Qatar’s most important construction project

People in Doha say it is the stadiums planned for the 2022 Fifa World Cup. Others say it is the proposed rail and metro networks. Some say it is the port or the airport, both of which are currently under construction. And some still say it is in the on hold causeway that will connect Qatar with Bahrain.

I think they are all wrong. For me the most important project in Qatar right now is the tower project planned in the West Bay area of Doha next to the Movenpick Tower hotel.

My guess is that most readers of this blog will not have heard of the project. And I can tell them why. The project has been on hold for at least two years.

For me it highlights the bipolar nature of Qatar’s construction market. While Qatar presses ahead with major government infrastructure and real estate schemes, the private sector is lagging behind. The longer the project is on hold, the worse shape the private sector is in.

The stagnation of private sector could be a big problem for Qatar if it is going to deliver on its World Cup promises, especially when it comes to hotels. Governments traditionally pay for infrastructure like roads and railways, and they usually foot the bill for projects such as stadiums.

Governments don’t normally build hotels, and if Qatar’s private sector doesn’t have the appetite to invest, then the state could end up having to step in.