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Mazaya Monthly Real Estate Report -
Week 1 - September 2016
Data released by the Ministry of
Economy and Commerce pointed out
that the value of contracts with foreign
companies reached QAR12 million at
the end of the first quarter of the current
year. Single person companies ranked
in first place, while the limited liability
companies came second followed by
general partnership companies. On the
other hand, construction companies
headed the new records followed by the
building materials trading companies.
It is noteworthy that the construction
sector in Qatar is almost wholly
controlled by foreign companies,
a matter which would reduce the
positive
impact
of
investment
volumes on domestic companies and
the local economy in the long-term.
Al Mazaya’s Report asserts that the
events and activities, first of which are
the real estate exhibitions, would reveal
the volume of challenges and investment
opportunities generated by different
economic sectors in the region. These
events are able to reflect the ability
of the region’s economies to attract
foreign companies with capitals and not
companies that provide services and
get mega projects which deprive the
countries in the region from economic
benefits. This includes the pace of
activity and the investment momentum
under all circumstances. Thus, it has
become necessary to move towards
mixed companies as they provide further
flexibility and continuity for domestic
companies, ensure their survival in
changing market conditions, and a
minimum positive return for the local
economies. These real estate exhibitions
will have a role in testing market results
during the coming period and till the
end of the year. This is contingent on
the total indicators and overall results
showed by the region’s markets.
Al Mazaya's Report stressed that
the challenges faced by the majority
of economic sectors in the present
will slow down the entry of foreign
companies, whether at the level of
investment or the level of service
provision, thus benefiting from the
varying activities provided by the
local economy. These will also impact
the domestic companies and the real
estate companies will be at the heart
of these developments, as many of
these companies will exit the market as
a result of the decline in their market
shares, resulting from the cutback
in the pace of investment and real
estate and development projects.
Moreover,
investment
plans
and
investment attractiveness will be affected
by the challenges faced by the region’s
economy. It is also noteworthy that
incentives packages are still encouraging
foreign investment in all circumstances,
taking into consideration that the need
for investment and experiences of
foreign companies vary in the region.
Meanwhile, we are currently witnessing
the ability of domestic companies to
manage local projects and acquire
large and diverse foreign investments.