Gulf index falls back to September levels

30 October 2014

UAE and Qatar record biggest declines in value of projects markets

The Gulf Projects Index fell by 1.6 per cent in the week ending 28 October, with the UAE recording the biggest drop, followed by Qatar. This follows a month of continuous gains on the projects index.

The downward revision of budgets for several schemes in Dubai and Abu Dhabi drove the 5 per cent fall in the UAE projects market. The successful completion of several small transport, power and construction schemes, together worth $871m, also contributed to the decline.

The fall comes despite the announcement of several property projects. Overall, the UAE is having a strong year, up nearly 4.8 per cent year-on-year.

Project updates
 Project nameProject status
BahrainWest End TowerRevived
IraqTaq Taq dam and hydropower projectOn hold
Saudi ArabiaMixed-use development in MedinaNew project
UAEDubailandBudget change
UAEDubai Maritime City: Bellatora ResidencesCancelled
For further information visit www.meed.com/meedprojects

Qatar also recorded a significant drop in its market, mainly due to budget revisions and project completions. But its projects market is still very active due to the rail and water infrastructure schemes being carried out in preparation for the 2022 football World Cup.

The cancellation of Saudi Arabia’s Sadaf polyurethane plant, worth about $3bn, caused the value of the Saudi market to fall by 0.3 per cent. Another reason for the decline was the completion of the Ras al-Khair Aluminium Project.

Despite this, the Saudi projects market has had an excellent year, gaining 19.6 per cent. Many infrastructure and housing schemes are planned and under way, such as Saudi Aramco’s construction of thousands of villas in the Eastern Province, worth more than $5bn.

Upcoming tender deadlines
 ClientContractSubmission date
UAENakheelPalm Hotel tower02-Nov
KuwaitKuwait National Petroleum CompanyNew Refinery Project09-Nov
UAETameer HoldingTameer Towers13-Nov
QatarQatar General Electricity & Water Corporation (Kahramaa)Ras Laffan independent water project06-Jan
UAEDubai Electricity & Water AuthorityHassyan power plant26-Jan
For further information visit www.meed.com/tenders

Oman’s market fell 0.1 per cent as oil infrastructure projects were completed, while Bahrain saw similar movements.

Outside the GCC, Iraq continued to put schemes on hold due to ongoing conflict. The Iraq-Jordan oil pipeline was put on hold this week, as were a number of other power and public works projects.

Iran’s project market remained stagnant.

Contract awards

Biggest contract

$802m Awarded to the local Sayed Hamid Behbehani & Sons for design and construction of the expansion of Kuwait’s Adan hospital

$2.5bn Value of major contract awards

5 Number of contracts awarded

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications