Index falls as Manama unrest continues

06 September 2011

Political uncertainty results in projects market in Bahrain recording a 1.6 per cent fall

Contract awards

Biggest contract: $434m

Awarded to South Korea’s Hyundai Engineering & Construction to build the new Qatar National Museum in Doha

$1.1bn: Value of major contract awards

5: Number of contracts awarded

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The continuing decline in the Bahrain projects market has resulted in the Gulf projects index falling marginally to $2.5 trillion for the week up to 6 September.

The uncertainty in Bahrain resulted in the value of its projects sector dropping by 1.6 per cent to $52.8bn. Its projects market has now fallen by almost 35 per cent since the unrest began in February.

Project updates
 Project NameProject Status
UAENoor 1 Photovoltaic PlantTendering
Saudi ArabiaMedinah Knowledge Economic City: Phase ICancelled
IranAbadan Refinery Upgrade: Phase IIConstruction
OmanLekhwair Gas Field DevelopmentConstruction
QatarQatar National MuseumConstruction
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The markets in Saudi Arabia and Qatar also declined. Qatar recorded a 1 per cent fall. Saudi Arabia’s 0.1 per cent decrease was a result of the cancellation of two projects worth an estimated total of $1.2bn planned for its economic city schemes at Jeddah and Medina.

The declines in the Bahraini, Saudi and Qatari markets resulted in the GCC projects index, which accounts for about 73 per cent of the total Gulf index, falling by 0.2 per cent to $1.8 trillion.

Upcoming tender deadlines
 ClientContractSubmission date
UAEWasl Asset ManagementMeridien Hotel expansion 18 September
OmanTransport & Communications MinistryBatinah Expressway (package 2)26 September
KuwaitDirectorate General of Civil AviationNew runway11 October
UAEAbu Dhabi Health Services Company (Seha)  Al-Ain hospital15 October
UAEAbu Dhabi Airports CompanyMidfield Terminal13 November
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The UAE and Kuwait both recorded small increases in the value of projects planned or under way. In the UAE, three new projects worth a total of $267m were launched and a $60m construction project was revived.

A strong performance from Iran’s projects sector helped to counter-balance the poor performance of the GCC projects index. Iran’s market grew in value by 1 per cent to $305bn. The rise in its projects sector can be attributed to the revival of a $3bn refinery project in the Khuzestan region.

Iraq’s index remained flat for the week up to 6 September, but is still the region’s fastest-growing projects market, recording a 50.6 per cent year-on-year increase.

The political unrest that has swept across the region continues to impact on the Gulf’s projects index, with the total Gulf market recording a 13 per cent year-on-year decrease. The value of the GCC market is 21 per cent down on the same period last year.

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