Bahrain continues to stall growth

08 August 2011

Decrease in the value of the country’s projects market results in the Gulf projects index falling

Contract awards

Biggest contract: $1.5bn

Awarded to consortium led by Turkey’s TAV Airports Holding Company for Medina airport expansion

$2.2bn: Value of major contract awards

4: Number of contracts awarded

A further decrease in the value of Bahrain’s projects market has resulted in the Gulf projects index falling by 0.1 per cent for the week up until 9 August.

The continued political uncertainty in Bahrain led to the value of its projects market dropping by 5.4 per cent.

Bahrain’s projects market has now fallen from $80.6bn at 1 March to $56.6bn for the first week in August. The main reason for this was the completion of the $2bn Addur IWPP and the decision to put a $1bn Science and Technology Park project on hold.

Project updates
 Project NameProject Name
BahrainAddur IWPPAddur IWPP
UAEJebel Ali M Power PlantJebel Ali M Power Plant
IraqSulphur Recovery Unit/Visbreaker UnitSulphur Recovery Unit/Visbreaker Unit
BahrainBahrain International Airport UpgradeBahrain International Airport Upgrade
Saudi ArabiaRas al-Zour Residential Village PackageRas al-Zour Residential Village Package
For further information visit www.meed.com/meedprojects

It was not all negative for the GCC projects market, which accounts for about 73 per cent of the total Gulf projects index. Oman and Saudi Arabia both recorded growth of 0.3 per cent and 0.1 per cent respectively.

Oman’s growth can be attributed to the launch of five new projects worth $565m and the revival of a Block 40 oil and gas exploration scheme. The highest-value new project added to its index is a $300m LPG (liquefied petroleum gas) Extraction Plant in Salalah.

Saudi Arabia’s projects sector growth was the result of 20 new projects worth $1.2bn being added to its index. The vast majority of these, 16, were university projects for the Higher Education Ministry.

Upcoming tender deadlines
 ClientContractSubmission date
OmanMinistry of Transport & Communications  Batinah Expressway (package 2)22 August
IraqLukoilTwo central processing facilities31 August 
QatarQatar Rail CompanyDoha Metro 11 September
KuwaitHealth MinistryAl-Amiri hospital11 September
UAEAbu Dhabi Airports CompanyMidfield Terminal11 September
For further information visit www.meed.com/tenders

Outside the GCC, Iraq continued its impressive growth as the value of its projects market grew by 0.3 per cent. The main reason was the addition of a new $800m Sulphur recovery unit to its index. Iraq maintains its position as the Gulf’s fastest growing projects market, recording a year-on-year increase of 49 per cent.

The UAE has witnessed the biggest decline in its projects market over the past year, with the value of projects falling by 34 per cent.

The value of the overall Gulf projects market is 14 per cent down on the same period last year.

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