DOHA SOARING shipment and storage costs in Qatar are responsible for the high prices of building materials in the country, compared to Saudi Arabia or the United Arab Emirates, according to General Manager of Dyarco International Group Ullatil Achu.
Dyarco International Group, an affiliate of Al Faisal Holding, is the distributor of Danube building material in Qatar.
Talking to Qatar Tribune at the opening of the second Danube Building Materials Showroom at Souq Haraj (Najma) recently, Achu said, “The cost of import is higher in Qatar than in the UAE and Saudi Arabia. Building materials to Doha from India comes via Dubai, which leads to an increase in the shipment cost.
Besides, storing charges here are also much higher than in other countries due inadequate number of warehouses and massive construction activities going on. ” According to the latest MEED report, building materials in Qatar cost, on an average, 12 percent more than their prices in the UAE and 4.5 percent more than in Saudi Arabia.
While the average tariff per tonne of rebar in Qatar was 32 percent higher than in the UAE, the price of a 50 kg bag of cement was 3.5 percent higher and the cost of concrete 28.6 percent higher, the report adds.
The report, however, indicates that rapid growth in the construction sector in the wake of Qatar winning the right to host the FIFA 2022 World Cup is responsible for the escalation in building material prices.
Managing Director of Danube Building Materials Anis Sajan pointed out that, though prices of building materials were determined by the market structure in a particular country, Danube would keep its prices competitive in Qatar to attract customers.
“Danube has grown rapidly since the opening of its first showroom in Mesaimeer area one-and-ahalf years ago. Therefore, we realised the need for another showroom in the heart of Doha so that people do not have to go to Mesaimeer to buy our products”, he said.
The showroom was inaugurated by Sheikh Badr al Wahab, Partner, Dyarco, Ullatil Achu and Anis Sajan.