Gulf index records modest growth

13 January 2015

Saudi Arabia’s projects market sees sole decline in region

The Gulf Projects Index recorded growth of 0.2 per cent in the week ending 9 January, with Saudi Arabia the only country to experience a contraction.

The UAE’s projects market saw the biggest gain, up 1.1 per cent or $8.6bn, thanks to movement on real estate schemes. This represents the fourth consecutive week of gains for the country, which has expanded by 15.1 per cent, or more than $100bn, year-on-year. The UAE has now overtaken Saudi Arabia as the most buoyant market in the region.

Project updates
 Project nameProject status
BahrainDilmunia Health IslandExecution
KuwaitKuwait airport expansion: new terminal buildingMain contract bid
OmanNew hospital at Airport HeightsExecution
Saudi ArabiaRas Tanura Clean Fuels Project: package 1On hold
UAEFujairah olefins plantCancelled
For further information visit www.meed.com/meedprojects

Oman recorded the second-biggest growth of 0.3 per cent. New real estate schemes worth a total of $140m contributed to the increase. This comes as the Omani government has committed to maintain project spending in 2015.

Bahrain recorded growth of 0.1 per cent in its projects market, with $130m-worth of new property schemes. However, the market has remained largely stagnant this year, increasing by 0.1 per cent.

Upcoming tender deadlines
 ClientContractSubmission date
UAEDubai Electricity & Water AuthoritySolar innovation centreJan-15
QatarQatar General Electricity & Water Corporation (Kahramaa)Ras Laffan independent water projectFeb-15
UAENakheelPalm GatewayMar-15
OmanPublic Authority for Water & ElectricityWadi Dayqah treatment plantMar-15
UAEDubai Electricity & Water AuthorityHassyan power plant26-Mar
For further information visit www.meed.com/tenders

Kuwait, Qatar and Iran saw little change in the period. However, Kuwait is still up by more than 11 per cent year-on-year. It is expecting a record year of project awards in 2015 as the government invests in oil and gas infrastructure, and legal changes to investment laws come into effect.

Saudi Arabia, on the other hand, saw 0.3 per cent wiped off its projects market, the largest decline in the region. The $3bn Ras Tanura refinery upgrade was put on hold for a year, despite government assurances that lower oil prices would not affect major schemes in the pipeline. Project completions contributed to the rest of the $3.1bn fall.

Iraq’s projects market stabilised, recovering by 0.1 per cent as the Baghdad government resumed public building works in those areas that it still controls.

In numbers

$3bn Value of on-hold Ras Tanura project in Saudi Arabia

15.1 per cent Growth in UAE projects market this year

$8.6bn Growth in UAE projects market this week

Further information

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