黑洞社区

UK contractors operating in Qatar are keeping a close eye on Doha鈥檚 diplomatic crisis, with concerns growing about its impact on the country鈥檚 vast construction programme.

Bahrain, Egypt, Saudi Arabia, the United Arab Emirates, Yemen and the Maldives cut diplomatic ties with Qatar on Monday this week over its alleged support of Islamist groups and its relations with Iran. Saudi Arabia has closed Qatar鈥檚 only land border, a vital supply route for building materials and other key imports. Major construction projects underway include the Doha Metro and venues for the 2022 World Cup.

Interserve operates through seven associate and subsidiary companies in Qatar, and a spokesperson said: 鈥淚t is too early to predict the implications of the restrictions that have been put into place. However, we are monitoring the situation closely and will take any mitigation measures if and when they are required.鈥�

Carillion has worked in the Gulf country since 2009, and a spokesperson said: 鈥淲e are continuing to monitor the situation and keeping in touch with our people in Qatar on a regular basis.鈥�  

A senior industry professional who has worked in Qatar for the past five years told 黑洞社区 that any extended border closure would 鈥渁lmost certainly鈥� have an impact on construction projects.

鈥淭he biggest problem may be feeding the workforce,鈥� he said. 鈥淪ome 40% of food products come across the Saudi border, and a food shortage could have a massive impact on construction labour 鈥� there are over 40,000 workers on the Doha Metro scheme alone. The situation is exacerbated during Ramadan when there are restrictions on foods that can be eaten.鈥�

The source said that 鈥渁 high proportion of key materials like cement and aggregates鈥� used in Qatar comes across the Saudi border.

鈥淥n the Doha Metro, subcontractors were required to stockpile materials like sand and cement for six months,鈥� he explained. 鈥淪o contractors will not worry about materials if it鈥檚 a short dispute, but if it drags on for three to six months, they鈥檝e got serious problems.

鈥淭heir alternatives include bringing in materials by sea, though that has major cost implications.  Oman, which has not broken diplomatic ties, has major gypsum and cement resources. Qatar may even turn to Iran, with whom it maintains a close relationship 鈥� which of course is part of the reason for this crisis.鈥�

Contractors may be covered for any delays by 鈥榝orce majeure鈥� clauses in their contracts, the source added. 鈥淢ost standard contracts in the Middle East region will have clauses to cover wars or borders disputes,鈥� he said. 鈥淭hey may not be compensated for delays but programmes can be extended without penalty.鈥�

In 2014, another diplomatic dispute blew up over Qatar鈥檚 support of an Islamist group, the Muslim Brotherhood, with Bahrain, Saudi Arabia and the United Arab Emirates withdrawing their ambassadors. The situation was resolved nine months later.

鈥淭hat row was less serious, and no borders were closed,鈥� said the source. 鈥淭his dispute looks much more worrying.鈥�

The Doha Metro is currently on schedule for completion in summer 2019. Main civil contracts will be completed June 2018 with first trains on running tests by early 2019. With tunnels complete and most heavy civil works nearing completion potential impact is on materials for station fit-out.

The first of the World Cup stadiums was completed last month.

FIFA issued a brief statement shortly after the diplomatic storm broke, saying it was 鈥渋n regular contact with the Qatar 2022 Local Organising Committee and the Supreme Committee for Delivery and Legacy handling matters relating to the 2022 FIFA World Cup鈥�, adding that it had 鈥渘o further comments for the time being鈥�.