Index falls despite growth in Bahrain

07 December 2010

GCC projects fall for a third successive week, with only Bahrain and Kuwait recording positive change

Contract awards 8 December 2010

Biggest contract: $840m

Awarded to the local Boodai Construction Company, Italy’s Rizzani de Eccher, Spain’s OHL and Italy’s Trevi Group for road works in Kuwait

Value of major contract awards: $1.035bn

Number of contracts awarded: 4

The total value of major projects planned or under way in the Gulf on 8 December was $2.86 trillion, a fall of 2 per cent on the previous week, according to the latest Gulf projects index. This is the third successive week that the region’s project market has slipped.

The bulk of the decrease was due to a fall of 2.5 per cent in the total value of projects planned or underway in the GCC, which accounts for about 76 per cent
of the Gulf projects market.

Project updates 8 December 2010
 Project NameProject Status
KuwaitJamal Abdul Naser Street: Overhead Passages & DrainageConstruction
Saudi ArabiaRas al-Zour to Hafar Al-Batin Water PipelineConstruction
KuwaitKuwait Hospital TowersPrequalification
Saudi ArabiaCalcined Petroleum Coke PlantConstruction
OmanAl-Duqm Airport: Package IIConstruction
For further information visit www.meed.com/meedprojects

A total of $13.5bn of new projects were launched in the region in the week up to 8 December, but 23 projects worth $66.4bn were put on hold, and 21 projects worth $4.9bn were completed.

The bulk of the slide can be attributed to a 6.95 per cent decrease in the UAE’s project index. The UAE saw 17 projects worth a total of $64bn put on hold. The most notable project to be removed from the index is the $55bn Mohammed bin Rashid Gardens, which MEED Projects now considers to be on hold.

Oman, Qatar and Saudi Arabia all recorded a decline in their project indices.

Upcoming tender deadlines
 ClientContractSubmission date
OmanThe WaveKempinski Hotel18 Dec
UAECentre of Waste Management – Abu DhabiIntegrated waste management project23 Dec
UAEAbu Dhabi Polymers Company (Borouge)Specialist plastics plant23 Dec
KuwaitKuwait UniversityCollege of Science and Faculty Club11 Jan
Saudi ArabiaSaudi Electricity CompanyQurayyah independent power project28 Feb
For further information visit www.meed.com/tenders

However, there was some positive news for the GCC projects market. Bahrain and Kuwait both recorded growth in their project markets of 7.2 per cent and 3.4 per cent respectively. In Kuwait, five new projects worth a combined total of $8.4bn were announced, the largest of which is the Public Works Ministry’s scheme to build eight new hospitals worth a total of $7bn. Bahrain launched two new projects worth a total of $3.5bn.

The overall projects market is still positive when compared with the previous year, with the Gulf market achieving a 6.4 per cent year-on-year increase.

Iraq maintains its position as the region’s fastest growing market by recording a 114 per cent year-on-year increase.

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