GCC projects fall for a fourth successive week, with only Bahrain and Saudi Arabia showing notable growth
Contract awards 15 December 2010
Biggest contract: $800m
Awarded to South Korea’s GS Engineering & Construction for the engineering, design, procurement and construction for an ethylene vinyl acetate plant in Saudi Arabia
$901m: Value of major contract awards
5: Number of contracts awarded
For further information visit www.meed.com/contracts
The value of projects under way in the Gulf dropped for a fourth straight week on 15 December as the total value of projects in the region planned or under way fell by 0.8 per cent to $2.84 trillion.
Overall, $23.68bn of projects fell off the index with 24 projects worth $4.23bn completed in the week, while 17 projects worth $16.33bn were put on hold. Nine new projects worth $3.12bn were added to the index.
With a decline of 0.9 per cent in the value of its projects, the GCC accounted for most of the drops. Fresh from winning the rights to host football’s 2022 World Cup, it was ironic that it was Qatar’s market that performed most poorly, falling by 2.3 per cent as major project budgets were revised.
|Project updates 15 December 2010|
|Project Name||Project Status|
|Iraq||Sadr City Rebuilding Project||Construction|
|Kuwait||Kuwait Airport Expansion: Phase I||Tendering|
|Iran||Mashad to Chabahar Railway Line||Construction|
|For further information visit www.meed.com/meedprojects|
The other major decline was registered in the UAE, where the index fell by 1.9 per cent. The UAE’s market was driven down by 14 projects, mostly in the real-estate sector, now being considered by MEED Projects to be on hold.
The largest scheme now on hold is Abu Dhabi’s $15bn Mina Zayed development. The project had been in the planning stages since 2005, but had struggled to move forward as the project’s developer, the local Aldar Properties, continues to struggle in a market where real-estate prices have fallen by up to 25 per cent since late 2008 and off plan sales have dried up.
|Upcoming tender deadlines 15 December 2010|
|UAE||Centre of Waste Management - Abu Dhabi||Integrated waste management project||23-Dec|
|UAE||Abu Dhabi Polymers Company (Borouge)||Specialist plastics plant||23-Dec|
|Oman||The Wave||Kempinski Hotel||2-Jan|
|Kuwait||Kuwait University||College of Science and Faculty Club||11-Jan|
|Saudi Arabia||Saudi Electricity Company||Qurayyah independent power project||28-Feb|
|For further information visit www.meed.com/tenders|
The Omani market also witnessed a slight dip of 0.1 per cent.
Balancing the declines in Qatar and the UAE was Bahrain, which recorded growth of 1.3 per cent, and Kuwait and Saudi Arabia, which posted minor gains of less than 0.1 per cent.
Outside the GCC, Iran’s project market fell by 0.7 per cent and Iraq’s index rose by 0.1 per cent.
Compared to last year, the Gulf Index remains in positive territory with overall growth of 4.8 per cent.
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