Foreign companies hoping to win lucrative infrastructure projects in Qatar will have to reconsider the approach they take to the tender process, according to experts assembled for the MEED Qatar Infrastructure Projects conference, held at the Jumeirah Carlton Tower Hotel in London last week (2-5 July).
There was a general consensus among speakers at the event that international contractors need to be more strategic about their business development practices in the Gulf state and act more transparently throughout the bid phase to improve tender conversion rates.
Stuart Curtis, group managing director at The Links Group, said: 'With more than $70 billion worth of major projects to be awarded until 2022, Qatar remains one of the most robust global markets for construction companies. However, tendering for the major contracts will require more transparency on the part of contractors as the Gulf state seeks to appoint partners that can satisfy the technical and financial requirements of each project, while showing their genuine commitment to the National Vision 2030.'
During the four-day conference, British companies were given an in-depth insight into all areas of Qatar's non-energy economy, as the country continues to forge ahead with its comprehensive investment programme.
The Links Group says Qatar's shift towards transparency can play to British companies' advantage. Mr Curtis said: 'Qatar is undergoing a mindset shift to get what they want, on time, with quality and to the right specification. This move towards a transparent tender market is not necessarily an issue for larger British contractors who already have to comply with strict regulation and due diligence policies mandated by their government and company boards.'
However, The Links Group also says foreign companies that establish the correct commercial presence on the ground in Qatar will be better placed to bring more local market intelligence to their tender submissions.
Wayne Merrick, general manager - Qatar, The Links Group, said: 'Foreign companies often like to wait until they win a contract before incorporating a commercial presence overseas. But this approach no longer carries favour with Qatari clients. They want to know the foreign company is committed to the long term development of Qatar and are serious about investing in their country's growth.'
Albert Assad Maloof, managing partner, Infrastructure Advisors Middle East LLC, added: 'Often the reason why some companies are unsuccessful in the bid is because they don't know the environment or they don't have the right local partner. It is so important to get established correctly on the ground.'
