Expansion in Saudi Arabia lifts market

11 September 2014

Projects announcements in Kuwait and Saudi Arabia give boost to Gulf Projects Index

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.

Project updates
 Project nameProject status
IraqBadra Oil Field development: phase 1 – CPFComplete
OmanNizwa to Ibri Road dualisation: phase 2On hold
Saudi ArabiaAjyal residential development: 2,700 VillasNew project
Saudi ArabiaKempinski Al-Othman hotel in KhobarComplete
UAEJumeirah Beach ClubDesign
For further information visit www.meed.com/meedprojects

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.

Upcoming tender deadlines
 ClientContractSubmission date
OmanTransport & Communications MinistryBatinah Expressway: package 8Sep-14
KuwaitMinistry of Electricity & WaterOverhead lines – various locationsSep-14
Saudi ArabiaMecca MunicipalityMecca Metro: phase 1Oct-14
DubaiDubai Electricity & Water AuthorityM station expansionOct-14
OmanOman Power & Water Procurement CompanySalalah 224-Oct
For further information visit www.meed.com/tenders

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.

In numbers

$72.1bn Contraction in Iraq’s project market since 10 June

$3.4bn Expansion in Saudi Arabia’s project market in the week ending 9 September

$3.5bn The value of Saudi Aramco’s Ajyal residential development

For further information visit www.meed.com/contracts

You might also like...

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications