GCC market makes small gains

16 October 2014

Oman records the strongest growth, while Iraq’s index freefall slows despite clashes

The Gulf Projects Index continued its Eid lull, with only a 0.2 per cent rise in the value of schemes planned or under way. The growth was mainly due to Oman, Qatar, Saudi Arabia and the UAE.

Oman’s projects market recorded the biggest expansion, with its index increasing by 1.6 per cent. This was driven by the revival of a $2.2bn waterfront mixed-use scheme and related infrastructure.

In real terms, Saudi Arabia, recorded the largest growth. It added $2,287m to its projects sector, mainly in the oil and gas industry, as the kingdom recovers from a summer dip and returns to strong year-on-year growth of 20.2 per cent. Saudi Basic Industries Corporation’s proposed steel plants remain on hold, however.

Project updates
 Project nameProject status
OmanOmagine projectRevived
QatarFifa-compliant prototype training siteOn hold
Saudi ArabiaJubail steel plantOn hold
Saudi ArabiaMaster gas system expansion: phase 1New project
Saudi ArabiaMaster gas system expansion: phase 2New project
For further information visit www.meed.com/meedprojects

The UAE projects market recorded a modest increase of 0.4 per cent to remain at its highest value since 2011. In the past week, 52 new construction schemes, worth more than $2.5bn, were announced, including ports, airports and road upgrades.

Qatar also recorded gentle growth, with the launch of 55 new construction projects worth more than $1.5bn. The new schemes are predominantly based around the Lusail city development.

Upcoming tender deadlines
 ClientContractSubmission date
OmanOman Power & Water Procurement CompanySalalah 2Oct-14
Saudi ArabiaSaudi Aramco11 stadiumsOct-14
UAENakheelPalm Hotel towerNov-14
KuwaitKuwait National Petroleum CompanyNew Refinery ProjectNov-14
UAEDubai Electricity & Water AuthorityHassyan power plant26-Jan
For further information visit www.meed.com/tenders

Meanwhile, Iraq’s index freefall slowed, with its projects market dropping only 0.6 per cent. However, further oil and public works schemes were put on hold in all regions of the country, as clashes continued between the government, the Islamic State in Iraq and Syria (Isis) and Kurdish forces.

Iran’s projects market continues its gradual decline, down 3.4 per cent year-on-year as it continues to suffer from the effects of harsh international sanctions.

The value of the overall Gulf projects market is up 6 per cent year-on-year.

Contract awards

Biggest contract $100m

Awarded to the US’ Chevron Lummus Global for design and engineering work on Bahrain Petroleum Company’s Sitra refinery

$230m Value of major contract awards

4 Number of contracts awarded

For further information visit www.meed.com/contracts

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