Gulf index falls for second successive week

30 November 2010

All of the GCC states record a fall in projects despite the launch of eight new schemes

Contract awards

Biggest contract: $300m

Awarded to Canada’s SNC-Lavalin for work on the Jabal Sayid copper project in Saudi Arabia

$405m: Value of major contract awards

4: Number of contracts awarded

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The total value of major projects planned or under way in the Gulf on the 30 November was $2.92 trillion, a fall of 1 per cent on the previous week, according to the latest Gulf projects index.

According to the tracker, the bulk of the decrease was due to a 1.3 per cent fall in the total value of projects planned or under way in the GCC, which accounts for about 77 per cent of the Gulf projects market.

Despite the launch of eight new projects worth a total of $2.3bn, the GCC’s project index decreased as 17 projects totalling $8.9bn were completed and $23.5bn worth of projects were put on hold.

The bulk of the slide can be attributed to decreases in the projects indexes of Qatar and Oman, which saw falls of 3.9 per cent and 2.7 per cent respectively.

Project updates
 Project NameProject Status
OmanOman Convention and Exhibition CentreEPC Bid
KuwaitAl-Ahmadi Hospital and Residential BuildingsExecution
Saudi ArabiaJabal Sayid Private Copper and Gold MineExecution
UAEReconstruction of the Dibba-Masafi RoadExecution
QatarDoha Dukhan Highway: Eastern SectionEPC Bid
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In Qatar, the fall can be explained by a $10bn real-estate project being put on hold.

In Oman, the $1.2bn Omagine tourism development was put on hold.

Saudi Arabia’s projects market also slipped by 1.4 per cent after the $9.3bn Al-Shamiyah Mecca project was put on hold.

However, the kingdom did also witness the launch of the biggest new project in the region, the estimated $1.1bn Jeddah Housing project.

The UAE’s project market witnessed a smaller decline of 0.7 per cent, as 10 real-estate projects worth a total of $2.25bn were put on hold.

The overall projects index is still positive when compared with the previous year, with the Gulf market achieving a 9.5 per cent year-on-year increase.

Iraq maintains its position as the region’s fastest-growing market by recording a 116.5 per cent year-on-year increase.

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