Gulf index falls on oil price volatility

23 December 2014

Qatar only country to see growth in value of projects market, as most other countries see declines

The Gulf Projects Index fell 0.6 per cent in the week up to 22 December 2014, ensuring a somewhat subdued end to what has been a year of very strong growth – a total of 11.1 per cent – in the GCC major projects market.

Qatar was the only market in the GCC to post a gain in the week, while Oman and Kuwait saw the largest losses, despite recording strong growth throughout the year.

Project updates this week
 Project nameProject status
BahrainLNG import terminalMain contract bid
IraqCommon Seawater Supply ProjectDesign
OmanOman National Railway: Al-Buraimi-Sohar linePrequalification
Saudi ArabiaProduction of phosphate derivativesOn hold
UAEThe Gateway Towers and car park podiumMain contract bid
For further information visit www.meed.com/meedprojects

Oman’s projects market declined by 1.8 per cent, or $2.8bn, as the country considers spending cuts to infrastructure projects. The completion of $178m-worth of water schemes also affected the market. Oman ended the year more than 5 per cent up on the end of 2013.

Kuwait recorded a 1.2 per cent contraction in its projects market, as delays on power projects continue due to legislative changes. This was despite the launch of $181m of new real estate schemes.

Saudi Arabia’s projects market declined by 0.6 per cent following the completion of $2bn-worth of industrial schemes and $2.2bn-worth of power projects. The Gulf’s largest projects market has finished 2014 with a 13.4 per cent year-on-year increase in value.

Upcoming tender deadlines
 ClientContractSubmission date
UAEGulf RelatedMaryah Central15-Jan
UAEDubai Electricity & Water AuthoritySolar innovation centre29-Jan
QatarQatar General Electricity & Water Corporation (Kahramaa)Ras Laffan independent water project23-Feb
OmanPublic Authority for Water & ElectricityWadi Dayqah treatment plant16-Mar
UAEDubai Electricity & Water AuthorityHassyan power plant26-Mar
For further information visit www.meed.com/tenders

The UAE market dropped by 0.8 per cent as about $5bn-worth of real estate projects were thrown into question by volatile oil prices. In addition, $225m of infrastructure schemes were completed. Like other GCC countries, the UAE has had a buoyant 2014, gaining 12.9 per cent year-on-year.

Qatar’s projects market grew by 0.3 per cent as infrastructure and real estate projects made good progress in the country.

Iran, on the other hand, recorded a further $1.5bn-worth of losses, as a sanctions deal remains to be agreed. This brings the total decline to 4.1 per cent in its projects market in 2014.

In numbers this week

$142bn Biggest yearly gain: Saudi Arabia

$111bn Biggest yearly loss: Iraq

$274bn GCC projects market growth in 2014

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