In the week ending 26 August, Iraqs projects market saw its biggest decline since 14 February 2012, dropping 5.6 per cent as concerns about fighting in the country wiped $26.6bn off its value.
Iraqi armed forces are struggling to push back the Islamic State in Iraq and Syria (Isis), which has seized roughly a third of the countrys territoriy, including the second-largest city Mosul. Isis remains entrenched despite bombing raids carried out by the US air force and shipments of arms to Kurdish forces in northern Iraq.
|Project updates this week|
|Project name||Project status|
|Iraq||Iraq strategic crude oil export pipeline: Haditha-Aqaba||On hold|
|Kuwait||Kuwait national rail road||Study|
|Kuwait||Olefins 3 project||On hold|
|Oman||Reverse osmosis plant at Sohar industrial port||Main contract bid|
|UAE||Abu Dhabi polymer park||Complete|
|For further information visit www.meed.com/meedprojects|
The ongoing conflict has led to a raft of projects being put on hold, one of the largest of which is the crude pipeline from Haditha in Iraq to Aqaba in Jordan.
Design engineering for the scheme was due to be completed by September, but the project is now on hold due to large areas of the proposed route being held by Isis forces.
The contraction in Iraqs projects market pushed down the Gulf Projects Index, which finishned the week 0.7 per cent lower.
|Upcoming tender deadlines|
|Oman||Oman Power & Water Procurement Company||Qurrayat water project||08-Sep|
|Saudi Arabia||Mecca Municipality||Mecca Metro: phase 1||08-Sep|
|Oman||Transport & Communications Ministry||Batinah Expressway: package 8||22-Sep|
|Kuwait||Ministry of Electricity & Water||Overhead lines various locations||30-Sep|
|Dubai||Dubai Electricity & Water Authority||M station expansion||15-Oct|
|For further information visit www.meed.com/gulfprojectsindex|
Elsewhere in the Gulf, most markets performed fairly strongly. Aside from the UAE, which saw a 0.4 per cent decrease, all other countries avoided declines. Kuwait led the gains, climbing 1.9 per cent, as projects were announced across the oil, transport and water sectors.
Oman also saw significant growth, increasing by 1 per cent with the announcement of $1.8bn-worth of new projects, including new water desalination plants in the Sohar industrial area.
Saudi Arabia and Qatar had slight expansions, increasing by 0.1 per cent. Bahrain, the Gulfs smallest projects market, saw growth of 1.4 per cent.
The UAEs decline came as several schemes were completed and others were put on hold.