Contract awards 12 January 2011

Biggest contract: $204m

Awarded to the local/Lebanese Arabian Construction Company (ACC) for work on Abu Dhabi’s Masdar project

$504m: Value of major contract awards

3: Number of contracts awarded

For further information visit www.meed.com/contracts

The Value of major projects planned or under way in the Gulf fell for the eighth successive week, in the second week of January to $2.6 trillion, a decrease of 3.1 per cent from the previous week.

The bulk of the decrease was due to a 4.1 per cent fall in the total value of projects planned or under way in the GCC, which accounts for about 75 per cent of the Gulf projects market.

Upcoming tender deadlines
  Client Contract Submission date
UAE Globalfoundries Abu Dhabi microchip plant 16-Jan
Iraq Electricity Ministry Four independent power plans 18-Jan
Kuwait Kuwait University College of Science and Faculty Club 25-Jan
Oman Transport & Communications Ministry In-flight catering facilities 31-Jan
Saudi Arabia Saudi Electricity Company Qurayyah independent power project 28-Feb
For further information visit www.meed.com/tenders

The GCC fall was the result of an 11.4 per cent fall in the UAE market, the region’s largest single-country market. The decline can be attributed to the $95bn Jumeira Gardens real-estate development now regarded as on hold. However, work is continuing on a part of the project renamed Pearl Jumeira.

The total value of projects planned or under way in Kuwait’s project market grew by 1.2 per cent as budgets increased for the Umm al-Hayman sewage treatment plant expansion and the New Physical Medicine and Rehabilitation Hospital.

Despite Oman completing the project to dualise the Bausher to Al-Amerat road and putting a water project in Sohar on hold, the sultanate still recorded an increase after the budget for Dhofar Tourism Company’s Mirbat beach development was increased by $400m.

Project updates this week
  Project Name Project Status
Bahrain Hidd Steel Mini Mill Cancelled
Iraq Basra Sports City Phase II Execution
Kuwait Bubiyan Island Design
Oman Temporary Power Generation Units Execution
Oman Duqm New Town  Design
For further information visit www.meed.com/meedprojects

Saudi Arabia was the only other GCC country to witness an increase in its projects index. The award of a $500m contract for a ethyl acetate plant at Jubail helped buoy the index. The addition of a new $58m tourist scheme did not prevent a fall in Bahrain. Its index fell after a $162m district cooling plant in Manama was completed.

The overall projects index is down by 5.9 per cent on the same period last year, with the GCC projects market falling 13.9 per cent year-on-year fall. Iraq maintains its position as the region’s strongest growing market with a 74.7 per cent year-on-year increase.