The Gulf Projects Index fell 0.5 per cent in the period between 6 June and 3 July, as low oil prices and regional instability continue to weigh on the market.
Iraqs projects market suffered the most, contracting by 3.2 per cent. It is now down 25.8 per cent year-on-year, as the government struggles to push back against the jihadist group Islamic State in Iraq and Syria (Isis). The group still controls Mosul and other areas of Iraq as it marks a year since the citys capture.
25.8 per cent Fall in value of Iraq projects market since Islamic State in Iraq and Syria (Isis) captured Mosul
$12.6bn Value of projects put on hold or cancelled in Iraq
$1bn Value of projects revived in Iran
Iraqs decline was due to several industrial and downstream oil schemes, worth a total of $12.6bn, being put on hold or cancelled.
Bahrain also saw a 1.9 per cent drop in the value of its projects market, as government deficits continue to grow. The planned Economic Industrial City, which was intended to provide nearly 250,000 jobs, is showing no signs of progress.
Qatars market recorded a 0.9 per cent contraction as project completions cancelled out the value of new schemes in the real estate sector.
|Project updates this week|
|Project name||Project status|
|Iraq||Economic Industrial City||On hold|
|Iraq||Nibras Complex in Basra||On hold|
|Saudi Arabia||Ras Tanura Refinery Clean Fuel Project||Revived|
|Saudi Arabia||Yanbu Industrial City Power Plant: phase 5 and 6||Complete|
|UAE||Ras Al Khaimah Sulphuric Acid Project (SAP)||New Project|
|For further information visit www.meedprojects.com/home|
Iran was the only country to see its projects market expand, in anticipation of an agreement of a deal with the West on its nuclear programme. About $1bn-worth of schemes were revived, including, most notably, the countrys railway programme.
Saudi Arabia, the regions largest projects market, saw a 0.1 per cent rise in value as the government continues to increase spending on infrastructure. Plans for the $13bn Jeddah Metro are taking shape, while major oil schemes have been revived.
|Upcoming tender deadlines|
|Saudi Arabia||Metro Jeddah Company||Obhur Bridge||26-Jul|
|UAE||Investment Corporation of Dubai||Atlantis Resort||28-Jul|
|Oman||Oman Power & Water Procurement Company||Sohar 3/Ibri independent power project (IPP)||02-Aug|
|Saudi Arabia||Saudi Electricity Company/Saudi Aramco||Fadhili IPP||31-Aug|
|UAE||Roads & Transport Authority||Route 2020 metro extension||06-Dec|
|For further information visit www.meed.com/news/tenders|
However, year-on-year growth in the kingdoms projects market has fallen to 5.9 per cent, from more than 15 per cent at the start of 2015.
The UAEs projects market lost 0.2 per cent of its value, despite the launch of more than $1bn of new industrial schemes and good progress being made on major real estate projects. Stalled and completed real estate schemes led to an overall contraction.