Qatar cement demand to double by 2017

Byrebecca3360

Updated Thu, 17 Apr 2014 13:21:45 GMT

Qatar: Rising government infrastructure spending is predicted to double demand for cement in Qatar by 2017. Dubai-based financial services firm Arqaam Capital has reported that the Qatari government is expected to release up to US$50bn for construction projects in 2014, a rise of 15% compared to 2013.

The move follows the state's plan to invest US$208bn on infrastructure developments in 2013 - 2018, largely linked to the 2022 World Cup. Arqaam has projected that, given that current projects are worth US$70bn and have an average churn rate of 3- 4 years, the expenditure implies that cement demand will double within the next three years. Cement demand is expected to grow to hit 9.4Mt/yr in 2017.

"We expect production capacity and demand levels to reach equilibrium by 2018. Our forecasts are on the conservative side as Qatar's Ministry of development and planning's most recently published survey suggests demand for limestone is set to increase by 131% in 2014 and 127% in 2015," said a report by Arqaam.