The infrastructure investments in Qatar will breach the $200-billion mark by the next decade as additional investments start pouring in from the private sector to complement the government's development drive, said a leading Doha-based contractor.

"Preparations for the World Cup, though a government-driven activity, will also see external investments being made outside state funding to cash in on the windfall expected from staging the world's biggest sporting event," stated Mohamad Moataz Al Khayyat, the chief executive of Al Khayyat Contracting and Trading (KCT), a leading international design and build company.

Al Khayyat pointed out that the state spending alone had been estimated to reach $160 billion and as economy continues to grow, the public and private infrastructure investment will also soar.

"The retail industry will open up, as will the food and beverages (F&B) sector. Tourism and hospitality will see further activity, beyond what the government is planning," noted the official.

The infrastructure spending is expected to boost Qatar’s non-oil economy, which EFG-Hermes predicts will expand by as much as 16 per cent year from next year until 2018.

The latest Arcadis Global Infrastructure Investment Spending Index already ranks Qatar as the second most attractive infrastructure investment destination in the world, behind only Singapore.

"In the Gulf region, it leads all other nations and has maintained this ranking for the past two years - an affirmation of investor confidence in the country's potential to attract investments over and above what the state will spend," added Al Khayyat.

While the future prospects for Qatar's infrastructure projects market look promising, supply and construction costs issues will eventually surface and must have to be addressed, he cautioned.

Al Khayyat, which is currently developing many projects, is feeling the burden of rising construction costs. By Al Khayyat’s estimates, prices of construction materials have increased by as much as 5 to 10 per cent in the last twelve months.

Qatar, he said, has set its sights beyond the staging of the World Cup, ensuring the assets it has built over the next decade will have productive use beyond the event.

"The infrastructure that will be put in place over the next few years, will accommodate the expected influx of tourists and new expatriate workers as Qatar’s economy continues to grow. The stadiums are already being earmarked for use by local clubs and tournaments as well as regional sporting events,” he noted.

Al Khayyat said Doha had the liquidity and financial might to make its emboldened ambitions happen. But the private sector will also have a role to play in contributing to the future growth of Qatar, he added.-TradeArabia News Service