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Wednesday, 25 June 2014


The valued information and structures already in place for success in Qatar

Naturally the Qatari construction industry continues to attract new entrants into its market from all over the world. However for companies that are already working in Qatar, what happens next is just as important as winning that first contract. None the less, what is common to both new entrants and companies already in the Qatar construction market, is the significance of networking – equally as key in deliberations concerning how to establish in a country or what sort of base to setup. Vital contacts made through exhibitions and trade associations are essential marketing elements towards being awarded with a contract in Qatar. This Qatar Construction Review Special Report is inspired by a specialist French engineering company.
  
  
The chamber of Commerce and Industry (CCI) Seine et Marne was created in 2004 and figures among the top 10 official chambers of commerce in France. Its primary role is to accompany firms at each stage of their development, whether starting up, expanding company activity or wining contracts in new international markets. In 2012, the CCI ranked Qatar as one of their top priorities embarking 11 specialised French companies, in collaboration with UBIFRANCE (the French Agency for Export promotion), for a visit to seek new business opportunities in the Middle East. Then in 2013, the Qatar Chamber signed an agreement with MEDEF International (Movement of the Enterprises of France) to launch the Qatari French Joint Business Council. Shortly after this a contract was signed between QDVC (Filiale Vinci Qatar Diar) and Qatar Rail worth €1.5 billion, over a 5 year project involving 3000 employees.
  
  
EURETEQ, a company specialised in pipeline engineering, is one of the French companies that was assisted by the trade associations. Mr. Francois Clement, Export Manager at EURETEQ said, "In a new country you need to create and develop your network. You need to generate your contacts and find your partners and clients. UBIFRANCE has been supporting us with advice in how to find these potential clients and partners. I have also met a lot of people through the Qatari French Business Club (QFBC). So definitely it is useful to be part of a trade organisation". Mr. Clement was asked about what were the important first steps for companies seeking entry into the Qatari market and he underlined the importance of utilising structures that were already in place, for example with the economic services of embassies, trade associations and industry events.
  
  
EURETEQ won their first contract in Qatar in 2010 due to their specialist expertise and previous partnerships with a major pipeline operator, world leader in industrial gases. "We worked with them to develop their pipeline structure in Ras Laffan and were awarded a contract since we had a long history of collaboration with this group in Europe for developing their network of industrial gas facilities. They knew our expertise in pipelines", states Mr. Clement. Other construction companies in Qatar have used this same route to gain Qatari work.
  
Following that, EURETEQ's work in Ras Laffan gave them a base and a platform in Qatar but as well the project added a big value to the company. Mr Clement noted that, “We developed an expertise in managing projects (in Ras Laffan), adding value and expertise towards others projects. This gave us unique experience for other contracts, in particular in the rules and regulations of working in this particular area."
  
  
EURETEQ is now well established in Qatar and regularly works with large engineering companies in their specialist area of pipeline expertise, facilitating the completion of complex elements within certain projects. Indeed, Mr. Clement also explained how the company had attended other trade exhibitions in the Middle East to widen their client base. He noted how such events were an ideal place to meet potential clients and partners. Further, it was clear that time spent on the proper assessment of each contact made through attending industry events was an important aspect to realising the business opportunity. 
  
Visiting trade shows and exhibition will give one an excellent overview of the buyer and seller markets and attendance is a crucial first step for those vital contacts. Mr Clement stated that EURETEQ had “found partners and made a lot of contacts exhibiting and attending trade shows. It is a good way to get exposed".
New international companies in Qatar should liaise closely with their respective government trade organisations in Qatar. Further information can be obtained from www.qatarconstructionreview.com .

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The necessity for multinational construction expertise in Qatar

This year has been cited as a period of further substantial growth for the Qatar construction projects market due to planned infrastructure spending by the Qatari government. It is also a key phase because the country is undertaking a number of mega-projects in order to realise its National Vision 2030 as well as preparations for the FIFA 2022 World Cup. Alongside that, there has been a diversification of Qatari investment at home and more significantly abroad, factors that can undoubtedly underpin confidence in the construction sector and its continued expansion. Further, this year will also see the upgrading of Qatar by the International equity index compiler S&P Dow Jones Indices to emerging markets status in September. These factors, along with Qatar's leading position in global LNG supplies sustaining planned government expenditure, mean that the Qatar projects market is looking very strong for several more years. In this key phase of the country's infrastructure progress, Qatar Construction Review looks at international expertise from Germany and Italy in key infrastructure projects.
Last week saw the Qatar General and Water Corporation (KAHRAMAA) award German electronic engineering multinational Siemens a significant contract to further develop the country's power supply system. In an agreement worth $253 million, Siemens will deliver gas-insulated switchgears for the first phase of the expansion project, which also involves the construction of nine turnkey substations in the region. The project is scheduled to be completed within the next 26 months. Mr Bernhard Fonseka, CEO of Siemens WLL Qatar stated, "Siemens has been a long-standing partner to KAHRAMAA and this contract strengthens our cooperation further". He went on to note that, "This project will contribute to improving the power infrastructure in and around Doha, helping the government meet its requirements for achieving its National Vision 2030."
Siemens has been constructing turnkey substations in Qatar since 2005 and has almost 2,000 high-voltage GIS bays installed in the country. Moreover, the company has been operating throughout the Middle East for many years, providing their infrastructure expertise in eco-friendly power generation and water purification plants to government and commercial organisations. Siemens has contributed to economic development in the region and has enhanced quality of life, winning a raft of international industry awards for their work in the region. Indeed they are Europe's largest engineering company and aside from automaton, the conglomerate operates in the sectors of industry, energy, transportation and healthcare.
Almost half of all contracts awarded in 2013 involved the Doha Metro project (almost $8bn alone), with contractor expertise recruited from leading multinationals in joint ventures to meet government requirements.
International contractors should also look to partner with local companies and make consideration for this in tendering and proposals.
Once again however, German expertise was on hand as the Infrastructure & Cities division of Siemens returned to the tram market with the Avenio 100 percent low-floor tram and next year should be completing an 11.5 km catenary-free tramway in Doha. That contract is reportedly in excess of 100 million euros and was awarded by the Qatar Foundation. The project is part of the plans to transform Qatar into a knowledge-based society, and involves the supply of signalling and communication systems, electrification and provision of depot equipment and nineteen Avenio trams. This project and the development of Doha's power supply by Siemens, underline the importance of worldwide expertise for the overall success Qatar's construction plans.
The capabilities of another German multinational – Herrenknecht will also be instrumental in the construction of Doha's metro system after having been awarded a contract by the Qatar Railways company (Qatar Rail). World leading experts in infrastructure tunnelling, the company will be providing 15 high-tech tunnel boring machines to Qatar Rail and their joint venture partners QDVC, GS Engineering & Construction and Al Darwish Engineering.
Last month a Qatari delegation led by HE Jassim Saif Ahmed Al Sulaiti, Minister of Transport visited the Herrenknecht plant in Schwanau to see the first tunnel boring machine for the Doha metro project accompanied by the former German Chancellor Dr. h.c. Gerhard Schröder.
HE Minister Jassim Saif Ahmed Al Sulaiti underlined the huge significance of this project for Doha and Qatar, "Qatar holds its hopes and aspirations for the future in accordance with the Qatar National Vision 2030. One of the most important elements in fulfilling this vision is the infrastructure of the country itself. As such, we have allocated tremendous resources and a generous budget for upgrading Qatar's infrastructure, to which Qatar Rail's Doha Metro project is also included". Engineer Abdulla Abdulaziz Turki Al Subaie, Managing Director of Qatar Rail was very confident "in Herrenknecht's abilities to deliver exceptional quality products", adding that their attention to detail was why they had been awarded the tunnel boring machines contract.
The Doha metro project is a vital part of Qatar's infrastructure plans for the World Cup. Fans will use it to travel between the 64 matches. Different to most metro projects, usually constructed line-by-line, Qatar is planning to build three lines of its network concurrently in order to guarantee that by 2019 it has 111km and 37 stations ready, including the Education City station, which will connect with the new national rail line. Another 152km of lines are set to follow with a further 56 stations by 2026, in line with the Vision 2030. Project Qatar is always very well represented internationally, however this year one of the largest delegations is from Italy – one hundred companies from there alone. The Italian Chamber of Commerce has been very proactive in seeking opportunities for Italian firms. The country's largest construction company is also involved in the Doha metro project. Qatar Rail awarded the Salini Impregilo Group a contract valued at €1,803 million to work on the Red Line North. They are a world leading contractor with over 80% of the company's revenues coming from abroad. Their part in the Doha Metro project is scheduled for completion over 60 months and involves the excavation of two parallel tunnels, one in each direction, almost 11.6 km long with an internal diameter of approximately 6.17 m. There is no doubt that international expertise will deliver a state of the art metro system to Qatar, and certainly there will be new global entrant into this exciting market. Construction companies in Qatar have already began laying the foundations.