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The construction sector grew by 13% y-o-y in third-quarter 2013, driven primarily by spending on transport infrastructure. With more than $222bn of projects in the pipeline, sector growth has been forecast at 15% for 2014, while spending on infrastructure is set to reach $150bn in the run-up to the 2022 FIFA World Cup. The scale of construction activity in the region has created some challenges that Qatar, in particular, will have to address to meet its targets. The demand for building materials and bottlenecks in transport and logistics, for instance, are driving up the cost of construction. This chapter contains interviews with Sheikh Abdul Rahman bin Khalifa Al Thani, Minister of Municipality & Urban Planning; Essa Mohammed Ali Kaldari, CEO, Lusail Real Estate Development Company; and Khalid Al Rabban, Chairman, Qatar Primary Materials Company.

Qatari authorities’ emphasis on infrastructure development is not surprising. Trade remains a key component of the state’s economic livelihood. Between 2000 and 2012, transport and communications’ share of GDP nearly tripled from 2.2% to 6.9%. Qatar allotted $45bn to finance transport infrastructure in 2013, and looking ahead, a growing transport and logistics sector fits within the government’s plans for the country’s future. Possible changes in construction conditions seem like the biggest potential challenge on the road ahead, while materials and contractor costs could rise significantly as more infrastructure projects continue to break ground. The authorities’ progress on Customs regulations is a positive sign, however, as smoother procedures lower costs and speed up projects. This chapter contains interviews with Saad Ahmed Al Muhannadi, CEO, Qatar Rail; and Nabeel Mohammed Al Buenain, Project Executive Director, New Port Project.

Building on Qatar’s comparative advantages, the government has focused on developing industrial sectors that support or leverage its energy resources and industry. Developing downstream facilities that add value to energy by-products, for example, has helped build a portfolio of petrochemicals, chemicals and fertiliser companies. Other investments include developing energy-intensive industries in steel and aluminium that can benefit from Qatar’s low-cost gas supplies. Shipbuilding is another growing segment that contributes to industrial output and supports the energy sector. While global economic conditions may present some challenges, local and regional demand is likely to remain strong, ensuring a positive outlook for Qatar’s growing industrial base. This chapter contains interviews with Abdulrahman Ahmad Al Shaibi, Chief Coordinator, Industries Qatar; and Abdulrahman Ali Al Abdulla, CEO, Muntajat.

An efficient and reliable supply of water and electricity feeds Qatar’s expanding economy, while the country’s hydrocarbons resources finance its tremendous growth. Major investments in developing the power supply have resulted in excess capacity in the domestic market, but forecasts suggest demand will begin to outstrip supply by 2018 at current capacity. Though government agencies or government-controlled companies dominate the utilities sector, there is still broad scope for private sector participation in areas such as designing, building and operating water and electricity infrastructure. Enhanced regulation will likely be key to encouraging greater participation from the private sector going forward. This chapter contains an interview with Essa bin Hilal Al Kuwari, President, KAHRAMAA.

Oil and gas accounted for around 51.5% of Qatar’s economic output in 2013, and investments in upstream and downstream capacity are set to ensure future growth. Qatar is working with international partners to build three new petrochemicals facilities, which will help to expand domestic output. Further, the government is also investing in research and development programmes, as well as looking abroad. QP International leads global investments, and the state has also announced the formation of Nebras, a $1bn fund to invest in electricity and water projects overseas, which will be managed by the Qatar Electricity and Water Company. Qatar is also looking to the possibility of reforming the sector in a bid to strengthen QP and to expand globally, developments that are likely to secure Qatar’s energy industry moving forward. This chapter contains interviews with Mohamed bin Saleh Al Sada, Minister of Energy and Industry; Sheikh Khalid bin Khalifa Al Thani, CEO, Qatargas; Hamad Rashid Al Mohannadi, CEO, RasGas; and Wael Sawan, Managing Director and Chairman, Qatar Shell Companies.

Qatar’s insurance sector has become the third largest in the GCC region in terms of written premiums. The sector is home to a range of domestic giants and international players that enjoy a choice of regulatory frameworks, and insurers are now gearing up to capitalise on the raft of infrastructure projects expected to arise from the national development strategy and Qatar’s hosting of the FIFA World Cup in 2022. Qatar Central Bank (QCB) stepped up to play a larger part in the governance of the sector and the much-anticipated mandatory health insurance scheme began to be implemented. Both developments have been welcomed by the industry and underpin much of the optimism currently surrounding the sector.