The Financial Health of Construction Companies in Qatar: A Case Study

This paper aims to assess the impact of financial factors which have a direct bearing on the success or failure of the construction companies. This paper is part of the main study which aims to identify key areas of strategic issues for construction companies in Qatar by using 6S strategic management framework. This research adopts a combination of primary and secondary data using a questionnaire survey involving 115 companies holding 99 per cent of the market share in Qatar. In this case study, a total of 17 financial ratios were employed as performance measurement tools. Interpreting these ratios, typical median (industry average) and typical range were used to compare a companys average ratios. The analyses reveal that most of the construction companies do not have sufficient financial resources, lack of monitoring system for the cash flow, and project costs. Without effective strategic management practices, construction companies are putting their self-up to failure. In addition to comparing the financial health of construction sector, this study aims to fill in the gap by creating basic benchmarks for 17 ratios applicable to construction sector in Qatar.