Between 19 and 26 August the Gulf Index saw its biggest weekly decline since September 2012 as the index dropped by 0.9 per cent, and the region’s project market lost more than $31bn in value.

All markets declined apart from those of Qatar and Saudi Arabia, which both saw muted gains.

The worst performer by per cent change was Iraq, which dropped by 2.7 per cent as $13bn was wiped off its project market.

The contraction was driven by oil and construction projects that were put on hold due to political instability and ongoing fighting.

Project updates
  Project Name Project Status
Kuwait Doha Link Execution
Kuwait Sabah al-Salem University: Academic support buildings Main contract bid
Oman Oman National Railway: phase 1 – section 1  Main contract bid
Qatar Fox Hills housing complex in Lusail Execution
UAE Etihad Railway Network: Phase 2: Package C Main contract bid
For further information visit www.meed.com/meedprojects

Jihadist group Islamic State in Iraq and Syria (Isis) continues to occupy a third of the country, including Mosul, Iraq’s second biggest city.

In June it announced it had formed an Islamic caliphate in an area straddling Iraq and Syria. Since then it has largely thwarted Baghdad’s Western-backed efforts to claw back lost cities.

UAE was the second largest decliner over the week dropping by 2.4 per cent, its biggest drop in more than a year.

Upcoming tender deadlines
  Client Contract Submission date
Oman Oman Power & Water Procurement Company Qurrayat water project Sep-14
Saudi Arabia Mecca Municipality Mecca Metro: phase 1 Sep-14
UAE Dubai Electricity & Water Authority M station expansion Sep-14
Kuwait Ministry of Electicity & Water Overhead lines – various locations Sep-14
Oman Transport & Communications Ministry Batinah Expressway: package 8 22-Sep
For further information visit www.meed.com/tenders

The drop came as a raft of construction projects saw changes to their budgets and a number of transport and water projects were completed.

Oman’s project market contracted by 0.7 per cent as some speculative projects in the industrial sector were shelved.

Saudi Arabia expanded by 0.2 per cent boosted by new residential projects and Qatar expanded by 0.3 per cent, buoyed by changes to the Al-Sejeel Petrochemical Complex project. The partners behind the package confirmed that there would be a $1bn offsites and utilities package.

During the week Qatar Petroleum and Qatar Petrochemical Company began the prequalifying process for the complex’s last two remaining packages.

Kuwait dropped by 0.3 per cent over the week and Bahrain, the region’s smallest project market, remained unchanged.

Contract awards

Biggest contract: $68m

Al-Hassan wins $68m piping deal to expand Oman’s Sohar refinery

Value of major contract awards: $68m

Number of contracts awarded: 1