar Engineering and Construction Company Company Description Qatar Engineering & Construction Company (Qcon) is the leading National EPC & Maintenance Contractor in the Oil & Gas. The project also consist a number of sub projects. commissioning.Education City The Qatar Foundation for Education. Foundation established the Qatar Science and Technology Park to enhance scientific research capabilities. including topside production facility etc. construction. Projects Project Name Description Qatar foundation .ConSTruCTIon SECTor rEporT .81 . Jordan J Cohen – Director ahmed Zewail – Director CommErCIalBank CapITal . Fabrication offshore structures.3 bn and expected to complete in Q2-17. oil and gas. start-up services. which provides financial support to researchers in the public.000 sqm. the Qatar National Research Fund.misnad – Director Dr. mohammad FathySaoud – Director Hassan al-Derham – Director HE Sheikhabint abdulla al. ThyssenKrupp and Emcor. for Lusail projects Education City The company is in the process of signing a corporate agreement with Education City for the design. metro. health care. Mobility has signed an agreement with Qatari Diar to provide high quality street fixture elements. and industrial systems solutions. Street Furniture. Villagio Mall. Al Bustan Real Estate Company. 82 . Asas Real Estate Company. trading. The company formed a joint venture named as Investment house with Qatar National Bank to access financial sector. electrical engineering and electronics manufacturing. lights poles. and maintenance the street furniture of the city. bicycle racks. Black Cat Engineering & Construction Co. The company has a number of subsidiaries in different segment as follow: • Real Estate Sector: Torando Company. installation. and beautification solutions for all nations in the Middle East. noise barriers and rail furniture etc. Metro train. • Contracting Sector: Midmac Contracting Co. Mobility is the first infrastructure solution provider established in 2010 in Qatar. Projects Project Name Description Lusail project Q.ConSTruCTIon SECTor rEporT Key Personnel Management anas Ismael al keilani – managing Director amit kumar Singh – Deputy CFo Ibrahim almalki – Executive Director of International projects Tareq addasi – Senior International Business Development Director . • Trading and Service Sector: Manani Corporation • Finance Sector: Investment House Key Personnel Board of Directors HH Sheikh abdulla Bin khalifa al-Thani – Chairperson HH Sheikh Suhaim abdulla al-Thani – Director raoul Dessaigne – Director HH Sheikh Hamad Bin abdulla Bin khalifa al-Thani – CEo HH Sheikh Fahad Bin abdulla al-Thani – Director mohammed ali mohammed khamis al-kubaisi – Director QIPCO has strategic shareholding in following companies: • Qatar Airways • International Bank Of Qatar • Mazaya Qatar • Qatar Finance House • Qatar National Bank Q. focused on development of transportation. The company is a semi-government organization. oil and gas. pedestrian. intelligent transportation management systems. The infrastructure investments in the Middle East are expected to exceed two trillion dollars in the next ten years. manufacture. road. guard rails. Street Way finding and Signage and Intelligent Traffic System. Bike system. airport.CommErCIalBank CapITal .. safety barriers. Airports. Mobility Company Description Q. benches. QIPCO has also established Joint Venture Companies with renowned International Partners like Siemens. financial services.Qatar Investment and Projects Development Holding Company Company Description Qatar Investment and Projects Development Holding Company (QIPCO) invest in companies that operate in real estate. Urban Planning and City Development. construction. rail. The company major business lines includes Infrastructure solution. The company has production capacity of 800.Meltshop Upgrade The project include construction of Rolling mills. Qatar Metal Coating Company (50%). De-dusting system etc. Key Personnel QASCO/Essar . Electric arc furnace. The company product portfolio includes ready mix concrete and ready mix mortars and plasters. The company was founded by Mr. into the project from the Site based facility established at Ras Laffan. Al Fardan Towers etc. Shell GTL Project at Ras Laffan The Joint Venture of Rabban Readymix and Medgulf have supplied over 750. Dastur & Company on PMC contract for the project. The company will provide ready mix concrete in the construction of Al Udeid Air Base. Projects Project Name Description QASCO . the company was fully acquired by Industries Qatar in 2003. Landmark.ConSTruCTIon SECTor rEporT .000 tons annually.N.83 .The estimated value of project is USD 1 bn and expected to complete in Q1-13. Barwa City Buildings. while the remaining is public. Villagio.100. Board of Directors HE Youssef Hussein kamal – Chairperson HE Dr mohammed Saleh al-Sada – Vice Chairperson abdulrahman ahmad al-Shaibi – Director nasser mubarak Shafi al-Shafi – Director ali Hasan al muraikhi – Director mohammed Hitmi ahmed al-Hitmi – Director Fahed Hamad al mohannadi – Director Idris Gamil – Director Rabban Readymix Company Description Rabban Readymix is a leading ready mixed Concrete company based in Doha.Qatar Steel Company FZE Dubai and has stake in four associates.Qatar Steel Company Company Description Qatar Steel Company (QS) was established in 1974 as a joint venture between Government of Qatar and two Japanese companies. Kobe Steel (20%) and Tokyo Boeki (10%). It also operates a UAE based subsidiary . Doha Airport The company currently supplying the ready mix concrete in the construction of 12 new departure terminals at Doha International Airport.000 cubic mt. The company provide ready mix product in the construction of well-known building such that Gulf mall. The company is involved in manufacturing and distribution of iron and stainless steel products. United Stainless Steel Company (25%). Gulf Industrial Investment Company (25%) and South Steel Company (20%). Its manufacturing plant is in Mesaieed and sales and marketing office is located in Doha. Khalid Al Rabban. M. which will expand the capacity of 1.Mesaieed The project will be executed in two phases. Doha Airport. Projects Project Name Description Al Udeid Air Base The project includes construction of runway measures 15. The project is currently on hold. Key Personnel Board of Directors khaled bin mohammed al rabban – Chairperson Hamad khaled al rabban – Director nasser Bin khaled al rabban – Director mohammed khalid al rabban – Director khalifa khaled al rabban – Director Management Clive Cash – CEo Fred Greger – General manager CommErCIalBank CapITal . The Steel Plant first is scheduled to result in the commissioning of an HBI plant by the first half of 2008. Ladle furnace.000 tpa.3 bn. the second to yield flat rolled steel products at a later stage. Later on.000 long along with shelters that can accommodate 100 aircraft. which is 70% owned by Qatar Petroleum. The estimated value of USD 1. Head of Envelope Tanghy Vandestraete – project manager . operates as a subsidiary of BESIX Group. Six construct’s share for this contract is approximately USD 375 mn. Qatar. The budgeted value of project is USD 27 bn.CommErCIalBank CapITal . 84 . Human capital (Education area. Bakr Mohammed Awad Binladin hold 23. residential and cultural facilities.). Company Description Six Construct Qatar Ltd. The project is expected to complete in end 2012. ready mix and precast concrete etc. and implementation in the field of network and software and hardware systems. infrastructure and heavy industries projects..ConSTruCTIon SECTor rEporT Key Personnel Management arshad ali Faizi – Head of personnel pierre Sironval – project Director Johan Vindevogel – Façade and roof manager . solution. Projects Project Name Description SAGIA - Jazan Economic City JEC will cover an area of 40. New Doha International Airport (NDIA) Passenger Terminal Complex The company has been awarded a contract to build Phase III of the New Doha International Airport (NDIA) Passenger Terminal Complex in joint venture with the Midmac Contracting Co. marble.8 bn. production of cement.000 km road throughout the kingdom. granite.Saudi Binladin Group Company Description Saudi Binladin is a contractor company established in 1931 by Mohammed Binladin. SBG services also include turnkey consultation. Projects Project Name Description Doha Convention Centre The company has been awarded a contract to build phase and Tower in Qatar IIB of the Doha Convention Centre and Tower in Qatar in a joint venture with Midmac Contracting Co.23% stake in the company. Marina etc.300. The budgeted value of project is USD 7. steel. distribution and leasing of heavy equipment. Secondary industries. The company has constructed more than 5. The company is based in Doha. real estate investment.000 sqm and will be divided into four distinct area named as Heavy Industries. The company has played a key role in developing Saudi Arabia infrastructure and operates one of the largest fleet in of heavy machinery in the world. mosque etc. engages in construction of convention center and tower. PPA - King Abdullah Financial District The project will cover an area of 3. The share of Six Construct for this contract is approximately USD 338 mn.58% stock and Omar Sheikh Mohammed bin Awad bin Laden hold 10.000 sqm which includes retail financial. Key Personnel Board of Directors Bakr Bin mohammed Binladin – Chairperson Yehia mohammed awad Binladin – Vice Chairman mutaz al Sawwaf – Director Henry Serkissian – Director abu Bakr Salim al Hamid – Director ahmed mohammed awad Binladin – Director Six Construct Qatar Ltd. The project is expected to complete in Q4-12. The company major activities includes Civil and electromechanical contractors for buildings. Six Construct Qatar Ltd.) and lifestyle (Hotel. domestic and international transportation of goods. The project includes total built-up area of 5.ConSTruCTIon SECTor rEporT .TAV Construction Company Description TAV construction is a joint venture of Tepe Construction and Akfen Construction. Projects Project Name Description New Doha International Airport Terminal Building And Concourses (A-B-C) TAV Construction entered into a joint venture with the Taisei . The company has a project portfolio of approximately 10. The company has seven branches and two subsidiaries named as TAV Muscat LLC and TAV Qatar LLC outside of Turkey. passenger terminals. The company was founded in 1997 to execute the Build-Operate-Transfer Project of the Istanbul Ataturk International Airport and the Multi-Storey Car Park.85 . highly competent in installation of all high-tech systems within these structures.4 mn sqf and is expected to handle 24 mn passengers per year. The company is specialized in the construction of airports.5 bn. Key Personnel Board of Directors ali Haydar kurtdarcan – Chairperson Hamdi akin – Vice Chairman mustafa Sani Sener – Director CommErCIalBank CapITal .Japan-based construction company to build three concourses in the New Doha International Airport terminal and the expansion package. CommErCIalBank CapITal .13. Operate and Transfer Barrels Per Day Compound Annual Growth Rate Chief Executive Officer Cubic Meters Per Day Commercialbank Capital Construction Package Doha Festival City Doha Film Institute Engineering. Procurement and Construction European Union Currency Foreign Direct Investment Pound Sterling Gulf Cooperation Council Gross Domestic Product Gross Leasable Area Gas to Liquid International Air Transport Association International Monetary Fund Independent Water and Power Project Japanese Yen Joint Venture Qatar General Electricity & Water Corporation Kilometer South Korean Won Liquefied Natural Gas Light Rail Transit Middle East and North Africa Mechanical. Electrical & Plumbing Museum of Islamic Art Million Imperial Gallons Per Day Million Million gallons per day Memorandum of Understanding Muscat Securities Market Million Tons Million Tons Per Annum Mega Watt Cubic Meters Cubic Meters Per Day 86 . Abbreviations AED AFC ASHGHAL AZF Bn BOT Bpd CAGR CEO cmd COMCAP CP DFC DFI EPC EUR FDI GBP GCC GDP GLA GTL IATA IMF IWPP JPY JV KAHRAMAA km KRW LNG LRT MENA MEP MIA MIGD mn mmgpd MOU MSM mt mtpa MW m3 m3/d - United Arab Emirates Dirham Asian Football Confederation Public Works Authority Aspire Zone Foundation Billion Build.ConSTruCTIon SECTor rEporT NASA NDIA NDS NGL NHS NLA OMR PMC PPP PV PWA PWPA QAR QDREIC QEWC QF QIA QMA QNCC QP Qrail QRDC QTA Qtel SEC STW sqf sqm TEU tn tpa TSW UAE USD WTTC - National Aeronautics and Space Administration New Doha International Airport National Development Strategy Natural Gas Liquid National Health Strategy Net Leasable Area Omani Riyal Project Management Company Public Private Partnership Photovoltaic Panels Public Works Authority Power and Water Purchase Agreements Qatari Riyal Qatari Diar Real Estate Investment Company Qatar Electricity and Water Corporation Science and Community Development Qatar Investment Authority Qatar Museum Authority Qatar National Cement Company Qatar Petroleum Qatar Railways Company Qatar Railways Development Company Qatar Tourism Authority Qatar Telecom Supreme Education Council Sewerage Treatment Works Square Feet Square Meter 20-foot Equivalent Units Tons Tons Per Annum Treated Sewer Effluent United Arab Emirates United States Dollar World Travel and Tourism Council . opinions and estimates set out in this Document or any other relevant document. has issued this Document.14. We shall have no liability whatsoever in respect of any inaccuracy in or omission from this Document or any other relevant document prepared by us for. accuracy. 49621. from time to time.87 . and this Document shall not form the basis of any contract or commitment whatsoever. Past performance is not indicative of future results. Disclaimer Commercial Bank (referred to hereinafter as we). participate or invest in any other transactions with the issuers of the securities. or sent by us to.ConSTruCTIon SECTor rEporT . Information and opinions contained herein have been compiled or arrived by us from sources believed to be reliable. completeness or correctness or correctness of the information and opinions contained herein. website and Magazine • ConstructionWeek Magazine • Oxford Business Group – Qatar 2011 • Websites of companies profiled.‫أي وقت دون إشعار مسبق‬ ‫ ال‬. Accordingly. ‫انتفاء المسؤولية‬ ‫ سجل تجاري رقم‬،)‫لقد قام البنك التجاري لالستثمار ( ُيشار له هنا الحقًا بالضمير نحن‬ . to the extent permitted by the relevant applicable laws or regulations.‫بموثوقيتها لكننا لم نقم بمراجعة محتويات هذا المستند بصفة مستقلة‬ ،‫ بشأن معقولية‬،‫ صريحة أو ضمنية‬، ‫ فإننا لم نصدر أي إقرارات أو ضمانات‬، ‫على ذلك‬ ‫ ال نتحمل أي‬. any person. is made by us as to fairness.‫قطر إذا كان توزيعه محظور قانونًا في ذلك االختصاص‬ ‫هذا النص غير مشروط وال يتطلب الحصول على أي موافقة من المتلقي وسوف‬ ‫تسري كافة القيود المذكورة أعاله تلقائيًا على أي متلقي يتسلم هذا المستند أو‬ . Commercial Registration No. a single-person company regulated by the laws of Qatar. no representation or warranty.‫كبديل التخاذ الحكم المستقل‬ ‫دقة أو حذف من هذا المستند أو من أي مستند آخر ذي صلة تم إصداره أو إرساله من‬ ‫قبلنا ألي شخص ويكون أي شخص من هذا القبيل مسؤوالً لوحده عن إجراء تحقيقه‬ ‫وتحليله الخاص للمعلومات الواردة أو المشار إليها في هذا المستند وتقييم المزايا‬ ‫والمخاطر المتعلقة باألوراق المالية التي تشكل موضوع هذا المستند أو أي مستند‬ ‫ والتقديرات الواردة في هذا المستند‬،‫ اآلراء‬،‫ من المعلوم أن المعلومات‬.‫أي مستند آخر ذي صلة‬ Data and pictures have been taken from the following source: • MEED projects.‫آخر ذي صلة‬ ‫ تشكل حكمنا الخاص وأنها قد تخضع للتغيير في‬، ‫أو أي مستند آخر ذي صلة‬ . ‫أو إجراء معامالت معهم في األوراق المالية أو الخيارات‬/‫تجارية و‬ ‫ إجراء معامالت في‬، ‫المسموح به بموجب القوانين والتعليمات السارية ذات الصلة‬ ‫ تم تجميع‬. perform services for or solicit business there from. We accept no liability for any losses or damages arising from reliance on or use of this Documenting making any securities transactions. express or implied.‫األوراق المالية قبل نشر هذا المستند للمتلقين في موقعنا االلكتروني‬ ‫المعلومات واآلراء الواردة في هذا المستند والحصول عليها من مصادر ُيعتقد‬ ‫ بناءًا‬.‫يشكل هذا المستند أي أساس ألي عقد أو التزام أيًا كان نوعه‬ ‫ باالشتراك أو االستثمار في أي معامالت‬،‫وقت آلخر وللحد المسموح به قانونًا‬ ‫ من‬، ٍ ‫ تزويدهم بالخدمات والحصول منهم على أعمال‬، ‫أخرى مع مصدري األوراق المالية‬ ‫ وللحد‬، ‫ يجوز لنا‬. This Document is being furnished to you solely for your information and may not be sent to any other person. We may.‫ صحة أو حداثة المعلومات واآلراء الواردة في هذا المستند‬،‫ اكتمال‬،‫دقة‬ ‫مسؤولية عن أي خسائر أو أضرار تنشأ من استعمال هذا المستند أو االعتماد عليه‬ ‫ ال يجوز استعمال هذا المستند أو االعتماد عليه‬. Reuters/Bloomberg/Zawya CommErCIalBank CapITal . We may. This Disclaimer is unconditional and it does not require any consent from any recipient and all limitations mentioned hereinabove shall automatically apply to any possible recipient who receives this Document or any other relevant document. and any such person shall be solely responsible for conducting their own investigation and analysis of the information contained or referred to in this Document and of evaluating the merits and risks involved in the securities forming the subject matter of this Document or any other relevant document. constitute our own judgment and may be subject to change at any time without prior notice.‫في إجراء أي معامالت أوراق مالية‬ ‫ ال نتحمل أي مسؤولية ايًا كان نوعها بشأن أي عدم‬. to the extent permitted by law. ‫تم تزويدكم بهذا المستند ألغراض العلم فقط وال يجوز إرساله ألي شخص آخر‬ ‫يجوز توزيع هذا المستند أو أي مستند آخر ذي صلة في أي اختصاص آخر خارج دولة‬ ‫ انتفاء مسؤوليتنا بموجب‬. This Document or any other relevant document may not be distributed in any jurisdiction outside Qatar where its distribution may be restricted by law in such jurisdiction. This Document does not constitute an offer or invitation to subscribe for or sell or purchase any securities.‫ األداء السابق ليس مؤشرًا على النتائج المستقبلية‬. This Document shall not be relied upon or used in substitution for the exercise of independent judgment. make transactions in the securities before this Document is published to recipients on our website.‫ باصدار هذا المستند‬،‫ شركة شخص واحد مؤسسة بموجب قوانين دولة قطر‬،49621 ‫ال يشكل هذا المستند عرضًا أو دعوة لالكتتاب أو لبيع أو شراء أي أوراق مالية وال‬ ‫ يحق لنا أن نقوم‬. It is understood that information. but we have not independently verified the contents of this Document. and/or make transactions in the securities or options therewith. About Commercialbank Capital (Comcap) Organisation Chart COMCAP Advisory Placing/ Distribution Capital Markets Merchant Banking Asset Management Local Brokerage Research Company Lifestyle Growth Lifecycle IPO/Further Expansion LBOs/ Acquisitions Equity Carve-outs Take Private Restructuring Expansion Early Stage/ Start ups VC/ Early Stage Private Equity/ Mezzanine 88 .Construction Sector report Asset Management/ Capital Markets Investment Banking .Commercialbank capital . we believe ever ything is possible .Inspired by Qatar. www.qa .cbq.