In the week ending 9 September, the Gulf Projects Index climbed 0.1 per cent as expansion in Saudi Arabia more than compensated for the continuing contraction of Iraq’s projects market.

Saudi Arabia, the region’s biggest projects market, grew by $3.4bn, an expansion of 0.3 per cent as several new large-scale projects were announced.

Among the schemes helping to buoy the market is Saudi Aramco’s $3.5bn Ajyal Residential project, which will see 2,700 villas constructed along with associated facilities in the city of Dhahran.

Prequalification documents for the construction contracts are currently being evaluated. The main contract is expected to be awarded in March 2015 and completed in March 2025.

The only fall of the week on the Gulf Projects Index was in Iraq, which saw a drop of 0.4 per cent. Iraq has seen $72.1bn wiped off its projects market since extremist group Islamic State in Iraq and Syria (Isis) swept through the country in June seizing control of Mosul, Iraq’s second-biggest city.

The failure of US-backed troops to make inroads in their battle to push back the jihadists has led to billions of dollars-worth of projects being put on hold.

Elsewhere, the region’s second-biggest market, the UAE, remained flat finishing the week at $740.5bn after seeing a 0.4 per cent decline the previous week.

Qatar’s market rose 0.1 per cent, leaving it up by 7.8 per cent year-on-year.

The region’s smallest markets both saw moderate gains, with Bahrain rising by 0.2 per cent and Oman by 0.1 per cent.

Kuwait saw the biggest expansion relative to its index size, increasing by 0.7 per cent as it added $1.5bn to its projects market.