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Mazaya Monthly Real Estate Report -
Week 1 - JULY 2015
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In Qatar on the other hand, Al-Mazaya
Report believes road and transportation
projects correlate to Qatar hosting the
World Cup 2022 and Qatar Vision 2030.
Relevant estimates show Qatari private
sector contribution in transportation
project equals 55% including airports,
seaports and railways. The gross value of
transportation and rail projects in Qatar
amounts to USD 40 billion reflecting
the considerable attention directed to
the sector by official parties being an
indicator to development and prosperity
of the Qatari society. Qatar also remains
on track with the latest technology
available, implementing transportation
projects that minimise environmental
impacts in this regard, while adapting
to rapid growth of the sector, not to
mention these projects will equally add
to the growth of national GDP. Qatar has
been keen to improve its infrastructure
mirroring world standards applied in very
advanced countries. In these examples
road and transportation projects cover all
major cities of the country. The express
train is one of the mega national projects
in the transportation sector planned
to establish a rail network causing a
great breakthrough in passenger and
cargo transportation at an estimated
cost of USD 35 billion. The Qatari Rail
Development Program is designed to
connect major population and industrial
spots of the country extending to connect
with the GCC Rail Network as well.
Al-Mazaya Report elaborates on the
unique momentum Saudi Arabia
currently experiences in road and
railway projects where the data
revealed has shown the Kingdom's
expenditure
on
such
projects
exceeds USD 90 billion including 5
metro projects, bus projects and rail
networks extending on thousands of
kilometres to be constructed during
the coming 10 years connecting the
main cities of the Kingdom. Another
USD 51 billion is to be pumped into
the operation phases of these projects.
Such huge investment reflects the
Kingdom's belief in the significance of
the transportation sector with regard
to social, economic and environmental
areas. Based on all these steps
taken, the report finds it is evident
the Kingdom seeks to play a viable
role in transportation and logistics as
this field accounts for 13% of gross
Government expenditure. This trend
is also in line with new strategy Saudi
Arabia adopts for the transportation
sector placing the sector as a priority
next to energy and IT constituting
major pillars for development and
attracting foreign investments. The
execution of metro and rail plans are
rapidly moving forward following
growth expectation on demand for
cargo within the Kingdom itself, which
is increasing by 5% annually up to
2020; world marine shipping is similarly
expected to grow by 8% annually.