GCC supports Gulf index growth

26 June 2014

Climbs in four GCC member states make up for falls in Iran and Iraq

The Gulf Projects Index rose 0.5 per cent in the week up to 24 June, led by strong growth in Saudi Arabia and the UAE.

Saudi Arabia, the largest projects market in the Gulf region, was the biggest gainer of the week, as its value of schemes planned or under way rose by 1.2 per cent.

The increase was due to the launch of a $1.6bn scheme by Dubai-based Al-Futtaim Group to build a 250,000-square-metre shopping mall and a 500-room luxury hotel in the Al-Diriyah district of Riyadh.

The kingdom’s projects sector also got a boost from the launch of a $700m scheme by the Finance Ministry to build 625 housing units in Al-Ahsa. Saudi Arabia is currently the fastest-growing projects market in the region, as its value has risen 21.8 per cent year-on-year.

The UAE’s projects market climbed by 0.8 per cent, due to the launch of a $675m scheme by a private developer to build an auto zone in Al-Hamra. 

Project updates
 Project nameProject status
KuwaitCrude oil flow pipelines in southeast KuwaitComplete
OmanIbri independent power project (IPP)Prequalification
OmanSohar IPPPrequalification
Saudi ArabiaITCC: phase 1 (office buildings)Complete
Saudi ArabiaKing Khaled Medical CityMain contract bid
For further information visit www.meed.com/meedprojects

Bahrain’s projects sector rose 0.3 per cent, led by the launch of a $263m plan by the Works Ministry to develop a 12-kilometre stretch of the northern shore coastal highway connecting the Seef district and a town being developed on reclaimed land off the coast of Duraz.

Oman recorded the biggest decline of the week, falling 0.8 per cent due to the cancellation of a $1bn project by Oman Power & Water Procurement Company to build an independent power plant in Batinah.

Upcoming tender deadlines
 ClientContractSubmission date
QatarPublic Works Authority (Ashghal)Design, build and operation of Musaimeer pumping stationJun-14
OmanRegional Municipalities, Environment & Water ResourcesDesign, construction supervision of a flood protection schemeJul-14
EgyptNew & Renewable Energy AuthorityDesign, manufacture and construction of 120MW wind farmJul-14
Saudi ArabiaHealth MinistryKing Faisal Medical City11-Aug
Saudi ArabiaMecca MunicipalityMecca Metro: phase 108-Sep
For further information visit www.meed.com/tenders

Outside the GCC, the value of Iraq’s projects market dropped by 0.5 per cent as a $2bn scheme by the Oil Ministry to build a 150,000 barrel-a-day refinery in Mosul, currently under the control of militants, was put on hold.

Iran’s projects market slipped 0.2 per cent as a $350m oil scheme in Khuzestan was cancelled.

Contract awards

Biggest contract $1bn

Awarded by Qatar Railways Company to a consortium led by France’s Alstom to supply a turnkey tramway system at Lusail

$1.3bn Value of major contract awards

2 Number of contracts awarded

For further information visit www.meed.com/contracts

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