Larsen & Toubro Ltd has secured a contract to build a $135 million stadium for Qatar’s 2022 World Cup, a boost for the Indian firm facing a slowdown in its key Middle East market due to low oil prices. As part of a joint venture, L&T will serve as a contractor building the 40,000 seat Al Rayyan stadium. L&T is one of India’s biggest industrial groups and is involved in infrastructure projects in the Gulf including the construction of a metro line in Doha.
In May the company’s group executive chairman said L&T was bidding for projects in the Asia and Africa to counter a slowdown in Middle Eastern markets which have been hurt by declining oil prices. Qatar, the world’s top liquefied natural gas exporter and one of the richest countries per capita, faces a 46.5 billion riyal ($12.8 billion) budget deficit this year because of the continued lower oil and gas revenues.
The Gulf country cut planned spending on building healthcare facilities by about two-thirds in 2016 following the drop in energy prices but expenditure on its World Cup-related projects remains unchanged. Al Rayyan stadium will include cooling technology to help with Qatar’s fierce temperatures.