The Middle East Transport

The transport sector in Qatar has had mixed results so far this year, in part a reflection of its exposure to the global economy. However, the three leading transport firms listed on the bourse continued to post strong earnings leading into the last quarter of the year.

Following the significant increase in non-oil merchandise trade in 2011, market participants in the local transport and logistics sector appear to be preparing for a continued rise in activity in 2012, with one Abu Dhabi-based shipping firm recently investing $44m in a new vessel.

The government is banking on a multi-billon dollar investment programme to create a new transport grid that will serve as the backbone to Muscat’s plans to diversify and expand the economy, bringing the country’s many urban and economic centres closer together.

The transport and logistics sector is about to get a major boost, with a new port and cargo handling facility set to ease congestion and encourage long-term industrial development.

A possible merger between the Kingdom’s two airlines, combined with increasing hotel occupancy rates and a rise in traffic at the Bahrain International Airport, are proving promising for the aviation industry’s expansion.

The aviation industry appears set to face increasing challenges over the next six months as airlines face lower than expected profits as a result of high fuel costs. However, with Dubai continuing to expand its airport capacity, the emirate is looking to position itself to take advantage of growth markets in South-east Asia.