Gulf Projects Index sustains momentum

08 September 2015

Kuwait leads index gains with the revival of PIC’s $7b olefins plant

The Gulf Projects Index rose by 0.4 percent in the week ending 4 September, to reach $3.45 trillion. This marks the third week of record highs since the index’s level reached $3.4 tiillion on 25 November 2014.

Growth was led by Kuwait, which gained 3.1 per cent, followed by Iran and the UAE, which rose 1.6 per cent and 0.6 per cent, respectively.

In numbers

$300m Value of new projects in Bahrain

22 New projects announced in the UAE

$3.94bn Value of new projects in Iran

Kuwait’s gains resulted mainly from the revival of a $7bn olefins scheme. Two small utility and gas projects were also inducted into Kuwait’s market, although the budget for the rehabilitation of the Sheikh Jaber al-Ahmed al-Sabah Road has been revised downward to $167m from $350m.

In Iran, three new projects including the $3bn petrochemical plant by the Indian Oil Company and the $903m urea plant, a joint venture of the governments of Iran and India, were added to the projects list over the week. The third new project, although small at $35m, is nevertheless essential since it aims to generate 48MW of renewable energy from wind.

Project updates this week
 Project NameProject Status
KuwaitOlefins 3 ProjectRevived
IranIran petrochemical plantNew project
IraqHousing complex in Bismayah: infrastructure worksOn hold
OmanMusandam oil and gas processing plantComplete
UAEUpgrade of nitrogen plantCancelled
For further information visit www.meedprojects.com/home

Twenty-two new projects valued at an estimated $2bn, led by the $642m Midtown Project by Dubai-based Deyaar, entered the UAE projects market in the week. Several projects were also revived, including the $345m Al-Bateen Wharf in Abu Dhabi and the Langham Place in Dubai’s Business Bay area.

The introduction of new projects, mostly residential and leisure, worth close to $300m in the region’s smallest projects market provided Bahrain with a major boost that equated to a 0.6 growth compared to the previous week’s index level.

Upcoming tender deadlines
 ClientContractSubmission date
UAEDubai Electicity & Water AuthorityHassyan 400kV substation30-Sep
QatarKahramaaPhase 13 transmission and distribution programme01-Oct
UAEDubai MunicipalityJebel Ali sewage treatment plant18-Oct
Saudi ArabiaSaudi Electricity Company/Saudi AramcoFadhili independent power project01-Nov
UAERoads & Transport AuthorityRoute 2020 metro extension06-Dec
For further information visit www.meed.com/news/tenders

The $2.1bn infrastructure package for the planned Bismaya mixed-use project In Iraq has been put on hold over the week, resulting in the country’s projects market falling 0.6 per cent. The budget for its high-speed railway connecting Karbala and Najaf line was also revised downward by $500m, which contributed to Iraq being the weakest performer of the eight countries tracked by the Gulf Projects Index.

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