(MENAFN- The Peninsula) The basic building raw materials such as gabbro and limestone in the local market are likely to become cheaper in the near future due to stiff competition among importers, says a senior official of Qatar Chamber (QC) who has knowledge about the industry.
"Qatar is an open market for the import of primary raw materials. And I am aware that there is a huge competition among different importers, especially the suppliers of gabbro and limestone. Therefore, I expect the prices of these materials to go down further to more reasonable levels," said Mohamed bin Ahmed bin Towar Al Kuwari, Vice-Chairman of QC.
Al Kuwari added that the difference in the prices of raw materials in Qatar and source countries is largely due to the high transpiration costs. "We have limited capacity to receive materials at ports, but with the opening of the new port (in Mesaieed) things will improve significantly."
He told The Peninsula on the sidelines of an event at the QC headquarters. The event was held to discuss the business opportunities with a visiting Omani business delegation representing the Mineral and Raw Material Committee at Oman Chamber of Commerce. The business mission was here to explore business opportunities, especially to enhance the export capacity of gabbro to Qatar.
He said: "We already import primary raw materials (aggregates) from Oman. But this meeting is all about enhancing the capacity. And I think this is a good opportunity for Qatari businessmen as well who specialise in importing the raw materials."
Asked about the estimated peak demand for the aggregates in Qatar, he said: "I don't have the exact numbers, but with many upcoming mega infrastructure projects in the coming years, the number is expected to double or even triple." He also said that the companies which are working in the sector have already started storing the materials in big quantities to meet the growing demand fuelled by Qatar's booming construction sector.
The prices of imports of aggregates in Qatar have been fluctuating between QR55 and QR140 per tonne, according to an industry expert. The expert, who did not wish to be named, said that Qatar needs to explore new supply sources in the neighbouring region such as Oman, Iran, Pakistan and Yemen to stabilise the volatile prices. "A long term vision needs to be pursued both in terms of time and investments", he added.
A senior member of the Omani business delegation, Hamed bin Nasser, on behalf Sheikh Butti bin Mohamed Al Neyadi, the head of the mission, said that the main purpose of the visit to Qatar is enhancing economic cooperation of private businesses between the two countries, especially to meet Qatar's growing appetite for minerals. He said that Oman has exported nearly 500,000 tonnes to one million tonnes of gabbro so far, and trying to explore further opportunities to enhance the capacity to 10 million tonnes in the-run-up-to 2022 Fifa World Cup. "This was the initial visit to QC, but we have got other private meetings with Qatari businessmen and hope something positive will come out during the visit," he said.
He also noted that the mineral-rich Oman, due to its strategic geographical location, topography and high quality product specifications enjoys comparative advantage in the market. So the Sultanate is well positioned to supply all types of minerals to Qatar in adequate quantities.
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