The Gulf Projects index contracted by 0.2 per cent in the week ending 22 July as most markets showed no significant movement.

The biggest decline recorded was the UAE market, which saw the $20bn Tacaamol Al-Gharbia Chemicals Industrial City project put on hold. The first phase of the $600m Kingdom of Sheba real estate development on the Palm Jumeirah was also completed this week, which brought the UAE’s market index down.

The other market, which saw its index contract, was Oman with a 0.1 per cent decline. The decline was recorded despite $119m new projects being added to its index.

With the other markets remaining flat, the Gulf projects index is down 3.2 per cent year-on-year as a result of the subdued oil price and limited government spending. 

One of the biggest year-on-year declines, 12.5 per cent, has been recorded by the Iraqi market, which has been marred by the emergence of the jihadist group Islamic State in Iraq and Syria (Isis) since early 2014. This was then followed months later by the collapse in global oil prices.

Saudi Arabia’s projects market is also continuing to decline amid calls for major reforms in order for the oil-rich nation to reduce its dependence on oil exports.