The Gulf Projects Index rose by 0.6 per cent in the week ending 11 September, thanks to the seventh consecutive week of gains by Iran, to record highs of $3.5 trillion.

Iran recorded a 4.4 per cent, or $10.9bn rise in the value of its projects market, as it begins making deals in expectation of sanctions being lifted in late 2015 and early 2016. It is attracting Indian, Chinese, Japanese and Korean interest in projects such as Chabahar port, costing $85m, and energy and industry investment areas.

It is now 5.5 per cent up year-on-year, with more gains expected as it prepares an investment programme worth hundreds of billions.

The UAE projects market also saw strong gains, of 1.2 per cent, on the Cityscape real estate exhibition. There, 35 new real estate projects across the country worth $13.5bn lifted the overall projects market by $9.8bn, despite concerns over the property market.

Notable projects include $6.8bn of housing schemes in Dubai South, near Al-Maktoum International airport, the $2.5bn Sharjah Waterfront and Nakheel’s 5.5 million-square-foot Jebel Ali Gardens.

Oman’s projects market also expanded by 1.3 per cent, making it the fastest-growing projects market year-on-year, at 16.1 per cent. Social infrastructure projects, including housing and hospitals to cater to Oman’s growing population, added $1.3bn.

Iraq recorded the only major contraction in the projects market, of 1 per cent. It is now down 16.5 per cent year-on-year, as instability and squeezed budgets force projects to be put on hold.

The region’s largest projects market, Saudi Arabia, grew by 0.2 per cent or $2.7bn, on gas sector projects, despite a government warning of cuts. Metro projects are still moving ahead, as are power and industrial schemes.

Bahrain recorded a 0.3 per cent expansion in its projects market on real estate activity, while Kuwait’s projects market contracted by 0.1 per cent on project completions.