Gulf market stabilised by Oman schemes

22 December 2011

Projects worth a total of $2bn have been added to Muscat’s projects index

Contract awards

Biggest contract: $133m

Awarded to Saudi Arabia’s Al-Muhaidib Contracting for a university teaching hospital in Medina

$133m: Value of major contract awards

1: Number of contracts awarded

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Growth in the Oman market stabilised to the Gulf Projects Index at $2.49 trillion for the week up to 19 December.

The total value of projects planned or under way in Oman grew by 2.9 per cent as 14 new projects worth a total of $2bn were added to its project index and work on three construction projects worth an estimated total of $2bn restarted.

Qatar’s projects index recorded the second largest increase in the Gulf, with the value of projects growing by 1.3 per cent to about $219bn. This includes the $1.2bn Doha Metro Red Line project and the $2bn Alpha-olefins Plant along with oxo-alcohols units at the Ras Laffan Olefins Complex.

Kuwait, the UAE and Bahrain experienced a decline in the value of their projects markets. Kuwait’s project sector recorded a fall of 1.3 per cent as Kuwait Oil Company’s Abdali Field Development was cancelled and the Electricity & Water Ministry’s $2.7bn Subiya power plant was completed.

Project updates
 Project NameProject Status
IraqIraq Housing Project : Phase IConstruction
IraqMansuria Power PlantConstruction
KuwaitAbdali Field DevelopmentCancelled
KuwaitSubiya Power PlantComplete
UAEZayed BayOn hold
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The decline in the UAE can be attributed to the completion of $2.9bn-worth of projects and $3.4bn-worth of projects were put on hold, including Al-Qudra Holding’s $408m Zayed Bay development.

The Bahrain market remained broadly flat for a second consecutive week with a slight decline of 0.3 per cent.

The Gulf’s largest project market, Saudi Arabia, was static, with $658bn of projects planned or under way.

Upcoming tender deadlines
 ClientContractSubmission date
UAEAl-Hilal BankHeadquarters building40,545
UAEAbu Dhabi Health Services Company (Seha) Al-Ain hospital40,548
Saudi ArabiaHealth MinistryKing Faisal specialist hospital40,557
QatarQatar Foundation Southeast car park40,558
OmanTransport & Communications MinistryBatinah expressway package 340,559
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Overall, the GCC index grew marginally. Outside the GCC, the Iran market remained largely flat with a minor decrease. Iraq’s projects market showed a slight uplift as projects worth a total of $50m were added to its index.

The Gulf Projects Index has fallen by 8.4 per cent during 2011.

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