The Gulf Projects Index rose by 0.7 per cent in the week ending 28 August 2015, to reach its highest ever level, at $3.43 trillion. This follows a month of uninterrupted growth in August.
Once again, Iran was the main driver of growth, as its projects market grew 6.9 per cent, or $15.7bn, week-on-week. Its value is now only 2.9 per cent down year-on-year, as the market prepares for the prospect of lifting sanctions in 2016. Iran is hoping for billions in investment in its oil and gas industry.
In numbers this week:
$2.5bn The cost of phase one of the Sharjah Waterfront project
$6.4bn Growth in the UAEs project market in the week ending 28 August
6.9 per cent Growth in Irans project market in the week ending 28 August
Bahrain saw the largest relative expansion in its projects market, by 0.9 per cent. New housing and real estate projects were an important component, as well as oil infrastructure investment.
|Project updates this week|
|Project name||Project status|
|Iran||Golshan gas and Ferdowsi oil and gas fields||Revived|
|Saudi Arabia||Hasbah sour gas field expansion||Main contract bid|
|Saudi Arabia||Security forces housing project||Main contract bid|
|UAE||Jebel Ali drainage tunnel: package 1 & 2||Design|
|UAE||Sharjah Waterfront City||Revived|
|For further information visit www.meedprojects.com/home|
The UAE recorded 0.8 per cent growth, or $6.4bn, in its projects market over the week, the largest increase in real terms. The revival of Sharjah Oasis Development Companys multibillion-dollar Sharjah Waterfront project was a huge boost. The first phase will cost about $2.5bn.
Other real estate schemes, such as the $273m Langham Place Downtown Dubai hotel, also kept the market moving.
Qatars projects market experienced the biggest contraction of the week, down 0.5 per cent equating to $1.4bn, despite progress on the $45bn Lusail Development.
|Upcoming tender deadlines|
|Saudi Arabia||Metro Jeddah Company||Obhur Bridge||10-Sep|
|UAE||Dubai Electicity & Water Authority||Hassyan 400kV substation||30-Sep|
|Qatar||Kahramaa||Phase 13 transmission and distribution programme||01-Oct|
|Saudi Arabia||Saudi Electricity Company/Saudi Aramco||Fadhili independent power project||01-Nov|
|UAE||Roads & Transport Authority||Route 2020 metro extension||06-Dec|
|For further information visit www.meed.com/news/tenders|
The value of Kuwaits project market also fell, by 0.2 per cent, despite a steady stream of awards and tender news. The country is working through a backlog of announced projects, and is still up 8.4 per cent year-on-year.
Saudi Arabia, the regions largest market, recorded a 0.1 per cent expansion as the kingdom prepares to develop its offshore oil and gas fields. Numerous real estate, transport and utilities projects supported the rise, as Riyadh continues to invest in development projects. For example, Saudi Aramcos $1.8bn Ajyal residential development in South Dhahran saw a major contract award.