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Cement demand in Qatar to double in three years
Domestic cement demand in Qatar is forecast to double within the next three years.
In its report on Qatar s cement sector, Dubai-based financial services firm Arqaam Capital revealed the country s domestic construction expenditure will hit 6.9% of real GDP in 2014, compared to 6.5% in 2013.
According to the report, Qatar is expected to open up to QR182bn ($49bn) worth of construction projects this year, up 15% compared to 2013. The move follows the state s plan to invest QR757bn ($207.9bn) on infrastructure developments in 2013-2018, largely linked to the 2022 World Cup.
Given that current projects under execution are worth $70bn, and reflect an average churn rate of 3-4 years, the expenditure implies a doubling in cement demand within the next three years.
And Arqaam expects cement demand growth to accelerate, delivering 9.4mtpa in consumption by FY 17.
The report said: “We expect production capacity and demand levels to reach equilibrium by FY18. Our forecasts are on the conservative side as Qatar s Ministry of development and planning s most recently published survey suggests demand for limestone is set to increase by 131% in 2014 and 127 percent in 2015, with demand for washed sand growing by 108% in 2014 and 106% in 2015.”
“QNCD remains Qatar s largest cement producer with a production capacity of 4.4mtpa of cement (62% of market). We believe that the market s second largest player, Al Khalij Cement (capacity of 1.8mtpa clinker, 2.7mta cement), has captured market share from QNCD in FY13.”
UAECEMENT.COM
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Apr, 18,2014
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