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.

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.

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.