Qatar’s government infrastructure projects will be easier to finance

18 February 2013

Private sector real estate schemes will find finance more challenging, says Mashreq executive

Government-backed infrastructure projects will find it easier to secure financing than private sector projects as Qatar starts building the $70bn of schemes it plans to deliver ahead of football’s Fifa World Cup in 2022.

“Government related infrastructure projects will find it a lot easier to get finance, from a combination of domestic banks and international banks that partner together,” said John Lossifidis, executive vice-president, head of international banking, at Dubai-based Mashreq Bank speaking at the MEED Qatar Projects 2013 conference on 18 February. “International banks bring the knowledge and expertise on how to structure the financing and relations with international construction companies. Locals bring the knowledge of working here.”

The private sector will find financing more challenging as bankers still remain cautious of the real estate market, Lossifidis said. “I think enough cap to do the infrastructure projects. Those that will find it more difficult are private sector projects, which are normally real estate related. People remember the lessons of 2008, so they may be more difficult to get across.”

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