Industries Qatar expound yesterday that they are setting up a QAR1 billion ($274.8 million) property firm with partners by allowing it to tap growth in the country's real estate market.
A multinational (Industries Qatar) operates mainly in the chemicals and steel sectors, owned one-third of the new company while Qatar Real Estate and Kuwaits's Al Koot Insurance and Reinsurance each has 33%.
The real estate firm, which will start operations in the first quarter, would build, manage, buy and sell residential, commercial and industrial towers, Industries Qatar said.
"The move into real estate is positive because it's an indication of the company's high liquidity surplus and gives the impression they have reached their full capacity in their core field," said Ahli Bank international brokerage head Samer Al Jaouni.
Qatar is the world's biggest exporter of liquefied natural gas and its economy could grow 9.9pc this year, the fastest pace in the Gulf region, a Reuters poll of 12 economists showed last month.
The Gulf state is investing record revenues from energy exports to develop infrastructure, tourism and financial services.
The country is facing a shortage of properties, a key contributor to inflationary pressures.
Annual inflation in Qatar accelerated to 13.73pc at the end of September, just below a record, as accommodation costs in the Gulf state jumped nearly 29pc.
Qatar has the world's third-largest reserves of natural gas, which Industries Qatar uses to help make its chemicals and fertilisers.
Profit growth at the firm's Qatar Steel, Qatar Petrochemical and Qatar Fertiliser helped Industries Qatar post its second consecutive record profit in the third quarter.
Shares of Industries Qatar rose almost 1pc after the news before trading flat.
"The impact on its shares would not be immediate, but I expect them to rebound about 5pc more starting from the second part of January," Jaouni said.
