Gulf projects market index down for third week

27 September 2011

Increase in Saudi Arabia and Qatar fails to offset declines in other Gulf markets

Contract awards

Biggest contract: $150m

Contract awarded to India’s Larsen & Toubro by Petroleum Development Oman (PDO) for the engineering, procurement and construction of a gas treatment plant at the Lekhwair gas field

$450m: Value of major contract awards

3: Number of contracts awarded

For further information visit www.meed.com/contracts

Saudi Arabia and Qatar were the only two countries to not record a drop in the value of their projects markets as the Gulf Projects Index fell for the third consecutive week.

The index fell by 0.1 per cent to $2.4 trillion for the week up to 27 September.

Saudi Arabia’s market grew by more than 1 per cent as the estimated $7bn Saudi Landbridge rail project was revived and four new projects worth a total of $250m were added to its index. Qatar’s market rose by 0.2 per cent as it launched two new construction projects worth $375m.

Project updates
 Project NameProject Status
UAESewage Treatment Plant - Package II (Al-Reem Island)Cancelled
QatarQatar University HeadquartersConstruction
OmanJourney of Light Beach ResortOn Hold
BahrainAljazayer Beach ResortPlanned
Saudi ArabiaSaudi LandbridgeTender
For further information visit www.meed.com/meedprojects

Oman’s projects market recorded the biggest drop of the week, with the total value of projects planned or under way falling by 1 per cent. The reason for the drop was a $950m beach resort in the Batinah region being put on hold and the completion of two power projects worth $209m.

The GCC index as a whole fell by 0.2 per cent for the week.

The UAE recorded the second biggest drop, with its projects index falling by 0.5 per cent. The decrease was caused by the cancellation of a $1bn water sewage treatment project in Abu Dhabi and nine projects worth $3.9bn being put on hold. The largest project to be put on hold was a $1bn Nakheel project on Dubai Waterfront.

The total value of projects in Bahrain fell by 0.3 per cent as two construction projects worth more than $1.6bn were completed.

Upcoming tender deadlines
 ClientContractSubmission date
KuwaitDirectorate General of   
Civil AviationNew runway11 October 
Kuwait    Health MinistryAl-Amiri hospital expansion11 October
Saudi Arabia  Health MinistryAl-Amiri hospital expansion   11 October
UAEAbu Dhabi Health Services Company (Seha)  Al-Ain hospital15 October
UAEAbu Dhabi Airports CompanyMidfield Terminal13 November
For further information visit www.meed.com/tenders

Outside the GCC, the value of Iran and Iraq’s projects markets decreased by 0.1 per cent. Iran’s projects market declined as a $450m hotel development was put on hold, while the value of projects under way in Iraq fell as a $400m power plant project in Dahuk was completed.

Iraq maintains its position as the region’s fastest growing market, recording a 49 per cent year-on-year increase.

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