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Qatar 2022 World Cup spending to hit $115bn

Arab World Materials 18 March 2013 10:53 (UTC +04:00)
Qatar 2022 World Cup spending to hit $115bn
Qatar 2022 World Cup spending to hit $115bn

Qatar's spending on the 2022 World Cup will go up to $115bn between now and 2022, according to a new study by Standard Chartered Arabianbusiness reported.

The study says the spending will need to increase during 2013 following lower expenditure than expected in 2012, and added that many of the country's infrastructure projects should begin later this year.

The government has already but out to tender a number of roads and sewerage development projects as part of a $20bn programme for the next five year.

The bank's quarterly MENA report said: "In Q1-2013 we have seen positive signs related to Qatar's spending commitments for FIFA 2022.

"In addition, so far this year, the government has awarded a number of projects related to the country's decade-long infrastructure commitments. Some of these projects should break ground by H2-2013.

"Between now and 2022 we expect almost $115bn of government expenditure on infrastructure projects and FIFA 2022.

"We expect near-to medium-term spending trends to focus primarily on delivering core infrastructure. Sport-related infrastructure (i.e. football stadia) is more likely to begin midway through Qatar's decade-long spending cycle."

The report also highlighted that Qatar would face numerous challenges in the lead-up to the World Cup, including sourcing significant amount of goods - primarily building materials - and construction equipment to support the building boom.

"We expect the prices of building materials and certain raw materials to begin to rise, and domestic transport and logistics costs are also likely to feel the pressure," it said.

The country requires twelve stadiums, 90,000 hotel rooms, a metro system, and a national rail network.

Inflation in Qatar rose in January by 3.4 percent year-on-year, and the report said: "We maintain our view of moderate inflation (3.8 percent) for Qatar. However, from 2014 onwards, we expect to see inflation trend higher as rising imports related to construction activity drive up other components such as transport."

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