Qatar construction shows signs of recovery
16 January 2025

In June 2024, Qatar launched the Simaisma project on the coast to the north of Doha in the latest sign of the country’s plan to accelerate its non-hydrocarbons economic growth.
The project covers an area of over eight square kilometres and comprises 16 tourism zones available for development by the private sector, including resorts, a theme park, an 18-hole golf course, residential villas, a yacht marina, restaurants and retail facilities.
The launch ceremony was attended by Qatari Prime Minister and Minister of Foreign Affairs Sheikh Mohammed Bin Abdulrahman Bin Jassim Al-Thani, along with other key figures from the government and the investment, tourism and real estate communities.
The integrated tourism development aligns with the targets set out by the Third National Development Strategy 2024-30, which was launched last year and aims to increase the contribution of non-oil sectors in the Qatari economy.
For the best part of a decade, work on the Fifa World Cup 2022 stadiums and the associated infrastructure sustained the country’s non-hydrocarbons economic growth. However, the construction market found itself at a crossroads after the conclusion of the event.
Market overview
Since 2019, there has been a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value was $13.5bn that year, but by 2023, it had fallen to just over $1.2bn.
In 2024, the project contract award figure increased to $1.7bn in a nominally incremental increase, but one that crucially bucks the downward trend in the market in the preceding four years.
The numbers were mainly driven by the construction sector, which recorded contract awards of over $1.2bn, while transport contract awards accounted for about $200m of the overall figure.
Strategic projects worth more than $5bn in the bidding phase are expected to provide renewed impetus to the construction and transportation market and present opportunities to contractors in the near term.
The schemes involved include the Perlita Gardens project at Pearl Qatar, renovation works at Hamad General Hospital, the Al-Shamal airbase zone two, and several roads and infrastructure development schemes under Qatar’s Public Works Authority (Ashghal).
Education uplift
Last year, Qatar also progressed several public infrastructure and building schemes, the most significant of which is the plan to develop 14 schools across the country through a public-private partnership (PPP).
In March, Ashghal and local construction firm Urbacon Trading & Contracting Company signed an estimated $330m agreement to develop the project on a PPP basis.
As per the agreement, five primary schools will be built in the South Al-Wajba, Muaither, Al-Thumama and Al-Meshaf areas. Four preparatory schools will be established in Muaither, Al-Gharrafa, Al-Aziziya and Rawdat Rashed.
Three secondary schools will be developed in Ain Khaled, Muaither and Al-Thumama, and two science and technology schools will be built in the Al-Sakhama and Rawdat Al-Hamama areas.
The other significant contract signed last year was a $243m deal with China Municipal Engineering Central South Design and Research Institute Company to restore old landfills in Mesaieed and Umm Slal in Doha.
These deals were followed by Ashghal’s $76m contract award to the local firm Al-Attiyah Architectural Group Holding for the construction of the Renad Academy and a $35m design consultancy contract for the court complex and court of cassation to the Austrian firm Berger + Parkkinen Architekten.
Transport masterplan
Qatar’s transport sector is largely supported by the Transportation Master Plan for Qatar 2050 (TMPQ) plan, which its Transport Ministry unveiled in 2022. The plan supports 286 projects, including 86 highway schemes, 22 for cargo transportation, 54 public transportation schemes, 21 for pedestrians, 29 cycling schemes and 74 cross-modal and integration projects.
Future highway schemes will entail 37 infrastructure packages totalling 770 kilometres, 22 truck schemes, and 10 infrastructure and facilities schemes. The public transport programme comprises 30 schemes for upgrading the main 540km public transport network.
The masterplan also includes long-distance, metro and regional rail network plans.
Several of the schemes under the plan made some progress in 2024, with Ashghal awarding a number of infrastructure development contracts. These include the award of road improvement works in Doha city to the local firm Al-Mohannadi Group; road and infrastructure works in Birkat Al-Awamer sector 8 to Turkish firm Iris Insaat; and the remaining works in Rawdat Egdaim and Ezghawa P1 to Doha-based Lotus Trading & Contracting Company.
The investments in Qatar’s construction and transport sectors dried up significantly after the 2022 Fifa World Cup, but last year’s upward contract award trend and restrengthening pipeline of pending projects are positive signs for contractors in the country.
MEED's February 2025 special report on Qatar includes:
> GOVERNMENT & ECONOMY: Qatar economy rebounds alongside diplomatic activity
> BANKING: Qatar banks look to calmer waters in 2025
> POWER & WATER: Facility E award jumpstarts Qatar’s utility projects
> DOWNSTREAM: Qatar chemical projects take a step forward
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Ask anyone delivering a major programme in the GCC what causes delays and sequencing will come up early. Utilities go in too late. Approvals lag behind construction. Stations, depots and access roads are procured as if they belong to different projects rather than one system.
“None of this is new. The industry has understood these risks for years,” says Alan Caldwell, managing director for transport and infrastructure at WSP Middle East.
For Caldwell, that is what makes the pattern worth interrogating rather than simply restating.
“The more important question is why the same issues around interfaces, approvals, stakeholder alignment and delivery sequencing continue to slow major programmes when the risks are already so well understood,” he says.
The answer, he argues, is not that these programmes are too big or too technically complex. What breaks a schedule is a wider system delivered as a set of disconnected parts; an approval sitting with an authority team with no visibility of the construction sequence downstream; or a station package proceeding without the utilities diversion it depends on.
“Infrastructure programmes do not struggle because a railway is too large or a highway network is too complex,” Caldwell says. “They encounter difficulties when interconnected elements are delivered in the wrong order.”
Sequencing decisions are rarely purely technical either, he adds. They are commercial – shaped by which assets need to unlock value first, which phases are tied to funding, and where sales or investment assumptions depend on infrastructure landing in a particular order.
Approvals sit at the centre of that logic. On many programmes, they become one of the biggest sources of lost time – not because the requirements are unreasonable, but because approvals are not planned, evidenced or owned as part of the delivery logic from day one.
Caldwell has seen the same pattern across three decades of Gulf delivery, from early work on Palm Jumeirah to today’s region-wide transport programmes.
“The decisive factor has often been the same: whether interfaces, approvals, responsibilities and delivery sequencing are aligned early enough to prevent complexity becoming delay.”
Integration needs to be well understood
“Most programme teams in the region would say they understand the need for integration,” Caldwell says. Fewer are structured to deliver it. “The harder task is turning that understanding into the way projects are actually set up and managed,” he argues.
Riyadh Metro is the reference point he returns to, precisely because engineering complexity was not the deciding factor in its delivery.
Coordinating a city-scale transport system meant aligning design, construction, systems, utilities and stakeholder interfaces across every delivery vertical.
“The lesson for the region today is clear,” Caldwell says. “Ambitious programmes need a delivery model that gives every contributor a shared view of progress, risk, decision-making and the business case driving programme priorities.”
That shared view, he argues, will be what the next phase of Gulf delivery is judged on.
Whether clients, consultants, contractors, operators and approval authorities can work to a single delivery logic will be key.
“This requires more than coordination meetings. It requires integrated ways of working, shared common data environments and governance structures that make risks, decisions and dependencies visible before they become delays,” he says.
From reporting progress to managing risk before it lands
Digital tools have a role here, Caldwell says, but not as a headline in themselves.
Digital twins, programme visualisation and data-led modelling matter only if they help teams identify and address problems before they affect the wider programme.
“The real value is not technology for its own sake,” he says. “It is the ability to see, in one place, where approvals are outstanding, where interfaces are unresolved, where programme dates are slipping, where clashes are emerging and where decisions need to be escalated."
None of it works without governance behind it, he cautions. “A dashboard will not resolve a delayed approval if nobody knows who owns the decision, when it needs to be made, or how it should be escalated.”
Data only has value if the processes and responsibilities around it are clear, which is why Caldwell frames the shift the region needs not as digitisation, but as a move “from programme management as a discipline focused mainly on reporting and coordination, and towards project and programme intelligence”.
With many of the region’s programmes running for a decade or more, he adds, delivery models also need to flex as funding assumptions, user needs and policy priorities change along the way.
“The ambition behind the Gulf’s transformation programmes is not in question,” Caldwell says.
What will determine how much of it is realised on time is whether delivery models evolve at the same pace: earlier integration, clearer approval pathways, shared data environments, and every contributor working to a delivery logic that connects technical sequencing with the funding and operational case behind it.
“The region’s next challenge is not imagining bigger projects,” he says. “It is changing the way they are delivered, operated and adapted over time.”
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AUH to Yas Island: The tram will start from Terminal A at AUH and run through the Yas tunnel to Yas Gateway Park. It will serve areas including Yas Bay, Media Zone, Yas Plaza, Yas Drive, Yas Mall, Sea World and Water Edge.
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> AGENDA: Gulf nuclear revival takes shape> MARKET FOCUS: Kuwait keeps dealmaking alive under fire> INDUSTRY REPORT: Gas processing takes centre stage in Mena regionTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/19489903/main.jpg