The Gulf Projects Index has hit an all-time high of $3.4 trillion, after climbing 0.3 per cent in the week ending 21 August, despite oil prices falling to a six-year low.

This was driven by a massive 11.4 per cent growth in Iran’s project market.

As the Islamic Republic looks forward to the potential lifting of sanctions next year, its projects market began making up for lost time, with several major schemes being revived. However, Iran’s projects market is still 12.9 per cent down year-on-year, and 34.7 per cent below its highest level, recorded in April 2010.

The GCC had a mixed week, with the UAE’s projects market contracting by 0.9 per cent. The completion of a major industrial project was the main factor, while several existing real estate schemes were scaled down by a net value of about $3bn.

Saudi Arabia saw the value of its projects market, the largest in the region, fall by 0.4 per cent. This was due to the completion of $3.3bn of schemes across the oil and gas, industry and transport sectors. However, new transport and education developments reduced the impact of completed schemes.

Oman, the fastest-growing projects market in the region with a rise of 15.6 per cent year-on-year, recorded another week of growth in its projects market. The value of its market climbed by 0.4 per cent as plans for a new airport in Musandam were revealed. New oil and gas and real estate investments also contributed to the gains, although budget difficulties could lead to retreats in the future.

Iraq saw its projects market contract by another 0.8 per cent as protests over basic services continue around the country. The $558m south degassing station project was cancelled, while other projects in the power sector were completed.