Holland Gulf Chamber of Commerce » qatar

UAE rail to link to GCC network

jochemgeheniau — Mon, 06 Jan 2014 10:10:26 +0000

Abu Dhabi: Completion of the UAE railway by 2018 can only bring more prosperity not only to the UAE but also the country’s five GCC neighbours as rail lines are constructed across the region, said Etihad Rail .

The UAE railway will connect with the sources of raw materials, industrial areas, ports and major population centres, says Etihad Rail , and will be built in three phases, the first of which will be a 266km-long western stretch between Al Ruwais and Shah. The Shah-Habshan-Ruwais freight line is being built in collaboration with Abu Dhabi National Oil Company (Adnoc).

The 2,177-km-long GCC rail network, which will link all six Gulf states by rail for the first time — providing an alternative to air or sea travel for both goods and passengers in the region — will be fully operational in 2018, said Dr Ramiz Al Assar, World Bank resident adviser of the GCC Secretariat General in Riyadh, in October.

“The designs of the nearly $200 billion (Dh734 billion) network, which will run down the Gulf coast from Kuwait, through Saudi Arabia, to the UAE and Oman, with branches linking Bahrain and Qatar, will be completed by the end of this year or in the first quarter of next year. Construction on the network is to start in 2014-15 and it will be fully operational in 2018,” Dr Al Assar told the Mena Rail and Metro Summit, being held in Abu Dhabi.

Abu Dhabi is leading the GCC rail network with its Dh40 billion Etihad Rail project. The 1,200-km line, planned to be completed in 2018, will link major industrial zones, cities and ports in the UAE, and will eventually connect with the GCC railway.

In October 2011, Etihad Rail signed an agreement with Adnoc to transport about seven million tonnes of granulated sulphur a year from Habshan and Shah to Al Ruwais in Abu Dhabi for export.

The second phase will connect Abu Dhabi with Dubai. It will also provide links to Jebel Ali port, Mussaffah and Khalifa port. The third phase will be the extension to link the northern emirates. The second phase is expected to be completed by 2016 and the third phase by 2017.

The Etihad Rail network will also connect with the GCC network and this — once fully established — will cover Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

GCC industrial investments exceed USD338 billion

jochemgeheniau — Mon, 16 Dec 2013 08:40:55 +0000

Total Industrial investments in the GCC have jumped from $81 billion in 1998 to $338 billion in 2012.
The Gulf Organization for Industrial Consulting ( GOIC ) revealed some figures about the progress of industrial activities in GCC countries.
The number of firms in the GCC jumped from 7,089 in 1998 to 15,165 in 2012. The number of workers grew from 55,9420 workers to 1.34 million workers.
Most of these investments were in the areas of chemicals, refining petroleum products, base metals, construction metals, building materials and food industries.
GOIC highlighted these figures during the “Reality and prospects of UAE national industrial sector” conference in Sharjah, according to a press release here.
It is taking place with the support of Sheikh Sultan bin Mohammed Al-Qasimi, member of the Supreme Council of the UAE and Ruler of Sharjah.
This conference aims at introducing high-quality UAE industries at the regional and international levels and discussing means of developing and diversifying them.
GOIC Secretary General Abdulaziz bin Hamad Al-Ageel gave a keynote speech in which he highlighted the Gulf industrial sector development.
Al-Ageel said: “More than 83 percent of GCC industrial firms are small and medium industries, but most industrial investments are in the area of big industries. More than 95.8 percent of the cumulative investments in the industrial sector of the Gulf.”
He added: “As to the contribution of the industrial sector in GCC countries’ GDP, it ranged between 9.5 percent and 10.5 percent from 2001 to 2012, except for 2008 when it was reduced to 8.5 percent because of the global financial crisis.”
GCC countries also maintained a positive growth in the manufacturing industry value added in terms of the GDP throughout the last five years.
The GOIC secretary general stressed the role of GOIC in supporting industrial development projects in GCC countries by developing GCC industrial and economic databases, preparing several studies about the industrial sector and suggesting industrial investment opportunities in GCC countries.
In addition, GOIC provides public and private sectors with technical consulting services.
It also prepares studies and reports at the regional level, notably the GCC industrial map project that shed light on missing industries and target industries in GCC countries.
The organization suggested and promoted several investment opportunities in different GCC countries in coordination with chambers of commerce and industry and ministries of industry and trade.
Al-Ageel reiterated GOIC ‘s will to keep up with international developments and their repercussions on manufacturing industries and knowledge-based industries in GCC countries.
The organization publishes an annual report about the readiness of GCC countries to move to knowledge-based industries.
In the last three years, analysis has led to two groups of states: the first is for countries that achieved remarkable progress toward knowledge-based industries and includes Saudi Arabia, UAE and Qatar.
These countries will be ready to move to knowledge-based industries by 2020 if they manage to fix their current vulnerabilities.
As to the second group, it includes Kuwait, Oman and Bahrain. They should deploy additional efforts to move to knowledge-based industries.
Al-Ageel also commended GCC countries for their achievements in this area.
He said: “Knowledge-based industries and industry innovation clusters have five pillars, and human resources is the most important pillar. In this regard, GCC countries made a quantum leap in terms of expanding the reach of basic, secondary and university education. Nevertheless, further efforts should be deployed to improve the quality and quantity of professionals in the area of knowledge. As to the second pillar, it is a framework for developing knowledge-based industries. GCC countries adopted excellent macroeconomic policies, and while frameworks of business policies still differ between these countries, they are generally solid but with some room for overcoming a number of restrictions.”
The GOIC secretary general said: “The third pillar is a combination of capital, funding and liquidity.
Although they are largely available in the region, there is a need to expand financing structures that are necessary to develop knowledge-based industries. Innovation systems are the fourth pillar. They encompass collective assets and operations boosting innovation in business applications. Foundations for supporting innovation systems in the GCC are being laid, but these initiatives are still immature and require additional time and attention in order to reinforce innovation capacities.”
As to the fifth pillar, Al-Ageel said: “It is knowledge-based industry infrastructure; GCC countries have a relatively advanced infrastructure to develop knowledge-based industries, but further changes to some policies should be implemented.”
He reiterated: “GCC countries need a specific policy for knowledge-based industries, since this type of knowledge has several implications on policies such as protecting knowledge assets and investing in producing or using knowledge assets. Government policies can develop appropriate frameworks to protect intellectual property that encourages producing and sharing knowledge between all stakeholders.
In addition to that, technical infrastructure and innovation are necessary, but they are not enough to prove the active development of manufacturing industries and to reinforce knowledge-based industries.
These industries require appropriate legal and business environments in order to prosper and thrive in open and competitive markets. In fact, policies play a major role in determining these conditions.”
Al-Ageel reminded governments and industrial investors that “knowledge-based strategies rely on competitive advantages in different countries. Therefore, industries with competitive advantages have a wide reach and benefit from established skills. They need comprehensive political reforms to provide a vibrant work environment which reduces bureaucracy barriers, improves access to financing and regulatory and statutory frameworks, and help improving education that is the first milestone toward responding to the pressing need for human capital.”
Al-Ageel said: “Governments should play a bigger role in providing knowledge networks and public-private partnerships (PPPs). Such measures would reinforce knowledge-based industries, give priority to small and medium knowledge-based industries and boost privatization.”

Qatar plans to spend USD100bn on roads and railways as part of its mammoth infrastructure uplift

jochemgeheniau — Fri, 04 Oct 2013 07:21:02 +0000

Qatar plans to spend $100bn on roads and railways as part of its mammoth infrastructure uplift, according to Kuwait Financial Centre (Markaz ).

There is no railway network in Qatar currently. High congestion and traffic accidents have now prompted Qatar to build railways, Markaz said in a report. For this purpose, Qatar Railway Development Company was formed with almost $41bn worth rail projects in execution or planning phase. Qatar Integrated Rail Project, comprising Doha Metro as well as passenger and freight rails, is slated to cost $37bn, it said, adding other big projects include West Bay people mover and Lusail light rail transit.

Moreover, no less than half a million people are expected to visit Qatar during the FIFA World Cup in 2022, which, according to Markaz , hastened the need to speed up railways projects. Across the GCC, it said in 2012, about $160bn worth railway projects were either in construction or planning phase. On Qatar’s road infrastructure, it said though the quality of roads is “significantly” better than other emerging markets, there is “concern over the current capacity”.

In 2010, Ashghal, Qatar’s public works authority, said it plans to spend $20bn until 2015. The roads development plans got a fresh catalyst from the country’s successful bid to host the World Cup. As many as 30 highway projects valued at around $27bn are to be awarded, it said, adding among the big projects, which are in construction or planning phase, are Doha Expressway, Dukhan Highway-Eastern section, Lusail Expressway and Orbital Highway.

Highlighting that $4.9bn worth road projects were awarded in the GCC in 2012, it said the region has historically focused its investments in building roadways. Almost 100% of the roads in the GCC are paved roads in the GCC against below 75% in other emerging countries.

Feasibility studies for GCC railway project under way

jochemgeheniau — Wed, 02 Oct 2013 09:05:45 +0000

Two international firms will conduct feasibility studies for the proposed multibillion-riyal railway project that would link the six-member countries of the Gulf Cooperation Council (GCC), it was revealed at a recent meeting here of the GCC transport ministers.
Bahraini Minister of Transport Kamal bin Ahmad said the two companies would conduct technical, consultative and engineering studies. He did not specify a timetable for the start of the project.
Bin Ahmad said that Saudi Arabia and Bahrain’s ministries of finance and transport agreed to appoint the General Organization of the King Fahd Causeway as the body to choose the company that would oversee the project.
The Bahraini minister said the technical specifications for the project have been drawn up. In addition, the six Gulf states have been asked to double check the coordinates for the railway lines, junctions and stations, to ensure paying the minimum cost possible and adherence to environmental safety standards.
He said it was unlikely the project would cost $11 billion as estimated by the World Bank. “The costs are much less than what the initial studies indicated.”
Saudi Transport Minister Jabara Al-Seraisry said the six nations were focusing much attention on the project. “There is a big movement and lobbying to implement the decision of the higher council of GCC states to complete the project by 2018,” he said.
Meanwhile, Abdullah bin Jumah Al-Shalabi, assistant secretary general for economic affairs, said in a press release that the meeting also discussed marine transport issues including the safety of small and cargo ships not covered by international naval treaties, and piracy problems off the Somali coast and in the Gulf of Aden.
Meanwhile, construction is progressing on the Bridge of Love (Jisser Al-Mahabah) announced in 1999 between Bahrain and Qatar, the Bahraini minister said.

Oct 15 first day of Eid Al Adha in most Muslim countries… Holidays from Oct 14?

jochemgeheniau — Tue, 01 Oct 2013 09:03:31 +0000

The first day of Eid Al Adha is expected be on Tuesday, October 15, in most Islamic countries, according to a statement on Sunday from the Islamic Crescents’ Observation Project (Icop).
The statement says, “The sighting of the crescent should be possible in most regions of the world with naked eyes on Sunday October 6, 2013, therefore, it is predictable that day will be the 1st of Dhu Al Hijjah 1434 AH, and therefore the 10th Dhul Al Hijjah 1434 AH, or Tuesday 15th October 2013, is expected to be the first day of Eid Al Adha”.

Earlier report:

Eid Al Adha holidays: 3 days for private sector?
The UAE private sector staff can look forward to a three-day paid leave.
Eid Al Adha holidays in October are to begin, according to Islamic Affairs and Charitable Activities Department in Dubai (Iacad), on Monday, October 14 – the Waqfat Arafat day.
They will, thus, be off from October 14, Monday until Wednesday, the 16th.
Private sector employees will return to work on Thursday, the 17th.

Government Holidays
The government and federal institutions in the UAE are likely to enjoy a six-day holiday for Eid Al Adha in October.
Eid holidays will begin from October 14, Monday until Saturday the 19th, according to a calendar prepared by Iacad.
The holiday includes the day of Waqfat Arafat – the day before Eid Al Adha which will fall on (Monday) – followed by three days of Eid and a Friday-Saturday weekend.
Thus, government and federal institution staff can look forward to a six-day holiday in October. They will return to work on October 20.

GCC traffic infrastructure projects at USD109b

jochemgeheniau — Thu, 26 Sep 2013 08:01:20 +0000

DUBAI – Ongoing roads and bridges developments across the GCC are currently valued at $109 billion according to the most recent figures from business advisory and research firm, Ventures Middle East.
The UAE, second worldwide for roads quality in the latest Travel and Tourism Competitiveness Report, has investments worth $58 billion in the pipeline for roads and bridges alone, while neighbor Saudi Arabia is undertaking infrastructural improvement projects valued at $77 billion that includes roads, bridges and rail.
As the host of the 2022 Football World Cup, Qatar leads the 2013 boom with an allocation of $20 billion for roads and highways, in addition to a $35 billion rail network. The combined share of roads and bridges projects in the UAE, Qatar, and Saudi Arabia meanwhile represents more than 75 percent of the total $109 billion pot.
Oman is securing $14.8 billion on roads, rail and bridges infrastructure in the coming few years, while the Kuwaiti budget for infrastructure works is estimated at $13 billion. Bahrain meanwhile also declared earlier in 2013 that it will spend more than $2.5 billion on major road, bridge, and tunnel networks. The figures signify good news for the hundreds of transport infrastructure service providers participating at the Gulf Traffic exhibition and conference, taking place on Dec. 9 to 11, 2013 at the Dubai International Convention and Exhibition Centre. Supported by Abu Dhabi Police and SAEED, the three-day event will bring together more than 100 exhibitors from 20 countries involved in the design, build, and maintenance of the region’s road, rail, parking and public transport projects.
Richard Pavitt, Exhibition Director for Gulf Traffic, said: “The Gulf region has been at the forefront of transport infrastructure developments for several years now, and 2013 marks another big year, where dozens of new projects have been announced across the six Gulf states.”
“Gulf Traffic will bring together industry leaders from across the globe involved in road, rail, public transport and parking industries. Suppliers will be able to showcase new trends and technologies offering cutting edge insights and industry solutions.”
Now in its tenth edition, Gulf Traffic focuses on the four key transport industry sectors including traffic infrastructure, parking, road safety, and Intelligent Transport Systems (ITS).
Organized by Informa Exhibitions, the region’s foremost transport infrastructure event is also supported by ITS Arab, with the Transport Research Laboratory (TRL) signing on as Knowledge Partner.
The show returns this year with the Gulf Traffic Conference, bringing together senior-level professionals and government officials presenting the latest on road and safety management trends and global implementations of ITS.

‘Public spend drive to lead Qatar construction boom’

jochemgeheniau — Sat, 14 Sep 2013 07:59:17 +0000

Despite concerns about long lead-times for many of the planned projects across the country and the potential for rising construction costs, Business Monitor International (BMI) has maintained an “overall bullish” outlook for Qatar’s construction sector.
“A strong commitment to public spending coupled with the most attractive and stable business environment in the region will help Qatar in achieving its ambitious infrastructure development targets to facilitate the 2022 FIFA World Cup and its own 2030 Vision,” BMI said in a recent report.
BMI’s country risk team believes that “Qatar’s economic growth will remain underpinned by the non-hydrocarbons sector over the coming quarters, with robust household consumption and construction activity making up for an ongoing stabilisation in hydrocarbons production.”
The country’s fiscal policy is set to remain strongly supportive of the economy: the government has signalled its intention to ratchet up both current spending and investment expenditure over 2013-14 fiscal.
BMI expects Qatar’s overall real GDP to grow by 5% in 2013 and 4.8% in 2014. In light of this outlook and as progress on many of the major projects is finally being made, it has revised upwards its forecast for the years leading up to the 2022 World Cup.
Average real growth for Qatar over BMI’s 2013-22 forecast period now stands at 8% a year.
Ahead of the 2022 World Cup, and in line with the country’s 2030 development plan, Qatar’s spending on infrastructure is expected to reach around $150bn over the next decade, the report said.
A series of infrastructure projects are in the pipeline, including a $1bn transport corridor project in Doha; a $20bn investment in roads; $40bn plan for railways; $15.5bn new airport project; $4bn for stadiums; $8bn to be spent on a deep-water seaport; tens of thousands of hotel rooms to be built; and even a new city.
For 2013, the Qatari government has initiated a major infrastructure upgrade of the road network in the country, which as BMI said, has begun to result in a sharp increase in contracts being awarded.
For example, it said construction supervision contracts for the $4.1bn Doha Expressway were awarded in April and for the $5bn Doha Bay Crossing in May. The country is believed to have one of the busiest road markets in GCC to date, with contacts awarded so far being valued in excess of $1.8bn.
This year, the government will be inviting bids from firms for the construction of a solar power plant in the country. The plant whose construction may commence in 2014, may cost $10bn-$20bn, and will have a generation capacity of 1,800 MW. It is likely to be completed by 2018. Meanwhile, plans are also underway for the launch of a tender for a 220 MW solar energy project this year.
Supporting BMI’s long-held view about increase in tourism-related investment, the Qatar Tourism Authority, in March 2013 indicated plans to invest $20bn on the country’s tourism infrastructure. Qatar is looking to build as many as 22 new hotels (before 2017), with a total capacity of 45,000 rooms. It is expected that as many as 60,000 rooms will be required during the world cup.

New housing projects to drive Saudi realty growth

jochemgeheniau — Thu, 12 Sep 2013 09:02:48 +0000

Kuwait Financial Centre (Markaz) recently published the executive summary of its report on GCC residential real estate. The report examines the current and potential, demand and supply dynamics of the GCC residential real estate market. The report also sheds the light on the key challenges, constraints and pricing trends of the GCC residential real estate market.
Over the past decade, GCC region has witnessed rapid economic development and demographic changes. High economic growth of the region resulted in influx of expatriates which, in turn, increased the total population of the GCC. High population growth coupled with rise in per capita income fuelled the demand for residential units in the GCC.
Even though the onset of global financial crisis in 2008 plummeted the real estate activity in the GCC region, housing markets have rebounded to stable state due to efforts of governments. In fact, there is a shortfall of supply in major markets of GCC — Saudi Arabia, the UAE, Kuwait and Bahrain.
While housing market in Oman faces concerns of oversupply post financial crisis, Qatar is moving toward oversupply crisis with large addition of housing units.
Supply shortage and increasing demand for housing units is driving the house prices and rental rates in Saudi Arabia. New housing projects planned under social welfare schemes and introduction of mortgage finance by Saudi government will drive the growth of residential real estate market. Aggregate demand for housing units in Saudi Arabia is estimated to be 2.4 million units over 2010-2020.
Rebound in the UAE residential sector is the result of the government’s efforts taken to stabilize the market and promote foreign investments.
Liberal laws of foreign freehold property ownership will continue to drive the demand for residential properties among expatriates in Dubai.
Kuwait residential market is characterized by undersupply of housing units and increasing demand for investment housing units due to influx of expatriates. Limited mortgage financing options and long waiting list for land allotment hindered the construction activity and widened demand-supply gap. Total housing demand in Kuwait is expected to reach 890,000 units in 2020.
Bahrain residential property market showed signs of stabilization in 2012, after witnessing decline in rental rates for a period of two years. Low mortgage rates stimulated a surge in demand for housing units. Political unrest in the Bahrain has triggered the shift of focus from high-end villa and apartment developments to the affordable social housing units.
Qatar residential market performed well in the year 2012. The strong economic conditions in the country and continuous improvement in the standard of living in the state contributed to the increasing demand in the residential sector. The waiting list for housing loans has been cleared in Qatar by infusion of capital. Increase in expatriate population due to major infrastructure projects and preparations planned for upcoming FIFA 2022 World Cup will increase demand for residential rental properties in the coming years.
Residential real estate market in Oman suffers from excessive supply that entered market in the aftermath of highs of 2008. A total of $107 million is infused into the housing funds in 2012 and the corpus fund for housing raised to $260 million will increase the demand for housing units in Oman. Large infrastructure projects planned as part of the Eighth Development Plan would bring in large number of expatriates into the country and thus increase demand for residential units.
Increasing land prices, lack of construction finance and availability of land remain key constraints in supply of housing units across the GCC. Pent up demand caused by exceptionally long waiting list for social housing in the region is widening demand-supply gap in housing market.

Unified GCC tourist visa could be reality soon

jochemgeheniau — Tue, 27 Aug 2013 10:06:10 +0000

Work to set up a computer system to exchange data underway: Official
The Gulf Cooperation Council (GCC) is headed towards a unified tourist visa as early as 2014, according to a senior official with the committee.
“The GCC is currently striving to set up a computer system to exchange data in order to facilitate the issuance of a unified tourist visa for the entire region,” Abdullah Al-Shobaily, assistant secretary-general for economic matters at the GCC, told Saudi newspaper, Al-Hayat daily.
According to Al-Shobaily, no timeframe has been set for the implementation of this single visa for the region.
He added: “Hammering out an agreement between the six GCC member states requires the completion of several technical and other formalities, including the installation of an information exchange system between government departments in the member states.”
The agenda was discussed during a recent sitting of the Tourism Cooperation Committee of the GCC and the Gulf Tourism Committee of the Federation of Gulf Cooperation Council Chambers in Fujairah.

Economics has been cited as the driving force behind this decision with a bid to promote tourism within the six-member nations by simplifying visa procedures for tourists.
Meanwhile, Al-Shobaily was also quoted as saying that unified GCC laws against commercial fraud and consumer protection are also in the final stages, to protect the rights of consumers, manufacturers, distributors, importers and exporters, as well as the economies of the six countries.
The Gulf Customs Union, set for a tentative schedule of 2015, will combat the sale of counterfeit goods within the GCC.
“The GCC Ministries of Commerce strive to heighten awareness of consumers about their rights besides providing them with goods and services of high quality at reasonable prices. The rights of traders and investors to make a reasonable profit will also be protected,” he said.

Metro projects look daunting

jochemgeheniau — Fri, 16 Aug 2013 07:55:36 +0000

While the contractors working on the Riyadh and Doha metros may be facing unknown risks, the benefits make them worthwhile

Construction is very different from manufacturing. Instead of striving for perfection through repetition, it involves a team of people who have never worked together before making something that has never been built before. Construction is inherently risky and the bigger the project is, the bigger the risks are.

The Riyadh Metro and Doha Metro are two of the region’s biggest schemes. In Riyadh, contractors will build 176 kilometres of metro lines within five years – an undertaking that even seasoned metro builders say has never been taken on before. The Doha Metro also involves the construction of multiple tracks. Both schemes face a multitude of challenges ranging from land acquisition to traffic management and manpower to financing.

While these risks may be new for local players that have had few opportunities to work on metro projects in the region, they are familiar ones for international construction companies. These firms were prepared to compete aggressively for work on both metro schemes since other markets, most notably southern Europe, have offered few major opportunities for contractors in recent years.

With the majority of the metro work now awarded, the focus will shift to delivery and the consortiums that won the contracts will find out exactly how accurate their predictions were as they discover the amount of risk involved in building metros in cities such as Riyadh and Doha.

However, with risk comes reward. The multibillion-dollar deals will generate significant cash flows for work-hungry contractors and will create thousands of job opportunities for construction professionals and close to 100,000 jobs for labourers in both cities.

More importantly, the two schemes will transform two of the region’s capital cities into modern metropolises, and for the residents of Riyadh and Doha, that is the greatest reward of all.