(MENAFN- The Peninsula) By Mohammad Shoeb / The Peninsula
Qatar's real estate sector has shown strong resilience to the ongoing unjust siege imposed by some of Qatar's neighbouring countries. And despite the blockade, Qatar's real estate market, bolstered by huge public investments, is expected to register more than 7 percent growth over the next couple of years, noted SAK Holding Group's monthly real estate report.
The report issued by SAK Holding's Market Watch Bureau for September stated that Qatar stood persevered against the ramifications of the illegal siege laid by Saudi Arabia, UAE, Bahrain and Egypt since early June, which is doomed to vanish.
'The blockade failed to harm the overall development of all aspects of life, including the construction projects related to 2022 Fifa World Cup, said the report.
Citing studies by international institutions and rating agencies, the SAK report said that Qatari construction market will witness a compound annual growth of 7.65 percent until 2019, as Qatar is investing heavily on mega projects to the tune of QR261bn, which is injected to implement new projects during the current year and next year 2018.
The SAK report added that under the wise leadership of the Emir HH Sheikh Tamim bin Hamad Al Thani, Qatar managed to break the siege through activating structured strategies and pre-emptive plans that it has put in place for many years to address any local or global crises.
In addition, Qatar's determination and decisions by wise leadership failed the attempts of the siege countries to challenge the country's sovereignty and its economic resolve.
Qatar embarked on a comprehensive economic development process that gave yield to an advance modern infra-structure, a world-class airport, an mammoth sea port, special logistic and services zones, labour cities, and many more that provide investors with everything they need, which contributed in the empowerment of the Qatari economy and pushing it to achieve advanced rankings in various world indices.
The launch of direct shipping lines from the iconic Hamad Port to several countries will reduce the prices of many goods and products, especially building materials.
The latest data revealed a 31 percent drop in the cost of shipping by sea after the siege on Qatar, where freight prices dropped to $1,300 for a 40-foot container, up from $1,700 at the beginning of the blockade.
The construction materials have started flowing into the Qatari market regularly and available at reasonable prices.
'The siege countries began to incur heavy losses because 95 percent of Gulf companies were operating projects in Qatar. For example, in the field of export, the emirate of Fujairah suffered great losses when the emirate stopped exporting to the Qatar and lost all its Qatari clients, said the report.
The gabbro exports to Qatar from Fujairah port accounted for about 90 percent of its operations. The number of vessels heading from the port to Qatar reached about 18 ships per month before the siege, and after the siege, the number dropped to one ship or two that sailed to countries that do not have mega projects such as Qatar.
The real estate sector is one of the first beneficiaries of the economic transformation in Qatar and that the sector should support the desire of the state to reshape its main and vital sectors to enhance its productive and industrial independence and to fill gaps at all levels to achieve self-reliance and attain food and drug security.
'This (economic transformation) requires the real estate sector to prepare itself to meet the growing demand for buildings, commercial space, and residential units by other sectors of the economy, noted the report.
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