Doha, 5 December 2010
Report underscores Qatar’s US$100Bn infrastructure opportunity
The Qatar Financial Centre Authority (‘QFC Authority’) announces the launch of a key strategic report, The GCC Infrastructure Guide, authored by MEED Insight.
One of the most interesting trends to have emerged from the GCC projects boom over the past 10 years has been the development of public-private partnerships (PPPs), projects funded and operated through a partnership between the government and the private sector. Since the Al-Manah independent power project (IPP) was launched in Oman in the early 1990s, PPPs have gone from strength to strength in the region. By 2010, more than 50 projects had been developed using the PPP concept through long term concession agreements. The adoption of the PPP model for the projects sector has led to a natural growth in the project finance sector as companies have sought to obtain credit for project development from the banking community. Over the past five years, more than $70bn worth of infrastructure schemes in the region have been project financed.
Another compelling statistic revealed in the report is that the present value of major infrastructure projects currently under construction in Qatar amounts to over US$55Bn, around half of the estimated US$100Bn to be awarded. Apart from providing long term optimism of future growth, the report confirms that Qatar’s infrastructure market is unique within the GCC as the vast majority of the investments being made are in the development of non-real estate sectors, such as the US$35Bn ear-marked for an extensive national railway and metro network.
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The MEED Insight report, published in association with the QFC Authority, examines the PPP and project finance sectors within the context of the development of the GCC infrastructure projects market as a whole, and more specifically Qatar. Its aim is to provide a unique reference tool for professionals involved in the region’s infrastructure projects market.
The report focuses on infrastructure projects, and excludes the oil, gas and petrochemical sectors. The majority of data it contains is sourced from MEED Projects, MEED’s proprietary online database of major projects in the region.
Mr. Shashank Srivastava, Acting CEO of the QFC Authority, commented, “Given Qatar’s pivotal role as a leading investor in infrastructure expansion in the region and the growing importance of the public private partnership model, we are delighted to partner with MEED in the publication of this key reference tool.”
Ed James, Head of MEED Insight and one of the authors of the report, commented further: “For more than 50 years MEED has provided governments and businesses in the region with up to date analysis about key trends shaping the regional economy. The use of private finance models to fund the delivery of key infrastructure and public services is one of the most important trends shaping the Middle East of the future. MEED Insight's latest research report, which has been prepared in conjunction with the QFCA, provides a valuable resource for all major businesses and government agencies working in the region today.”
Contacts:
QFCA: Stephen Carriere, Head of Marketing & Communications
Tel: +974 4496 7784
Email: S.Carriere@qfc.com.qa
Citigate Dewe Rogerson: Seb Hoyle / Habib Bacha
Tel: +974 452 8335
Email: habib.bacha@citigatedr.com
Note to Editors
About the Qatar Financial Centre
The Qatar Financial Centre (QFC) is a financial and business centre established by the Government of Qatar and located in Doha. It has been designed to attract international financial services institutions and major multi-national corporations and to encourage participation in the growing market for financial services in Qatar and elsewhere in the region. The QFC operates to international standards and provides a first class legal and business infrastructure for those doing business within the QFC. The QFC was created by QFC Law No.(7) of Qatar and has been open for business since 1 May 2005.
About the QFC Authority
The QFC Authority is the commercial, administrative and legislative body responsible for leading the expansion of Qatar’s financial services sector, providing a uniquely sustainable platform for regional growth in reinsurance, captive insurance and asset management.
About the QFC Regulatory Authority
The QFC Regulatory Authority is the independent regulatory body of the Qatar Financial Centre (QFC). It has been established to regulate firms that conduct financial services in or from the QFC. It has a broad range of regulatory powers to authorise, supervise and, when necessary, discipline firms and individuals. The QFC Regulatory Authority regulates firms using principle-based legislation of international standard, modelled closely on the laws used in other major financial centres.
About MEED Insight
MEED Insight is a bespoke research service brought to you by MEED's top country and sector experts. It provides bespoke market research and data solutions to clients who have specific information requests to help them make more profitable business decisions by bringing together its data-rich archives and unique relationships with key decision-makers across the Middle East.