Impact of GCC slowdown takes hold

12 May 2015

Bahrain makes the biggest gain, while Saudi Arabia’s market continues to fall

The Gulf Projects Index contracted by 0.4 per cent in the week ending 8 May, with the GCC slowdown beginning to have an impact on the region’s projects market. The GCC market shrank by 0.6 per cent.

Bahrain bucked the trend, rising 1 per cent following several GCC-supported infrastructure projects progressing across the country. Schemes relating to the expansion of Bahrain International airport, including a passenger loading bridge and an upgrade to the hangar facilities, have boosted the country’s projects market.

Project updates 
 Project Status
IranSouth Azadegan field development: phase 2New project
OmanMuscat DowntownInactive
Saudi ArabiaCombined-cycle power plantBudget change
Saudi ArabiaKing Khaled University: phase 2 (Abha Medical City)Complete
UAEJebel Ali refinery expansionRevived
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The UAE’s Emaar Properties has added to Bahrain’s weekly increase with the announcement of $250m-worth of real estate schemes, including a branded hotel apartment project – The Address Residences Marassi.

The biggest drag on the GCC performance was Kuwait, which fell 2 per cent largely due to budget changes.

Qatar saw its decline from last week turn into a small gain of 0.4 per cent, mostly driven by a budget change to the Doha City Centre expansion project.

Upcoming tender deadlines
 ClientContractSubmission date
Saudi ArabiaSaudi Electricity CompanyWaad al-Shamal power plantMay-15
UAEInvestment Corporation of DubaiAtlantis ResortJun-15
Saudi ArabiaMetro Jeddah CompanyObhur BridgeJul-15
OmanOman Power & Water Procurement CompanySohar 3/Ibri independent power project (IPP)Aug-15
Saudi ArabiaSaudi Electricity Company/Saudi AramcoFadhili IPP31-Aug
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Saudi Arabia recorded a drop of 1.1 per cent as major schemes are reviewed. Social infrastructure projects will continue to press ahead, but with a new edict requiring the royal court to approve all projects over $80m, the market is expected to slow down for now.

Oman posted a 0.2 per cent decline due to the completion of several big schemes, including redevelopment work at Salalah International airport.

The UAE saw no change, following growth of 0.1 per cent last week. It is expected to be boosted by the plans announced by Dubai for a metro link to the Expo 2020 site. 

Iraq’s market gained 0.9 per cent, mostly due to the revival of the $9bn high-speed railway project in the western region.

In numbers

$1.4bn Cancelled projects in the Gulf region

11 Projects completed in May in the Gulf region

$9bn Value of revived rail project in Iraq

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