Gulf index holds steady on Bahrain rise

16 June 2015

Saudi Arabia and Oman also record gains in projects market value

The Gulf Projects Index recorded a marginal expansion of less than 0.1 per cent in the week ending 12 June, with only minor fluctuations in most markets.

Bahrain was the exception, recording a 1.5 per cent, or $1bn, rise in the value of its projects market as a result of Aluminium Bahrain’s plans to build a sixth potline to expand its production capacity. Regional projects tracker MEED Projects estimates the expansion will cost $3.5bn. Real estate schemes worth a total of $56m also contributed to the increase.

Project updates this week
 Project nameProject status
IranIran Gas Trunkline 7: gas trunkline expansionOn hold
KuwaitKuwait International Petroleum Research CentreStudy
OmanSohar sugar refineryExecution
QatarQatar Integrated Railway Project: light rail transitStudy
UAEMasdar solar projectStudy
For further information visit www.meedprojects.com/home

Saudi Arabia’s projects market, the largest in the region, expanded by 0.2 per cent, or $2.8bn. Taif International airport has been revived on a public-private investment basis. Other schemes such as the Waad al-Shamal power plant and the Al-Muajjiz oil terminal rehabilitation are making slow but steady progress.

Residential and industrial schemes also contributed to the rise, but Saudi’s Arabia’s year-on-year projects market growth has slowed to 7.3 per cent, compared with 15.5 per cent on 26 January 2015.

Upcoming tender deadlines
 ClientContractSubmission date
Saudi ArabiaMetro Jeddah CompanyObhur Bridge26-Jul
UAEInvestment Corporation of DubaiAtlantis Resort28-Jul
OmanOman Power & Water Procurement CompanySohar 3/Ibri independent power project (IPP)02-Aug
Saudi ArabiaSaudi Electricity Company/Saudi AramcoFadhili IPP31-Aug
UAERoads & Transport AuthorityRoute 2020 metro extension06-Dec
For further information visit www.meed.com/news/tenders

Oman also saw a 0.2 per cent rise in the value of its projects market. This was mainly due to $461m of new infrastructure work, especially in power and transport schemes.

Iran’s market shrank by 0.5 per cent as oil and gas spending remains uncertain and depends on the success of the nuclear deal.

Kuwait saw a 0.2 per cent fall in its projects market. New property and infrastructure schemes worth a combined $320m could not compensate for completions.

The value of the UAE’s projects market declined by 0.1 per cent. This is despite $2bn-worth of new schemes being launched and the the change of the Noor 1 scheme from a 100MW to a 350MW photovoltaic solar project in Abu Dhabi.

In numbers this week

$3.5bn Cost of Aluminium Bahrain’s plant expansion

7.3 per cent Year-on-year growth in Saudi Arabia’s projects market

$2bn Value of new projects in the UAE

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