Doha: Qatar, host of the 2022 football World Cup, invited local and international companies on yesterday to signal their interest in building the Doha Metro, to include 22km of tunnels and 15 stations in its first phase.

A statement from Qatar Railways Company (QRail) gave no value for the project, but a company official said in June the total cost of the railway project, with 100 stations, would reach 130 billion riyals (Dh131.1 billion).

“This invitation is a major opportunity for local contracting companies to join in consortia with large international contractors to design and build six urgent construction packages that include 22km of underground tunnels [and] 15 underground stations in the first stage,” QRail CEO Sa’ad Ahmad Al Muhannadi said in a statement.

The world’s top liquefied natural gas exporter, which has not seen popular unrest like that elsewhere in the Arab world this year, plans to spend over $125 billion (Dh459.1 billion) in the next five years on construction and energy projects.

Growth forecast

The Opec member’s economy is forecast to grow strongly.

“QRail is extending this invitation to all contractors with experience in the design and construction of railways, including both major underground and elevated civil works, to help build Qatar’s planned railways and create a metro system for Doha,” the statement said.

“Enabling works which include roads and utilities diversion will be particularly critical and the Qatar Railways Company is looking to partner with contractors who can showcase relevant capabilities and experience in this area.”

DUBAI: Dubai construction firm Al Habtoor Leighton, an affiliate of Australia’s Leighton Holdings, is eyeing two contract wins in Saudi Arabia worth up to SR10 billion each ($2.67 billion) by year end, its top executive said.

Source:  www.gulf-daily-news.com

A HIGH-SPEED railway link is being planned between Bahrain and Doha, in a bid to boost enrolment at educational institutions in the Qatari capital.

The one-way journey time between Doha’s Education City and Bahrain would be just 51 minutes, via the planned “Friendship Bridge” between the two countries.

The idea is to woo Bahraini students to enrol at the various prestigious foreign universities and educational institutions in Education City, according to The Peninsula daily paper.

It is part of a $42.9 billion railway project that Qatar is about to launch, which includes a metro network within Greater Doha, an inter-GCC rail link and a rail freight network.

Details of the plans were revealed on Wednesday to representatives of the international media who are covering the visit of the FIFA inspection team, which is examining Qatar’s bid to host the football World Cup in 2022.

Sultan Bakhit Al Enazi, Qatar Railway Project Manager said the rail link was expected to be ready for operation by 2017.

“It would take 51 minutes straight between Education City and Bahrain once the rail link is ready,” he said.

The trains on this route would be travelling at a speed of 350kmph, said Mr Al Enazi.

The wider integrated system includes the Doha Metro Network; an east coast rail link; a high-speed link between the new Doha International Airport, Doha City Centre and Bahrain via the planned Qatar-Bahrain Friendship Bridge; a freight rail link based on the GCC rail link studies; and light rail systems within specific developments including Qatari Diar’s Lusail mega-project.

Work on the metro and other rail projects is slated to start by the middle of next year, whether or not Qatar wins the World Cup bid, said the paper.

The projects will be 90 per cent complete by 2021 if Qatar wins the bid. If not, the deadline for completion will be 2026.

By Deepthi Nair, Sub Editor, Property  www.gulfnews.com

Call it Qatar’s two-track real estate development strategy. The gleaming new high-rises in the upscale West Bay enclave answer to Qatar’s need for a swanky real estate profile that is in tune with its soaring global aspirations.

* The Musheireb masterplan shows the project as it will appear on the Doha Corniche. The development is expected to reinvigorate the traditional kinship networks in the Qatari society

At the same time, the Gulf state is not about to let go of its traditional moorings, and a newly unveiled development — Musheireb — and its masterplan offer a sneak peek of how this is going to be achieved in the capital, Doha. A government-owned subsidiary, Dohaland, has taken on the onus of transforming the vision into brick-and-mortar with soul.

“Skyscrapers and isolated living compounds are not the communities we aspire to in Doha,” attests Eisa Al Mohannadi, CEO of Dohaland, which is an arm of the Qatar Foundation for Education, Science and Community Development. “We have, therefore, decided to regenerate the communities by combining the aesthetic of yesterday with the environmental-friendly and sustainable know-how of tomorrow.”

At $5.5 billion, Musheireb will certainly not lack in the resources to make it all happen. With a mandate to re-energise the city core close to the Emiri Diwan (which is the administrative centre on the Doha Corniche) and encourage Qatari nationals to migrate from the suburbs, the promoters have conceptualised five phases in the masterplan, scheduled for completion in 2016.

Property development in Doha in recent years have been characterised by isolated land use, a loss of the sense of community and car-congested streets. Out to reverse this trend and reclaim the outdoor spaces, Musheireb’s architects have deployed compact neighbourhoods, pedestrian-friendly streets and ample scope for various modes of public transportation. “This will reinvigorate the traditional kinship networks and enhance the sense of local community,” insists Al Mohannadi.

With work on the project being currently funded by the Qatar Foundation, the master-developer is not short of liquidity. Brushing off concerns of end-user demand, Mohannadi claims, “There is phenomenal population growth in Doha. This will drive the demand for units. The market downturn has had no impact on us.”

Aiming to maximise usage of public spaces, the architects plan to seamlessly integrate utilities, telecom and parking in the buildings’ basements. A central district cooling system is designed in a way to maximise the use and re-use groundwater and grey water. The masterplan has taken the best of traditional Arabic design motifs through a lattice of shaded pedestrian lanes and walkways. These will merge into well-defined routes for road traffic.

To compensate for the way modern buildings have ignored traditional climate-sensitive architecture, the Musheireb development is putting to use tried and tested local responses to fend off the harsh desert clime. A closely woven network of streets, colonnades, other shading canopies and varying building heights will minimise heat gain and encourage air movement. Also, urban blocks will be oriented on a north-south axis to help the sea breeze flush out the heat generated by traffic.

All buildings on the 35-hectare site have been designed to environmentally sustainable standards, and with the ultimate aim of attaining a LEED gold rating. Of the total project GFA (gross floor area) of 760,000 square metres, parks and open spaces will account for a sizeable 122,217 square metres.

To coalesce the fragmented social networks, the Musheireb masterplanners have proposed that the family-oriented homes be within easy walking distance of schools, shops, public squares and mosques. The residential component features 50 townhouses and over 900 apartments, and the former will share a communal majlis and courtyard garden.

The area is expected to eventually house more than 25,000 people. A finer lattice of sikkata between buildings will connect people to main squares and courtyards. The master-developer believes cycle lanes, shaded pedestrian routes and a dedicated tram will encourage residents to forego use of private cars. An interchange for Doha’s proposed Metro station will connect Musheireb to the airport and West Bay.

Enabling works are in progress for Phase 1A of the project, and the developer is evaluating bids from contractors to install basic infrastructure and services for the buildings. Expected to be complete in 2012, Phase 1A will include an annexe to the Emiri Diwan, the headquarters of the Emiri Guards and the National Archives building, all coming under the Diwan Quarter. Including the Heritage Quarter in the east, this phase also comprises an Eid prayer ground and four heritage houses.

The Barahat Al Naseem and Reemas Street will bring forth the retail vibrancy, with the latter acting as the focal point for distinctly upscale boutiques. This forms part of Phase 1B, presently on the drawing board and planned for completion in 2013.

Other elements of this phase include townhouses, a school, mosque, offices, hotel and serviced apartments. The offices will be centred around Al Diwan Street. Work on phases two to four will include connecting Musheireb to the newly refurbished Souq Waqif, a mall, more hotels, offices, apartments, shops and the transport hub of Nakheel Square.

“Communities in Qatar have always been close knit. People lived and worked together in harmony with the climate, the land and with each other,” comments Shaikha Mozah Bint Nasser Al Missned, chairperson of Dohaland.

Knowledge enrichment centre

In its bid to recapture the traditional Qatari architecture, which planners claim the city has forfeited, Dohaland has unveiled the floating Knowledge Enrichment Centre (KEC) on the Doha Corniche. Built on a ship, it is expected to become a knowledge and cultural hub of the city.

Designed by Allies and Morrison, the centre will host workshops, seminars, conferences and other cultural events. Spanning 1,200 square metres, the structure has incorporated various features of traditional Qatari homes, also found in the Musheireb masterplan. For instance, the baraha (courtyard) in the KEC evokes the character of a small square between buildings. Also, many ceilings, doors, shutters and panels are adorned with calligraphy, inscriptions and ancient patterns.

Symbolic of a regeneration project, the structure too will act as a bridge between the spanking new structures in West Bay and Doha’s old city centre. “The KEC will ensure that the influence of Qatari culture on architecture will not drift away,” affirms Eisa Al Mohannadi, CEO of Dohaland.

Musheireb fact file

•  Musheireb will feature 226 buildings and around 13,700 parking slots.
•  It will also host a 700-seater theatre and museum.
• A lifestyle, luxury and business hotel introduce the hospitality component in the masterplan.
• Musheireb, which is Arabic for a water channel, was formerly known as the ‘Heart of Doha’.

By Colin Foreman www.meed.com 

While years behind Dubai, Abu Dhabi and Doha are at last taking public transport schemes seriously.

The past five years have clearly demonstrated that when Dubai builds something, its rivals quickly try to follow with their own schemes. Dubai was the first city to start building super-high-rise towers. Now, Doha, Jeddah, Riyadh, Kuwait and Abu Dhabi are all either building or planning to build their own tall towers.

Metro projects are the latest focus for planners. On 9 September, Dubai Metro opened, and in the months before and after the event, Abu Dhabi and Doha began to try to catch up by announcing their own plans for metros, trams, and light-rail networks.

In May, Abu Dhabi started tendering consultancy contracts for its planned metro and tram systems. In late August, Doha tendered a construction contract for a railway station at its new international airport, and in October, the UAE officially unveiled plans for its inter-emirates rail network – the Union Railway.

Doha has now gone one step further, with Qatari Diar Real Estate Investment Company revealing it will tender a contract to supply and build a light-rail network serving Lusail, a new town north of Doha, in December.

The project is just part of Qatar’s rail plans. The government is also planning a metro network for central Doha, and a high-speed line running from Mesaieed through Doha and Ras Laffan onto Bahrain across the Qatar-Bahrain causeway.

However, it is important to remember that Abu Dhabi and Doha’s plans are still embryonic. In Dubai, it took more than four years to build the first metro line.

But while Dubai’s rivals are years behind, their new-found focus on developing rail networks shows Abu Dhabi and Doha are at last taking public transport schemes as seriously as other utilities, such as water, sewage and electricity. And about time too.

Source: www.gulf-times.com 

 The UITP (International Association of Public Transport) Second Middle East and North Africa (Mena) Congress starts in Doha on October 25, a senior official has said.
Mowasalat Director of Business Development Ahmed al-Ansari said that at least 300 delegates representing various transport companies, regulatory authorities, vehicle manufacturers, government departments, local civic bodies and planning forums would participate in the three-day meeting.

www.steelguru.com

MEED reported that trying to devise realistic economic plans is fraught with difficulties at the best of times, let alone in the middle of a global economic downturn. But that is the task facing officials at Qatar’s Urban Planning & Development Authority and Japan’s Oriental Consultants which are due to finish work on the Qatar National Masterplan by the end of 2009.

The document, which will be published in January will set out a guide for the development of Qatar over the next 25 years and could be one of the most important documents in the country’s history. Such masterplans are nothing new in the Gulf. Abu Dhabi and Bahrain both have plans covering the next 21 years and governments across the region have been keen to put in place long term targets to guide their economic development. But the reality does not always match the ambition Dubai is reviewing its Strategic Plan 2015 in light of the global economic downturn.

Construction concerns

As much of the work on Qatar’s masterplan has been carried out during the current downturn, Doha should at least be realistic about the country’s economic prospects and the need for continued large scale government investment.

On the face of it, Qatar’s economy appears to be the strongest in the GCC, with the International Monetary Fund predicting growth of 18% in 2008 and 16.4% in 2010 in part due to the healthy revenues from the sale of liquefied natural gas. But there are worrying signs of a potential slowdown in private sector activity.

In early August, a report by the US’ Bank of America Securities Merrill Lynch warned that Qatar could face a significant oversupply of homes by 2012 as the workforce that has been building the country’s infrastructure in recent years begins to leave.

Mr Blair Hagkull MD for the Middle East and North Africa at US real estate services company Jones Lang LaSalle said that “The ‘build and they will come’ era is behind us. Doha is evolving into a much more mature market that is more focused on the traditional real estate fundamentals, rather than how quickly something can be built.”

He said that with private sector development slowing, the government is likely to play an even more crucial role in the country’s economy. Already, the majority of upcoming projects in Qatar are government backed and construction industry sources in Doha said that they expect a large number of major contract awards in the coming months.

Rail projects

Further infrastructure schemes are expected to be launched in the coming years, based on targets in the masterplan. They are likely to include a series of rail lines to be developed over the next 10 years. The government said that it plans to build a rail link following the east coast between Ras Laffan and Mesaieed a high speed line across the causeway to Bahrain, a freight line connecting to the planned GCC rail network, a metro network in Doha and a light rail network serving residential developments around the capital.

The billions of dollars worth of work that such schemes represent should ensure that Qatar remains an attractive market for inter national companies. But the recent downturn has also exposed some problems for companies working in Qatar. Malaysia’s UEM claims it has not been paid in full by the Public Works Authority after completing the 81 kilometer long Salwa Road project in 2008 and other contractors working on road projects complain of difficulties and delays in being paid.

One international contractor working in Doha said that “It is a difficult place to work. The supply chain is limited and you have to use a lot of local suppliers so there are a lot of hidden problems that you do not plan for at the tender stage.”

Perhaps the biggest problem the masterplan will need to address is ensuring that international companies and their staff want to come to the country in the future. A large number of real estate developments have been launched in recent years including Lusail and The Pearl Qatar and the market is already showing signs that supply and demand are approaching equilibrium.

Mr Hagkull said that “After many years of chronic shortages, supply is catching up with demand.”

He said that much of that demand comes from expatriates who are working on developing the country’s infrastructure. Unless Qatar creates new jobs for these people, many could leave, creating a problem of oversupply as the Bank of America Securities Merrill Lynch report warns. That in turn would have a knock on effect on other areas of the economy with consumer demand falling for other goods and services and could bring to an end the recent period of rapid economic growth Qatar has enjoyed.

Construction on the port and the railways will still be going on in 2012 which will help to mitigate the problem but the government’s masterplan will also need to lay out other strategies to spur the private sector into action.

(Sourced from MEED)

By Elie Milky and Hala Matar Choufany  www.4hoteliers.com

This article sets forth an insight into economic developments, tourism investments and the characteristics of the hotel market in Doha and although 2009 looked set to outperform 2008, itself a record year, Qatar began feeling the effects of the economic recession, specifically in the second quarter of 2009.

However, since the government maintained a sober level of caution throughout the most optimistic years, it is believed that the country will be able to withstand the slowdown better than most economies in the region and the world.

In his opening address to the summit of the Arab League held in Doha on 30 March 2009, HRH Hamad Bin Khalifah Al Thani, the Emir of Qatar, received the dignitaries saying:

“I welcome you to an Arab homeland that is striving to be an open forum for a free and unconditional dialogue which could be right or wrong, which is the responsibility of the participants, and this is characteristic of freedom.”

In addition to witnessing a common gesture of warm Arabian hospitality, the world looked on as this tiny monarchy in the Arabian Gulf was increasingly becoming a major player in regional and international affairs. Indeed, Qatar is striving to be an open forum for free and unconditional dialogue.

Thanks to the efforts of the ruling class, the country has been successful in hosting conferences dealing with regional political conflicts, the turbulent economy, as well as various cultural events.

These, complemented by Qatar’s extensive gas wealth, have led to a thriving corporate and meetings segment and a relatively mature hotel market. Hotels have been achieving the highest average rates in the region, thus arousing interest from investors and operators to invest in new tourism-related projects. Visitation numbers have been soaring and a new airport is under construction to deal with the increasing numbers. Additionally, despite the relatively non-existent leisure market, efforts are under way to attract this segment.

Therefore, this article sets forth an insight into economic developments, tourism investments and the characteristics of the hotel market in Doha. Although 2009 looked set to outperform 2008, itself a record year, Qatar began feeling the effects of the economic recession, specifically in the second quarter of 2009. However, since the government maintained a sober level of caution throughout the most optimistic years, it is believed that the country will be able to withstand the slowdown better than most economies in the region and the world.

Politics

Owing to Qatar’s good ties with the international community and modest relations with its neighbours, over the years the country gradually became a diplomatic beacon. This is particularly owing to the emir’s historic strides in making Doha a venue for economic and political dialogue. Recent examples include, among others, brokering peace between Lebanese factions, helping establish diplomatic ties between Syria and Lebanon, and hosting the Arab League summit in support of a ceasefire between Israel and Hamas.

Efforts to enhance the country’s global profile were also assisted by Qatar’s joining of the UN Security Council in 2006. Furthermore, the monarchy’s international relations continue to be shaped largely by its ties with the USA; the two nations have become close allies. After the 2003 invasion of Iraq, Qatar replaced Saudi Arabia as the logistical hub for US military activity in the Gulf.

Economics

Despite the birth of a new constitution in June 2005, Qatar’s main internal activities remain largely economic. The discovery of oil in the 1940’s shifted the country’s economic focus from fishing and pearling to primarily gas exploration.

Qatar is the largest exporter of gas in the world and is believed to have the world’s third largest gas reserves. There are currently projects to expand its facilities to maintain competition with world players.

Therefore, economic policy remains predominantly focused on the development of Qatar’s vast non-associated reserves of natural gas, although greater efforts are being made to attract foreign investment into the country’s non-energy sectors. Fiscal policy remains somewhat cautious, and it is expected that the fiscal account will record substantial surpluses over the next few years. As such, economic indicators for 2008 showed record growth. According to the Economist Intelligence Unit (EIU), real GDP grew by more than 13%, with one of the highest forecasts in the world for 2010 and 2011.

Developments and Initiatives

As in other cities in the region, such as Dubai and Abu Dhabi, developments in Doha have attracted the attention of the world, albeit on a smaller scale. In recent years, significant investment has been made in the city’s infrastructure, commerce and tourism.

The government has impressive plans to further improve the economic wealth of the country, and is putting much effort into diversifying the economy.

Table 1 (right) sets out the country’s three mega developments that are currently under way.

In addition to other developments that include, among others, Barwa City, Education City, Sports City, City Centre Expansion Project and the New Doha International Airport, the above mega developments comprise mixed-use components and other characteristics that are worth mentioning.

• The Pearl is an ambitious land-reclamation project, the three square kilometre island lies immediately to the east of West Bay, in an area known as West Bay Lagoon, approximately 20 km north of Doha’s central business district. Facilities will include villas and multi-family residential units, six luxury and boutique hotels, retail areas and restaurants, entertainment and recreational facilities, schools, mosques, community centres, parks and four marinas. There will be opportunities for foreigners to invest in or acquire freehold properties on the island;
• Lusail is a US$5.5 billion project that will create a new waterfront city close to the Pearl over an area of 32 km² and is intended to be the biggest domestic real estate development in the country. It is expected to provide accommodation for more than 200,000 people, a workforce of 160,000 and up to 60,000 visitors a year. It will include 3,000 lifestyle villas and 12,000 apartments, 22 hotels, two golf courses, 300,000 m² of shopping, six square kilometres of commercial space, and a dedicated family entertainment district that will provide attractions for residents and visitors alike. The development will also house Energy City, which will be the Gulf’s first centre for the hydrocarbon industry. Entertainment City will provide state-of-the-art facilities and pose as a stand-alone leisure demand generator;
• Heart of Doha is a major development aiming towards the rejuvenation of the centre of Doha’s historic district. Developed by Dohaland, a subsidiary of Qatar Foundation, the US$5.5 billion project will be built on a 35 hectares site. The architecture will be traditional and reminiscent of the past while modern technology will be widely available in an effort to ‘bridge the past with the future’. The project will include more than 226 buildings, 122,217 m² of parks and open spaces, the Qatar National Archives, a theatre, three hotels, schools, as well as a heritage district. Owing to the narrowness of the streets, a dedicated tramway connected to the Doha Metro is currently being considered.

Visitation and the Hotel Market

The tourism industry witnessed a record year in 2008, surpassing the one million mark. This increase in visitation numbers occurred constantly over the last ten years. Table 2 looks at passenger movements at Doha International Airport from 1999 to 2007.

In 2003, Doha International Airport and the Government of the State of Qatar announced a master plan for a new US$2 billion airport to be built to the east of the current airport to assist in positioning Qatar as a leading regional aviation hub. Construction on the airport began in 2004 and once completed in 2015, the airport will have two parallel runways and the capability to handle and process nearly 50 million passengers a year. The terminal will have 24 contact gates in the first phase and will accommodate up to six A380-800 ‘Super Jumbo’ aeroplanes when fully developed. Until the new airport is opened, the existing airport is being significantly upgraded to handle the increase in passenger growth.

Hotels in Doha performed exceptionally well in 2008. Despite a three percentage point decline in market occupancy to 68%, Doha led the rest of the region with an average daily rate of $340, an 11% increase over 2007. Hence, it achieved a RevPAR of $230, second only to Abu Dhabi.

Doha’s mature hotel market is comprised of some of the world’s major brands, many that have existed since the 1990’s and the turn of the millennium. Such hotel groups include the Four Seasons, Marriott, Starwood, InterContinental and Mövenpick. Their presence in the market benefited from Qatar’s various initiatives and have thus been able to accommodate various economic, political and cultural events over the years, creating a strong, high-paying corporate and meetings segment.

The government is currently taking initiatives to expand on its almost non-existent leisure market. Projects such as the Lusail and the Pearl are expected to attract leisure tourism once their recreational components become operational.
Table 3 is a list of confirmed hotel supply in Doha, with a graph that takes into account the opening of the W and Grand Hyatt in March 2009, as well as the expected opening of Oryx Rotana (400 rooms and Swiss Belhotel (185 rooms) later this year. We understand that there are a number of hotel projects that are still in the negotiation phase and are still believed to be confidential.

Therefore, we are confident that more projects will be announced by the end of the year. These will include international brands and their estimated opening dates will be from 2012 onwards.

Furthermore, Qatar National Hotels (QNH) announced in early May that it plans to spend $1 billion on international property acquisitions as well as the development of new hotels in Doha. This is in line with the company’s vision and positioning plans.

The company currently owns five luxury hotels in Qatar and is using cash as a means of benefiting from investment opportunities in these turbulent market conditions.

Outlook, Characteristics and Observations

How then, will Qatar maintain its momentum in the face of the recession, and what characteristics of the market stand out today? In addressing hotel operators, developers and investors, we seek to point out some characteristics and necessary observations.

• Analysts are forecasting a stable outlook for Qatar owing to the country’s strong economic fundamentals and upbeat state support. For instance, the most recent move is the government’s plans to buy over $4 billion worth of real estate assets from Qatari banks to stimulate the economy. And, as a precautionary measure, Qatar Airways has put into motion a three-month action plan that will introduce low-cost services to deal with the potential threat from the budget arm of the industry;
• The Pearl and Lusail developments alone are expected to bring in approximately 800 and 5,000 hotel rooms, respectively, once the developments are complete. The developments are expected to create a leisure market that, to this day, remains minimal;
• Hotel average rates for 2009 are expected stay at a par with 2008, with the possibility of a slight drop should occupancy continue to struggle. Companies have started moving their corporate accounts to midscale hotels in a cautious attempt to review their budgets, thus decreasing demand for the luxury hotel product. The further opening of the W and Grand Hyatt in March have brought in a greater supply of hotel rooms to the market;
• With the existing and proposed supply of midscale and luxury hotels in Doha, there is believed to be a rising need for a branded budget product. This will be necessary to cater for the future, mass leisure market as well as the lower budget corporate and meetings segment;
• Hotels in Doha today are believed to operate with a relatively low rooms expense percentage ranging between 9% and 12%. In addition, hotels’ food and beverage operations are run with a high profitability ratio, with some achieving more than 40%. These margins, believed to be one of the highest in the industry, are expected to witness a gradual decline owing to Qatar’s soaring inflation;
• Food and beverage facilities make up an essential part of hotel operations in Doha owing to the absence of sound restaurants and bars elsewhere, also creating a local market. Branded properties across the city have a substantial number of outlets, with some exceeding ten. This, along with high revenue from meetings and conventions, has led to food and beverage revenue in some properties constituting a staggering 50% of total hotel revenue;
• In addition, hotels in Doha (primarily luxury facilities) have shown the need for extensive meeting space and state-of-the-art spa operations. Hotels requiring entry into the market will see the need to include these facilities in their plans to be able to compete with the existing supply, as well as cater for significant related demand;
• The branded serviced apartments market in Doha is still at an infancy stage in comparison to regional markets such as Abu Dhabi, Dubai or even Riyadh. The first branded supply only entered the market with the opening of the W and the Grand Hyatt earlier this year. However, the existing independent supply tells us that demand is mostly present for one-bedroom and two-bedroom units, as opposed to larger apartments;
• Today, many hotel projects are expected to experience delays or to be put on hold owing to the economic slump. However, for investors looking to develop hotels in the market, we believe it is a good time to invest. Qatar’s economic promise makes it ideal for projects that break ground during the slowdown to be ready for business at the time of a foreseeable recovery;
• Over the last few years Qatar has made various attempts to control soaring inflation which reached 15% in 2008. It is, however, believed that the slowdown may in fact help keep this inflation rate in check. Recent estimates, also by the EIU, are now forecasting negative inflationary growth (-2.8%) for 2009 as opposed to an earlier estimate of 9%.

Conclusion

Qatar looks set to remain an investment hub and an active player in international relations. Hence, we believe Doha is ripe for investment today.

As mentioned earlier, hotel projects that break ground today may be able to benefit from an improved economy when their doors open for business. And with a promising leisure segment, demand looks set to grow despite the current slowdown. The Qatar Tourism and Exhibitions Authority estimates a total of $17 billion to be spent on tourism infrastructure over the next five years to support the increase in hotel supply, and thus increase the current leisure segment from 5% to up to 30% of total demand.

Furthermore, house prices, which saw a 30% decline according to some estimates, are expected to remain healthy owing to continued demand that remains global. Construction activity is expected to see a growth of double figures in 2009 as funds from gas revenues are reinvested into infrastructure. With the government buying real estate shares from the country’s financial sector, Qatar has shown its genuine intentions to tackle the downturn at home. Therefore, business sentiment remains positive and the EIU is still forecasting a growth of double figures in real GDP.

Today, you may wonder where Qatar stands as the economic slump takes its toll on the region. Even though some compare present day Doha to Dubai in the late 1990’s, two things set it apart – its gas wealth, and most notably, the monarchy’s level of caution. Developments in Qatar never reached the overly ambitious plans of Dubai. And therefore, despite the increasing promise of Qatar’s resources and related projects, authorities and economic players alike have taken a step back. In short, the term that best describes the underlying economic sentiment in Doha today can modestly be coined ‘cautious optimism’.

For feasibility studies, valuations, strategic positioning, operator search and further advice please contact the authors.

About our Team
HVS has a team of experts that conducts our operations in the Middle East and North Africa. The team benefits from international and local backgrounds, diverse academic and hotel-related experience, in-depth expertise in the hotel markets in the Middle East and a broad exposure to international hotel markets. Over the last three years, the team has advised on more than 150 projects in the region for hotel owners, developers, lenders, investors and operators. HVS has advised on more than US$25 billion worth of hotel real estate in the region.

About the Authors
Elie Milky is an Associate with the HVS Dubai office, specialising in hotel valuation and consultancy. He joined the London office of HVS in 2007 after completing an MBA from IMHI (ESSEC Business School), Paris, France, three years of experience in hotel operations in Lebanon and the UAE, and a BA in Hospitality Management from Notre Dame University, Lebanon.

Since then he has conducted a number of valuations, feasibility studies and consultancy assignments across Europe, Africa and the Middle East before relocating to Dubai early 2009.

Hala Matar Choufany is the Managing Director of HVS Dubai and is responsible for the firm’s valuation and consulting work in the Middle East and North Africa. She initially joined HVS London in 2005 and moved to HVS Shanghai in September 2006 where she helped grow the Shanghai office and business in the Asia region. She relocated to Dubai in September 2007 and looks after HVS’s interests in the Middle East. Before joining HVS, Hala had four years of operational and managerial hotel industry experience.

She lectured at Notre Dame University in Lebanon on International Travel and Tourism. Hala holds an MPhil from Leeds University, UK, an MBA from IMHI (Essec- Cornell) University, Paris, France and a BA in Hospitality Management from Notre Dame University, Lebanon. Hala has worked on several mid and large scale mixed-use developments and conducted numerous valuations, feasibility studies, operator search, return on investment and market studies in Europe, the Middle East and Asia.

For further information, please contact one of the authors.
Elie Milky – Associate, Dubai
Email: emilky@hvs.com
Direct Line: +961 70 440 256
Hala Matar Choufany – Managing Director, Dubai
Email: hchoufany@hvs.com
Direct Line: +971 50 4597930
© HVS 2009

www.hvs.com

MEED reported that Qatar is preparing to tender construction work on one of the 5 rail networks it plans to build over the next 10 years.

Qatar-Doha

The New Doha International Airport Steering Committee has invited contractors to pre qualify for a contract to build a train station at the USD 11 billion airport that is under construction close to Doha’s existing airport.

UK based Mace International is the project manager for the scheme which is known as the Passenger Rail Station Box. The project involves building a railway station terminal for an express airport rail line that will connect to rail and metro stations in downtown Doha and other rail networks. Sources familiar with the project said that the steering committee wants to finish the station in time for the opening of the first phase II of the airport in 2011.

Consultants said that they expect the Trade & Business Ministry will invite them to submit proposals for a national railway system in 2010. Qatari Diar Real Estate Investment Company in partnership with Germany’s Deutsche Bahn has already developed a conceptual design for a national railway system in Qatar.

The companies’ multi billion dollar conceptual design has 5 components. It includes an east coast rail link between Ras Laffan and Mesaieed, a high speed link from Doha to Bahrain across the Qatar Bahrain Causeway, a freight link connecting into the planned GCC rail network, a Doha metro network and a light rail network serving residential developments.

(Sourced from MEED)

The Lusail Real Estate Development Company has said that its iconic waterfront development, underway in Doha’s north, will be bigger than Beirut when completed and accommodate close to half a million people.
“The future city of Qatar”, as the chief executive officer Mohamed bin Ali al-Hedfa calls it, is also right “on schedule to meet the hopes and aspirations of the nation”.
The area of Beirut is 19.8sqkm while the Lusail development will be spread over 35sqkm. The first phase of the multi-billion dollar project is expected to be completed in 2011.
“The population of 455,000 in Lusail will rival that of Luxembourg City which has a population of 491,000. Additionally, Lusail’s waterfront of 28km will be seven times longer than that of Monaco which has a shoreline of only 4.1km,” the company said in its first issue of Lusail Newsletter.
Among Lusail’s population of 455,000 the development envisages, 200,000 will be residents living in its 25,000 residential units, 165,000 will work at different districts and 90,000 will be visitors to various entertainment and recreation facilities.
“Our vision and progress (for Lusail) have attracted attention all over the world. And so it should. After all, the future city of Lusail is where Qatar’s imagination comes to life,” al-Hedfa noted.
With its 17 mixed-use districts, the city will boast its own Light Rail Transit (LRT) network – “the most advanced in the Middle East”. LRT will operate on four lines around 32 passenger stations, and beyond Lusail to the New Doha International Airport via the proposed Qatar Railway system.
“The preliminary design of the project has already been completed.”
In addition to LRT, a Lusail highway and marina bridges, the city will have additional access points with the Al Khor Highway on the western boundaries and water taxis serving the districts on the eastern side.
Qatari Diar, the project owner and the master developer, appointed Qatari Diar Vinci Construction (QDVC) in February to excavate the tunnels for LRT.

www.gulf-times.com