Gulf index approaches all-time high

01 June 2015

All six GCC states record growth with the exception of Qatar

The Gulf Projects Index grew by $16.5bn in the week ending 29 May, hitting a total of $3.386 trillion and closing in on its all-time high that was set in November last year.

The index peaked at $3.401 trillion on 25 November 2014 before slipping to less than $3.190 trillion in January 2015 as the collapse in global oil prices saw several major downstream oil and gas projects cancelled across the Middle East.

Over the week, all the GCC states recorded expansions except Qatar. The countries that saw the biggest gains were Bahrain, the index’s smallest projects market, and the UAE, the index’s second-biggest projects market after Saudi Arabia.

Project updates
 Project nameProject status
BahrainAlba power station 5New project
IranNorth Yaran oil field developmentOn hold
QatarEnergy City QatarBudget change
Saudi ArabiaTaif specialised hospital – 300 bedsNew project
UAEAjman Corniche ResidenceRevived
For further information visit www.meedprojects.com/home

The UAE saw an expansion of 1.8 per cent over the week, reaching $804bn, as it added 27 schemes worth a total of $2.46bn.

Bahrain saw a 2.1 per cent expansion in its projects market, with the value of active schemes hitting a total of $68.3bn.

Year-on-year, Bahrain is the region’s best performing projects market and has seen a 16.9 per cent expansion over the past 12 months.

Iraq is the region’s worst performing market. It has seen a fall of 20.2 per cent over the past 12 months due to the ongoing battle with the jihadist group Islamic State in Iraq and Syria (Isis), which controls large swathes of the country.

Upcoming tender deadlines
 ClientContractSubmission date
UAEInvestment Corporation of DubaiAtlantis Resort21 Jun
Saudi ArabiaMetro Jeddah CompanyObhur Bridge26 Jul
OmanOman Power & Water Procurement CompanySohar 3/Ibri independent power project (IPP)2 Aug
Saudi ArabiaSaudi Electricity Company/Saudi AramcoFadhili IPP31 Aug
UAERoads & Transport AuthorityRoute 20206 Dec
For further information visit www.meed.com/news/tenders

Amid fierce fighting between government troops and Isis over recent days, Iraq’s projects market continued its decline, contracting by 0.3 per cent over the week to reach $413.8bn.

Iran also recorded a decrease in value over the week, dropping by 0.5 per cent, as US-led talks about international sanctions and the country’s nuclear programme continue.

In numbers

$3.386 trillion Value of active projects in the Gulf region

$3.401 trillion Record set by Gulf index in November 2014

$3.190 trillion Total value of active projects in January 2015

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