A 6.7 per cent rise in the value of Bahrain’s projects market was unable to prevent the Gulf Projects Index falling by 0.6 per cent to $2.42 trillion for the week up to 4 October.

The first growth for Bahrain’s projects market in 18 weeks came as five out of the Gulf’s eight states recorded a drop in the value of their projects.

The reason for the growth in Bahrain was an increase in the budget for the planned Bapco refinery expansion project, which is now expected to cost about $6bn. The plans for the refinery project are expected to be completed in the first quarter of 2012.

The UAE was the only other Gulf state to record any significant growth in its projects market, which grew by 0.1 per cent as five real-estate projects worth a total of $2bn were revived. Oman’s projects sector recorded the biggest drop in the GCC, with the value of projects planned or under way in the sultanate falling by about 1.4 per cent. The main contributor to the fall was the completion of a $600m steam driven project.

Saudi Arabia, the region’s largest projects market, recorded a 0.3 per cent decrease in the value of its projects index as three projects worth a total of $631m were put on hold. About five projects worth a total of $446m were completed.

Outside the GCC, Iran and Iraq both recorded sharp falls in projects market value. Iran’s projects index fell by 3.1 per cent as a $352m polystyrene plant project was completed and three projects worth a total of $5bn were put on hold.

The total value of projects planned or under way in Iraq fell by 1.7 per cent. Despite the drop, Iraq maintains its position as the only projects market registering significant growth over the past 12 months, recording a 46 per cent year-on-year increase.