Gulf index boosted by Qatar activity

14 July 2015

Hamad International airport hangar expansion worth $300m among new Qatar projects announced

The Gulf Projects Index increased by 0.1 per cent in the week ending 10 July, as the market continues to ride out regional instability and low oil prices.

The strongest growth was in Qatar, where several new projects were announced, including a $300m hangar expansion at Hamad International airport.

The 1.2 per cent rise in Qatar’s projects market was also helped by a number of power projects, including substation modifications across the country.

Bahrain’s projects market remained flat, even though several major road projects were revived or witnessed budget changes and clarifications.

Bahrain’s road and transport projects pipeline has been boosted by Saudi Arabia, which has pledged to support road developments through GCC funds. The Bahrain market is up 18.5 per cent year-on-year.

Iran’s projects market remained unchanged as nuclear talks with the P5+1 group of world powers continued, although the market has been anticipating growth if a deal can be signed.

The country’s railway and metro programme saw activity in the week as French firm AREP ink a contract worth $7.7m to construct stations for the rail network.

Saudi Arabia’s projects market also remained flat in the week ending 10 July. One bright spot, however, was a funding resolution regarding the $245m Dallah Albaraka Hospital.

Oman was the worst performer of the week, as its market shrank by 0.6 per cent, but is still up 14 per cent year-on-year.

Kuwait also contracted by 0.2 per cent, following a week with no new schemes being announced and several budget revisions on other projects.

In numbers

$2bn Value of new projects announced in Qatar

$5.4bn Value of projects put on hold in Qatar

$525m Value of projects revived in Oman

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