Strong growth in Bahrain’s projects market resulted in the Gulf projects index growing by 0.3 per cent to $2.6 trillion in the week up to 10 January.

After a difficult year for Bahrain’s projects sector, which saw the value of its market fall by more than $20bn, it recorded an increase of 12.7 per cent as the $6.6bn Water Garden City project in Manama was revived.

In the same week, the state signed project agreements with a private developer for the $550m first phase of its public-private partnership housing scheme.

The UAE was the only other GCC state to record noticeable growth. The total value of projects planned or under way in the UAE grew by 0.1 per cent to $588bn. The main reason for the rise was the revival of two real-estate projects worth a total of $1.9bn and seven new projects worth a total of $538m joining the index.

Oman’s projects index recorded the biggest drop in the region, with the value of its projects sector falling by 1.4 per cent to $117bn. The fall can be attributed to two real-estate projects worth a total of $1.5bn being put on hold.

Saudi Arabia, the region’s biggest projects market, recorded a drop of 0.1 per cent as three projects worth almost $800m were removed from its index.

Outside the GCC, Iran’s projects market recorded growth of 0.3 per cent as a $400m petrochemicals project was revived and a new $160m pipeline project was launched.

Iraq’s projects sector remained flat, but it retains its position as the region’s fastest-growing projects market, recording a year-on-year growth of 41 per cent.

The Gulf has recorded a positive start to 2012, with the value of the total projects market up by almost 2 per cent on the same period last year.