Qatar is among countries to see a marked rise in construction sector risk which has hit its highest level globally in almost three years, according to a new report.
The worsening risk profile for Qatar reflects the deterioration in the country’s fiscal position owing to low prices for crude oil, and the subsequent negative impact this will have on infrastructure investment, Timetric said in its Q2 2016 Construction Risk Index (CRI).
The index is designed to provide a standardized view of the underlying degree of country-level risk facing the construction sectors in 50 major developed and emerging markets around the world.
In total, 34 countries, in both developed and emerging markets, suffered a deterioration in their risk profiles in the Q2 update, Timetric said.
“Although crude oil prices have recovered from dropping to below US$30 a barrel in January 2016, prices are still at low levels, and this continues to have a negative impact on the economies and construction industries in major oil-exporting countries, particularly those in the Middle East,” the report said.
Qatar, the highest ranked GCC country, fell three places to 16th in the table. The UAE fell two places to 22nd while there was no change for Saudi Arabia in 25th spot.
The UK tumbled six places to 15th in the rankings, a result that follows the outcome of the UK’s referendum on EU membership in June.
Sweden remains top-ranked, supported by strong economic growth, but its fast rising property market continues to prompt concerns of overheating, and the country’s risk score has risen by 1.5 points.
The top four countries in the CRI, namely Sweden, Switzerland, the US and Singapore, all recorded an upturn in risk in the latest update.