Large declines in Iraq and Iran drag down value of regions projects market
The Gulf Projects Index dipped by 0.2 per cent in the week ending 23 September, with the regions non-GCC members registering strong declines.
Iraq saw a fall of 4.3 per cent, as more major schemes were put on hold due to fighting between the radical militant group Islamic State in Iraq and Syria (Isis) and Iraqi armed forces backed by an international coalition.
The Eastern Route of Iraqs $7bn High Speed Railway Network was one of several large projects put on hold during the week.
|Project Name||Project Status|
|Saudi Arabia||Prince Abdulaziz bin Mousaed Economic City||Revived|
|Qatar||Al-Sejeel petrochemical complex||On hold|
|Iraq||High Speed Railway Network: Baghdad-Mosul line||On hold|
|UAE||Dubailand: Mudon||Budget changes|
|For further information visit www.meed.com/meedprojects|
The long-term rail scheme is planned to link Baghdad with Mosul. The main construction contract was set to be awarded in December 2020 and project completion was expected in 2040. Now, the projects future looks uncertain. Isis took control of Mosul in June and has since made it one of its strongholds.
Irans projects market saw a decline of 3 per cent as several oil and gas projects were put on hold.
|Upcoming tender deadlines|
|Kuwait||Ministry of Electricity & Water||Overhead lines various locations||Sep-14|
|Saudi Arabia||Mecca Municipality||Mecca Metro: phase 1||Oct-14|
|Dubai||Dubai Electricity & Water Authority||M station expansion||Oct-14|
|Oman||Oman Power & Water Procurement Company||Salalah 2||Oct-14|
|UAE||Nakheel||Palm Hotel tower||02-Nov|
|For further information visit www.meed.com/tenders|
In the GCC, only Qatar saw its market shrink this week, with a drop of 1.9 per cent.
This was due to a number of large schemes being put on hold, including the $7.4bn Al-Sejeel petrochemical complex.
Saudi Arabia, the regions biggest projects market, was the weeks top gainer, with a 1.3 per cent jump. The expansion was supported by several new housing schemes that were announced over the week.
The UAE projects market also grew, finishing the week up 1.1 per cent. One of the new schemes helping to buoy the countrys projects market is the local Damac Properties plan to construct Akoya Oxygen, a mixed-use development in Dubai.
The expansion in Saudi Arabia and UAE helped the GCC region to finish the week up by 0.7 per cent.
$26.5bn Combined decline in Iran and Iraqs projects markets
10 Total number of Iraq projects put on hold
31 Total number of new projects in the UAE
For further information visit www.meed.com/contracts
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