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Qatar Building Materials Costs To Surge Ahead Of 2022 World Cup

Industry experts said that the cost of construction materials in Qatar is "likely to jump as the host nation intensifies infrastructure building" ahead of the 2022 World Cup, and other building projects could finish late as a result, according to Matt Smith of REUTERS. Qatar is "set to spend" more than $200B on the football tournament as part of a '30 development plan. Corruption allegations at FIFA have "put renewed media focus on Qatar," although Qatari officials said that they are "confident the 2022 tournament will go ahead as planned." The high level of construction activity -- predominantly in the capital Doha -- is already "making it hard for contractors to get workers and materials to sites." Qatari engineering consultant Arcadis Partner Nick Smith said, "The pinch point will likely be in 2017-19 when the construction work peaks, but the government can take measures to mitigate that." He "predicted materials inflation" would be about 3% in '15. Infrastructure specialist AECOM Dir Steven Humphrey said that materials inflation could "surge" to 15-20% from '18. Qatar "witnessed a similar phenomenon ahead of hosting the Asian Games" in '06. Qatar will "import many of the building materials it needs" from neighboring UAE. Doha's limited port facilities mean these goods must "travel on small barges or via truck through Saudi Arabia, adding to supply chain pressures." Commodity prices have "dipped, helping to mollify materials inflation in the short term" (REUTERS, 6/24). 

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