GCC drop contributes to Gulf index slide

19 March 2012

Kuwait, Oman and Iraq were the only three countries to record market growth

Contract awards

Biggest contract: $1bn

Awarded to South Korea’s Samsung Engineering by Russia’s Lukoil for the construction of oil gathering and processing facilities in Iraq

$1.14bn: Value of major contract awards

5: Number of contracts awarded

For further information visit www.meed.com/contracts

A decline in the value of the GCC’s projects market contributed to the Gulf projects index falling by 0.1 per cent to $2.5 trillion for the week ending 20 March.

Four of the six GCC states recorded a drop in the value of their projects sectors, with Kuwait and Oman the only countries to avoid a slide.

The UAE was the Gulf’s worst performing market, with the value of its projects sector falling 0.5 per cent to $561.6bn. The decline was caused by the completion of $489m of projects and the halting of $260m-worth of schemes.

Project updates
 Project NameProject Status
Saudi ArabiaWaad al-Shamal phosphate minesStudy
OmanPolyethylene terephthalate projectStudy
KuwaitMubarikiya district police academyConstruction
Saudi ArabiaMecca monorailCompleted
UAEBurj al-NoorCancelled
For further information visit www.meed.com/meedprojects

Bahrain and Qatar both recorded a 0.1 per cent decrease in the value of their projects markets. The completion of a $500m real estate project was the main reason for the drop in value of Qatar’s projects market.

Oman’s index saw the biggest growth in the GCC, with a 0.3 per cent increase. The launch of three schemes worth a total of $645m and the revival of a petrochemicals deal estimated to be worth $210m contributed to its rise.

Kuwait’s projects market continued its impressive start to 2012, recording growth for the fourth successive week. The value of its projects sector rose 0.2 per cent as two power and water projects, worth more than $150m, were added to its index. Kuwait is the region’s fastest-growing projects market, with a 31.8 per cent year-on-year increase.

Upcoming tender deadlines
 ClientContractSubmission date
UAEDP WorldJebel Ali Port terminal26-Mar
OmanTransport & Communications MinistryBatinah Expressway package16-Apr
QatarMsheireb PropertiesMsheireb Phase 2  23-Apr
Saudi ArabiaAl-Rayadah Investment CompanyInformation technology and communication complex 19-May
Saudi Arabia Saudi Railway CompanySaudi Landbridge engineering design26-May
For further information visit www.meed.com/tenders

Outside the GCC, there were contrasting fortunes for Iran and Iraq’s projects sectors. Iraq’s index saw an increase of 0.7 per cent as 20 projects worth a total of $2.4bn were added. The biggest project is an estimated $250m housing scheme in Baghdad.

The value of Iran’s projects market fell 0.3 per cent as the estimated budget on the Kish gas scheme was reduced to $5bn from the originally planned $12bn.

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