(MENAFN- The Peninsula) By Mohammad Shoeb / The Peninsula
Qatar's strategic reserves and planning have enabled ongoing infrastructure development and real estate projects tide over interruption in supply of some construction materials from UAE and Saudi Arabia.
Although Qatar is more than self-sufficient in steel and cement production, it used to source some primary materials such as gabbro, washed sand and others from neighbouring states. They were traditionally shipped through neighbouring ports, including Jabel Ali of Dubai.
Despite repeated reassurances by several government agencies that the country maintains a strategic reserve of construction materials for at least a year, a section of international media could not resist expressing its apprehensions and reported that the abrupt disruption in supplies, due to the siege, may adversely impact the progress of mega infrastructure projects and cause delays. However, statements from authorities concerned and latest official data tell a different story, proving what they said wrong.
'There is no shortage of any material in the market. Works on all the projects, including 2022 Fifa-related projects, are going on very smoothly, Eisa Al Hammadi, CEO of Qatar Primary Material Company, reconfirmed to the The Peninsula over phone yesterday.
Al Hammadi added: 'Even the President of Ashghal (Public Works Authority — Dr Saad Ahmed Ibrahim Al Mohannadi) confirmed the same recently at a meeting organised by Kahramaa.
The chief executive of QPMC, a state-backed company which is responsible for ensuring supplies of quality building materials in adequate quantities to the local market, said that QPMC has already identified several new destinations to source any shortages in the materials in supplies. These new destinations include Oman, India, Pakistan and Iran.
People were concerned that real estate projects are not starting due to lack of availability of construction materials at reasonable prices. But market analysts refute these arguments, suggesting that the lull in the real estate market was because of Ramadan and summer holidays, which is normal in the GCC, including in Qatar.
'The real estate market is booming. If you compare the value of the real estate transactions in July with the same month last year, the market has made significant double digit growth. It has started breaking the calm of summer with a bang, said a real estate market expert, who did not wish to be named.
In July this year, the combined value of real estate deals touched QR1.8bn, showing a sharp growth of 50 percent compared to QR1.2bn in the same month last year. Some 215 transactions were implemented in July, according to Ezdan Holding's monthly report.
The report said that during the first week of July, the value of transactions amounted to QR539.7m out of the 48 transactions. And land has outperformed prefabricated buildings in real estate transactions by acquiring 75.1 percent of the total implemented deals.
And experts say that in the coming weeks, the demand for primary materials, such as steel, cement, washed sand, dune sand and gabbro, is expected to witness a sharp increase as more and more projects are expected to begin, especially for the commercial and housing projects.
Official date corroborate the trend as number of building permits issued during the month of July 2017 witnessed a sharp increase of 53 percent in July compared to June, 2017. Some municipalities have registered even triple digit growth in the number of building permits issued in July.
This sharp increase was clearly noted in most municipalities, including Umm Salal (144% ), Al Wakrah (110%), Al Da'ayen and Al Shamal (86%) each, Doha (39%), Al Sheehaniya (32%), Rayyan (23 %), while Al Khor municipality which maintained the same number of issued permits.
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