Strong performance from the GCC projects market resulted in the Gulf projects index rising by 0.7 per cent to $2.5 trillion.

The GCC market, which accounts for about 73 per cent of the total Gulf market, grew by 0.9 per cent, with the UAE being the only state to witness a decline in its projects sector. Kuwait and Oman recorded the biggest increases, with growth of 2.7 per cent and 2.6 per cent respectively.

The total value of projects planned or under way in Kuwait rose to $177bn as five new projects worth an estimated total of $633m were launched and a $5bn real-estate project was revived. Oman’s projects market reached a new total of $115bn as two new projects were added to its index. The biggest of these was a $3bn gas-based steel plant development.

Saudi Arabia, the region’s biggest projects market, recorded a 1.7 per cent increase as five new projects worth a total of $1.5bn were launched and a $13bn real estate project was revived.

Bahrain’s projects market, which dropped in value by about $30bn in the first nine months of 2011 as a result of the political unrest, received a welcome boost. The launch of two new projects worth a total of $150m contributed to its projects sector growing by 0.3 per cent.

The UAE’s projects market dropped to $603bn as a result of a $1bn real-estate scheme at Dubailand being put on hold.

Outside the GCC, Iran recorded growth of 0.1 per cent in its projects sector, as an estimated $450m ethylene petrochemicals project was added to its index. Iraq’s projects sector fell in value by 0.1 per cent, as a $290m university construction project in the Kurdish region was put on hold. Iraq retains its position as the region’s fastest-growing projects market, recording a 38 per cent year-on-year increase.