The Gulf Projects Index remained largely unchanged in the week ending 10 April as the region’s largest markets stagnated. Significant expansions in Bahrain, Qatar and Iran were not enough to lift the overall index.

Bahrain led the way with growth of 1.5 per cent. This was driven by the submission of proposals for the retendered $1bn Askar waste-to-energy scheme, which had been cancelled in 2014 before reaching financial close. The size of the project has pushed Bahrain into the position of being the largest 12-month market gainer, with year-on-year growth of 15.1 per cent, or $8.4bn.

Iran recorded the second-largest increase, of 1.2 per cent or $2.2bn, after the Lausanne agreement paved the way for a nuclear deal and the potential easing of sanctions currently crippling the country’s economy. Several megaprojects are being revived, primarily in the oil and gas sector, which is in need of modernisation.

Qatar’s projects market climbed by 0.9 per cent as Doha continues to invest in infrastructure in the run-up to the 2022 World Cup.

The Saudi projects market, the region’s largest, contracted by 0.3 per cent due to the completion of major power and water schemes. New infrastructure and residential projects were not enough to bring the market back up, reflecting a slight slowdown since the fall in oil prices in late 2014.

The UAE’s projects market showed no change as lower oil prices cause investment decisions to be reconsidered. This is despite the announcement of a $299m steel pipe plant project at Khalifa Industrial Zone Abu Dhabi (Kizad).

Projects growth has slowed across the region since 25 November 2014, when the market peaked at $3.4 trillion before falling to $3.3 trillion.