The total value of major projects planned or under way in the Gulf fell to $2.93 trillion in the week to 25 August. The figure represents a drop in MEED’s Gulf Projects Index of about 0.2 per cent from the previous week’s figure of $2.94 trillion.

The fall in the index is the result of several major projects in the GCC reaching completion or being placed on hold, during the week, coupled with few new projects brought to the market during the August slowdown. 

The GCC, which represents about two thirds of the total value of the Gulf’s projects market, accounted for almost all of the falls, with the total value of projects planned or under way in the GCC ending on $2.29 trillion, down 0.3 per cent on the previous week.

Eight projects reached completion during the week, two each in the UAE and Bahrain, and four in Saudi Arabia. A further seven were placed on hold in the week.

Six of the seven projects placed on hold were in the UAE, which saw the biggest reduction in market value over the week, with a fall of about 0.7 per cent in the value of projects planned or under way.

The strongest growth this week was seen in Oman, which grew by about half of 1 per cent largely due to the launch of the $665m Sur steel plant. There was no significant movement in Qatar and Iran, and only slight gains in Bahrain, Kuwait and Iraq.

The lack of activity in the market over the week reflects the traditional slowdown in activity in the region during the hot summer months. But it follows 12 months of slow growth that has characterised the GCC projects market since the UAE property sector’s crash that began in late 2008.

Doubling in size, albeit from a low base, Iraq has been the region’s stellar performer over the past 12 months. It is set to be a major centre for projects in the next decade.